Global mining giant BHP Billiton Ltd. has encountered some difficulties in its iron ore business in the Pilbara region of Western Australia, which may affect the stability of its shipments.
A message released by the Australian Mining and Energy Union (MEU) on February 12th local time showed that BHP's Australian iron ore train drivers will go on strike for 24 hours on Friday due to disputes over scheduling and accommodation related to working conditions and wages. Workers need to ensure a new agreement is reached.
The strike is just the beginning, and the action also includes a temporary plan to slow down some trains to no more than 30 kilometers per hour within 7 days starting from February 17th (this Saturday). During this period, train drivers will also be prohibited from operating work trains that transport maintenance materials, construction equipment, or fuel.
MEU Secretary General Greg Busson said that drivers have shown strong determination to ensure improvements in areas including scheduling and accommodation. Busson said, "These drivers are just seeking secure conditions in a range of fields, which will have a significant impact on them and their families."
The previous agreement between the two parties was reached in 2014, involving approximately 580 workers, including drivers. In fact, after a protection operation in October last year, BHP Billiton submitted a new agreement for voting to replace the previous BHP Billiton iron ore train driver agreement.
However, the above-mentioned new agreement is only seen as an improvement, but it has not fully addressed the issue. According to the news released by MEU, in January of this year, MEU met again with BHP Billiton to resolve outstanding issues, but the issue has not been responded to yet. It is reported that iron ore operators will be placed at the negotiation table this time.
BHP officials stated in an email statement that the company presented a "fair and generous offer" in December last year, but most employees voted to continue bargaining. He said the company believes an agreement can be reached without the need for drivers to stop working, but there are also emergency plans in place to prevent the strike from continuing.
BHP Billiton is a globally renowned comprehensive resource company headquartered in Melbourne, Australia, and sells its products globally through its marketing center in Singapore. Its resources include copper, nickel, potassium fertilizers, as well as iron ore and coking coal. It is currently the third largest iron ore producer in the world. In the previous fiscal year, iron ore accounted for nearly 60% of the mining giant's basic profit before interest, tax, depreciation, and amortization.