Chevron Faces Impasse In LNG Strike Talks With Unions In Western Australia - What's Next?

New negotiations between Chevron Corp CVX and unions concerning strikes at two liquefied natural gas (LNG) facilities in Western Australia concluded on Wednesday without a resolution.

Chevron Australia indicated that despite engaging in "substantive discussions" this week, the unions representing the Wheatstone and Gorgon facilities persisted in seeking terms well above industry norms. 

The Fair Work Commission, a tribunal, will review the matter during a Friday meeting.

Citing the Chevron spokesperson, Reuters noted, "The ongoing lack of agreement reinforces our view that there is no reasonable prospect of agreement between the parties."

Following a breakdown in previous negotiations with the Offshore Alliance, a coalition of two unions, Chevron had sought the intervention of the Fair Work Commission. 

The tribunal allocated only one day for hearings and will determine whether to intervene and halt the strikes that commenced on September 8 and escalated to two 24-hour work stoppages over the weekend. 

An anonymous union representative in the discussions revealed that Chevron is banking on a favorable ruling from the tribunal.

To resolve pay and conditions, the Commission hosted mediated talks between Chevron and the unions earlier in the week. 

However, according to Offshore Alliance spokesperson Brad Gandy, while both sides made concessions during the talks, Chevron's offer remained below industry standards. 

In contrast, Woodside Energy Limited WDS and the Offshore Alliance reached an agreement in August for the nearby North West Shelf LNG facility after workers had threatened to strike.

Price Action: CVX shares are down 0.31% at $166.68 during the premarket session on the last check Wednesday.