Chevron Agrees to Regulator’s Plan to End Australia LNG Strikes

Chevron Corp. agreed to a deal proposed by an Australian regulator to end strikes at key natural gas export facilities, while the unions continue to review the plan.

(Bloomberg) — Chevron Corp. agreed to a deal proposed by an Australian regulator to end strikes at key natural gas export facilities, while the unions continue to review the plan.

If the unions also endorse the agreement, then it would end industrial action at the Gorgon and Wheatstone facilities that has roiled global gas markets.

Chevron accepted the recommended agreement from Australia’s Fair Work Commission, according to a statement from the company. The nation’s labor regulator put forward a new proposal to resolve remaining disputes on Thursday, with the unions having until 9 a.m. Sydney time on Friday to respond.

If the unions reject the commission’s proposals, which include revised terms on pay, travel and expenses, a hearing will be held at 10 a.m. in Sydney to decide on so-called intractable bargaining declarations — meaning the regulator would be able to end the dispute by independently setting new terms and conditions of employment. 

Union members at Chevron’s projects started ramping up strikes last week, including with a series of 24-hour stoppages, threatening to reduce exports from one of the world’s biggest LNG suppliers and sending global prices higher. 

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