Historic Pay Deal at Inpex's Ichthys LNG Plant Paves Way for New Wave Across Offshore Energy

Workers at Inpex's Ichthys LNG plant in Darwin have approved a new pay deal that sets a precedent for Australia's offshore energy sector. The agreement promises annual pay rises and improved conditions, following negotiations led by the Offshore Alliance. It marks the start of further negotiations with major energy companies.

Workers at Inpex's Ichthys LNG plant in Darwin have overwhelmingly endorsed a new pay agreement that unions hope will be replicated across Australia's offshore energy sector. This marks the start of a new wave of bargaining as similar pay and conditions are sought in upcoming negotiations with Shell, Chevron, and Woodside Energy.

The Offshore Alliance, including the Australian Workers Union and the Maritime Union of Australia, along with the Electrical Trades Union, spent months negotiating this deal with Inpex on behalf of approximately 470 workers. Under the agreement, employees are set to receive annual pay increases of 3.75%, potentially raising maximum base salaries for some to over A$300,000 by 2030, not counting additional allowances and bonuses.

This new agreement follows a strike earlier in the year, which halted production and cost Inpex significant earnings. The previous Ichthys deal was signed in 2022, and the new terms now await approval from the Fair Work Commission. Unions have highlighted that securing such agreements is crucial amidst global supply constraints and the ongoing importance of Australia's LNG exports.