BHP faces first Port Hedland strike in decades

Hundreds of workers at BHP’s (ASX: BHP) Port Hedland iron ore operations in Western Australia plan to stage the site’s first major strike in decades next week after six months of failed contract negotiations.

About 160 to 200 employees responsible for port and maintenance operations are scheduled to stop work for eight hours on July 16 from 2 p.m. to 10 p.m. local time, according to the Combined Ports Unions, which represents four unions at the operation. The workers are seeking a new four-year enterprise agreement after negotiations with BHP reached an impasse. Port Hedland handles about $150 million in iron-ore shipments each day, while the interruption could affect roughly $80 million in BHP revenue.

“This is nobody’s preferred way forward, but when it is our only way forward, we will take it,” Electrical Trades Union Western Australia secretary Adam Woodage said. “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 dispute comes despite BHP securing a new labour agreement last week covering about 1,800 workers at its Mining Area C and South Flank operations in the Pilbara. That deal includes a guaranteed 16% wage increase over four years, higher site allowances and compensation for delayed flights. Union leaders argue the package falls short of fairly rewarding employees working extended rotations away from their families. BHP said it remains committed to reaching a negotiated settlement while maintaining safe operations, and union officials said talks scheduled for Tuesday could still prevent the strike.

‘Little effect’

Analysts said a single eight-hour stoppage would likely have little effect on global iron-ore markets because Chinese port inventories remain elevated. A longer disruption, however, could tighten supply from Australia, the world’s largest exporter of the steelmaking ingredient.

The dispute also highlights growing union influence across Australia’s mining sector following labour reforms introduced in 2022 that expanded collective bargaining rights and increased the scope for industry-wide industrial action.

(With files from Reuters, Bloomberg)