According to the APPEA, the Productivity Commission’s review of Australia’s workplace relations framework provides an opportunity to reform the system.
Improving workplace productivity is crucial if Australia’s oil, gas and LNG industries are to remain globally competitive.
APPEA CEO, David Byers, commented: “The Fair Work Act 2009 continues to reduce the oil and gas industry’s capacity to deliver the current wave of projects on time and on budget.
“The successful completion of AUS$180 billion worth of liquefied natural gas (LNG) projects under development remains the priority yet restrictive workplace laws that encourage high labour costs and low productivity threaten future investment in Australia.
“Ultimately we need a system that enhances our global competitiveness by encouraging flexibility and innovation.
“Australia is regarded as a relatively high cost location for LNG projects due to their complexity, remote locations and exposure to some of the highest construction costs in the world.
“It is now time for a serious and mature discussion about driving productivity growth to support jobs, investment and our international competitiveness.”
Byers welcomed the Commission’s acknowledgement of industry concerns that high wage rates and short-term greenfields agreements threatened the viability of long-term investment in the LNG sector.
Adapted from press release by Katie Woodward
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/23012015/appea-on-lng-workplace-reform-106/