BHP Estimates Up to $280 Million Pretax Charge After Finding Incorrect Worker Entitlements
May 31 2023 - 7:28PM
Dow Jones News
By Rhiannon Hoyle
BHP, the world's largest miner by market value, on Thursday said
it has been incorrectly deducting leave for some workers for more
than a decade and estimated it would cost up to $280 million before
tax to remedy the issue.
The company said a preliminary review has found some current and
former employees in its Australian operations had leave wrongly
deducted on public holidays since 2010. BHP estimated 28,500
workers were affected, with an average of 6 days of leave
incorrectly deducted.
OZ Minerals, the Australian copper miner BHP recently acquired,
appears to have had a similar issue, BHP said.
There are also about 400 current and former employees at Port
Hedland, in northwest Australia, that BHP has found entitled to
additional allowances due to an error in their contract, the
company said.
The cost of remedying that is included in BHP's up-to
$280-million pretax cost estimate.
"We are working to rectify and remediate these issues, with
interest, as quickly as possible," said Geraldine Slattery, the
company's Australian president.
Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com
(END) Dow Jones Newswires
May 31, 2023 19:13 ET (23:13 GMT)
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