Workers could walk off the job at an oil and gas giant’s offshore LNG plant, as a union pursues “unrealistic claims” on behalf of its members, an employer group says.
Offshore Alliance applied to the Fair Work Commission on Wednesday for a protected action ballot order, stating via social media that Inpex Ichthys LNG operations, off the West Australian coast, had offered workers a dodgy pay deal.
The Australian Resources and Energy Employer Association said the alliance’s claims could increase Inpex’s labour costs by about 50 to 60 per cent.
The union, made up of the Australian Workers Union and Maritime Union of Australia, also wants increased employee allowances, automatic promotions, guaranteed bonuses, Gold Class Qantas membership, and company-funded FIFO travel from anywhere in the world, the association said.
The association’s deputy chief executive, Tara Diamond, said the claims were detached from economic reality and risked setting an unsustainable precedent across the sector.
“These are not responsible or incremental claims,” she said in a statement on Thursday.
“They are an attempt to significantly lift pay and allowance structures for a workforce that is already among the highest paid in Australia.”
Inpex employees typically earn between $300,000 and $400,000 per year, and the union claims would push wages beyond $500,000 per annum on average,” Ms Diamond said.
The association said the alliance’s bargaining and campaigning across the offshore LNG industry had become increasingly aggressive.
“It is a co-ordinated campaign model that combines unsustainable claims with a deliberate escalation toward industrial action,” Ms Diamond said.
The union’s recent public statements have foreshadowed industrial action and drawn comparisons to previous offshore disputes, threatening prolonged disruption and significant financial losses.
“The industry has seen this playbook before,” Ms Diamond said.
When disputes escalate, the impacts flow through to production, supply chains and the broader economy.
The association said the timing of the possible industrial action increases the risk of shortages.
“In a period of heightened global energy demand and ongoing fuel supply and pricing pressures, maintaining stable and reliable operations is critical,” Ms Diamond said.
In a Facebook post, the Offshore Alliance said Inpex’s Enterprise Agreement proposal would erode the job security, push down pay and give employees sub-standard employment conditions.
“Our members won’t be copping the scraps off the bargaining table, and we anticipate a 100 per cent rejection of Inpex’s dodgy deal,” the union said.
“There is not a single bargaining claim that Inpex cannot afford.”
It said members would vote yes for protected industrial action.
Inpex and Australian Energy Producers have been contacted for comment.