Planned strike action by the Maritime Union of Australia (MUA) has been condemned by Premier Colin Barnett and Mines and Petroleum Minister Norman Moore as totally irresponsible.
Planned strike action by the Maritime Union of Australia (MUA) has been condemned by Premier Colin Barnett and Mines and Petroleum Minister Norman Moore as totally irresponsible.
Total Marine Services, which provides construction vessels and other logistical support for big resource firms such as Woodside, Santos, BHP Billiton, Apache and other oil and gas developers, expects employees to strike for four days from today.
Mr Moore said he had received advice that the strike action due to begin today could have a collective impact, costing several millions of dollars daily, on construction projects like Woodside's and BHP Billiton's Pluto and Pyrenees developments.
"WA's petroleum sector is increasingly vital to the State's economy with an estimated more than $160 billion worth of petroleum projects being considered in the coming years," Mr Moore said.
"The union has been offered 25 per cent over three years for its members who, on average, work for twice the average wage and for only six months of the year.
"The union's claim of 30 per cent, plus up to $500 a day for workers involved in construction projects is completely unacceptable and extortionist."
The state government said it is the latest development in the MUA's rolling system of industrial action targeting the important maritime services sector and is of deep concern to the State Government.
"The last thing we need in Western Australia during this crucial period of readjustment to the global financial crisis is a return to the bad old days when unions held the State's resources sector hostage," Mr Barnett said.
"This Government has worked extremely hard to streamline the resource approvals process. We have seen major developments like the Gorgon project forge ahead and we are looking to the future with the proposed Kimberley gas precinct site.
"These positive actions have renewed confidence in WA as a secure place for investment.
"Industrial action by unions intent on squeezing money out of employers will not only threaten jobs but also damage the State's international reputation for sovereign risk."
Full announcement below:
Premier; Minister for Mines and Petroleum
18/12/09 - Joint Media Statement
Irresponsible union action threatens jobs, resource projects and State's reputation.
Premier Colin Barnett and Mines and Petroleum Minister Norman Moore today condemned planned strike action by the Maritime Union of Australia (MUA) as totally irresponsible.
Total Marine Services, which provides construction vessels and other logistical support for big resource firms such as Woodside, Santos, BHP Billiton, Apache and other oil and gas developers, expects employees to strike for four days from today.
It is the latest development in the MUA's rolling system of industrial action targeting the important maritime services sector and is of deep concern to the State Government.
"The last thing we need in Western Australia during this crucial period of readjustment to the global financial crisis is a return to the bad old days when unions held the State's resources sector hostage," Mr Barnett said.
"This Government has worked extremely hard to streamline the resource approvals process. We have seen major developments like the Gorgon project forge ahead and we are looking to the future with the proposed Kimberley gas precinct site.
"These positive actions have renewed confidence in WA as a secure place for investment.
"Industrial action by unions intent on squeezing money out of employers will not only threaten jobs but also damage the State's international reputation for sovereign risk."
Mr Moore said he had received advice that the strike action due to begin today could have a collective impact, costing several millions of dollars daily, on construction projects like Woodside's and BHP Billiton's Pluto and Pyrenees developments.
"WA's petroleum sector is increasingly vital to the State's economy with an estimated more than $160billion worth of petroleum projects being considered in the coming years," Mr Moore said.
"The union has been offered 25 per cent over three years for its members who, on average, work for twice the average wage and for only six months of the year.
"The union's claim of 30 per cent, plus up to $500 a day for workers involved in construction projects is completely unacceptable and extortionist.
"It must be understood that this wage rise, if successful, will flow throughout the resources sector, dramatically increasing costs and potentially seriously damaging WA's growth.
"We are looking at another period of resource prosperity. But this wage claim and subsequent claims will blow costs out so much that it is predicted resource companies will take their investment elsewhere or use foreign labour.
"This would be a disaster for everyone involved and simply highlights the short-sightedness of the MUA which, by its action, could ultimately cost its members their jobs."
The Premier called on the Deputy Prime Minister, Julia Gillard, who is also the Federal Minister for Workplace Relations, to intervene in the strike action.
"If she does not have the legislative powers, then it is incumbent on the Federal Government to take action now to introduce the necessary powers," Mr Barnett said.
"We cannot wait until this vital industry is on its knees because of irresponsible union action. I would urge the national leadership of the MUA to talk sense into its WA branch.
"The offer its members have been given is more than reasonable and its claims would be offensive to the average West Australian."
Mr Moore echoed the Premier's comments and said he would talk to his Federal counterpart, Martin Ferguson, about the serious ramifications of this wage claim and the resulting impact on the wider resources sector.
"It is easy to underestimate this cost when these projects are talked about it in billions of dollars, but these costs are significant and will set back projects that we desperately need, not just for our State's prosperity, but for our own energy security," he said.
