Inpex clashes with union due to redundancy process, reluctance to negotiate new enterprise agreement

MAJOR oil and gas corporation Inpex has slashed its Australian workforce, including in the NT, with the company copping criticism for its choices amid an ongoing stoush with the union that has continued to escalate

MAJOR oil and gas corporation Inpex has slashed its Australian workforce, including in the NT, with the company copping criticism for its choices amid an ongoing stoush with the union that has made its way to the Fair Work Commission (FWC).

The NT News last year revealed Inpex would be making 65 staff redundant at its Ichthys LNG onshore plant in Darwin, and at its offshore facilities located in the Timor Sea, 220km from Western Australia. Inpex declined to confirm the final number.

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It can now be revealed that Inpex’s move to axe two Indigenous workers inflamed their already frayed relationship with the Australian Workers’ Union, the Maritime Union of Australia and the Offshore Alliance, which is a mix of both unions.

Energy Advance carrying the 200th LNG export cargo from the INPEX-Operated Ichthys LNG onshore facilities. Picture supplied

According to the unions, Inpex undertook a review of their choices and reached a deal to sit down with delegates every quarter to discuss the company’s commitment to Indigenous employment.

Inpex is also locked in an enterprise bargaining stoush with the unions that is currently before the FWC.

This is because Inpex, as per FWC documents, does not want to negotiate a new enterprise bargaining agreement for staff, despite the last agreement expiring in 2018.

The case returns to the FWC later this month.

Inpex has said the low oil price environment in 2020 prompted the company to undertake a review of its operations to “support the future” Ichthys LNG operating model.

“All employees were consulted at the time,” a spokesman said.

He said it would be inappropriate to comment on the FWC proceedings.

National secretary of the Australian Workers Union Daniel Walton. Picture: Grant Wells.

National AWU secretary and Offshore Alliance spokesman Daniel Walton said the redundancy process “completely” lacked transparency.

“Inpex claimed it chose employees for redundancy based on set criteria. with a strict scoring system for each worker. but then failed to reveal a single score, even to the employees it made redundant,” he said.

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“If Inpex thinks it can silence its workforce and stop union delegates from doing their job, they can think again.

“We’re more determined than ever to secure a new enterprise agreement that will protect workers’ jobs and rights and ensure Inpex is held accountable for decisions that affect our members.”