According to Reuters, workers at BHP’s Port Hedland operations in Western Australia have given notice of an eight-hour work stoppage scheduled for July 16, in a move expected to disrupt around A$120 million, or approximately US$83 million, worth of daily iron ore revenue.

The action follows six months of negotiations between unions and BHP over a proposed four-year labour agreement. Workers across BHP’s port operations and maintenance workforce, represented by the Combined Ports Unions, are expected to take part in the stoppage.

“This is nobody’s preferred way forward, but when it is our only way forward, we will take it,” Reuters quoted Electrical Trades Union WA Secretary Adam Woodage as saying. He said the action should sharpen the focus of BHP managers and shareholders on the need for a fair, safe and productive iron ore industry.

The planned stoppage comes shortly after workers at BHP’s South Flank and Mining Area C iron ore operations narrowly approved a new labour agreement. That agreement reportedly includes a guaranteed 16% pay increase over four years, higher site-based allowances and a new payment scheme for delayed flights.

Port Hedland is one of the world’s most important iron ore export hubs and is also used by Fortescue and Hancock. Reuters said the port ships around A$150 million worth of iron ore each day, highlighting the potential scale of disruption from the industrial action.

Australian unions have been making their strongest push in decades to regain influence in the country’s mining heartland, following labour law changes introduced by the Labor government in 2022. Earlier local reports said more than 450 BHP workers had supported industrial action over bargaining issues, including wages and working conditions.

BHP has previously said its focus remains on reaching an outcome that maintains industry-leading pay and conditions. The company also said it has contingency plans in place in the event of union disruptions to help ensure safe and reliable operations.