Workers at global miner BHP's Port Hedland operations in Western Australia are seeking arbitration after negotiations over a new wage agreement failed to produce an outcome, according to a report by Reuters.
Port Hedland is the world's largest iron ore export hub and serves as the main shipping gateway for BHP's Pilbara iron ore operations. The union, which represents approximately 450 operators and maintenance workers at the facility, plans to apply for an intractable bargaining declaration. Such a declaration would allow Australia's Fair Work Commission to determine the terms of the agreement.
Wage negotiations continue for more than nine months
BHP and the union have been negotiating for more than nine months over a four-year wage agreement, with meetings taking place almost weekly in recent months with the involvement of the Fair Work Commission. In August, workers staged a two-day work stoppage, marking the first major industrial action at the Port Hedland facility in around 25 years.
According to BHP, its latest proposal includes a 17 percent pay increase over the four-year agreement for most workers, a transition payment of A$25,000 over two years and higher roster allowances. However, the union stated that around 40 percent of the workforce would be worse off under the proposal and argued that the agreement should better reflect workers' specialized skills and working conditions.
BHP stated that its focus remains on reaching a fair and reasonable agreement and that continuing negotiations would be the fastest way to reach an outcome.
