Esso Threatens Vic Gas Supplies

Date: 04 April 2004

Over 300 Bass Strait oilrig workers, who perform critical construction work to guarantee Victoria's gas supplies, will be locked-out from Tuesday by Esso sub-contractors. The lock-out is being used by companies to force the workers to double to amount of time that they are on the oilrigs for. The lock-out will be in place through-out Easter and is not due to be fully lifted until 6th May 2004.

For the last 25 years the Bass Strait oilrig workers and their families have structured their lives around a 7-days-on, 7-days-off roster. Now Esso and their subcontractors want to change all that by introducing a new 14-days-on, 14-days-off roster reputedly to save around $1 million annually. Esso Australia made a profit of $722 million in 2002 from the Bass Strait alone.

For the last eight months the workers have rejected the 14 day roster and attempted to negotiate other cost savings for Esso so they can keep their existing roster arrangements. The workers and their families rejected Esso's offer in order to protect the stability of family life. Unfortunately Esso has refused to accept any other cost saving sacrifices from the workers to save the 7 day roster.

The lock-out of employees follows an application made by Esso's subcontractors in the Australian Industrial Relations Commission to terminate the employment agreement containing the employee's conditions of employment. If their application is successful this would result in workers enduring a 50 per cent pay cut and consequent duress to enter into an inferior employment agreement containing a 14 day roster.

On Monday the AWU along with the AMWU & ETU will seek an injunction in the Federal Court to order Esso's subcontractors Kellogg, Brown & Root, Corpe Instrument Engineering and Worley ABB, to lift the lock-out. The AWU National Secretary Bill Shorten has accused Esso of acting in concert with its subcontractors to coerce the construction workforce to accept family destructive 14 day rosters.

Mr. Shorten said the action of Esso and its subcontractors would jeopardise Melbourne's gas supplies over the winter months by locking out the workers when they weren't even taking industrial action.

"We don't want to be pushing panic buttons but it appears that once again Esso's blind drive to save a few cents here and there will leave ordinary Victorians without gas. The workers and the unions have been fully prepared to negotiate in good faith over this issue for over eight months - but every time we try to talk to Esso we come up against a brick wall - a cynical person could even think that Esso may want to have the dispute."

For further information

Contact:	Paul Howes
Union:	The Australian Workers' Union
Phone:	03 8327 0828
Contact Mobile:	0407 041 933
Email:	paul.howes@awu.net.au
WWW:	http://www.awu.net.au

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