BHP faces union arbitration over WA wage dispute

• The Combined BHP Ports Unions will seek arbitration with BHP after failing to agree on a wage deal.
• Negotiations have stalled after more than nine months of weekly meetings regarding Port Hedland operations.
• The dispute covers around 450 workers at the world’s largest iron ore export hub.

The Combined BHP Ports Unions will apply for an intractable bargaining declaration to take BHP (ASX:BHP) to arbitration after failing to reach terms on a new four-year wage deal for Port Hedland iron ore operations in Western Australia.

The formal application to the Fair Work Commission follows more than nine months of weekly negotiations regarding the primary shipping gateway for the company's Pilbara operations.

“BHP is unwilling to negotiate an agreement that reflects the specialised skills, extreme conditions and significant personal sacrifices of the people who generated the company more than $13 billion in profit this year,” said Combined BHP Ports Unions Spokesperson John Doe.

BHP offered most workers a 17% pay increase over four years alongside a transition payment of $25,000 over two years, though the union claimed that around 40% of the workforce would be worse off under the proposal.

The union stated that the regulatory declaration will allow the Fair Work Commission to directly set the binding terms for the new agreement.

Following the announcement the BHP share price was unchanged at $59.14.

Port Hedland operates as the largest iron ore export hub in the world, making its workforce vital to Australia's resource supply chain.

The industrial action highlights growing friction between major Australian resource companies and labour groups seeking higher compensation amidst strong corporate profits.