Around 450 unionized maintenance workers at BHP Billiton's Port Hedland operations in Western Australia have voted to undertake protected industrial action, a move that could significantly disrupt the world's largest bulk export port. The Australian Manufacturing Workers Union (AMWU) reported 90% of its members backed the strike, while the Electrical Trades Union (ETU) confirmed 100% of its 100 members also voted in favor. This action, which could begin as early as next week with five days' notice, involves unlimited stoppages ranging from 30 minutes to 24 hours, raising the risk of bringing the export hub to a halt.
The potential financial implications of this strike are substantial. BHP could face losses of between $110 million and $126 million per day. The Western Australian government could also lose an estimated $6.85 million daily in royalty payments. For context, BHP exported 290 million tonnes of iron ore through Port Hedland in the last financial year. Experts like Caleb Goods from the UWA Business School drew comparisons to the Shell Prelude oil and gas strikes, which reportedly cost Shell over $1 billion over a few months, suggesting a similar impact could hit BHP in less than 13 days of action.
The strike threat comes after six months of stalled negotiations between unions and BHP over a new employment agreement. Unions are seeking improved pay and conditions, noting BHP's $10.73 billion profit last year. While BHP states it has "strong contingency plans" to ensure safe operations during disruptions and aims for an outcome that maintains "industry leading pay and conditions," unions emphasize their readiness for prolonged action if negotiations do not progress. Federal Resources Minister Madeleine King has backed the unions' right to strike, acknowledging the challenging conditions faced by the workers.
