Seafarers left high and dry as BHP and BlueScope scupper Australian-manned iron ore vessels
Almost 80 Australian seafarers are set to lose their jobs after BHP and BlueScope scuttled contracts with locally-manned vessels.
Almost 80 Australian seafarers are set to lose their jobs after BHP and BlueScope quietly brought an end to their use of the last two Australian-manned iron ore vessels.
BHP (BHP) and BlueScope (BSL) have confirmed that their contracts with the MV Mariloula and MV Lowlands Brilliance will not be renewed when they expire later this year.
The two vessels, which are owned and operated by the New York-listed shipping giant Teekay Corporation, have spent years carrying iron ore from BHP’s operations in the Pilbara to Bluescope’s Port Kembla steelworks.
The decision was slammed by Maritime Union of Australia national secretary Paddy Crumlin, who labelled the move “a national disgrace”.
The MUA has written to BHP demanding an explanation for the move.
“It is with great surprise and regret we received notice from BHP informing the impending removal of the MV Mariloula and MV Lowlands Brilliance from freight services contracted to BlueScope and consequently, their removal from Australian coastal and international trade,” the MUA said.
“The decision has the potential to devastatingly affect Australian seafarers and will see BlueScope’s supply chain effectively removing Australia labour from the local Australian industry, being replaced by highly exploited foreign crews paid as low as $2 per hour.”
BHP has long ago exited the shipping business, instead using short-term charters for its global exports.
A spokesman for BHP said the remaining contracts were a legacy of BHP’s spin-off of BlueScope back in 2002.
“These freight arrangements date back to a time when BHP was a major steel manufacturer and processor and were maintained for a period as part of the demerger of BHP Steel (now BlueScope Steel). Since this time BHP’s business has changed and we no longer operate and manage freight vessels — including the contracting of crewing services,” a spokesman for BHP said.
“BHP is mindful of the impact the conclusion of this business will have on the crews of these ships. The employer of the crews, Teekay Shipping Australia, is supporting them through this change.”
A spokesman for BlueScope said the iron ore market had changed fundamentally since the original shipping contract was put in place 17 years ago.
“BlueScope operates in the highly competitive, trade-exposed, global steel industry. We must ensure that we have internationally competitive raw material supply arrangements, so our local manufacturing operations, which employ 6500 Australians, remain viable,” he said.
“BlueScope is currently exploring options for future iron ore supply, and we expect a greater diversity of suppliers will be engaged in future, necessitating a more diverse mix of shipping. These arrangements will be through commercial negotiations with the various iron ore suppliers.”
