BHP workers to strike over contract dispute

Sydney (16 July)

Updated with new comments from CME CEO Aaron Morey: https://www.lithos.media/p/bhp-workers-to-strike-over-contract-ea0H

Hundreds of unionised workers – represented by the Combined BHP Ports Union (CBPU) – at BHP’s Port Hedland export hub will strike for eight hours, from 2pm to 10pm AWST, on 16 July over a long-running contract negotiation.

Workers will launch a work stoppage at 2pm to protest BHP’s failure to offer their workers fair, transparent, and reasonable working conditions, CBPU said on 16 July. CBPU – a coalition of four unions – notified BHP of strike plans on 14 July.

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 will engage in Fair Work Commission-facilitated (FWC) bargaining on 21 July, a CBPU spokesperson told Lithos. The two groups have held nine bargaining sessions – including an FWC-facilitated session on 14 July – Lithos understands.

CBPU and BHP disagree on wage, job classification, progression, and working condition proposals, according to the union coalition. BHP has tabled a contract offer and is open to a 16% wage rise over four years, allowance increases, and pay structure adjustments, Lithos understands.

Iron ore markets have priced in CBPU’s strike over the last few days, a trader told Lithos. The strike is one of multiple bullish factors supporting recent iron ore price spikes, they added.

The Singapore Exchange’s August-dated high-grade iron ore cfr China futures index last settled at $116.11/tonne on 15 July, up from $114.07/tonne on 13 July and $113.12/tonne on 1 July.

CBPU’s strike comes alongside a broader push to unionise Western Australia’s iron ore mines for the first time in decades. The Western Mine Workers Alliance (WMWA) – a member of CBPU – moved to force Rio Tinto into collective bargaining at its Paraburdoo mine complex in February 2025.

By Avinash Govind