By Alexandra Marriott
It has been reported that a significant number of construction workers on Woodside’s Pluto LNG project – around 1500 – are continuing strike action. The action is now in its sixth day.
The workers on the project are fly in/fly out workers protesting changes to accommodation arrangements; the strike comes despite considerable efforts by Woodside to address their concerns.
Whilst the industrial action is likely to be unlawful, the greater issue is that of the broader reputational damage for Australian industry.
As noted on this blog recently, some of the effects of the Fair Work reforms stand to threaten Australia’s competitiveness in the international market. Speaking to the issue of the strike at the Pluto LNG project, WA Premier Barnett has noted that:
“….the people around the world who award those contracts will make the decision to build these components in Singapore, Korea or Manila, that’s where they’ll be done and there where jobs will be lost.” [ABC Online]
Similarly, Chief Executive of CCIWA, James Pearson, described the strike as being “bad for business” that has the potential to “send a negative message to potential investors”.
Workplace Express has reported a Woodside spokesperson’s concerns about Australia’s reputation for industrial harmony:
“The Australian energy industry has a reputation internationally for reliability based in high levels of industrial harmony over recent years, and anything threatening that also threatens to damage the reputation of the industry.”
It is our view that it is imperative that a balance be struck between rights and duties under the new legislation.
Globalisation of the workforce and marketplace isn’t going away anytime soon; and the significance of such industrial action needs to be considered in both local and international contexts, rather than just the singular context of the Fair Work Act.
We join Premier Barnett’s call to these employees to return to work, for Australia’s sake.
[Update - 29 January 2010]
There have been some significant developments in the strike at Woodside’s Pluto LNG project.
The Federal Court has issued an injunction requiring striking employees on Woodside’s Pluto LNG project to return to work. The employees could face fines or even imprisonment if they continue to strike.
In addition, it is likely that the WA branch of the CFMEU will be scrutinised. Whilst Woodside has launched legal action against the union’s alleged involvement in the ongoing strike, this is the least of the Union’s concerns. The ABCC is also investigating the dispute – and has indicated that the industrial action is likely to be unlawful – and the Fair Work Ombudsman
The strike comes at an interesting moment in the evolution of the Fair Work reforms to Australia’s industrial relations framework – particularly considering the Building and Construction Industry Improvement Amendment (Transition to Fair Work) Bill 2009 is tabled for the autumn sittings of Parliament.
VECCI will be observing the developments closely.
[...] the wake of recent strike action at the Pluto LNG Project, Woodside’s chief executive, Don Voelte, has called for the Rudd [...]
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