Gorgon removes $15 billion worth of chairs

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In what is perhaps a strategic “leak” for the benefit of shareholders, the AFR is carrying a story on how the Gorgon LNG project is shifting to higher productivity practices:

Staff working on Chevron’s $US52 billion Gorgon liquefied natural gas project have been banned from using chairs and told not to sit down during their shifts in a bid to improve productivity on Australia’s biggest resources development.

Following last week’s 40 per cent cost blowout, one of the lead Gorgon contractors issued a memo on Sunday to its workers titled “Efficient production of work crews”.

Leighton Contractors… laid out a series of instructions to its employees to reduce the amount of time lost on the job:

“Labour is not allowed to sit down during normal working hours, unless their duties require,” said the leaked memo obtained by The Australian Financial Review. “Labour is allowed to sit down during normal working hours in the approved shade huts for short rest breaks and hydration. Full crews are not allowed in the shade hut, only one at a time so work can always continue on the site.”

Good to see they’re finally getting serious.

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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.