BHP Port Hedland Workers Seek Arbitration Over Wages

The Combined BHP Ports Unions, representing about 450 operators and maintenance workers at BHP's Port Hedland iron ore operations in Western Australia, announced Tuesday it will seek arbitration via the Fair Work Commission. More than nine months of negotiations failed to produce a four-year agreement. The union plans to apply for an intractable bargaining declaration. BHP put forward its latest wage offer last week: a 17% pay increase over four years for most workers, a A$25,000 (US$17,802.50) transition payment spread over two years, and higher roster allowances. Workers stopped work for two days in August, described as the first major industrial action at the facility in about 25 years, and Port Hedland's three unions have staged a series of 24-hour stoppages. BHP says shipments have not been affected by the industrial action. The two sides have met almost weekly with the Fair Work Commission facilitating talks. BHP shares fell 2.2% in Sydney trading on Tuesday. What is contested and who says what Combined BHP Ports Unions statement: BHP is unwilling to negotiate an agreement that reflects the specialized skills, extreme conditions and significant personal sacrifices of the people who generated the company more than $13 billion in profit this year. The union says roughly 40% of workers would be financially worse off under BHP's proposal. BHP spokesperson: Our focus remains on delivering a fair and reasonable agreement. BHP has said continued negotiations are the quickest path to a settlement.