Viva oil refinery dispute over plans to sack ship crews

ALLEGATIONS: Infrastructure at Corio's Viva Energy refinery, which former operator Shell sold this year.

By JOHN VAN KLAVEREN

VIVA Energy Australia is embroiled in an industrial dispute three months after taking over Corio’s former Shell refinery.
Maritime Union of Australia (MUA) has alleged the company was party to a secret plan to sack and abandon 36 crew members of one of Viva’s chartered fuel tankers.
The matter was heard in the Fair Work Commission with all parties, including the tanker’s Canadian-based owner, Teekay Corporation, ordered to negotiate a settlement.
MUA assistant national secretary Warren Smith said the plan involved the tanker Tandara Spirit secretly leaving Australia and “dumping” the Australian crew unemployed in Singapore.
The union refused to refuel the tanker, leaving it stranded in Melbourne.
“Just three months after buying the Australian petroleum business, Vitol is stealthily sacking the Australian crew and undermining Australian fuel security and coastal trade,” Mr Smith said.
“Vitol (Viva’s major investor) is trying to dump the Australian crew without telling anyone and it’s not on.
“The members are angry, the union is angry and the community is angry – we want to ensure Australian cargo is carried around the coast by Australian seafarers.
“We should be beefing up our fuel security, not opening it up to the whims of multi-national corporations where profits will come before the best interests of the Australian public.”
Viva spokesperson Jessica Marriner said the company would hand back the Tandara Spirit when the agreement expired in January and would not replace the vessel.
“As a result of agreeing to new contracts, which significantly increase ground fuel sales in Victoria, Viva Energy’s requirement to export product from Victoria has considerably reduced,” she said.
“Consequently, Viva Energy no longer requires a dedicated coastal vessel to transport petroleum products within Australia.
“Viva Energy will meet all obligations under the time charter agreement with Teekay Australia and this is consistent with the general undertakings contained in the memorandum of understanding.
“The ship is returning to Singapore so it can be prepared for re-delivery to its owners before the time charter expires.
“We continue to focus on our goal of ensuring the long-term viability of Geelong Refinery.
“Since taking this decision Viva Energy has held discussions with the ship operator, employees, unions and the government.”