Inpex’s Ichthys: Offshore Alliance threatens strike action at WA LNG hub as workers push for ‘$500k+’ pay

Japan’s Inpex and hundreds of frustrated workers are in the midst of a bitter bargaining dispute that risks descending into strike action and stoppages at the LNG giant’s Ichthys operations off the WA coast. The Offshore Alliance — a union formed between the Australian Workers’ Union and the Maritime Union of Australia — said it had filed a protected action ballot order and threatened industrial action as early as May 3 if members get behind the vote, which is set to be held in the next few weeks. The showdown follows more than six months of unsuccessful negotiations between the parties, but is now set against the backdrop of heightened concern about energy security due to the conflict in the Middle East. Ichthys opened in 2018 and has capacity to produce up to 9.3 million tonnes of LNG a year, though the vast majority is exported to customers in Japan. Gas from the Ichthys field is then fed to onshore facilities for processing near Darwin via an 890km pipeline. Offshore Alliance representatives said workers “felt like they had no other option” than to take the first step towards strike action. Inpex senior vice-president corporate Bill Townsend said the company’s preference was to reach agreement “without disruption”. “The Middle East conflict has highlighted Australia’s valued position as one of the world’s most reliable energy suppliers to key trading partners in the Indo-Pacific region,” Mr Townsend said. “Last year, Ichthys LNG accounted for 8 per cent of both Japan and Taiwan’s respective LNG import volumes, delivered via long-term sales and purchase agreements.” The Australian Resources & Energy Employer Association blasted the union’s requests as “unrealistic”. “These are not responsible or incremental claims. They are an attempt to significantly lift pay and allowance structures for a workforce that is already among the highest paid in Australia,” deputy chief executive Tara Diamond said. “Inpex employees are typically earning between $300,000 and $400,000 per year. The Offshore Alliance’s claims would push that well beyond $500,000 on average.” The union argues Inpex has deep-enough pockets to grant workers higher pay. “After six months of negotiations, Inpex has failed to agree to even the most basic claims put forward by its workforce,” spokesman and AWU Assistant National Secretary Chris 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.” Ichthys leads the $60b LNG operation with a 67.82 per cent interest alongside major partner TotalEnergies which has a 26 per cent stake. CPC Corporation Taiwan, Osaka Gas, Kansai Electric Power, JERA and Toho Gas also have minor stakes.