Fair Work rejects gas giant's claim strikes would harm Australia's economy

Australia's Fair Work Commission has dismissed claims by energy giant Inpex that ongoing industrial action by its workers would significantly damage the nation's economy and jeopardize its relationships with Asian partners. The ruling comes amid a global fuel crisis, highlighting the delicate balance between industrial disputes and national economic interests.

Over 400 workers at Inpex have escalated industrial action since June, demanding improved conditions and a 3% annual pay increase. Unions representing the workers, the Offshore Alliance, had threatened strikes and work bans that could halt the company's operations in the Northern Territory. Inpex sought urgent orders to stop this action at its Ichthys onshore and offshore facilities in Darwin.

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threatens to cause significant damage to an important part of the economy, being the export LNG market

During an expedited hearing, Inpex lawyers argued that the potential industrial actions posed a "serious risk" of shutting down facilities within days, threatening a significant portion of Australia's economy, particularly the export LNG market. They emphasized the geopolitical importance of reliable LNG supply to Asian customers, especially given government representations relying on this stability.

However, FWC Deputy President Michael Easton found Inpex's evidence of economic damage unconvincing. While acknowledging that strikes could lead to a full production stoppage for at least a week, he noted the company's "forensic evidentiary decision" not to disclose the value of its daily gas production. Based on an assumption of $15 million to $22 million per day, Easton stated he was not satisfied that a stoppage would cause damage to the magnitude claimed by Inpex. The dispute between Inpex and its workers has been ongoing since last year.

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threaten to cause a full production stoppage