Union members at BHP's port operations in Port Hedland, Australia, have voted to authorize protected industrial action, potentially affecting operations at the country's largest bulk export port.
Key Details of the Vote
Members of the Australian Manufacturing Workers Union (AMWU) and the Electrical Trades Union (ETU) voted in favor of industrial action. The AMWU reported that 90% of its members at BHP's Pilbara port operations supported proposed work stoppages. The ETU reported that 100 of its members unanimously backed the ballot.
The authorized action could involve up to 450 workers and may include rolling stoppages lasting from 30 minutes to 24 hours. Industrial action could begin as early as next week, pending a mandatory five-day notice period to BHP.
Up to 450 workers could initiate rolling stoppages lasting from 30 minutes to 24 hours.
Background of the Dispute
The vote follows seven months of unsuccessful negotiations between the unions and BHP over a new enterprise agreement. Unions have stated that BHP has not been bargaining in good faith and has not kept pace with market rates for wages. According to the unions, the last significant protected industrial action in the Pilbara region occurred in 2008.
Union presence in the Pilbara has been increasing after a period of decline since the 1980s.
Statements from Parties Involved
- AMWU State Secretary Steve McCartney stated that the result reflects worker frustration and called for BHP to negotiate in good faith.
- ETU WA Secretary Adam Woodage stated there had been "six months of stonewalling" by BHP and called for a "fair, transparent and enforceable" agreement. He said the union would support its members if they want to strike for a week, and that a strike before the June 23 bargaining meeting is possible but unlikely.
- BHP stated it is negotiating a new enterprise agreement and aims for an outcome that maintains industry-leading pay and conditions. The company added it has contingency plans to ensure safe and reliable operations continue in the event of disruptions.
- Federal Resources Minister Madeleine King stated that workers have a legal right to take protected action. She said she hopes a strike does not occur but noted that unions have a legitimate role in negotiating conditions given the power imbalance between workers and the employer. She also stated that workers "deserve every single cent of what they earn."
- Western Australian Premier Roger Cook stated the state government has no role in the dispute but supports workers' rights to negotiate and encouraged them to "stand up for your rights."
- Chamber of Minerals and Energy WA Chief Executive Aaron Morey warned that shutting Port Hedland would cost the state millions in royalties daily.
- Chamber of Commerce and Industry WA Chief Executive Will Goldsby said the decision should "alarm the nation," warning of economic and reputational damage.
"This decision should alarm the nation," said the Chief Executive of the Chamber of Commerce and Industry WA, warning of economic and reputational damage.
Potential Economic Impact
Port Hedland is Australia's largest bulk export port. BHP exported 290 million tonnes of iron ore through it in the last financial year. Estimates from various sources regarding potential daily losses include:
- BHP could lose between $110 million and $126 million per day.
- The Western Australian government could lose $6.85 million per day in royalties.
- Iron ore exported from Port Hedland is estimated to be worth $120 million per day.
- Senior lecturer Caleb Goods noted that a strike could cost over $1 billion in less than 13 days, drawing comparisons to the Shell Prelude strike.