AWU workers win choice in BHP super

Date: 21 March 2002

A mass meeting of 1000 steelworkers at Wollongong this morning endorsed a deal that gives workers choice on superannuation, negotiated between BHP and steel unions late Wednesday night.

AWU National Secretary Bill Shorten told workers the negotiated deal - which would give steelworkers the right to choice between the AWU-endorsed Superannuation Trust Australia superannuation fund or the company-preferred fund - was a victory for commonsense.

The AWU has been fighting since last year - when BHP announced it would outsource employees' superannuation - to allow steelworkers to have a choice over where more than $600 million of their superannuation funds would be invested.

BHP had argued that its preferred fund, a subsidiary of Towers Perrin, should be the only fund despite an independent report by accounting firm Deloitte Touche Tohmatsu finding the AWU-endorsed fund, STA, offered a "similar range of services" at lower cost.

Features of the negotiated BHP/Union superannuation deal include:

- Total Risk Management (the wholly owned subsidiary of Towers Perrin) and STA to start information sessions for BHP steel employees
- STA and BHP to set up a team to assist members with the transition from their existing fund to STA
- TRM will be the successor fund in the context of all employees being required to exercise compulsory choice between STA and TRM prior to upcoming BHP Steel spinout.
- STA will be the default fund for new award employees after spinout
- TRM will be the default fund for new staff employees post spinout
- BHP Steel has agreed to consult and seek agreement from unions regarding superannuation arrangements for any future acquisitions
- Unions to be given access and paid time meetings as agreed to brief members on superannuation issues

Mr Shorten said the intervention of BHP Steel Vice President of Human Resources Ian Fraser, had contributed positively to delivering steelworkers the best superannuation options available. The deal will be considered by BHP Superannuation trustees for endorsement next week.

For further information

Contact:	Andrea Carson
Union:	Australian Workers Union (National Office)
Phone:	039 3298733
Contact Mobile:	0407 041933
Fax:	03 9329 2871
Email:	awu@iprimus.com.au
WWW:	www.awu.net.au

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