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Member, Beacon International Group, Ltd.
OTTAWABHP Billiton Ltd. violated Canadian labor laws by unilaterally changing the pension plan of 400 mine workers from a defined benefit plan to a defined contribution plan without the consent of their union, according to the Canada Industrial Relations Board.
The board ruled in favor of the Public Service Alliance of Canada, which filed a complaint with the agency in November 2004 alleging that Melbourne, Australia-based BHP failed to consult with the union or even notify the union of its intention to change the pension plan. The defined benefit pension plan was converted to a defined contribution plan effective July 1, 2004.
The board gave the two parties 20 days to resolve the dispute. If the parties can not reach an agreement, the board will impose a remedy itself.
"Certainly, our view is it should be reversed back to what it was before," said Jean-Francois DesLauriers, regional executive vp, North, for PSAC.
In a statement, the company said the pension plan changes were part of a worldwide conversion to defined contribution plans for all BHP Billiton operations. Existing employees in the union were given the option of staying in the original plan or switching to the new one, the company said.
Officials are currently studying the ruling, but are prepared to comply with the board's decision, the company said in its statement.
BHP is a diversified resources company with mining operations all over the world.