Safety operators threaten to strike at BHP’s coking coal mines in Queensland, while train drivers at its iron ore operations in Western Australia (WA) are holding off on proposed industrial action. The strike threat comes as union workers at BHP Mitsubishi Alliance (BMA) coal mines, including Daunia, Blackwater, Saraji, Goonyella Riverside, and Peak Downs Mines, vote on whether to take industrial action. If the open cut overseers (OCOs) overseeing safety choose to strike, operations at all five mines could be suspended simultaneously. The ballot to decide on industrial action will close on 20 December.
BHP hopes to resolve the issue through negotiations with the OCOs before any potential disruptions occur. The company is scheduled to hold its next meeting with the OCOs on 13 December. Under Australian law, the OCOs’ union must provide BMA with at least a week’s notice before any planned stoppages. If the strike proceeds, coal production could be disrupted starting from 28 December.
In a separate development, train drivers at BHP’s iron ore operations in Western Australia voted in favor of industrial action in October. However, they have agreed to abstain from any strikes while a ballot is conducted among members of the Mining and Energy Union. The ballot will determine whether the proposed pay increases and other provisions offered by BHP are acceptable. Voting will take place from 12 to 15 December.
BHP, along with other mining entities such as the Minerals Council of Australia, has criticized recent legislation that requires firms to pay equal wages for the same job. This legislation could potentially impact BHP’s internal contractor business Operations Services, as it currently pays lower wages and offers different employment conditions compared to workers employed directly by BHP. The company argues that Operations Services allows for greater flexibility in completing work that would typically be outsourced to contractors who pay their staff less. However, unions view it as an attempt to evade negotiated higher wages obtained through collective bargaining.
Australia’s mining industry is prepared to fight against the legislation, which they believe will make the country less competitive in the global push for new energy transition minerals. The industry previously succeeded in having the Mining Resources Rent Tax repealed, although it required a change of government before achieving its goal.
The outcome of the voting by the OCOs and the members of the Mining and Energy Union will determine the future of industrial action at BHP’s coal and iron ore operations. The company remains hopeful for a resolution through negotiations, but the threat of strikes looms over its Australian operations.
