MELBOURNE, July 8 (Reuters) – Workers at BHP’s (BHP.AX), Port Hedland operations in Western Australia gave notice on Wednesday of an eight-hour work stoppage set for July 16, which is set to disrupt daily revenue of A$120 million ($83.16 million) worth of iron ore.
Unions have called for the action after six months of negotiations that have failed to reach an agreement on terms for a four-year labour deal.
Employees across the company’s port operations and maintenance workforce represented by the Combined Ports Unions will participate in the strike, according to a union statement.
“This is nobody’s preferred way forward, but when it is our only way forward, we will take it,” said Electrical Trades Union WA Secretary Adam Woodage.
“I hope this sharpens the minds of BHP managers – and shareholders – on the importance of negotiating for a fair, safe and productive iron ore industry.”
The action comes after workers at some of BHP’s other operations in the Pilbara last week narrowly voted to approve a new labour agreement.
“We have delivered a new enterprise agreement at Mining Area C and South Flank that rewards 1,800 workers – without industrial action,” BHP said in a statement.
“Every Australian benefits from a strong iron ore sector. We are eager to keep negotiating constructively for a fair deal, while making sure we can keep operations running safely.”
BHP shares were down 3.3% at A$56.92, slightly outpacing losses among other miners and compared to a 0.9% decline for Australia’s benchmark stock index (.AXJO).
Unions are making the biggest push in 30 years to penetrate Australia’s mining heartland since the Labor government enacted a law in 2022 giving them the power to negotiate wage deals that cover several employers, more scope to request flexible arrangements and allow industry-wide strikes.
The South Flank agreement last week included a guaranteed 16% pay hike over its four-year term, increases to site-based allowances and a new payment scheme for delayed flights.
Port Hedland, which is also used by Fortescue (FMG.AX), and Hancock, ships around $150 million of iron ore a day, underscoring the scale of potential disruption.
($1 = 1.4430 Australian dollars)
Reporting by Melanie Burton; Editing by Thomas Derpinghaus and Kevin Buckland.
