The Offshore Alliance (OA) union has applied for a Protected Action Ballot Order (PABO) for workers at Inpex's Ichthys LNG project in Australia, escalating a six-month labour dispute and opening the door to potential strikes and work stoppages as early as May 3rd.

Background and Stakes of the Dispute

The dispute occurs against the backdrop of Australia's role as a reliable energy supplier, with Ichthys LNG accounting for 8% of Japan and Taiwan's LNG imports last year. The OA represents approximately 400 offshore and onshore workers at the project's facilities.

Union's Position and Grievances

The union cites "growing frustration" after failed bargaining on key issues. It asserts that Inpex has not made meaningful progress on pay, job security, and conditions over six months of negotiations. Workers reportedly feel compelled to act after years of declining real wages and unaddressed job security concerns. The OA criticizes Inpex's proposed agreement for failing to address basic claims, eroding real wages, freezing allowances, and stripping protections against outsourcing and redundancies. A core demand is for Inpex to commit to directly hiring its current workforce instead of contracting work out.

Company's Response and Proposed Agreement

Inpex states a preference to reach an agreement without disrupting production, emphasizing the need for reliable energy supplies. The company describes its proposed "Inpex-Ichthys Operations Enterprise Agreement 2026-2030" as fair, competitive, aligned with the market, and exceeding peer conditions in several areas. It maintains the offer reflects a commitment to its workforce while securing the project's future to support regional energy security. The proposal has been issued to employees for consideration ahead of a formal ballot.

Next Steps and Industry Context

The PABO application allows workers to vote on protected industrial action, pending Fair Work Commission approval. A ballot is expected later this month. This dispute follows a pattern of the OA negotiating enterprise agreements with major Australian gas producers, including Shell, Woodside Energy, and Chevron, after securing its first with Inpex in early 2022.