The Offshore Alliance today applied to the Fair Work Commission for a Protected Action Ballot Order (PABO), marking a major escalation in its dispute with oil and gas giant INPEX after more than six months of stalled negotiations.
The application follows growing frustration among the 400 highly skilled offshore and onshore workers across INPEX's Ichthys LNG operations, including facilities in Darwin and offshore in the Timor Sea, where bargaining has failed to deliver meaningful progress on pay, job security, and conditions.
Union representatives say INPEX has refused to agree to core claims put forward by workers, with the company's latest enterprise agreement offer below industry-standard and resoundingly rejected by members in an internal poll conducted by the Alliance.
Offshore Alliance representatives said workers felt like they had no other option to take the first step toward strike action after enduring years of declining real wages and ongoing concerns about job security, which INPEX has failed to acknowledge or address in half a year of bargaining.
"After six months of negotiations, INPEX has failed to agree to even the most basic claims put forward by its workforce," Offshore Alliance 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."
"In an industry where contracting out work to the lowest bidder is rife, our members reasonably want INPEX to commit to continuing to direct hire its current workforce. The company hasn't even been able to do that."
The union argues INPEX's proposal would erode real wages over time, freeze key allowances, and strip away critical job protections, including safeguards against outsourcing and redundancies.
The move to seek a PABO opens the door for workers to vote on taking protected industrial action, including strikes and work stoppages, if approved by the Fair Work Commission.
"This application is about union members exercising a democratic right to endorse industrial action in pursuit of a fair and acceptable collective agreement," Mr Donovan said.
"INPEX has left workers with no other choice. The company has had every opportunity to negotiate in good faith and deliver industry-standard conditions."
The current INPEX enterprise agreement, finalised in early 2022, was the first enterprise agreement negotiated by the Offshore Alliance with a major gas producer. Later in 2022, Shell's Prelude FLNG became the second, followed by both Woodside Energy and Chevron Australia in late 2023.
The negotiations with INPEX are the first negotiations for the Alliance for a second generation agreement with a tier one operator.
"The INPEX Ichthys and Shell Prelude agreements will set both the industry standard and the tone of negotiations in the sector for the next round of collective agreements. Offshore Alliance members working for these employers understand that what they accept in negotiations will have an impact on the industry standard in the sector for years to come. They don't take that lightly," Mr Donovan said.
The Offshore Alliance expects a ballot of members to proceed later this month, with potential industrial action possible as early as May 3rd if members endorse it.
The dispute comes amid strong financial performance from INPEX, with the company forecasting significant profit growth and deriving the majority of its earnings from Australian operations.
"Last financial year INPEX made $10 billion in net operating profit, all of it from Australian oil and gas, much of it on-sold by INPEX Japan at inflated prices," Mr Donovan said.
"INPEX is sending a ship loaded with Australian gas worth about $140 million a pop every couple of days to Japan, about four a week, that's half a billion dollars sailing out of our country on a weekly basis."
Union leaders say the contrast between rising profits and declining worker conditions has only hardened resolve among the workforce.
"INPEX's success is built on the skill and dedication of its workforce," Mr Donovan said.
"Our members are united, they are determined, and they are ready to fight for an agreement that reflects the value of the work they do."
