NSW: Court action to decide fate of fuel strike

AAP General News (Australia)
04-20-2000
NSW: Court action to decide fate of fuel strike

SYDNEY, April 20 AAP - The state's largest fuel supplier will head back to court today
to try to prevent a 100-day strike by refinery workers.

The strike action could see the state's fuel supply dry up in days.

The Caltex Oil Refinery at Kurnell in Sydney's south began shutting down at midnight
after the Australian Workers Union (AWU) warned 270 refinery workers would begin industrial
action from Sunday.

Kurnell Refineries manager Chris Hogarth said the strike, which could last up to 100
days, would have an immediate impact on the state's fuel supply, with stocks expected
to run dry by next Wednesday.

Supplies of jet fuel could run dry as early as Monday, with the potential to cause
chaos for Easter flights to and from Sydney.

Already Easter flights are expected to be hit by industrial action in Melbourne, with
Mobil refuellers vowing to go on strike tomorrow.

Both Qantas and Ansett have said they have contingency plans and do not expect holiday
flights to be affected.

Mr Hogarth said Caltex sought orders in the Australian Industrial Relations Commission
late yesterday to avoid the strike action, but the matter had been adjourned until this
morning.

Caltex, which supplies two-thirds of the state's fuel, warned even if the strike was
avoided, supplies could be disrupted for up to one week.

"The formal notification (from the union) said for 100 days, but we have no idea if
they will go out for one day or 100 days," he said.

"The timing, of course, is extremely unfortunate, something that we greatly regret,
but the timing was set by the union involved."

The Caltex dispute centres around a pay dispute, with the AWU demanding a 10 per cent
pay increase over two years, as well as backdated superannuation and a redundancy clause
incorporated into the agreement.

AWU state secretary Russ Collison said the agreement had been under negotiation since
last July and workers were concerned about job security.

Caltex had offered a 7.5 per cent pay increase over two years and planned to slash
18 jobs as part of a de-manning proposal.

The dispute comes as fuel stocks have already taken a battering.

Shell, the only other supplier, admitted its stocks were low with their Clyde refinery
shut down for routine maintenance in recent months.

Both companies have said they have no plans to increase wholesale petrol prices if
supplies ran short, however, independent retailers could up the price at the pump.

AAP nd/jtb

KEYWORD: CALTEX DAYLEAD

2000 AAP Information Services Pty Limited (AAP) or its Licensors.