BHP and Combined BHP Ports Union (CBPU) negotiators have reached an impasse in talks over an enterprise agreement at the company’s Port Hedland operations because of job classification disagreements.
But CBPU does not plan to notify BHP of industrial action this week, Lithos understands. Union and company representatives will engage in Fair Work Commission-facilitated (FWC) bargaining on 15 September.
BHP offered most workers increased roster allowances and 17% pay rises over four years at an FWC-facilitated meeting on 8 September, a company spokesperson said on 9 September.
But its enterprise agreement proposal would have moved Port Hedland workers onto a single employment tier, hurting around 40% of covered staff, according to Electrical Trades Union Western Australia (WA) Secretary Adam Woodage.
“There were two major tiers of conditions [in BHP’s proposed contract],” Woodage said. “We want everyone on the good tier - [so] nobody goes backwards. They want everyone on the [worse] tier,” Woodage added.
BHP’s contract offer included one-time A$25,000 transition bonuses – spread over two years – for workers impacted by tier changes. But some workers think that the company’s pay packages depend too heavily on policies and bonuses outside of regular pay structures, Lithos understands.
“[BHP’s proposed contract] recognises the important work our team does every day, provides greater certainty about pay, resolves issues raised by our workers, and delivers a fair outcome for everyone at port,” a company spokesperson said.
CBPU and BHP’s job classification impasse follows months of discussions and strikes. The company and union have been locked in contract negotiations for over seven months. The two groups have held at least 12 bargaining meetings, including multiple FWC-facilitated sessions.
CBPU workers also launched two rounds of work stoppages in July-August, but did not substantially disrupt ship loadings. They can launch an unlimited number of consecutive stoppages under strike authorisations passed in June-July.
CPBU’s July strike supported iron ore prices, according to traders, but its longer August strike did not noticeably impact ore markets.
By Avinash Govind