Gas supply reduction on the table as strike action continues

Qenos Altona workers have been involved in an industrial strike action on Kororoit Creek Road since Monday, October 3. (Supplied)

By Matthew Sims

An indefinite strike action from Qenos workers at its Altona plant has stretched into its second week, as the Fair Work Commission looks to step in to resolve the dispute.

On Monday, October 3, the workforce at Qenos went on strike calling for a better pay and staffing conditions agreement.

Australian Workers Union Victorian branch secretary Ben Davis said the workers were locked out of the plant on Monday in response to the industrial action.

“That’s just a bit…short-sighted,” he said.

Mr Davis said the workers had been engaged in meetings with Qenos representatives last week but were unable to reach an appropriate enterprise bargaining agreement for both parties.

“The company has actually ignored 90 per cent of the issues,” he said.

“We would prefer to negotiate meaningfully.”

In a statement, Esso Australia has said they have been working closely with Qenos to help mitigate the impact of the protected industrial action on the state’s gas supply

“Esso’s ethane customer, Qenos, has advised that as a result of protected industrial action at their facility, it may no longer be able to accept ethane from Long Island Point for an indefinite period of time,” the statement read.

“Without an outlet for the ethane, Esso will need to significantly curtail natural gas supply to reduce the production of these gas liquids.

“Esso has informed the Australian Energy Market Operator as well as the Victorian Department of Environment, Land, Water and Planning so that both are aware of and can plan for the potential reduction in supply from Longford Plants, including looking to other supplies to fill any shortfall.”

As reported by Star Weekly, Qenos announced the closure of one of two ethylene units in Altona, as well as one of the two polyethylene plants, resulting in a 15 per cent reduction in total domestic production in May 2021.

The closure lead to the loss of 150 Altona-based jobs.

In February 2021, ExxonMobil also announced the closure of its Altona refinery after 72 years.