BHP forced to backpay workers $430 million

Mining giant BHP has admitted it has underpaid nearly 30,000 of its workers by hundreds of millions of dollars since 2010.

In a statement to the ASX, BHP released the results of a review which suggests that rostered employees across Australia had leave incorrectly deducted on public holidays.

The company estimates 28,500 past and present employees have been affected, having an average of six days of leave wrongfully deducted.

The investigation also revealed that some OZ Minerals employees were affected by the same leave deductions before the company was bought out by BHP.

A further 400 workers in Port Hedland were also found to have been entitled to more leave than they were given under their contracts.

Mining and Energy Union General Secretary Grahame Kelly said the findings come after a matter brought by the union in federal court clarifying employee rights around public holidays under the National Employment Standards.

“BHP has been sprung ripping workers off by hundreds of millions of dollars,” Mr Kelly said.

“Today’s revelation goes to show that we need to keep up the pressure on big companies like BHP to do the right thing.

“BHP has assumed that because they want round-the-clock profits from their mining operations, their workers aren’t entitled to their public holiday rights.

“It’s yet another example of dodgy maths and dodgy employment practices from BHP. We will make sure all our affected members receive every cent they are owed due to this stuff-up.”

BHP told shareholders the cost of redressing the leave issue would be up to $US280 million – about $430 million – before tax.

BHP’s Australian President Geraldine Slattery apologised to current and former employees for the error.

“We are sorry to all current and former employees impacted by these errors.

“We are working to rectify and remediate these issues, with interest, as quickly as possible.”

BHP said it has self-reported to the Fair Work Ombudsman, and will contact all affected workers “as soon as possible”.