BHP has posted record iron ore production levels as the mining giant braces for a historic strike from its workforce in Western Australia's Pilbara.Unionised workers at BHP's operations in Port Hedland will down tools from 2pm local time today for an 8-hour stoppage, the most significant industrial action in WA's mining industry for a quarter century.It follows months of bargaining between the mining giant and unions that has failed to produce an agreement.Tensions reached boiling point when the combined ports unions, the Electrical Trades Union, the Australian Manufacturing Workers Union, and the Western Mine Workers Alliance, announced they had given the miner the required five days' notice to take industrial action.The industrial actions come amid record-setting quarterly performance for BHP, spruiking the company's highest-ever production of iron ore.Critics, including Western Australia's Chamber of Minerals and Energy, have accused the unions of holding the national economy to ransom, and have criticised the Albanese and Cook governments for not intervening to halt the strike.The stoppage will impact the miner's facilities at the bulk export terminal in Port Hedland. (ABC Pilbara: Kimberley Putland)Months of bargainingThe unions and miner have been locked in negotiations since October.Unions have accused BHP of failing to negotiate in good faith, while BHP has continually said it was committed to reaching an outcome.BHP tabled an offer that included a 16 per cent pay rise over four years, the same increase recently endorsed at the miner's South Flank and Mining Area C operations.Unions made no secret of their distaste for the deal, calling it "undercooked".BHP's Nelson Point port operations in Port Hedland. (ABC News: Michelle Stanley)The miner has since turned to the industrial relations regulator for help, making an application to the Fair Work Commission under section 240 of the Fair Work Act.A bargaining meeting on Tuesday, involving the Fair Work Commission, ended without an agreement."Union claims that there has been no progress in bargaining are inaccurate," a BHP spokesperson said."We will put the bargaining in front of the independent umpire to help dispel any myths about progress in bargaining."A bargaining meeting on Tuesday ended without an agreement. (ABC News: Jesmine Cheong)Combined Ports Unions criticised the move as a delay tactic."BHP's application relies on obtuse technicalities and has little objective merit," the unions said in a statement."The way to solve this dispute is to negotiate a fair, transparent, enforceable agreement that recognises the specialist skills, difficult conditions and significant personal cost of workers who delivered the company a $15 billion profit last year."Record performanceDespite the stalled talks, BHP said it had still set several performance records across its operations.Production increased 1 per cent to 265 million tonnes, beating a mark set in June last year.Newly installed chief executive Brandon Craig said the figure demonstrated "the power of a disciplined operating system and world-class assets".Mr Craig noted it came against a backdrop of strong prices for iron ore and BHP's increasingly lucrative copper holdings.Brandon Craig says the miner's performance reflected the stability and value of its assets. (ABC News: Rachel Pupazzoni)Electrical Trades Union state secretary Adam Woodage said the strike could mean ships might not be loaded or leave the port."That iron ore is not magically going to disappear out of the Pilbara region and appear somewhere else without them putting it on a ship," he said."BHP aren't doing it tough by any means."He said the next round of negotiations at the Fair Work Commission would take place next Tuesday.Edith Cowan University industrial relations expert Alexis Vassiley said the strike signified a shift towards unionisation in the region and could set a precedent."It's really about whether workers in the Pilbara can win a stronger collective voice in an industry that's been largely de-unionised for decades," he said.Threat to Australia's reputationTown of Port Hedland chief executive Dale Stewart said he hoped the impact on local businesses and services would be minimal. With BHP employees making up nearly 7 per cent of the town's population, he said he was keen to see the ongoing negotiations concluded.Dale Stewart hopes a negotiation is reached to avoid long-term impacts on the town. (ABC Pilbara: Kimberley Putland)"If BHP catches a cold then we all get some sniffles."WA Premier Roger Cook said the strike action was part of the industrial relations system and he did not believe it would spread through the Pilbara."I don't believe it will be a common occurrence," he said."This particular level of disputation is very rare. But it is also part and parcel of updating EBAs and wages and conditions and making sure we can come to agreement."And you've seen that take place right around the Pilbara in a number of mine sites already. And I expect ultimately there will be agreement between the workers and the mine company."He would not be drawn on which side he supported or whether he thought the workers were underpaid.Mining industry consultant Philip Kirchlechner warned the strike action could make Australia less attractive to foreign investors."You may maximise the salaries in one particular company, but it will hurt the rest of the economy because of the spectre of strike action arising again," he said."This action could have repercussions throughout the economy and other industries."WA's Chamber of Commerce and Industry said any drop in iron ore exports would impact state and federal royalties.Daniel Kiely says the strike is concerning for people in WA. (Supplied: Daniel Kiely)"Now is not the time to put additional pressure on businesses and send the wrong signals to international investors," CCI chief economist Daniel Kiely said.He said any industrial disruption could also affect businesses and economic activity across the Pilbara.