BHP Port Hedland braces for two-day strike as workers demand new pay deal

Union workers at BHP's Port Hedland iron ore operations in Western Australia have begun a two-day strike, marking the first significant industrial action at the world's largest iron ore export hub in more than two decades.

Around 150 workers are participating in the action, which began with a 24-hour ship-loading ban on Saturday and will be followed by a full 24-hour stoppage on Sunday. The port handles roughly $80 million worth of iron ore daily for BHP, the world's third-largest iron ore miner.

Steve McCartney, Western Australian secretary of the Australian Manufacturing Workers' Union, confirmed the action was proceeding as planned. "On the second day, on Sunday, all three unions are going to be walking off the job for 24 hours," he said.

The strike involves members of the Combined BHP Ports Unions (CBPU), which represents around 450 operators and maintenance workers out of BHP's more than 800-strong port workforce. The unions are negotiating a four-year bargaining agreement with the company, with talks having been underway for over seven months.

Despite some progress in negotiations on Tuesday, union members opted to proceed with the strike. The action comes amid record share prices for BHP and a rising cost of living, which have intensified demands for a new pay deal.

BHP has said it has contingency plans to maintain operations during the strike. The company did not immediately respond to requests for comment on any operational impact. Around eight ships are expected to finish loading from BHP's port facilities over the weekend.

The industrial action is not expected to affect rival miners Fortescue and Hancock Prospecting, which also use Port Hedland. The hub accounted for 75% of iron ore exports from the Pilbara region in the year to June.

The CBPU is scheduled to meet with BHP again on August 18, the same day the company is set to report its annual results.