Australia's Fair Work Commission rejects Inpex bid to halt Darwin strike action
Australia's Fair Work Commission has rejected an urgent bid by gas producer Inpex to stop escalating industrial action at its Northern Territory facilities. The dispute centres on the company's Ichthys onshore and offshore operations in Darwin, where more than 400 workers have been threatening strikes and work bans. Unions say protected industrial action will continue until the dispute is resolved.
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The commission heard that workers had escalated action since the start of June and had rejected Inpex's latest offer on Friday night. Unions representing the workers, the Offshore Alliance, had threatened eight-hour strikes and disruptive work bans, although they later scaled back plans to two separate two-hour stoppages each day. Inpex had asked for urgent orders late last week, arguing the action could shut down operations and cause significant economic damage.
During the expedited hearing on Saturday, Inpex told the commission that a shutdown would threaten its Darwin facilities and could cost the company millions of dollars a day. The company also argued that disruption could damage Australia's economy and affect ties with Asian partners amid the ongoing global fuel crisis. FWC Deputy President Michael Easton said the value of Inpex's gas production was in the vicinity of $15 million to $22 million per day.
The case matters because Inpex is one of Australia's biggest gas producers and its Ichthys project is a major export LNG operation. Any prolonged disruption would have implications beyond the company itself, given the scale of production and the role of gas exports in Australia's energy trade. The dispute also comes at a time when fuel markets remain sensitive, adding to the commercial pressure on both sides to reach a settlement.
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The industrial action is part of a broader bargaining dispute over pay and conditions. Workers are seeking improved conditions and a 3 per cent annual pay increase, while Inpex has been trying to prevent the action from escalating further. The commission's ruling means the protected action can continue for now, leaving the company to manage the risk of further stoppages at its Northern Territory sites.
What remains unclear is how long the dispute will last and whether the latest reduced strike plan will still be enough to disrupt operations. It is also not yet clear whether the parties will return to negotiations quickly or whether Inpex will seek another legal route. The immediate focus will be on whether the stoppages go ahead and whether they affect output at the Darwin facilities in the coming days.
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