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Labour Unrest Threatens Australia’s Mining & Energy Exports
Growing labour unrest across Australia's mining and energy industries is raising the risk of industrial action at major exporters, adding to concerns over rising costs and the country's attractiveness as an investment destination.
Growing labour unrest across the resources sector in Australia is increasing the risk of industrial action at iron ore mines as well as ports and liquefied natural gas (LNG) facilities.
Rising labour costs, more regulatory and strike threat are making Australia a less attractive place to invest, mining companies like BHP warned.
Industrial action rose under workplace law changes introduced by the Australian government in 2022. It gave unions power for bargaining, opening the door to negotiations across employers and increasing their scope for flexible arrangements and allowing industry wide strikes.
AbstractTwo data releases from the Australian Bureau of Statistics (ABS) in December 2025 reported working days lost to industrial disputes at their highest level since 2022. With inflation at 4% in Australia and three interest rate rises in the last year, workers have been asking for higher wages and firmer job security.
LNG Sector Faces Wage Disputes
Strike actions in June halted shipments of the Ichthys LNG project, which produced approximately 10% of Australia’s liquefied natural gas, after Inpex reached deals with unions.
Wage talks are next on the agenda for Shell’s floating LNG facility, Prelude. If the company and unions can not agree, then international unions will seek approval to start a strike.
Employment relations professor at Griffith University David Peetz said recent wins by unions in the oil and gas sector may inspire other workers to unionise and make a difference. Oil and gas workers began to re-unionise before 2022 law changes and this created a wage fight in 2022 and 2023 to get pay hikes.
Iron Ore Operations Under Pressure
Unions are also ramping up pressure at BHP’s Port Hedland operations as another round of negotiations looms on July 7.
Fortescue and Hancock also ship from Port Hedland, which is one of Australia’s most important export gateways where an average $150 million worth of iron ore is shipped every day.
BHP head Geraldine Skattery has warned that Australia risks losing its status as the world’s preferred destination for mining investment unless costs and productivity are not addressed.
Australia’s workers are already paid the best around the world. More wage increases could see automation speed up across mining companies, including BHP and Rio Tinto, according to Morningstar analyst Jon Mills.
Source: Reuters
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