Crackdown on foreign workers at Gorgon gas project

The Federal Government has moved to close a loophole allowing cheaper foreign workers on Chevron's $43 billion Gorgon project, cheering the union movement but sparking fresh concerns about rising costs on Australia's major resource projects.

Immigration Minister Chris Bowen said yesterday it would seek to change the Migration Act's application to offshore resource industry workers in light of its defeat in the so-called Allseas case.
Swiss-based offshore pipe-laying contractor Allseas became an IR lightning rod last year when it successfully used Tampa-era migration laws designed to stop boat people to see off a Federal Court challenge by the Gillard Government.

Federal Court Justice Neil McKerracher said at the time he was satisfied the ships operated by Allseas were not "resources installations" as defined in the Migration Act, in a case that spun on whether pipes laid by Allseas touched the seabed, and thus whether crew should be employed under Australian awards.

Allseas has since won further work on Chevron's $29 billion Wheatstone venture, prompting unions to demand changes to laws. The Government decided against appealing against the case and Mr Bowen said he was trying to strike a balance.