BHP bypasses unions after 11 deals in 9 months are rejected

The Australian reports BHP Mitsubishi’s decision to bypass a thoroughly resistant troika of unions by seeking a direct employee ballot on a new three-year enterprise agreement takes the world’s number one miner into deeply uncharted industrial relations waters.

The move comes after nine months of fruitless negotiations and 11 different offers – including annual pay rises of 5% and a $15,000 bonus – all of which were rejected by the unions which will now resume strikes.

The six mines operated by BHP Mistubishi  have a combined output capacity of more than 58 million tonnes per year of mostly metallurgical coal, representing about a fifth of annual global trade.

The Australian reports BHP Mistubishi became so frustrated by the cul de sac that it decided to push back just that little bit more. At the very least, the workers will be given a clear sight of the all that is in the enterprise agreement. As things stand, the unions have been the only translator of the terms and conditions under debate.

Reuters reports about 3,500 workers belong to unions at the BHP Mistubishi mines out of a total workforce of around 10,000 and analysts have estimated that a full week of 12-hour stoppages could cut production by up to 1 million tonnes.

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