BHP Group (ASX:BHP) and unions representing workers at its Port Hedland iron ore operations have failed to reach a new labour agreement, extending uncertainty at one of Australia’s most important export hubs.
The latest round of negotiations ended without a deal, although further talks are scheduled for next week, a union spokesperson told Reuters.
About 200 workers began strike action on 16 July after rejecting BHP’s latest wage offer, marking the first industrial action at the operation in 26 years.
BHP said its proposal included a 16% pay increase over four years for most employees, along with improved allowances and a simplified pay structure.
The company has continued negotiations with the Combined Ports Unions, which represents three unions. Reuters reported last week that both sides had made progress towards a four-year agreement.
The Electrical Trades Union, one of the participating unions, is also expected to hold separate talks with BHP this week.
A prolonged dispute could disrupt shipments through Port Hedland, Australia’s largest iron ore export port. About US$80 million ($115 million) worth of BHP iron ore passes through the facility each day.
Write to Jackson Chen at Mining.com.au
Image: BHP Group
