BHP workers strike at Port Hedland
Sydney (9 August)
Unionised maintenance and production workers – represented by the Combined BHP Ports Union (CBPU) – at BHP’s Port Hedland export hub have launched their second strike in under one month over a long-running contract negotiation.
CBPU launched two days of rolling work stoppages early on 8 August, according to the Western Mine Workers Alliance, a CBPU member. They previously halted work for eight hours on 16 July.
All of BHP’s maintenance staff, and all but two of its production staff, at Port Hedland are on strike, Lithos has learned. The company’s non-striking production staff are operating three ship loaders at a reduced capacity.
“[But] vessels are continuing to be loaded with scheduled departures subject to usual port planning and tides,” a BHP spokesperson told Lithos. “With around 1200 people on site across [the] port facility, our priority is always continuing safe and productive operations,” the spokesperson added.
Four ships loaded with BHP ore left Port Hedland between 8 August and early 9 August, and another is set to leave the port late on 9 August. BHP workers expect to load up to seven ships over 8-9 August.
CBPU workers can launch an unlimited number of consecutive work stoppages under strike authorisations passed in June-July. Some CBPU workers can also launch an unlimited number of partial work bans under authorisations.
BHP and CBPU negotiators will engage in Fair Work Commission-facilitated (FWC) bargaining on 18 August, the company and union confirmed to Lithos. The two groups have met 11 times, but disagree over wage, job classification, employment progression, and working condition proposals. They have made progress in recent meetings, without reaching an agreement.
BHP has offered CBPU workers wage rises of up to 16%, Lithos understands. The company will table an updated contract proposal at its 18 August bargaining meeting, a spokesperson told Lithos.
CBPU’s strike does not appear to have impacted iron ore markets. The Singapore Exchange’s August-dated high-grade iron ore cfr China futures index last settled at $94.70/tonne on 7 August – before markets closed for the weekend – down from $95.64/tonne on 6 August.
By Avinash Govind