The Offshore Alliance has filed for a protected industrial action ballot against oil and gas giant INPEX.
The move marks a major escalation in a six-month stalemate over a new enterprise agreement for roughly 400 workers. These employees operate the Ichthys LNG project, which includes onshore facilities in Darwin and offshore platforms in the Timor Sea.
The union’s application to the Fair Work Commission follows the resounding rejection of INPEX’s latest offer. Workers argue the proposal fails to keep pace with industry standards, effectively erodes real wages, and offers little in the way of job security.
Offshore Alliance spokesperson and AWU Assistant National Secretary Chris Donovan said the workforce felt pushed into a corner after years of declining real wages and the threat of increased outsourcing.
“After six months of negotiations, INPEX has failed to agree to even the most basic claims put forward by its workforce.” Donovan said.
“Workers who operate some of the most complex and high-risk facilities in the country are being asked to accept an agreement that does nothing to address their concerns about pay, conditions and job security.”
“In an industry where contracting out work to the lowest bidder is rife, our members reasonably want INPEX to commit to continuing to direct hire its current workforce. The company hasn’t even been able to do that.”
The dispute comes as INPEX reports bumper financial results. The union pointed to the company’s AU$10 billion net operating profit last financial year, all derived from Australian resources, noting that a ship loaded with AU$140 million of gas leaves for Japan roughly four times a week.
Union leaders say the contrast between rising profits and declining worker conditions has only hardened resolve among the workforce.
“INPEX has left workers with no other choice. The company has had every opportunity to negotiate in good faith and deliver industry-standard conditions,” Donovan said.
The outcome of these negotiations is being watched closely by the entire energy sector. As the first second-generation agreement to be negotiated with a tier-one operator, the deal will likely set the benchmark for upcoming talks with other majors like Shell and Woodside.
If the Fair Work Commission approves the ballot, workers could begin voting later this month.
This puts the industry on notice for potential strikes and work stoppages as early as May 3, potentially throttling supply from one of the nation’s most significant LNG export hubs.
