One of Australia’s most powerful unions has called on Treasurer Jim Chalmers to block Abu Dhabi’s proposed A$30 billion takeover of Santos Ltd (ASX:STO), citing concerns over labour exploitation and the potential displacement of Australian energy workers.
The Offshore Alliance, representing the Australian Workers Union and Maritime Union of Australia, criticised the United Arab Emirates’ (UAE) industrial relations record. “The Australian government needs to keep Santos in Australian hands and block the sale of Santos to a government which is one of the world’s worst perpetrators of labour exploitation,” the group said in a social media post.
An anonymously authored 10-page report circulated among unions alleged Abu Dhabi National Oil Company (ADNOC) and the UAE ban trade unions, prevent collective bargaining and outlaw strikes. “The UAE’s hostile approach to workers is not welcome in Australia,” it said.
The report further claimed construction workers in the UAE are paid as little as US$175 per month, warning that “if the UAE government takes over Santos we can expect a tidal wave of exploited foreign visa workers to flood our industry.”
The XRG consortium, comprising ADNOC and Carlyle, has until 19 September to submit a binding offer. The deal would be the largest all-cash corporate transaction in Australian history, but requires Foreign Investment Review Board approval given Santos’s significant role in domestic gas supply.
Santos chief executive Kevin Gallagher has been accused by the union of seeking to “flog” the company to ADNOC.