Australian mining firm BHP could face industrial action by train crews at its Western Australian (WA) iron ore mining and export business in the Pilbara.
The Construction, Forestry, Mining and Energy Union (CFMEU) is consulting its BHP train crew members on the possibility of taking protected industrial action at the firm's Pilbara iron ore facility. BHP and the CFMEU have met 10 times to negotiate a new enterprise agreement, but have not made enough progress on remuneration, according to the CFMEU.
BHP cited a lack of train drivers for disrupting iron ore shipments in 2021, when the WA border was largely closed to other states and nations because of Covid-19. Borders have reopened but delays in visa processing and reluctance among some people to travel have seen widespread skills shortages persist across Australia through this year.
BHP and CFMEU started negotiating a new enterprise agreement for the WA Iron Ore (WAIO) train crew in December 2021, despite the previous agreement expiring in 2018. The CFMEU is demanding that BHP lock in a non-performance-related annual pay rise as part of the new agreement.
"BHP has recorded record profits," CFMEU WA organiser Warren Johncock said. "In this climate, we are in a great position to keep campaigning and demand more from our agreement."
WAIO reported earnings before interest and tax of $19.67bn in the fiscal year to 30 June 2022, down from $24.31bn the previous year, largely because of lower received prices and higher costs. It was still the largest contributor to BHP's annual profit from continuing operations of $22.4bn, up from $13.7bn a year earlier, but may not have the growth potential of potash, nickel and copper.
