Two-day strike begins at BHP’s Port Hedland iron ore operations
Industrial action at BHP’s (ASX: BHP) Port Hedland operations in Western Australia began on Saturday, marking the first major strike there in more than two decades.
BHP ships some $80 million of iron ore daily through Port Hedland, the world’s biggest iron ore export hub. It has previously said it has plans to ensure that operations can continue.
About 150 workers are expected to take part in the strike on Saturday, the Combined BHP Ports Unions (CBPU) said, which is only a portion of BHP’s workforce at the port of more than 800 people.
A CBPU spokesperson earlier said that the nature of the industrial action, a 24-hour ship-loading ban followed by a 24-hour stoppage, remained unchanged.
The CBPU is negotiating a four-year bargaining agreement with the world’s third-largest iron ore miner, and opted to go ahead with the industrial action despite progress in talks between the parties on August 4.
About eight ships are expected to finish loading from BHP ports over the weekend, a source familiar with the matter said.
The action is not expected to affect rival miners Fortescue FMG.AX and Hancock Prospecting, which also use Port Hedland. The hub accounted for 75% of total iron ore exports from the Pilbara region of Western Australia in the year to June.
BHP has been negotiating for more than seven months with the CBPU, which represents around 450 operators and maintenance workers, over a new pay deal amid record share prices and rising costs of living. The CBPU will next meet with BHP on August 18, the same day that it will report its annual results.
(Reporting by Melanie Burton; Editing by Christian Schmollinger)
BHP faces weekend strike at Port Hedland iron ore hub as wage talks drag
A two-day strike will go ahead at BHP’s Port Hedland operations in Western Australia this weekend despite progress in talks on Tuesday between unions and the global miner, a union spokesperson said.
BHP ships some $80 million of iron ore daily through Port Hedland, which is the world’s biggest export hub for iron ore.
As flagged last week, workers plan to impose a 24-hour ban on loading ships on Saturday, August 8, followed by a 24-hour work stoppage at the Port Hedland Bulk Export Terminal beginning at 05:30 AWST on August 9 (21:30 GMT August 8).
The action is likely to hold up 16 iron ore shipments over the two days, the union spokesperson said. BHP, the world’s third-biggest iron ore producer, has said it has plans to ensure that operations can continue.
Around 150 workers are expected to take part in the action, as the parties strive to reach terms on a four-year enterprise agreement.
“The meeting was productive, and while substantive issues are yet to be resolved, the parties have identified a path forward which we will pursue over coming weeks,” a spokesperson for Combined Ports Unions said in a statement.
Industrial action will still proceed as previously indicated, the union said.
The action is not expected to affect rival miners Fortescue and Hancock Prospecting, which also use Port Hedland. The hub accounted for 75% of total iron ore exports from the Pilbara in the year to June.
BHP said it would present an updated proposal at the next meeting on August 18, the same day that it will report its annual results.
Australia’s workplace regulator, the Fair Work Commission, is working with BHP and the unions on reaching an agreement.
“With another meeting scheduled and an updated proposal to come, we have made significant progress with the Commission’s assistance and there is no need for the unions to continue with their planned industrial action,” it said.
BHP has been negotiating for more than seven months with unions representing around 450 operators and maintenance workers over a new pay deal.
The unions said workers were seeking enforceable wage and condition protections. Workers argue that extreme heat, long hours and time away from family mean they should not be facing lower rates than workers in cities.
The fracture comes amid rising costs of living and a record share price for BHP, which is the world’s biggest listed miner and Australia’s largest listed company.
(By Sneha Kumar, Rajasik Mukherjee and Melanie Burton in Melbourne; Editing by Tom Hogue and Sonali Paul)
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