BHP faces arbitration in Port Hedland wage dispute
Nine months of stalled talks push unionized workers to seek a tribunal ruling on pay and conditions at BHP’s key iron ore hub.
Workers at BHP’s Port Hedland operations are demanding arbitration over a wage dispute that could worsen labour tensions at the world’s largest iron ore export hub. The Combined BHP Ports Unions announced on Tuesday they will seek arbitration from Australia’s Fair Work Commission after nine months of unsuccessful negotiations. The union, representing approximately 450 operators and maintenance workers, intends to seek a intractable bargaining declaration, a tactic that allows a workplace tribunal to intervene and set terms when talks hit a stalemate.
The union’s statement claims BHP is reluctant to negotiate a deal that acknowledges the specialized skills, harsh conditions, and significant personal sacrifices of the workers who contributed to the company’s $13 billion profit this year. BHP’s first strike in 26 years has rattled iron ore supply at Port Hedland in Western Australia, the primary shipping gateway for BHP’s Pilbara iron ore operations.
An agreement would also signify the first union contract in the Pilbara since a major de-unionization effort three decades ago. Industrial action has already commenced, with workers taking two days off in August in the first major labor dispute at the facility in a quarter-century. Port Hedland’s three unions have also organized a series of 24-hour stoppages.
BHP asserts the disruptions have not impacted shipments. The two sides have held nearly weekly meetings with the Fair Work Commission mediating negotiations. A BHP spokesperson reiterated their commitment to reaching a fair and reasonable agreement. BHP submitted its latest offer last week, proposing a 17% pay increase over four years, higher roster allowances, and a $25,000 transition payment spread over two years.
The union asserts that roughly 40% of the workforce would be worse off under the proposal. BHP intends to challenge the union’s arbitration request, believing negotiations can still resolve the dispute. BHP shares fell 2.2% to A$59.25 in Sydney on Tuesday, falling short of the 0.9% decline in the S&P/ASX 200.
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