BHP said in May that its mining operations may start winding down after two days of any strike action because stocks at the port were reasonably high.
The deckhands' union has approval for unlimited stoppages for periods between two hours and 12 hours, while two other unions will ballot engineers and tug masters to enable strikes for as much as two-days and one day respectively.
Unions have discussed possible industrial action since March and, depending on the results of voting, rolling stoppages could stretch to November.
Wall Street
The deckhands earn at least A$137,000 (NZ$151,000) a year, which can rise to about A$211,000 (NZ$233,000) with benefits and allowances, according to BHP.
A junior banker on Wall Street typically makes a base salary in a range of $70,000 to $90,000, with bonuses bringing total pay to as much as $140,000, according to New York-based compensation consultant Johnson Associates. At the top end, Goldman Sachs awarded Chief Executive Officer Lloyd Blankfein at least $23 million in 2013 compensation, according to an April filing.
"A threat to strike has been seen by others across the community as extraordinarily unreasonable," Deidre Willmott, chief executive officer of the Western Australia Chamber of Commerce and Industry said by phone from Perth. "The fact that most of these disputes are ultimately resolved through negotiations is cold comfort."
Winner Rio?
Any strike action would likely have a short-term share market impact, said CMC's McCarthy, though he rates the chance of a strike as extremely low.
Deckhands typically work for at least 12 hours-a-day and spend four week stretches away from their families, said Will Tracey, the assistant secretary of the Western Australia branch of the Maritime Union of Australia.
"They deserve to be paid well," Tracey said in a August 14 emailed response to questions. "They also deserve to have annual leave, which they don't currently receive."
Iron ore exports from Port Hedland advanced to a record 364.3 million tons in fiscal 2014, according to the Pilbara Ports Authority. Rio Tinto Group, the biggest iron-ore exporter after Brazil's Vale SA, makes shipments through Western Australia's Cape Lambert and Dampier ports.
Rio "may be a potential beneficiary if the strikes concerns were to escalate and have an impact on iron ore pricing" as it isn't directly affected by the Port Hedland disputes, Michael Bush, Melbourne-based head of credit research at National Australia Bank, said in an August 7 note.
14 tugs
Fortescue Metals Group, which also exports from Port Hedland, has said jobs among its 8,000-strong work force could be put in jeopardy as a result of any strikes.
Tugboat engineers at Port Hedland earn a basic salary of A$220,000 a year, and with allowances can command a total annual package of as much as A$390,000, according to Teekay Shipping (Australia) Pty, which operates 14 tugs crewed by 166 staff under a contract with BHP. Masters, who pilot the tugs, are paid between A$220,000 and about A$322,000, BHP said.
Fatigue concern
Engineers will accept a wage increase in line with the consumer price index and are seeking changes to working patterns they say leave crews dangerously fatigued, said Henning Christiansen, the Australian Institute of Marine and Power Engineers' federal secretary. The union's intention is to "shine a spotlight on the dangerous hours of work that BHP" and Teekay require of tug crews, he said in an email.
The Australian Maritime Officers Union, which represents the tugboat masters, didn't respond to three phone calls seeking comment.
One the other side of the continent, union members working on more than $60 billion of liquefied natural gas export projects in Queensland, for companies including ConocoPhillips, last week approved a labour agreement, easing concerns of delays to first production.
- Bloomberg
