BHP I/O Workplace Agreement

BHP Limited
10 January 2001



Date         10 January 2001
Number       01/01

BHP IRON ORE WELCOMES COURT RULING ON WORKPLACE AGREEMENTS

BHP Iron Ore today welcomed a Federal Court ruling it had acted legally in
offering workplace agreements to employees at its Pilbara, Western Australian,
iron ore operations.

President Western Australian BHP Iron Ore Graeme Hunt said the Company now
planned to further advance the re-shaping of its iron ore business in an
increasingly competitive global environment. 

'For the past 12 months while this matter has been before the courts, our
workforce and management team have been getting on with the job of ensuring
the long-term competitiveness of our business,' Mr Hunt said.
 
'Today's decision is another step forward and will allow us to progress
workplace change and further improve productivity already delivered by many of
our employees who have signed workplace agreements.' 

Subject to a final court ruling next week, BHP Iron Ore plans to immediately
recommence its offer of workplace agreements to 500 employees who were
prevented by a Federal Court injunction from accepting individual contracts
until the case was determined.

Approximately 480 employees had accepted the offer before the injunction was
imposed. 

Federal Court Justice Kenny will rule next week on whether or not the
injunction should be immediately lifted pending an appeal against today's
decision by the unions.

Trade unions had claimed BHP Iron Ore's offer contravened the Federal
Workplace Relations  Act by inducing employees who signed workplace agreements
to leave the union.

Mr Hunt said the Company always believed the individual contracts it offered
were lawful. 'The offer is in-line with conditions provided to existing Iron
Ore staff employees and enables us to support the changing nature of the work
being undertaken to improve our iron ore business,' he said. 

'The work flexibilities already delivered by those who have signed workplace
agreements have enhanced our competitiveness and it was therefore appropriate
that we introduced a system for acknowledging and rewarding the individual
efforts of employees.'

Mr Hunt urged the unions to allow people to freely make their choice of either
accepting a workplace agreement or continuing to work under the existing
Enterprise Bargaining Agreement. 

'We have been encouraged by examples of changed attitudes, behaviours and work
practices by many of our employees who have signed individual contracts. In
some areas, productivity has increased by more than 20 per cent in the past 12
months,' he said.  

'I believe our employees want greater work flexibility to improve our business
and to be recognised for their efforts and contribution,' he said.

Further information can be found on our Internet site: http://www.bhp.com 

MEDIA RELATIONS                                        
John Crowley, BHP Iron Ore       
Ph:  61 8 9320 4395        
Mob: [phone]       

Mandy Frostick, Manager Media Relations       
Ph:  61 3 9609 4157        
Mob: [phone]

INVESTOR RELATIONS
Robert Porter, Vice President Investor Relations       
Ph:  61 3 9609 3540
Mob: [phone]