Chevron (CVX) workers for liquefied natural gas ( LNG) Sites in Australia began partial strikes on Friday after negotiations between the company and workers failed, potentially disrupting global supplies and pushing up gas prices.
Takeaways
- Workers at Chevron's LNG facilities began a partial strike Friday over wages and other disputes.
- Chevron's Australian LNG facilities are responsible for more than 5% of supplies
- Natural gas futures rose on the news.
The conflict between Chevron and its workers revolves around wages and other issues, leading to walkouts at Chevron's Gorgon and Wheatstone plants. The Fair Work Commission, Australia's industrial arbiter, mediated between Chevron and Offshore Alliance, the partnership of two energy sector workers' unions representing 500 workers.
Last month, Australian producer Woodside Energy raised wages and made it harder to recruit contractors or change staff numbers to avoid a strike in its dealings with the same union. However, in the case of Chevron, stakeholders would have divergent views on key terms.
Under the current conditions of partial strike, workers They will not work up to 11 hours a day until next Thursday, after which they will be on total strike until September 29 if their demands remain unanswered. answer.
Australia is one of the world's largest LNG exporters and Chevron's Australian facilities are responsible for more than 5% of global supply.
Chevron shares were in up 0.9% in early trading Friday, but down 6.8% year to date.
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Source: investopedia.com
