EDITORIAL: Labor inaction on strikes may bring IR chaos

Could this be the time Australia’s economy hit the wall?

When more than a quarter of a century of peace in the nation’s most important industry — which had flowed into spectacular growth — came to a shuddering halt?

Such is the potential ramification of the strike at Port Hedland, BHP’s sole WA iron ore export gateway.

The stoppage by about 160 to 200 workers from the Australian Workers Union, Australian Manufacturing Workers Union and Electrical Trades Union was the first large-scale industrial action taken in WA’s critical iron ore industry for 26 years.

It has been estimated the disruption to iron ore exports could cost WA taxpayers about $4 million in forgone royalties and $53 million in export revenue for BHP could be hit.

The figures give just a taste of what the company’s operation means.

BHP is a key player in the sector that is the nation’s economic powerhouse.

On Thursday the Big Australian revealed it had pulled in its biggest-ever haul of iron ore and had green-lit a new $1.3 billion mine.

But the success of the sector has not happened overnight.

It has been a long haul back from the days it was an industrial battleground which caused huge damage to the sector and Australia’s reputation.

As a whole, WA’s mining industry dug up 889 million tonnes of iron ore in 2025, compared with only 159 million tonnes in 2000.

The benefits have been shared with workers, who are very well paid.

It is estimated that many of the electricians and specialised operators who took part in the Port Hedland strike were already on more than $200,000 a year.

And without union interference, the number of jobs on iron ore mines grew sevenfold from fewer than 9000 in 2000 to more than 65,000 today.

The operations have generated billions in company and income tax, helping fund the essential services all Australians rely on.

And the wealth has helped grow and sustain regional towns.

But the Albanese Government’s industrial relations changes have opened the door to the unions.

Among the changes was a rule that allows unions to legally intervene in wage negotiations even if less than half the employees want them to.

And unions have also bombarded BHP with disruptive right-of-entry requests as they sought to regain relevance and power.

The unions which drove the strike have been cagey about their demands.

But they rubbished a recent 16 per cent pay rise over four years that workers at two BHP mines accepted as “undercooked”.

Much hangs on the outcome in Port Hedland.

Unions will see a win there as a green light to go harder in other operations in the Pilbara and beyond.

Union branches in the rest of the nation will be watching on.

Also watching are other exporters and international buyers of Australia’s iron ore.

Unfortunately, so are the Labor governments in WA and Canberra.

They have adopted a hands-off approach.

Their failure to grasp the need to show leadership and stand up to the unions is putting at risk the proceeds of decades of progress that has flowed across the nation.

Responsibility for the editorial comment is taken by Editor-in-Chief Christopher Dore