Woodside Petroleum's Pluto Liquefied Natural Gas Project (Pluto LNG Project) involves the construction of a LNG processing plant. The LNG plant will process gas from the Pluto and Xena gas fields, located in the Carnarvon Basin about 190 km north-west of Karratha. It is the biggest project of its kind in the north-west, and employs around 3500 people.
Australian Building and Construction Commissioner (ABC Commissioner) John Lloyd has confirmed that the ABCC is investigating the dispute at Woodside Petroleum's Pluto liquefied natural gas (LNG) project, in Western Australia.
“The primary responsibility of the ABCC is to ensure that workplace laws are upheld in the building and construction industry,” said Mr Lloyd.
“Most workers respect the law. However, in a dispute where the workers disregard their legal obligations and associated consequences, protracted industrial action can occur.”
“This is why we are investigating the ongoing disruptions affecting the LNG plant’s construction, and have intervened in proceedings taken by the parties affected by the dispute.”
“The ABCC will continue to intervene in any tribunal or court proceedings related to the dispute.”
As the investigation is ongoing it is inappropriate to discuss the particulars of the investigation at this time.
Role of the ABCC
The ABC Commissioner has the right to intervene in court cases and to make submissions in proceedings before Fair Work Australia (FWA) that involve building work, such as the Pluto LNG Project. This is generally to ensure that the parties, FWA and the courts are aware of the impact of relevant federal legislation.
See the ABCC website for more information the power to intervene.
The ABCC also investigates suspected contraventions of the law, the National Code of Practice, federal agreements and awards.
An example of the contraventions the ABCC can investigate is unlawful industrial action, defined as building industrial action that is 'industrially-motivated’, ‘constitutionally-connected’ without being ‘excluded action’.
See the ABCC website for more information on the definition of building work and unlawful industrial action.
Chronology of the Pluto LNG Project dispute
Original Industrial Action
- On 1 and 2 December 2009, workers at Woodside Petroleum Ltd’s Pluto LNG project near Karratha in Western Australia were involved in a 48 hour work stoppage.
United Group Resources Pty Ltd v CFMEU, AMWU and Ors
- On 1 December 2009, United Group Resources Pty Ltd, a contractor on the project obtained an order from FWA restraining employees from engaging in further industrial action until 18 January 2010. The ABCC intervened in the proceedings.
AGC Industries Pty Ltd and Others v CFMEU AMWU CEPU and Ors
- On 4 December 2009 AGC Industries and 16 other contractors applied to FWA for an injunction to restrain further industrial action. On 9 December 2009 Deputy President McCarthy dismissed the application, concluding that further industrial action was improbable. The ABCC intervened in the proceedings.
FWA Issues Interim Order
- Further work stoppages occurred on 22 January 2010. On 23 January 2010 FWA in Perth issued an interim order that no industrial action occur or be organised from midnight, 24 January 2010 to 28 February 2010. The ABCC intervened in the proceedings.
AGC Industries Pty Ltd and Others v CFMEU, AMWU and CEPU
- AGC Industries Pty Ltd (AGC) and three other contractors applied to FWA on 22 January 2010 for orders pursuant to s.418 of the Fair Work Act 2009 (FW Act) to stop industrial action after employees engaged in on-site construction work commenced strike action. The ABCC intervened in the proceedings.
Killarnee Civil and Concrete Contractors v Employees
- Following the order being made by FWA, employees of Killarnee Civil and Concrete Contractors (Killarnee) expressed concern about being threatened and intimidated by picketers.
- On 27 January 2010 Killarnee applied to FWA for orders pursuant to s.418 of the FW Act that its employees not engage in industrial action. The ABCC intervened in the proceedings.
Killarnee’s application was set down for hearing before Commissioner Cloghan on 27 January 2010, however, at the company’s request the proceedings were adjourned to a later date. No further hearing dates have yet been set.
- Early on the morning of 27 January 2010 employees of various contractors held a meeting where it was resolved to remain on strike until Saturday 30 January 2010.
Federal Court Injunction
- In light of the contravention of the order made by FWA United Resources Group and twelve other contractors applied the Federal Court of Australia on 27 January 2010 for injunctive relief, penalties and compensation.
An order - 146KB was granted on 27 January 2010, restraining workers from interfering with or in any way disrupting the performance of work on the project. The ABCC intervened in the proceedings. Reasons for judgment were handed down at [2010] FCA 22.