Strike threat hangs over exports from world's largest bulk export port
Industrial action is threatened at Port Hedland in Western Australia, the world's largest bulk export terminal, where around 450 operators, maintenance, electrical and high-voltage workers employed by BHP have been bargaining over a new enterprise agreement for some eight months. Three unions balloted their members in June, with the electrical trades union recording 100 percent support and the manufacturing workers union 89 percent.
The notified action covers a weekend. A 24-hour ban on loading ships is scheduled for Saturday 8 August, followed on Sunday 9 August by a 24-hour full work stoppage from 05:30 local time at the bulk export terminal, together with a separate twelve-hour stoppage by high-voltage and power workers. Union estimates put around sixteen iron ore shipments at risk across the two days.
The tonnage involved gives the dispute its weight. Port Hedland moves roughly 800,000 tonnes of iron ore a day and handled more than 580 million tonnes in the last financial year, around three-quarters of Pilbara iron ore exports. Daily export value for the operator is estimated at 80 to 84 million dollars, and the state government's royalty exposure runs to several million dollars a day.
The substance of the dispute is structural rather than purely monetary. The unions are seeking a single four-year agreement with enforceable wage and condition protections, pay parity for workers of comparable skill and experience, and a clear classification and progression structure. The company has offered a 16 percent rise over four years. Union officials have described progress as glacial, with manufacturing union state secretary Steve McCartney saying the action is a direct result of the company's failure to negotiate seriously. The company has said it is frustrated by the lack of progress and concerned about what it calls a lack of genuine engagement, adding that it has plans in place to keep operations running safely.
A precedent was set last month. An eight-hour walk-off on 16 July was the first strike by Pilbara iron ore workers in more than 25 years, though participation was disputed, with unions claiming around 200 and the company saying 63. All seven ships at port were loaded and one sailed on schedule. A meeting on 4 August produced more conciliatory language, with the parties identifying a path forward and a further meeting set for 18 August, but the weekend action has not been formally withdrawn. Charterers with capesize tonnage due at the port over the weekend are working on the assumption that it may still proceed.
