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BHP Billiton rolls back pension plan conversion

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EKATI, Northwest Territories—BHP Billiton Ltd. will revert to a defined benefit pension plan for 375 unionized mine workers in Canada, resolving a dispute related to the company's decision to offer a defined contribution plan to its employees.

The decision to roll back the pension plan arose out of a ruling by the Canada Industrial Relations Board that BHP violated Canadian labor laws by unilaterally changing the pension plan of the workers from a defined benefit plan to a defined contribution plan without the consent of their union, the Public Service Alliance of Canada.

PSAC filed the complaint with the agency in November 2004, alleging that Melbourne, Australia-based BHP failed to consult with the union or 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.

"PSAC stated that its membership wants the previous pension plan," the company said in a statement. "In keeping with the union's wishes to have its members returned to the original plan, (BHP) will be rolling back the pension plan for those employees. This change means that all bargaining unit employees will have the same pension plan--the original plan previously used by all employees prior to 2004."

The union has taken the step of asking the board to execute the agreement it has reached with BHP to roll back the plan only because the union has not received written confirmation of the company's intention to do so, said Shannon Blatt, legal counsel for the PSAC. "We're not expecting any problems with the implementation of the agreement," he stressed.

BHP is a diversified resources company with mining operations worldwide. The mine at the center of the dispute is located in Ekati in the Northwest Territories.