-
Posted by Allen Newton
- |
-
16 Sep, 2026
THE LONG‑running industrial dispute at BHP’s Port Hedland operations has escalated, with unions now seeking an intractable bargaining declaration from the Fair Work Commission after more than nine months of negotiations failed to produce a new enterprise agreement.
If granted, the declaration would trigger compulsory mediation and potentially allow the Commission to arbitrate the terms of a new agreement, a rare step that would effectively remove control of the bargaining process from BHP.
The dispute covers about 450 workers across the company’s Pilbara port operations, including ship loaders, operators, electricians, boilermakers and mechanical fitters.
Around 250 workers are union members, limiting the scale of protected industrial action but strengthening the unions’ argument that bargaining has reached an impasse.
The first major stoppage in 25 years occurred in July, when 63 workers undertook an eight‑hour strike. BHP maintained operations throughout the action, loading seven vessels during the stoppage.
Unions say the key sticking point remains BHP’s proposed two‑tier pay structure, which they argue entrenches inequity across the workforce. BHP has offered a 17% pay increase over four years, a $25,000 transition payment, and increased roster allowances, but unions claim 40% of workers would be worse off under the proposal.
The Electrical Trades Union has warned the dispute could continue “for a year” if BHP does not shift its position, while BHP maintains that continued negotiation is the “fastest path” to a resolution and opposes arbitration.
If the Fair Work Commission agrees the dispute is intractable, protected industrial action would cease and the matter would move into formal mediation. Arbitration could follow if the parties remain unable to reach agreement — a move that would set the first union‑negotiated agreement at BHP’s Pilbara ports in decades.
The dispute comes as iron ore exports through Port Hedland remain central to Australia’s trade profile, with any prolonged disruption closely watched by the mining and logistics sectors.
