The Combined BHP Ports Unions said on Tuesday that it had failed to reach an agreement with BHP BHP.AX on a wage deal for workers at its Port Hedland operations in Western Australia, with the two sides expected to resume talks on August 25.
The company has spent months at the bargaining table with unions representing around 450 operators and maintenance workers over a new pay deal. BHP employs more than 800 people at the port.
“In today’s meeting, BHP presented a proposal that does not adequately address the concerns of the people whose hard work generated that $13 billion profit,” the union said, adding that workers would consult their elected representatives on options including counter offers.
A BHP spokesperson told Reuters that the company remains “committed to bargaining in good faith and believe all parties engaging through the Commission is the best way to reach a fair and reasonable agreement.”
The spokesperson added that BHP has offered a 16% pay hike for most of its port employees over the life of the proposed four-year agreement plus increases to some allowances.
BHP reported better-than-expected full-year earnings of $13.20 billion earlier in the day and declared its highest annual dividend in four years.
Some BHP workers at Port Hedland, the world’s largest iron ore export hub, staged a second planned stoppage earlier this month, as part of the first major industrial action at the site in a quarter century.
About 150 workers joined the two-day strike on August 8–9 at the port, which ships roughly $80 million worth of iron ore each day.
BHP CEO Brandon Craig, however, said he did not expect the industrial action to affect the company’s performance.
The unions said workers were seeking enforceable wage and condition protections. Workers argue that extreme heat, long hours and time away from family mean they should not be facing lower rates than workers in cities.
Mining workers are among Australia’s best paid, with resources workers living in the Pilbara earning A$191,000 on average in 2023-24, according to a survey by industry group the Chamber of Minerals and Energy.
(Reporting by Sneha Kumar in Bengaluru; Editing by Sonia Cheema)
