BHP faces $120m loss as unions plan 24-hour Pilbara strike

Major Australian mining conglomerate BHP is on the brink of new operational disruptions at its iron ore facilities in Western Australia’s Pilbara region, after a coalition of trade unions formally notified regulators of planned 24-hour work stoppages set to kick off in early August. The industrial action comes after months of slow-moving, unproductive negotiations over a new enterprise bargaining agreement, with union leaders accusing BHP management of using deliberate stalling tactics to avoid addressing worker demands.

Unions have officially filed industrial action notice with Australia’s Fair Work Commission, scheduling a two-stage stoppage for August 8 and 9. On August 8, workers will implement a full 24-hour ban on all ship loading operations at Pilbara ports. From 5:30 a.m. local time on August 9, all site workers will down tools for a further 24-hour work stoppage, unless BHP agrees to return to good-faith negotiations before the deadline.

The financial impact of even a single 24-hour stoppage in the Pilbara is substantial: industry estimates put BHP’s lost revenue at roughly $120 million per day of halted operations, while the Western Australian state government stands to lose approximately $6.85 million in foregone mineral royalty payments each day work is stopped.

The joint union action is led by the Combined Port Unions, which counts the Electrical Trade Union (ETU) and the Australian Manufacturing Workers Union (AMWU) among its member organisations, alongside the Western Mine Worker Alliance. Union representatives unanimously criticized what they describe as the “glacial pace” of talks with BHP leadership, saying the company has dragged out negotiations for months without meaningful progress.

Craig Beveridge, a spokesperson for the Western Mine Worker Alliance, said BHP has had ample opportunity to engage in good-faith collective bargaining but has instead prioritized delay and obstruction. “Our members are fed up and ready to fight harder and longer, if that is what it takes to secure a fair and reasonable agreement,” Beveridge stated. “BHP rakes in billions of dollars in profits each year, thanks to the hard work and dedication of our members. It’s only right that they receive their fair share.”

Adam Woodage, state secretary of the WA branch of the ETU, expanded on worker frustrations, noting that BHP posted a staggering $15 billion in net profit last year. Despite that massive windfall, Woodage said the company is pushing a controversial pay proposal that includes a “false floor” structure that would cut base pay below what workers currently earn, while offering unregulated off-agreement backdoor payments that lack transparency.

“That isn’t a real agreement. It isn’t fair or transparent,” Woodage said. “The people who enable this company’s exorbitant profits are sending a message with this action: We want an honest deal, in black and white, and we are not going to entertain what the company is pushing.”

If the planned strike goes ahead, it will mark the second round of industrial action at BHP’s Pilbara operations in just two months. In mid-July, 100 workers walked off the job for an eight-hour stoppage to protest the stalled negotiations. BHP has not yet issued a public response to the latest strike notice, and requests for comment from the company remain unanswered as of press time.

Federal government minister Matt Keogh, speaking to reporters, acknowledged that the breakdown in talks is disappointing, but noted that worker frustrations stem from BHP’s failure to engage in meaningful negotiations. “I understand that this strike action is because the workers there feel that the employers are not engaging with them properly in the negotiations,” Keogh told media. “We want to see good negotiated outcomes, enterprise agreements to support the workforce, support business, and the best outcome for Australia.”

Keogh also highlighted the unique challenges Pilbara mining workers face, including long-distance rotational rosters that require extended periods away from home, alongside broader cost-of-living increases that have put extra pressure on worker wages across the country. “It’s important that workers are able to do that when they’re in the process of bargaining,” he said. “But we want to see the employers properly engaging with their workforce to get to good outcomes.”