Labor unions halted plans to strike at Chevron Corp.’s liquefied natural gas facilities in Australia, ending a dispute that had roiled global markets for the fuel.
(Bloomberg) — Labor unions halted plans to strike at Chevron Corp.’s liquefied natural gas facilities in Australia, ending a dispute that had roiled global markets for the fuel.
Workers on Tuesday accepted Chevron’s proposed settlement on pay and working conditions and will not move forward with a labor action that had been planned for Thursday, according to a statement from the Offshore Alliance, which represents two unions.
Worries over the prospect of reduced gas exports from one of the world’s biggest suppliers — as well as other unrelated outages — prompted price spikes in Europe and Asia over the summer. More recently, concerns over possible disruptions have intensified due to the unfolding conflict in the Middle East.
Chevron welcomes “the Offshore Alliance’s endorsement of the agreements,” the company said in a statement.
The agreement by workers to accept the terms effectively resolves a dispute that triggered strikes last month at Chevron’s Gorgon and Wheatstone facilities, which accounted for about 7% of global LNG supply last year. Workers threatened to strike again after they criticized the company’s efforts to finalize an agreement.
(Adds Chevron comment in 4th paragraph)
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