CANBERRA, Jan 28 (Reuters) - A strike by workers at Woodside Petroleum Ltd, Australia's No. 2 oil and gas producer, was illegal and must cease, Australia's Deputy Prime Minister Julia Gillard said on Thursday.
More than 1,600 workers at Woodside's Pluto liquefied natural gas project that is estimated to cost up to A$13.1 billion ($11.74 billion), were ordered by a court on Wednesday to return to work after going on strike over housing issues.
'What they are doing is outside the law, and obviously they are exposing themselves to stringent fines and penalties. They should get back to work and should be fully performing,' Gillard said.
Western Australia's Chamber of Commerce and Industry applied for an injunction on behalf of 13 contractors building the project in the Pilbara region after the workers went on strike on Jan. 22 to protest against a plan that would make them change rooms every month.
The strike threatens to delay the company's construction schedule and potentially drive costs higher.
Faced with a chronic labour shortage and tough union laws, the oil and gas and mining industries in Australia have seen escalating labour costs that have at times pressured project costs and timetables in recent years.
Woodside in November raised its cost estimate for Pluto by as much as A$1.1 billion, citing the shortage of skilled labour, such as welders and electricians, as the key factors.
(Reporting by Rob Taylor; Editing by Balazs Koranyi)
((rob.taylor@thomsonreuters.com; +612 62733700; Reuters Messaging: rob.taylor.reuters.com@reuters.net)) ($1=1.116 Australian Dollar) Keywords: WOODSIDE/STRIKE (If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
More than 1,600 workers at Woodside's Pluto liquefied natural gas project that is estimated to cost up to A$13.1 billion ($11.74 billion), were ordered by a court on Wednesday to return to work after going on strike over housing issues.
'What they are doing is outside the law, and obviously they are exposing themselves to stringent fines and penalties. They should get back to work and should be fully performing,' Gillard said.
Western Australia's Chamber of Commerce and Industry applied for an injunction on behalf of 13 contractors building the project in the Pilbara region after the workers went on strike on Jan. 22 to protest against a plan that would make them change rooms every month.
The strike threatens to delay the company's construction schedule and potentially drive costs higher.
Faced with a chronic labour shortage and tough union laws, the oil and gas and mining industries in Australia have seen escalating labour costs that have at times pressured project costs and timetables in recent years.
Woodside in November raised its cost estimate for Pluto by as much as A$1.1 billion, citing the shortage of skilled labour, such as welders and electricians, as the key factors.
(Reporting by Rob Taylor; Editing by Balazs Koranyi)
((rob.taylor@thomsonreuters.com; +612 62733700; Reuters Messaging: rob.taylor.reuters.com@reuters.net)) ($1=1.116 Australian Dollar) Keywords: WOODSIDE/STRIKE (If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.