AUSTRALIA

Gorgon contractor axes 220 jobs

MORE than 200 workers lost their jobs from the Chevron-operated Gorgon LNG project last week.

Gorgon contractor axes 220 jobs

On Thursday the Australian Manufacturing Workers' Union said contractor Chicago Bridge and Iron sacked about 220 of its mechanical staff to the ABC with more redundancies expected.

Chevron said the redundancies were part of the "the dynamic nature of project work".

"Workforces mobilise and demobilise based on the project's requirements at the time," Chevron said.

AMWU state secretary Steve McCartney claimed the workers were let go early and at short notice with the redundancies triggered by offshore accommodation tensions.

He said there were countless complaints made about the 202m Silja Europa cruise ferry used in this regard over its lack of windows and air conditioning.

"Why Chevron is telling CBI to get rid of these 220 workers is because those workers have been fighting for an agreement on their project," he said.

"Their agreement with CBI is going to run out shortly and guys have got the right to take protected action."

CBI told the union earlier this year that 600 jobs would be made redundant as part demobilisation activity between mid-January and the end of February.

The CB&I and Kentz Joint Venture's $US2.3 billion ($A2.95 billion) mechanical, electrical and instrumentation contract for the Gorgon project was long scheduled for completion in 2015 with Gorgon's first LNG output expected in mid-2015.

The news followed a reported weekend site trip of the project's Barrow Island site (Feb 7-8) by Chevron Asia Pacific exploration and production president Melody Meyer.

Before this trip Meyer had told attendees of the Australian American Chamber of Commerce energy conference in Houston that local suppliers, contractors and employees would be asked to "step up" to help cut costs.

A Chevron spokesman has not shed light on Meyer's trip to ENB, including on whether she discussed any cutbacks at Gorgon during the visit.

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