Source: Australian Mines and Metals Association – AMMA
AREEA has warned that enterprise bargaining in the offshore LNG sector is rapidly escalating toward a major industrial dispute, driven by unrealistic claims and an increasingly aggressive campaign by the Offshore Alliance (Western Australian Branches of the AWU and MUA).
The emerging conflict is now playing out at INPEX’s Ichthys LNG operations, where enterprise bargaining has entered a critical phase, with the employee access period underway and a workforce vote scheduled for mid-April.
At the centre of the dispute are Offshore Alliance claims that would increase labour costs by an estimated 50–60 per cent, alongside a suite of demands that go well beyond current industry standards.
These include substantial increases to allowances, automatic promotions for all employees, guaranteed bonuses regardless of performance, gold class Qantas membership, and company-funded FIFO travel from anywhere in the world.
AREEA Deputy Chief Executive Tara Diamond said the scale and nature of the claims were detached from economic reality and risked setting an unsustainable precedent across the sector.
“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,” Ms 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.”
In contrast, INPEX has put forward an offer based on steady wage growth and targeted improvements, while maintaining remuneration that is already among the highest in the industry.
AREEA said the gulf between the two positions reflects a broader campaign model in Offshore Alliance bargaining across the offshore LNG industry.
“This is not typical enterprise bargaining. It is a coordinated campaign model that combines unsustainable claims with a deliberate escalation toward industrial action,” Ms Diamond said.
“The Offshore Alliance’s approach is clearly aimed at setting a new industry benchmark that pushes well beyond what is reasonable or sustainable for the local industry.”
Recent public statements by the Offshore Alliance 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 these disputes escalate, the impacts are not contained. They flow through production, supply chains and the broader economy.”
AREEA also raised concerns about the nature of Offshore Alliance campaign activity accompanying bargaining.
“Increasingly, we are seeing campaign tactics that rely on public pressure, inflammatory messaging and targeting of certain employees or cohorts of the workforce,” Ms Diamond said.
“This type of conduct undermines constructive bargaining and contributes to psychosocial risks in a safety-critical industry.”
The association said the timing of the dispute further heightens the risk.
“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.
“Disputes of this scale, both in terms of cost and disruption, have consequences well beyond a single workplace.”
AREEA said the INPEX negotiations are likely to set the tone for upcoming bargaining across the offshore LNG sector, including at other major operators over the next two years.
“This is the first major test in a new offshore bargaining cycle,” Ms Diamond said.
“What happens here will shape expectations across the entire industry, and the stakes for Australia’s economy and energy security are significant.”
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