Hundreds of electrical workers at BHP’s Port Hedland operations in Western Australia are preparing to vote on possible strike action, raising fears of disruptions at one of the world’s busiest iron ore export hubs, as reported by Reuters.
The Electrical Trades Union (ETU) said the vote process had officially begun and industrial action could take place by the end of June if negotiations fail to progress.
The dispute follows six months of bargaining talks between BHP and workers over pay and conditions.
Growing tensions
According to Reuters, union leaders accused the mining giant of dragging out negotiations while offering little progress at the bargaining table.
"Our members haven't taken this lightly," Adam Woodage, union's state secretary, said at a press conference in Perth.
"BHP has stalled negotiations for up to six months. There's been little movement from the company, and what movement has come has been an insult to our members."
The ETU warned that any strike could severely affect operations at Port Hedland, a critical gateway for Australia’s iron ore exports.
Export risks
Port Hedland is the largest iron ore loading port in Australia and one of the biggest globally. The hub connects several of BHP’s Pilbara mines and handles all of the company’s iron ore exports from Western Australia.
According to the union, workers will vote over the next two weeks on a range of work stoppages lasting between 15 minutes and 24 hours.
"We anticipate they'll endorse taking that action," Woodage said.
A strike, he added, would have a "significant impact on operations" and could potentially bring the export hub to a halt.
BHP response
BHP confirmed it remains in talks with port operations workers over a new labour agreement.
"In the event of union disruptions at our sites, we have strong contingency plans in place to protect our people and ensure safe, reliable operations can continue," a company spokesperson said.
The labour agreement covers roughly 450 port workers, including around 200 ETU members.
Profit pressure
The union also pointed to BHP’s strong financial performance as workers push for better wages and conditions.
"BHP had a A$15 billion ($10.73 billion) profit (last year) ... so there's plenty of money in the bank for BHP to share with their workers, and our members are seeking a slice of that money," Woodage said.
Despite the strike threat, BHP shares rose 1.4% to A$61.45 in afternoon trading, broadly in line with gains on the S&P/ASX 200 index.
Wider disputes
Separately, the ETU is also involved in labour negotiations with Japanese energy company Inpex at the Ichthys gas plant in Darwin alongside the Offshore Alliance union.
Offshore Alliance, which includes the Australian Workers Union and the Maritime Union of Australia, said planned strike action at the facility has been delayed until June 2 as negotiations continue.