Why union action at the mining giant could trigger a ripple effect across the Pilbara
Updated ,first published
Strike action by the combined ports union in the Pilbara will not cost the Australian and WA economies any royalties but will instead delay them, according to Electrical Trade Union WA state secretary Adam Woodage.
Unionized workers at BHP’s Port Hedland operation stopped vehicles for an eight-hour period on Thursday after wage talks with the iron ore giant stalled despite the two sides meeting with the Fair Work Commission earlier this week.
Responding to criticism that strike action could cost WA taxpayers a share of precious metal royalties, Woodage said there would be a limited impact on the economy.
“This will not cost WA any loss of royalties. It will delay royalties,” he said.
“There will be a delay of about eight hours at the till. This will delay BHP’s $40 to $50 million that they could lose tomorrow.”
“Or they’ll get it the next day. BHP recently delivered a record number of tonnes according to today’s report, and that’s because the skilled workers who took a stand against BHP today are behind me.”
Earlier on Thursday, the iron ore producer announced all was well for a new iron ore mine in WA’s Pilbara region, with the $1.3 billion Ministers North project planning to add 20 million tonnes a year to the company’s output once it reaches peak production.
The announcement follows an update that BHP’s WA Iron Ore division achieved record production from mines in the last financial year, up 6 per cent.
A BHP spokesman expressed disappointment that the strike was continuing, particularly as further hearings were planned at the Fair Work Commission, which had offered to provide support to both parties.
“We are committed to bargaining in good faith and believe that having an independent facilitator through the Commission is the most constructive, transparent and fair way to achieve the best outcome,” the spokesperson said.
We are keen to continue negotiating constructively for a fair agreement.
“As with any potential disruption to our business, we have plans to ensure operations can continue safely.”
At a press conference earlier on Thursday, WA Premier Roger Cook said the strike action was “concerning” but he supported workers getting the best pay and conditions they could.
“I want these workers to get the best pay and conditions they can get by working with their union, and I want companies to get a good outcome so they can continue to be strong, profitable companies that drive our economy, as we do in the Pilbara,” he said.
Cook shrugged off suggestions that the action, and fears of increased unionization in the Pilbara, could have an economic impact on foreign investment in Western Australia’s lucrative resource sector, noting that a unionized workforce is part of Australia’s industrial relations system.
Asked whether unions were supported by the Prime Minister, Woodage said he felt neutral about Cook’s comments.
“I am neutral because the prime minister is not a member of the ETU. The prime minister is not hiring me,” he said.
“The Prime Minister does not give me instructions on what to do.
“My members are, and those members are standing behind me—joyful, happy, loud, and proud to leave work today.”
WA Labor’s relationship with unions has created a point of attack for the opposition, which accuses the government of not doing enough to avoid this situation. eight hour strikeIt is estimated that this will cost BHP $50 million.
At the national level, Changes made by the Albanian Workers’ Party government to industrial laws They are accused of opening the door to more union activity in the Pilbara for the first time in decades.
Minerals and Energy Chamber WA president Aaron Morey described the strike action as the “most expensive barbecue in WA history”.
“They are sending a signal to the world that the Pilbara is no longer a safe place to invest,” he said.
“An estimated $4 million to $5 million in state royalties are at risk if they are successful, and on a day when nurses are doing double shifts and teachers are managing overcrowded classrooms, it is truly disappointing that unions in the state’s north are seizing Australia’s leading economic asset for face painting and bouncy castles.”
But Australian Manufacturing Workers Union general secretary Steve McCartney said the strike action had the support of the local Port Hedland community.
“All the locals I’ve talked to and the amount of honking as they drive by tells me they say it’s time,” he said.
“It’s time for someone to lead BHP.
“They don’t own this town, they just work in this town.”
