Shell has canceled gas shipments from its Prelude offshore facility, due to a labor dispute between the unions and the Anglo-Dutch resource company.
Key points:
- A new round of industrial action is planned for the offshore gas installation of Shell Prelude next month
- Workers who were due to be moved to the facility on Wednesday were ordered to withdraw
- A wage dispute between the unions and the Anglo-Dutch company is at a standstill
Contractors who would fly to the resource platform on Wednesday were told to withdraw in response to disagreement over wage increases, the list and job security.
The dispute has also prompted Shell to warn its customers that they will cancel some gas shipments from the facility until mid-July.
“Shell confirmed that it had issued a warning to customers that the charges would be affected at least until mid-July due to industrial action,” a Shell spokesman said.
Advances occur when gas prices rise due to shortage of supply and war in Ukraine.
The LNG facility, 400 kilometers off the coast of Kimberley, was put into operation in 2019, but has been affected by technical issues, safety issues and cost rupture.
The facility was temporarily shut down after a fire was detected on board in December last year, but was later approved by the industry regulator and returned to line in April this year. .
The platform of concerns will be closed
The Australian Workers ’Union and the Maritime Workers’ Union form the Offshore Alliance and have been pushing to increase the salaries of members aboard the facility.
Industrial action has been carried out on board the ship since early June, but a new set of “bans” approved by the Fair Work Commission will take effect from 1 July.
Two of the bans would cause union members not to re-ignite the facility’s turbines if they were “stuck,” which would raise concerns that the platform could be temporarily shut down if that happened.
But Australian Workers’ Union secretary Daniel Walton said union members prioritized safety and would do nothing to endanger the crew on board the facility.
Daniel Walton (right) says workers aboard the facility are looking for pay raises. (ABC News)
“We fundamentally deny that we would do anything in any way to endanger the safety of the facility, the workers on board or the wider environment,” he said.
“Shell is spreading misinformation as a way of trying to justify, I think, this industrial extremism,” he said.
Walton said Shell had threatened to close the facility and used those threats as a “tactic” in the ongoing dispute between workers and the company.
“Instead of sitting down to offer a decent wage increase, they seem to be stepping up their action against their workforce,” he said.
The wage dispute is raising tensions
The dispute that causes tensions on board the facilities focuses on the increase in the salary of workers on board, job security and increases in retirement.
Unions began negotiating wage increases in 2020, according to Walton, but tensions have risen after talks stalled and new industrial action was approved for July.
“Unfortunately, Shell doesn’t offer any salary increases,” he said.
“In fact [Shell] having a membership position that says 25 percent of our members ’salaries will be discretionary.”
Industry figures say the proposed wage increases could mean a $ 40 million increase in operating costs. (Supplied by: Shell)
Shell said in a statement that the company “recognizes the right of all workers to exercise their rights, including the right to participate in labor actions.”
“We work hard to deliver a solid value proposition for our employees that is competitive with peers in the industry,” the statement said.
“We continue to interact with our people and their representatives and remain committed to acting fairly, respectfully and transparently at all times during the negotiation process.”
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