By Rhiannon Hoyle
Train drivers at BHP Group’s Australian iron-ore operations have voted in favor of strike action in a dispute over pay and conditions, a union representing the workers said Monday.
Workers backed a number of measures including work stoppages, speed reductions and a range of work bans in a ballot held from Oct. 18-25, the Mining and Energy Union said in a statement.
The union and BHP have been in talks on a new agreement for the company’s iron-ore train drivers for nearly two years.
Union officials will continue to seek a deal with the world’s biggest miner by market value, but will take action if workers’ concerns aren’t addressed, said MEU Western Australian Secretary Greg Busson.
The union has told BHP it will not notify the company of industrial action until at least Nov. 3, meaning any disruptions to operations will begin Nov. 10 at the earliest, a company spokesperson said. Union officials must give the company four business days’ written notice to take action.
Workers could stop work for up to 24 hours an unlimited number of times, run trains at less than half their typical speed and refuse to operate light vehicles, among a range of potential measures.
“There is a process in place with the MEU to finalize the new agreement, with further meetings scheduled this week,” the BHP spokesperson said in emailed remarks. “This will be the most effective way to conclude our good faith bargaining and finalize the agreement, so it can be voted on by employees in December.”
BHP is the world’s third-biggest producer of iron ore, and the commodity accounted for 59% of the mining giant’s underlying earnings before interest, taxes, depreciation and amortization last fiscal year.
The union said the labor agreement covers roughly 500 drivers who operate trains hauling the steel ingredient from BHP’s mines to Port Hedland, to be shipped to steelmakers in Asia.
Drivers are seeking guaranteed annual pay increases and consistent standards in training, roster changes and other areas, it said.
Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com
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