Mining Giant BHP Faces Industrial Action By Pilbara Train Drivers - What's Going On?

In BHP Group Ltd's BHP iron ore division in Pilbara, Western Australia, approximately 500 train drivers are set to commence industrial action later this week following the rejection of the company's offer regarding work schedules.

Mining and Energy Union WA Secretary Greg Busson said drivers had endorsed a range of actions and were beginning their campaign with bans on use of the company's mobile app for rostering. The ban means drivers' rosters cannot be unilaterally changed by management electronically, without being personally contacted and informed. 

In a protected action ballot held from 18-25 October, 95% voted yes to a range of measures including work stoppages, speed reductions and a range of work bans. 

Greg Busson, said, "Drivers are beginning with a measured and targeted action."

"It's fantastic to see workers getting organised and taking collective action after the extreme efforts of the mining companies to deunionise the Pilbara." 

The offer made last Wednesday by BHP to its drivers was deemed unsatisfactory, particularly in areas concerning rostering, arbitration, and camp standards, reported Reuters.

BHP's iron ore operations consist of four processing hubs, five mines, and is commected by more than 1,000 km (621 miles) rail and port facilities, and accounted for 60% of BHP's pre-tax earnings, totaling $16.6 billion in 2022, as per the report.

The looming strike has already impacted iron ore prices, driving them to their highest levels since February. 

MEU and BHP Iron Ore have been bargaining for nearly two years to replace the BHP Billiton Iron Ore Locomotive Drivers Agreement 2014. 

Price Action: BHP shares closed higher by 0.88% at $60.91 on Friday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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