Laing takes 800 workers off Ichthys

Engineering contractor Laing O’Rourke has taken 800 of its workers off the $US37 billion Ichthys LNG project in Darwin due to a pay dispute with its Japanese supplier.

Laing was contracted alongside Kawasaki Heavy Industries in 2012 to deliver four cryogenic tanks for the project’s head contractor, JKC Australia.

That work is in its final stages; however Laing said today that it hadn’t been paid for its work on the project for several months by KHI.

“Laing has made significant efforts to resolve the matter, but direct approaches to KHI in Japan over recent weeks have failed to produce a satisfactory outcome,” it said.

“After the most recent meeting in Tokyo last Thursday, Laing notified the parties that it would take action to protect itself from the consequences of KHI’s conduct, unless urgent measures to rectify the situation occurred.

“KHI has declined to take those necessary steps.”

Laing said it would attempt to redeploy the 800 staff affected by the stoppage of work to its other pipeline of contracts in Australia, while also assisting subcontractors that will be affected by its decision to demobilise from the Ichthys job.

“Laing has ensured all staff, suppliers and contractors have received their entitlements during the period of dispute,” it said.

“The company’s other project on the Ichthys site, which is direct for JKC, is unaffected.”