Inpex Ichthys Workers Reject Employment Agreement, Strike Risk Grows

Workers at Inpex's Ichthys liquefied natural gas (LNG) facility in Australia have voted against a proposed employment agreement, raising the possibility of strike action that could further strain global energy supplies. The vote concluded on April 17, 2026, with a majority of the 430 eligible employees rejecting the deal, which the Offshore Alliance, representing the Maritime Union of Australia and the Australian Workers Union, criticized for not meeting industry standards for wages and conditions.

ReutersReutersInpex Ichthys workers reject deal as strike looms

The Ichthys LNG plant, one of Australia's largest, has been operating under challenging conditions, exacerbated by the ongoing Iran war, which has significantly reduced LNG availability globally. The closure of the Strait of Hormuz has constrained over 20% of the world's LNG supply since February 28, 2026. Additionally, another Australian LNG facility has been operating below capacity due to cyclone damage, further complicating the energy landscape.

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• Inpex Corporation: A Japanese company operating the Ichthys LNG facility, which has stated that its employment offer is fair and competitive, aligning with market conditions.

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• Offshore Alliance: A coalition of unions representing the Ichthys workforce, which has expressed dissatisfaction with the proposed employment terms, arguing they do not keep pace with inflation or industry benchmarks.

Inpex Ichthys workers reject deal as strike looms

The rejection of the employment agreement heightens the risk of industrial action at a critical time for the energy sector. A potential strike could disrupt operations at the Ichthys facility, which is vital for Australia's position as the world's second-largest LNG exporter. The situation is particularly precarious given the existing constraints on global LNG supply.

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Inpex has indicated its commitment to engaging in good faith negotiations, stating, "We will continue to actively engage in the bargaining process and work collaboratively to address feedback from our workforce." Conversely, Offshore Alliance representatives have criticized the company for failing to meet basic workforce demands, with Chris Donovan, AWU Assistant National Secretary, asserting that "Inpex has failed to agree to even the most basic claims put forward by its workforce."

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Union members are set to conclude voting on April 24, 2026, regarding whether to take protected industrial action. The Fair Work Commission has approved this potential action, which could lead to formal strike proceedings if the vote favors industrial action.

Inpex Ichthys workers reject deal as strike looms

• “A majority of eligible employees have cast their vote and the proposed agreement has not been endorsed,” — Inpex Spokesperson

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• “After six months of negotiations, INPEX has failed to agree to even the most basic claims put forward by its workforce,” — Chris Donovan, AWU Assistant National Secretary

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While Inpex maintains that its employment offer is competitive, the Offshore Alliance argues that it falls short of industry standards. The exact terms of the rejected agreement and the specific demands of the workforce remain unclear, highlighting a gap in detailed information regarding the negotiations.

Inpex Ichthys workers reject deal as strike looms