BHP, union talks for Port Hedland iron ore workers to stretch into next week

BHP and Unions Extend Port Hedland Iron Ore Worker Negotiations

Ongoing Negotiations and Key Details

Current Status of Talks

MELBOURNE, Sept 8 (Reuters) - Talks between BHP and unions representing workers at the mining giant's Port Hedland iron ore operations in Western Australia ended without a deal, with further negotiations scheduled for next week, the parties said on Tuesday.

Background and Recent Developments

The three unions of the Combined BHP Ports Unions have been meeting almost weekly in recent months to negotiate a four-year agreement with the world's third-largest iron ore miner. Talks will resume next Tuesday, facilitated by regulator the Fair Work Commission.

BHP’s Proposal

“Today we tabled a strong, updated proposal that is a significant step towards delivering a fair and reasonable agreement for our port workers," BHP said in a statement.

Pay and Benefits Offered

For most workers, the offer will lock in a 17% pay increase over the four years of the agreement, and include a transition payment of A$25,000 ($18,038) paid over two years, as well as an increase to roster allowances, BHP said. 

Union Response and Worker Concerns

Mining is among Australia's top-paying industries. Workers in remote, hot and dry regions say they should be paid to account for those conditions and time away from their families.

"Under BHP's proposal, about 40% of the workforce would be going backwards," said Adam Woodage, the secretary of the Electrical Trades Union Western Australia.

"Resolving an inequality between workers doing the same work by cutting the pay of one group ... rather than raising that of the other group isn't fair or reasonable."

Port Hedland’s Role in Iron Ore Exports

Port Hedland is the world's largest iron ore loading port and Australia is the world's biggest supplier of the steelmaking raw material, accounting for around 900 million tons of iron ore per year. BHP ships some $80 million worth of iron ore daily through the facility. 

($1 = 1.3860 Australian dollars)

(Reporting by Melanie Burton; Editing by Lincoln Feast and Thomas Derpinghaus)