(Aug 8): Unionised workers at BHP Group’s Port Hedland iron ore export hub in Western Australia have started rolling 24-hour strikes, escalating a pay dispute ahead of further meetings with the company. 

Workers represented by an alliance of unions have pledged to stop loading bulk carriers on Saturday and Sunday. A 24-hour work ban on ship loading started Saturday morning at 5.30am Western Australia time, according to Lachlan Williams, the media representative for the alliance of unions, known as the Combined BHP Ports Unions. The strike by all three unions will kick off Sunday at 5.30am for another 24 hours, he added. 

What impact this will have on shipments is unclear. Only around 200 of the 1,200 workers at the site are union members eligible to take part in the action, according to BHP, while two of the port’s seven operational ship loaders are fully autonomous and unlikely to be affected. 

However, any disruption could reverberate through the global iron ore market. The terminal is one of the largest iron ore export ports in the world, handling about 500 million tons a year. Traders are watching to see whether the dispute develops into a lasting stand-off that could meaningfully impact outflows. 

The alliance of unions, known as the Combined BHP Ports Unions, said earlier in the week they had made progress in discussions with BHP over wages, but the industrial action would still take place. 

The group’s leaders have ramped up pressure on the company in recent weeks following more than six months of negotiations. The two sides are next due to meet on Aug 18. 

“Our focus remains on reaching a fair and reasonable agreement, which is why BHP has already offered a 16% pay increase in our negotiations with the unions,” a company spokesperson said earlier. 

“As with all potential disruptions to our business, we have plans in place to ensure operations can safely continue.” 

An earlier strike at the port in mid-July did not disrupt shipments. It was the first such action at BHP’s Pilbara iron ore hub since 2000.

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