Unions planning next round of strikes at crucial WA iron ore port, set to triple in length

Union members at BHP’s sole WA iron ore port are preparing to significantly escalate industrial action despite their first strike falling flat.

A closed-door union meeting involving workers at BHP’s Port Hedland operation was held on Thursday night, with a 24-hour freeze on ship loading and all other port activity on August 9 believed to have been endorsed.

Such a work stoppage would be three times the length of a historic strike at BHP’s export choke-point earlier this month.

A full-day halt of ship loading carries heavy consequences.

BHP would lose about $120 million in revenue, and WA about $7m in iron ore royalties, for each 24-hour period the company’s exports are blocked.

The apparent strike escalation comes after an unprecedented eight-hour work stoppage on July 16 yielded a disappointing result for union leaders.

A BHP spokesman said the company was “frustrated” by the unions’ behaviour given another meeting with the FWC is scheduled for Tuesday.

Union organisers expected about 200 workers to walk off the job on July 16 — a landmark industrial action move WA’s iron ore industry had not seen on that scale for nearly 30 years.

Instead, only about one-third of that expected number downed tools, and BHP continued loading ships without interruption.

Despite the first strike’s failure, a union alliance comprising of the Australian Workers Union, the Australian Manufacturing Workers Union and the Electrical Trades Union is betting that BHP will not be able to dodge damage from a stoppage three times as long.

The coalition of unions are pushing for a significantly improved pay deal, covering about 450 tradespeople and specialist operators out of BHP’s 1000-strong Port Hedland workforce.

BHP has offered a 16 per cent pay increase over four years for the “majority” of the 450 employees, but unions are in effect demanding more than double that pay bump figure.

The two sides appeared to be heading towards a compromise recently after the unions said “some progress was made” following a meeting last Tuesday under the Fair Work Commission’s supervision.

But they have since changed their tune.

“We are not going to entertain what the company is pushing,” ETU WA secretary Adam Woodage said on Thursday evening.

The BHP spokesman said it was disappointing unions were “seeking to create more disruptions”.

“The unions should be focused on negotiating an agreement, not slowing that agreement down,” he said.

“BHP is frustrated by the lack of progress in bargaining and concerned about the lack of genuine engagement from the unions in bargaining meetings.

“We have shared our concerns directly with the union and asked them to provide greater clarity and detail around what they are proposing.”