Perth: In a major escalation of industrial tensions, Australia’s Fair Work Commission has granted unions permission to conduct a strike ballot at Woodside Energy’s Pluto 2 liquefied natural gas (LNG) expansion project. The move could open the door to strike action before the end of the year, threatening to disrupt one of the country’s most strategically important energy developments.
The Fair Work Commission has ordered that the ballot take place no later than December 4, 2025, giving workers at Pluto 2 a chance to vote on whether to proceed with industrial action. If the vote favors a strike, unions could launch protected industrial action before year-end a development that may delay Woodside’s plan to ship the first LNG cargo from the facility in the second half of 2026.
The application for the strike ballot came from the Offshore Alliance, a coalition of the Maritime Union of Australia and the Australian Workers Union. According to the alliance, pay negotiations with Bechtel the contractor building Pluto 2 have broken down entirely. The unions claim that workers on the project are being paid roughly 30% less, when adjusted for inflation, compared to their counterparts working on Chevron’s Wheatstone LNG site.
Bechtel strongly opposed the union’s application, arguing that the proposed industrial action would improperly affect onshore construction roles, and that the union’s bid for a ballot is not justified. Despite this, the tribunal has approved not just one, but several separate ballots: in addition to the Offshore Alliance’s application, the commission has ordered votes for three other unions on similar agreements.
From Woodside’s perspective, a strike now could significantly impair its project timeline. The Pluto 2 expansion is a key part of its growth strategy, and any prolonged walkout might jeopardize its ability to bring the second LNG train online on schedule.
For the unions, a successful ballot and potential strike would represent a substantial win not only financially (they are pushing for a 30% pay rise), but strategically: it would reinforce their influence in a sector where labor disputes have become a powerful lever.
Wider market observers are closely watching this dispute. A disruption at Pluto 2 could ripple through global LNG supply dynamics, given Australia’s major role in the market potentially affecting prices, shipping schedules, and energy-security calculations for importing nations.
In the coming days, all eyes will be on the vote outcome, and whether Woodside and Bechtel can reach a last-minute settlement. A strike could do more than just delay LNG shipments it may force both sides to revisit how labour is valued in the fast-expanding energy construction sector.