SABINE PASS, Texas — Zachry workers received a text message on Friday asking some furloughed workers to return to the job site on Monday, May 13.
The message specified that only those who work on Train 2 and Train 3 can return to work.
After a number of contract workers at Golden Pass LNG were furloughed this week, the company confirmed there is a contract dispute with one of its contractors.
The furloughed workers were hourly, subcontractors of Zachry Industrial Group. In an email obtained by 12News, Zachry told contracted employees on Wednesday, May 8, 2024, to not to report to the Golden Pass site in Sabine Pass the next day, or until further notice. The email from Zachry led off with "as we work through the fuel shortage."
"They said 'Hey everybody pack your stuff let's go y'all are out of here'," said Mark Ramirez, one of the contract workers.
"It was a rumor going around that one week we're going to have a week off. This week we're gonna shut the hours down to 40 hours then there was a gas outage, diesel outage that they did not have money for the bus rides on site to off site," Ramirez said.
In the same email salaried Zachry employees were told to report as normally scheduled.
Golden Pass LNG acknowledged "ongoing discussions regarding the role of Zachry within CCZJV" in a statement sent to 12News on Thursday afternoon, May 9, 2024. "CCZJV" refers to a joint venture between Chiyoda International Corporation, McDermott International and Zachry Group according the Golden Pass LNG website.
The company's statement went on to say they are working "diligently" to finish the project, but that the discussions "may impact site activity in the near term", adding that they can't talk about "contractual matters".
Golden Pass LNG said it would release more information when it became available.
"It is my understanding that the issues which brought about the furlough of the Zachary employees at Golden Pass are still the subject of discussions between the parties and are ongoing," Jefferson County Judge Jeff Branick told 12News Thursday afternoon.
"While I know this is disruptive to the work life of many of the employees, I am at least thankful that it is happening during a time when there is abundant local work available," Branick said.
12News reached out to Zachry Industrial for comment on Wednesday, May 8 and they said “due to some temporary constraints on the Golden Pass LNG project, a subset of employees were instructed not to report to the jobsite at this time. Zachry Industrial has been actively engaged in discussions with all parties with the objective of resolving these matters in an equitable manner as soon as possible. Work across all of the company’s other projects continues as usual.”
On Monday, May 13 12News reached out to Zachry for comment once again.
"Since the onset of the pandemic, and as a result of on-going supply chain challenges, the Golden Pass LNG project has endured significant cost pressures. From the beginning, Zachry has prioritized our customer’s needs and project requirements. Over the last five years, this project has achieved excellent safety, quality, and staffing performance. We are grateful for the continued support and contributions of our vendors and subcontractors in the Golden Triangle area. We acknowledge Golden Pass LNG’s confirmation that contract discussions are ongoing with both Zachry and our joint venture partners. Our goal is to reach a constructive resolution so the project can proceed towards a successful conclusion. In the meantime, all other projects across Zachry are continuing as usual. We remain committed to supporting the communities in which we operate and providing the best service to our customers."
The furloughed employees have been left blindsided.
"As of now, how can I quit whenever I have all my tools on site and I go try and find another job at another site and say hey look I'm an electrician and then whenever I get hired on another site I have no tools," said Ramirez.
The company's home office is located in San Antonio, with several different offices across the country, according to their website.
In May 2022, 12News spoke with Golden Pass LNG about the ongoing project.
The company's Community Affairs Advisor, Mary Anne Reid, said the project was set to be operational in 2024. Late last year, Exxon, which is developing the project with QatarEnergy, reported that deadline would be pushed into 2025.
It's still unclear exactly how many employees were impacted or for how long they will be off the job.