Investor Brief & Engagement Request: BHP
In January 2019 BHP announced the withdrawal of its two remaining locally-crewed ships that supply iron ore for BlueScope Steel’s production site in Port Kembla, Australia. The carriers will be replaced by Flag of Convenience (FOC) ships. The crews on FOC ships receive wages as low as $2 per hour, as documented in a 2016 Parliament of Australia report.
BHP has failed to respect the human rights of both Australian and international seafarers in its bulk commodity supply chains by:
- i. Failing to consulting the current workforce and their labour unions on the employment impacts of its decision;
- ii. Inadequately engaging with the International Transport Workers Federation (ITF) and national seafarer unions on appropriate labour standards relating to crewing, training and safety for seafarers on FOC ships it charters.
This recent decision to withdraw two ships could generate reputational and financial risk, compromising the company’s long-term value.
To learn more please read the CWC BHP Investor Brief and the MUA BHP Investor Alert (February 2019).