BHP and Union Negotiations for Port Hedland Workers Extend Into Next Week

MELBOURNE, Sept 8 (Reuters) – Discussions between BHP and the unions representing staff at its Port Hedland iron ore operations in Western Australia wrapped up on Tuesday without a settlement; the two sides indicated that bargaining will carry over into next week.

The three unions that make up the Combined BHP Ports Unions have held nearly weekly meetings in recent months in an effort to secure a four-year contract with BHP, the world's third-largest iron ore miner. With the Fair Work Commission acting as mediator, the next round of talks is slated for Tuesday.

In a statement, BHP said: "Today we put forward a robust, revised offer that represents meaningful progress toward reaching a fair and equitable agreement for our port employees."

According to BHP, the proposal would guarantee most employees a 17% wage rise across the four-year deal, a transition payment of A$25,000 (equivalent to $18,038) spread over two years, and higher roster allowances.

The mining sector ranks among Australia's highest-paying industries, yet employees stationed in isolated, arid areas contend that compensation should reflect the harsh environment and the extended periods spent away from home.

As the globe's largest iron ore loading hub, Port Hedland is central to Australia's position as the leading exporter of the steelmaking commodity, with annual shipments of roughly 900 million tonnes. BHP moves about $80 million in iron ore through the port each day.

($1 = 1.3860 Australian dollars)