BHP digs up a $430 million underpayment issue... so it's official: BHP employees have been paid dirt

BHP has just reported a massive underpayment issue that's impacted over 30,000 people.

What's the key learning?

BHP has underpaid past and present staff by about $430 million for over a decade and their system wrongly deducted their staff's annual leave entitlements during public holidays.
One's an accident, two's a coincidence, and three's a pattern - and this BHP incident isn't an isolated case in Australia.
Seeing all these big companies with underpayment scandals on their hands seems to be pointing out that this is a bigger, systemic problem.

👉 Background: BHP is one of the world's largest mining and resource companies. They mine things like iron ore, copper, coal, and petroleum across the world.

👉 What happened: Now, BHP has just reported a massive underpayment issue that's impacted over 30,000 people.

BHP has underpaid past and present staff by about $430 million for over a decade.
BHP's system wrongly deducted their staff's annual leave entitlements during public holidays.
The new systems were never properly updated when new industrial relation laws came about in 2010.

👉 What else: Now, BHP has gone ahead and reported themselves to the Fair Work Ombudsman. But we've seen this sort of thing happen a few too many times now...

What's the key learning?

💡One's an accident, two's a coincidence, and three's a pattern. But this BHP incident isn't an isolated case in Australia:

Woolies dealt with an underpayment conundrum where they underpaid $600 million in wages.
Coles admitted to underpaying their staff in 2021, the total costs of which they're still working out.
Commbank admitted to knowingly underpaying thousands of their staff by more than $16 million.

💡Seeing all these big companies with underpayment scandals on their hands seems to be pointing out that this is a bigger, systemic problem.

‍

Disclaimer: Flux Technologies Pty Ltd (ABN 86 634 507 172) is an authorised representative (Representative No. 525288) of Mozo Pty Ltd who is the holder of AFSL No. 328141. We also provide general advice on credit products under our own Australian Credit Licence No. 530103. The product information presented does not constitute an offer and we are not recommending or suggesting any particular product. Any product advice presented is of a general nature only, and is not to be taken as any sort of advice as it has not taken into account your personal circumstances, objectives, financial situation or needs. Flux may not cover all products available to you. Check out our Credit Guide and Financial Services Guide for more information.

All information contained in the Flux app, www.flux.finance, www.joinflux.com, app.flux.finance and any podcast of Flux Media Pty Ltd (ABN 27 639 804 345) is for education and entertainment purposes only. It is not intended as a substitute for professional financial, legal or tax advice. Flux Media Pty Ltd is the owner of the registered trade mark, 'What the Flux'. While we do our best to provide accurate information on the podcast, we accept no responsibility for any inaccuracies that may be communicated.

BHP digs up a $430 million underpayment issue... so it's official: BHP employees have been paid dirt

What's the key learning?

What's the key learning?

Ready to win at money?

Become smarter in just 3 minutes! ⏱️