BHP share price tumbles amid $66 million legal hit

ASX investors are bidding down the BHP share price today. Here's what's happening.

| More on:
Miner and company person analysing results of a mining company.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The BHP Group Ltd (ASX: BHP) share price is taking a fall today.

Shares in the S&P/ASX 200 Index (ASX: XJO) mining giant closed yesterday trading for $38.60. In morning trade on Tuesday, shares are changing hands for $37.74 apiece, down 2.2%.

For some context, the ASX 200 is down 0.4% at this same time.

This comes amid news that the Fair Work Commission ruled against BHP in the miner's long-running "same job, same pay" legal stoush with the workers union.

Here's why the BHP share price looks to be catching some extra headwinds today.

ASX 200 miner to stump up more pay

As The Australian Financial Review reports, the Fair Work Commission decided late on Monday that the Labor government's new pay laws apply to BHP's subsidiary Operation Services.

The decision covers some 2,200 contract workers working at three of BHP's Queensland-based mines, who could soon enjoy pay rises of some $30,000 a year.

According to the Mining and Energy Union, the total wage increases come out to around $66 million.

ASX investors may be pressuring the BHP share price today, with the miner having earlier forecast that the "same job, same pay" laws could cost it as much as $1.3 billion a year across all of its mining operations.

Lauding the decision, Mining and Energy Union Queensland president Mitch Hughes said (quoted by the AFR):

BHP has fought our same job, same pay applications tooth and nail, trying to protect the wage-cutting employment model it pioneered. The community has spoken, and the courts have spoken. BHP can no longer use outsourcing and dodgy corporate structure to cut pay.

Minerals Council of Australia chief executive Tania Constable had a decidedly different take on the decision that looks to be throwing up some added headwinds for the BHP share price today.

According to Constable:

This is an incredibly disappointing decision that will directly threaten thousands of specialised contractors who play a vital role in mining operations across the country. Unlike labour hire, these businesses exist to provide a specialised service, not just workers, and should never have been covered by these laws.

A BHP spokesman said the decision will clearly "have implications for our business".

He added:

Operations Services, as a mining services provider, is delivering compelling job opportunities and career pathways for 3,700 people, and productivity-enabling value for BHP.

BHP share price snapshot

With today's intraday loss factored in, the BHP share price is down 5.5% in 2025.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Resources Shares

Miner holding a silver nugget
Resources Shares

New silver and zinc mining aspirant debuts at a 20% premium in a quick win for shareholders

After a successful debut on the ASX, this company will now press ahead with its major silver and zinc project…

Read more »

Iron ore price Vale dam collapse ASX shares iron ore, iron ore australia, iron ore price, commodity price,
Resources Shares

Whyalla steelworks connection puts a rocket under this resources tech stock's shares

This company's shares have taken off after it said it was working with a bidder for the Whyalla steelworks on…

Read more »

A graphic image of three upward pointing arrows with smoke coming from their bottoms, indicating the arrows are taking off just like the Althea share price today
52-Week Highs

Why Rio Tinto, Evolution Mining and BHP shares just smashed new 52-week highs

BHP, Rio Tinto, and Evolution Mining shares are lifting off today.

Read more »

Machinery at a mine site.
Resources Shares

This ASX 200 resources stock rally stalls, but can it rebound?

Analysts remain positive, but want more clarity.

Read more »

female in hard hat crosses fingers
Resources Shares

Will Mineral Resources shares resume dividends in 2026?

Mineral Resources hasn't paid a dividend since 1H FY24. Here's what the miner said about dividends recently.

Read more »

Woman stepping on big rock in a lake.
Broker Notes

Why this buy rated $1 billion ASX All Ords share is tipped to leap 22%

A leading wealth manager expects more outsized gains from this surging ASX All Ords share.

Read more »

A man in a business suit holds his coffee cup aloft as he throws his head back and laughs heartily.
Resources Shares

ASX mining shares dominate stocks hitting 52-week highs

BHP, Fortescue, Rio Tinto, and Evolution Mining shares are among those that hit 52-week highs today.

Read more »

Person handing out $50 notes, symbolising ex-dividend date.
Resources Shares

Own Rio Tinto shares? Here are the dividend dates for 2026

The ASX 200 iron ore major has released its corporate calendar for the new year.

Read more »