BHP Iron ore workers stage first Port Hedland strike since 2000

Workers at BHP Group’s Port Hedland operations in Western Australia will stage the first strike at the company’s Pilbara iron ore hub since 2000, after last-ditch talks failed to avert industrial action.

The stoppage, involving 200 operators and maintenance workers represented by the Combined BHP Ports Unions, will begin at 2 p.m. local time on Thursday and last eight hours. Workers and their families will gather for a community day, according to a statement from the unions.

The strike marks one of the biggest union campaigns at BHP’s iron ore operations in years. Traders will be watching closely to see whether it develops into a lasting stand-off that could meaningfully disrupt shipments from the world’s biggest bulk-export terminal. Futures for the steel-making raw material touched $102 a ton in Singapore earlier this week, the highest since July 2.

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A BHP spokesperson said in a statement Tuesday that the company had plans in place to ensure operations could safely continue. Last year, about 575 million tons of iron ore was shipped through Port Hedland, which is also used by other mining companies not affected by Thursday’s strike.

A five-hour bargaining session on Tuesday, facilitated by Australia’s Fair Work Commission, failed to produce a breakthrough. The BHP spokesperson said at the time it was “disappointing” that the strike would go ahead despite what the company called progress in the talks. Negotiations are scheduled to resume on July 21.

The unions say they have been trying to negotiate with BHP for more than six months. At the center of the dispute is the use of individual employment contracts, which the unions say leave workers on inconsistent terms and conditions set at the company’s discretion.

BHP’s iron ore production fell 3% year-on-year in the three months through June, the company said Thursday. Full-year production remained stable despite the weaker final quarter.

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