Hundreds of BHP workers at Port Hedland in Western Australia voted in favor of strike action this week, two unions said on Thursday, raising the risk of disruptions to iron ore shipments from one of the world's largest export hubs. The Electrical Trades Union said 100% of its 100 members who participated endorsed work stoppages ranging from 30 minutes to 24 hours, with action possible within days.
More than 100 members of the Australian Manufacturing Workers Union also voted, with 89.4% backing industrial action. Both unions have been bargaining with BHP, the world's largest listed miner, for more than six months over a new labor agreement. BHP did not immediately respond to a request for comment.
Port Hedland is the biggest iron ore loading port in Australia and one of the largest in the world. It is linked to BHP's mines across the Pilbara region and handles all of the company's iron ore exports out of Western Australia. Workers are seeking pay parity for staff with comparable skills and experience, after years of what the ETU called wildly disparate individual contracts.
ETU state secretary Adam Woodage said the union had tried to negotiate for more than six months but accused BHP of obstructive conduct. AMWU state secretary Steve McCartney said members had spent seven months at the table without progress and were demanding a fair agreement during a cost of living crisis. Unions must give five days notice before any stoppage begins.
A prolonged strike at Port Hedland would hit a chokepoint in the global iron ore trade, with knock on effects for Capesize bulker schedules, Chinese mill feedstock, and benchmark seaborne prices. Even brief stoppages can ripple through loading windows at a port that moves more than half a billion tonnes of ore a year.