BHP Group Ltd Sponsored American Depositary Receipt Repr 2 Shs (BHP.US) - Hundreds of employees at the Port Hedland vote in favor of strike, Global iron ore exports at risk Hub Group, Inc. Class A.

Two Australian unions said on Thursday that hundreds of BHP Group Ltd Sponsored American Depositary Receipt Repr 2 Shs (BHP.US) employees at the Port of Hedland in Western Australia voted in support of taking strike action. This increases the risk of disruption in iron ore transportation for one of the world's largest iron ore export hubs. Port Hedland is one of the largest iron ore loading ports in the world and the largest iron ore export port in Australia. The port connects multiple mines in the Pilbara region operated by BHP Group Ltd Sponsored American Depositary Receipt Repr 2 Shs and handles all of its iron ore export business in Western Australia. The Electrical Trades Union (ETU) of Western Australia stated that all 100 union members who participated in the vote supported taking strike action, with stoppages ranging from 30 minutes to 24 hours, and the actions could begin in a matter of days. A spokesperson for the Australian Manufacturing Workers' Union (AMWU) said that over 100 union members also voted in favor of strike action with a nearly 90% approval rate. The vote comes after months of negotiations between the unions and BHP Group Ltd Sponsored American Depositary Receipt Repr 2 Shs regarding a labor agreement. ETU stated that after employees were hired on "drastically different" individual contracts, the union sought an agreement to ensure that port workers receive equal treatment when they have the same skills and experience. ETU Secretary Adam Woodcock said, "For over six months, we have been trying to resolve these issues through negotiations, but BHP's obstruction has meant that we couldn't even find anyone genuinely willing to negotiate." The union added that after providing five days' notice, employees could begin taking industrial action. AMWU Secretary Steve McCartney stated that employees had been in negotiations with the company for seven months with no resolution, and the outcome of the vote "reflects growing discontent among the employees of the mining giant." He said, "Members have had enough. They want their voices heard, and they want a fair agreement." He urged BHP Group Ltd Sponsored American Depositary Receipt Repr 2 Shs to respect the employees' decision and return to the negotiation table in good faith. The escalating labor dispute is also closely related to changes in the policy environment. Since the Australian federal government amended industrial relations legislation in early 2025, BHP Group Ltd Sponsored American Depositary Receipt Repr 2 Shs has received over 1000 requests for union entry into mine site premises. This frequent intervention has further exacerbated tensions between the parties and added additional obstacles to the negotiations. Additionally, the Pilbara region is known for its extreme heat, making the union's demand for a heat allowance more relevant. It is worth noting that this is not the first industrial action in the Pilbara region in recent years. In 2014, Mermaid Marine experienced a similar strike, but the breaking of the nearly three-decade "no strike" record in the mining sector signals a complete escalation of the labor-management conflict and has raised widespread concerns about the region's economy and mining industry stability. In response to the strike pressure, a spokesperson for BHP Group Ltd Sponsored American Depositary Receipt Repr 2 Shs stated that the company's current focus is on reaching an agreement that maintains "industry-leading pay and working conditions." The spokesperson said, "If the union takes disruptive action at our operational sites, we have robust contingency plans in place to protect our employees and ensure that safe and reliable operations can continue." However, the company did not specify the details of these contingency plans. The Chamber of Mines and Energy of Western Australia criticized the union's demands as potentially harmful to the national economy. The CEO, Aaron Morey, said in a statement, "Direct and collaborative collective bargaining has delivered decades of employment growth and productivity improvements, created the highest average wages nationally, and contributed over $100 billion in resource tax revenue to Western Australia." "Closing Port Hedland each day will cost the state millions in resource tax revenue, weakening the government's ability to support nurses, teachers, and other public service workers." "Radical unions must be restrained." The potential economic losses resulting from disruption at Port Hedland could be substantial. In the previous financial year, BHP Group Ltd Sponsored American Depositary Receipt Repr 2 Shs exported 290 million tonnes of iron ore through Port Hedland. According to the latest available financial reports and budget data, this mining giant could face losses of $110-126 million per day. Furthermore, any interruption in exports could also cost the Western Australian government $6.85 million in daily royalties. Western Australian Premier Roger Cook stated that the state government would not intervene in resolving the labor dispute but would support workers in defending their rights. BHP Group Ltd Sponsored American Depositary Receipt Repr 2 Shs, mining industry organizations, and the opposition party all attribute the return of union power to the Pilbara region to the reforms made by the Albanese government to labor relations laws. Unions have been steadily making a comeback in recent years, according to Alexis Vasiliev, an expert in labor relations at Edith Cowan University and a labor history scholar. He noted that if legally protected industrial action ultimately occurs at Port Hedland, it could be the first similar event since the 2008 strike by railway workers at Rio Tinto plc Sponsored ADR. He added, "This would be a significant event." "If we see a large-scale strike action happening, it would be of historical significance."