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BHP Electrical workers vote to strike at key Australian Iron Ore Export Hub

A union announced on Friday that hundreds of BHP's Electrical Workers at Port Hedland, in Western Australia, will vote on a potential strike action. This could disrupt iron ore exports from one of the largest export hubs of the world.

Electrical Trades Unions (ETU) has begun the process to allow its members to authorize a strike. This could happen "very likely" by the end June if no pay deal is reached.

After six months of stagnant talks, workers are now considering a strike after a failed attempt to reach an agreement with BHP, "the world's largest listed miner" in order to come up with a new labour contract. They want better pay and working conditions.

Adam Woodage, state secretary of the union, told a Perth press conference: "Our members didn't take this lightly."

BHP has stalled the negotiations for six months. The company has made little progress, and the movement that has occurred has been insulting to our members.

Woodage said that a strike could have "significant impacts on operations" as well as bring the export hub to a standstill.

BHP's spokesperson confirmed that the miner is negotiating with its port operation teams a "new agreement".

The spokesperson said that "in the event of union disruptions on our sites, we will have contingency plans to protect our employees and continue operations in a safe, reliable manner."

Port Hedland, Australia's largest iron ore port, is among the world's largest. It is connected to several BHP mines located in the Pilbara area and is used by BHP for all its iron ore in Western Australia.

BHP's collective agreement covers 450 port workers. Around 200 of them are ETU members.

The ETU announced that unionised workers would vote within the next two weeks on whether to approve work stops ranging between 15 minutes and 24 hours.

Woodage stated, "We expect they'll support taking this action."

BHP made a profit of?A$15billion ($10.73billion) last year. There's plenty in the bank to share with workers. Our members want a piece of this money.

BHP shares were up 1.4% to A$61.45 during afternoon trading, following the benchmark?S&P/ASX 200, which was also up 1.2%.

Separately the ETU and the Offshore Alliance, a union representing workers at the Ichthys Gas Plant in Darwin, are in negotiations with Japan's Inpex.

The Offshore Alliance, a coalition of the Australian Workers' Union (AWU) and the Maritime Union of Australia (MUA), announced on Friday that the planned strike action would be delayed until the 2nd of June as negotiations progressed. $1 = 1.3978 Australian Dollars (Reporting from Helen Clark in Perth, Christine Chen in Sydney and Sherin Sunny at Bengaluru. Additional reporting by Alan Barona and Rashmi aich in Jamie Freed's office).

(source: Reuters)