Talks between BHP and unions representing workers at the mining giant's Port Hedland iron ore operations in Western Australia ended without a deal, with further negotiations scheduled for next week, the parties said on Tuesday.
The three unions of the Combined BHP Ports Unions have been meeting almost weekly in recent months to negotiate a four-year agreement with the world's third-largest iron ore miner. Talks will resume next Tuesday, facilitated by regulator the Fair Work Commission.
“Today we tabled a strong, updated proposal that is a significant step towards delivering a fair and reasonable agreement for our port workers," BHP said in a statement.
For most workers, the offer will lock in a 17 per cent pay increase over the four years of the agreement, and include a transition payment of AU$25,000 ($18,038) paid over two years, as well as an increase to roster allowances, BHP said.
Mining is among Australia's top-paying industries. Workers in remote, hot and dry regions say they should be paid to account for those conditions and time away from their families.
"Under BHP's proposal, about 40 per cent of the workforce would be going backwards," said Adam Woodage, the secretary of the Electrical Trades Union Western Australia.
"Resolving an inequality between workers doing the same work by cutting the pay of one group...rather than raising that of the other group isn't fair or reasonable."
Port Hedland is the world's largest iron ore loading port and Australia is the world's biggest supplier of the steelmaking raw material, accounting for around 900 million tons of iron ore per year. BHP ships some $80 million worth of iron ore daily through the facility.
(Reporting by Melanie Burton; Editing by Lincoln Feast and Thomas Derpinghaus)