Australian Financial Review
http://www.afr.com.au/content/000128/news/news5.html
Friday 28 January, 2000

BHP 'offered $10 million bribes'

By Nina Field

BHP offered "bribes" worth $10 million to induce workers to sign contracts 
that would ultimately lead to the demise of unionism in the resources 
giant's iron ore division, the Federal Court heard yesterday.

The submission by union lawyers' came as the five unions at the centre of 
the dispute sought court injunctions against any further offer of the 
contracts in the Pilbara, pending the outcome of a wider case on the 
legality of the workplace reform.

Mr Julian Burnside QC, for the unions, said BHP had offered "sweeteners" to 
get people onto contracts while refusing to collectively bargain in an 
"insidious" bid to deunionise the workforce.

"The thrust of our complaint is that these contracts are a bribe to get 
people away from union activities," Mr Burnside said.

He said workers who had not signed the contracts had been "singled out for 
worse treatment" by BHP.

There was a causal link between signing the contracts and resigning from 
the unions, Mr Burnside said, pointing to similar workplace changes at Robe 
River and Hamersley as proof of the inevitable slide away from unions.

He warned that if the process was not halted by a Federal Court injunction 
it would be irreversible by the time the full case had been heard.

The unions' case has several aspects. Mr Burnside said the $10 million 
inducement, which indirectly resulted in people resigning from unions, was 
the strongest aspect of the alleged breaches of the Workplace Relations 
Act. It is also alleged that the company breached the Act by discriminating 
against workers who did not sign the contracts and by refusing to 
collectively bargain.

It had also allegedly breached its contract with workers who did not sign 
the deal because of a clause in the award prohibiting the use of individual 
agreements that conflict with award conditions.

Mr Robert Buchanan QC, for BHP, said the unions had not made a direct 
connection between union membership and the incentives offered by BHP. They 
had also failed to show that BHP had explicitly or implicitly made 
resigning from the union a condition of signing the contracts.

He asked the court to dismiss the injunction application, claiming it would 
unfairly assist one side of the argument in an industrial dispute at the 
expense of the other.

The unions had asked the court to believe that everything said publicly by 
BHP management was false and should be disregarded, with another "carefully 
hidden" motivation to be substituted in its place.

He said there was a productivity trade-off for the generous incentives 
offered for those signing the contracts, with BHP benefiting from the 
removal of "a swag of restrictions" that applied under the award.

Mr Buchanan said the act did not compel companies to bargain collectively.

Justice Peter Gray reserved his decision on the injunction, saying he 
expected to deliver his judgement in the next few days.

He refused an application by Mr Burnside for a holding order preventing BHP 
from attempting a last- minute sign-up of unions ahead of the injunction 
decision.

Justice Gray questioned the BHP line of defence several times, arguing that 
improving the lot of some workers and not others amounted to "ignoring them 
to their detriment".

This material is subject to copyright and any unauthorised use, copying or 
mirroring is prohibited.


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