Train Drivers at BHP Group’s Australian Iron-Ore Operations Plan to Strike Over Working Conditions
By Rhiannon Hoyle
Train drivers working at BHP Group’s Australian iron-ore operations have informed the mining company that they intend to go on a 24-hour strike this Friday. The dispute revolves around working conditions, which includes issues such as rosters and accommodation, according to a union representing the workers.
A majority of eligible union members voted in favor of taking industrial action, including work stoppages and speed reductions, in a ballot that took place from February 2nd to 9th. BHP, the world’s third-largest producer of iron ore, heavily relies on the steel ingredient for its underlying earnings before interest, taxes, depreciation, and amortization, accounting for 59% of the mining giant’s fiscal year earnings.
Warren Wellbeloved, BHP’s rail general manager, stated in an email that the mining company had made a “fair and generous offer” back in December but the majority of employees decided to continue negotiations. Wellbeloved also mentioned that BHP believes an agreement can be reached without the need for drivers to halt work, but they have implemented contingency plans in case the strike proceeds.
This announcement comes as a blow to BHP Group, as disruptions in their iron-ore operations could have significant impacts on their production and profits. The company will now be focused on finding a resolution with the train drivers and avoid any further disruptions to their operations.
Analyst comment
This news is negative for BHP Group and the market. The planned strike by train drivers could disrupt iron-ore operations, impacting production and profits for BHP. The market will be watching closely to see if a resolution can be reached to avoid further disruptions.
