Workers employed at BHP’s Port Hedland facility in Western Australia have formally announced an eight-hour work stoppage planned for July 16, a move that could halt approximately A$120 million — or about $83.16 million U.S. — in daily iron ore production and shipping.
The announcement came on Wednesday after six months of negotiations between unions and BHP failed to produce an agreement on a proposed four-year labor contract. Port and maintenance workers represented by the Combined Ports Unions are expected to take part in the stoppage.
Electrical Trades Union WA Secretary Adam Woodage addressed the decision directly, saying, “This is nobody’s preferred way forward, but when it is our only way forward, we will take it.”
Woodage added that he hopes the planned action gets the attention of company leadership. “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,” he said.
The Port Hedland announcement follows a separate development last week, when workers at BHP’s South Flank and Mining Area C iron ore operations narrowly voted to accept a new labor agreement. That deal included a guaranteed 16% pay increase over its four-year term, higher site-based allowances, and a new compensation arrangement for delayed flights.
The union push is being described as the most aggressive effort to expand union influence in Australia’s mining sector in 30 years. The momentum follows a 2022 law enacted by the Labor government that gave unions the ability to negotiate wage agreements covering multiple employers, greater flexibility in bargaining, and the authority to call industry-wide strikes.
Port Hedland, which is also utilized by Fortescue and Hancock in addition to BHP, handles around $150 million worth of iron ore shipments daily, highlighting just how significant any disruption could be.
(Exchange rate: $1 = 1.4430 Australian dollars)
