Employment Agreement

Broken Hill Proprietary Co Ld
17 March 2000

BHP IRON ORE TELLS UNIONS 'SAME DEAL FOR SAME PAY'

BHP Iron Ore has offered about 500 employees remaining on its State award a
new collective agreement which provides the same terms and conditions as staff
employees at its iron ore operations in Western  Australia's Pilbara.

The offer was made today in talks between unions and company management at
Port Hedland which have been underway since unions won a legal injunction in
January which stopped BHP Iron Ore offering further workplace agreements to
employees. The decision on an appeal against this injunction is pending.

The offer includes provision for unions to sign a collective agreement on
employees behalf , providing it is a 'mirror' of the individual contracts
already signed by 481 employees. 

The offer includes:

An average 7% pay increase; 
A performance related incentive payment -- target of 7.5% of salary;
A payout of accrued sick leave which will now be granted as necessary and not
restricted to the 10 days per year currently offered under an industrial
award;
Improved superannuation - company contribution improves from a maximum of 8%
to 14%;
A nominal 40 hour week, with additional hours for overtime built into salary;
Annual salary review;

BHP Iron Ore has advised the unions that it will continue to respect the
'freedom of association' rights of all employees, including their choice to
be, or not be, represented by a union. However, it is not prepared to
subsidise union structures and processes. 
 
BHP Iron Ore President Graeme Hunt said that workplace agreements were the new
'yardstick' for the business and, as had been shown since their introduction
four months ago, are helping secure a new level of business competitiveness
already enjoyed by other iron ore producers and demanded by global
steelmakers.

'We have continually said that we were prepared to negotiate a collective
agreement - provided that agreement 'mirrored' the  workplace agreements.  We
recognise that it is a challenge for the unions to support a similar
collective agreement, but we are not prepared to accept second best.

'All employees have the opportunity to share in the rewards and benefits that
workplace agreements bring to the business.

'BHP Iron Ore is resolved to continue down the path of  improving its iron ore
business in and remains committed to supporting those people who have signed
workplace agreements. The acceptance of the collective agreement will cancel
all current Awards and industrial agreements.

'The fact remains that the existing Award does not deliver the same results
for the business as workplace agreements and, in that context, we are only
prepared to offer 'the same pay for the same deal',' he said.

The unions have advised that they will put the Company's offer to their
members at Port Hedland and Newman tomorrow.


Contact: 
MEDIA RELATIONS:              John Crowley
                              Media Relations - Melbourne
                              Ph:   [phone] 
                              Mob:  [phone]

                              Mandy Frostick 
                              Manager Media Relations - Melbourne
                              Ph:   [phone]
                              Mob:  [phone]

INVESTOR RELATIONS:           Andrew Nairn
                              Senior Business Analyst, Investor Relations -   
                              Melbourne
                              Ph:    [phone]