BHP caves in to unions amid costly strike threat

By the Editorial Team · Tuesday, June 23, 2026

BHP has offered a draft enterprise agreement to about 450 port operations workers in an effort to prevent strikes that could halt iron ore exports and cause losses of up to $126 million daily. Despite some progress, unions say key issues remain unresolved, keeping the potential for disruptive industrial action at the critical Port Hedland hub alive.

BHP has made concessions to unions in an effort to avert a strike that could disrupt iron ore exports and cost the company approximately $126 million per day. On Tuesday, the mining giant presented a draft enterprise agreement to around 450 port operations workers at its headquarters in Perth. This marked the first collective offer for these workers, who until now have been employed under individual contracts.

The meeting followed union demands for face-to-face negotiations and was attended by senior BHP executives, including Geraldine Slattery, BHP’s president of Australia, and Tim Day, head of iron ore operations. The meeting aimed to bridge the gap between the unions' demands and BHP’s offer after several unions threatened rolling 24-hour strikes that could severely impact shipments from Port Hedland, a critical hub in Australia’s iron ore supply chain.

Four unions representing roughly 240 port workers—the Electrical Trades Union (ETU), Australian Manufacturing Workers Union (AMWU), Australian Workers’ Union (AWU), and Mining and Energy Union WA—are involved in the dispute. Members of the ETU and AMWU have already voted in favor of industrial action but are delaying the start of strikes pending further talks. Meanwhile, the AWU and Mining and Energy Union WA are currently voting on whether to join strike action.

Following the meeting, the unions issued a joint statement acknowledging some progress but emphasized that significant differences remain. They stated that the negotiations have not yet adequately addressed their core concerns.

BHP’s Slattery defended the company’s approach to industrial relations, highlighting the importance of safe, competitive, and fair terms to ensure productive and reliable operations at Port Hedland. She described ongoing efforts as committed negotiations aimed at avoiding disruption. Earlier estimates from BHP suggested that a shutdown at the port could result in losses up to $900 million (US) daily.

The dispute has drawn attention from federal and Western Australian governments, as well as major international trading partners, underscoring the strategic significance of Australia’s iron ore exports. Federal Resources Minister Madeleine King has criticized BHP for its reluctance to engage in collective bargaining, a stance that she suggested is shifting within an industry long characterized by minimal strike activity.

In a broader labor context, approximately 1,600 workers at BHP’s South Flank and Mining Area C mines are set to vote on June 30 concerning a separate agreement that includes a four-year, 4 percent annual pay increase and improved working conditions.

Though specific details of the unions’ demands remain confidential, reports indicate the AMWU may be pursuing a package approaching $400,000 annually when factoring in salary, superannuation, and allowances. The ETU is also seeking a comparable remuneration package for its members working in BHP’s high-voltage unit.

As negotiations continue, both BHP and the unions face mounting pressure to reach an agreement that preserves Australia’s critical iron ore supply chains while addressing workforce concerns.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.