The president of Local 598 of the Mine Mill/CAW is accusing Xstrata Nickel management of forcing a labour dispute because it will result in record high nickel prices.
"Nickel prices have shot up $3 a pound this month, in large part due to the uncertainty with these negotiations," said Rick Grylls Tuesday morning.
"This company produces about $250 million pounds of nickel in a year, so the 20 million pounds or so they've sold this month has resulted in a profit of about $14 million above what they would have earned a month ago.
"If the prices keep going up as the markets are predicting with a strike, the company could be looking at an extra $100 million in profits...all because they want to force us out to keep the prices rising."
Xstrata spokesperson Ian Hamilton called Grylls' accusations ridiculous.
The company's negotiation team remains at the Howard Johnson Hotel in Sudbury, and the company is willing to continue negotiations to try and reach a settlement, said Hamilton.
More than 1,000 members of Local 598 are preparing to hit the picket lines at 12:01 am Feb. 1 (Thursday) if a new collective agreement is not reached.
The company is focusing on reaching an agreement by the deadline. said Hamilton.
But Grylls said he and the union's bargaining team remain convinced Xstrata management want a strike.
"If not we would not have sat around this hotel for the last five days and not had a single discussion," he said.
With the exception of a brief meeting Monday between national CAW representative Hemi Mitic and an Xstrata manager, there hasn't been any talks since last Thursday, said Grylls.
Xstrata management walked away from the table after the union rejected the company's early offer of settlement and returned with a counter-proposal, said Grylls.
The union's final offer included an $8,000 signing bonus, but that has been reduced to $4,000, said Grylls.
While it may sound like a lot of money, even the $8,000 signing bonus "adds up to only pennies per hour" over the course of a three-year collective agreement, he said.
The company also offered $1 per hour over a three-year deal on top of the bonus, but that offer is not acceptable for a company poised to make a minimum of $500 million per year in net profits out of Sudbury operations at current nickel prices for the next three years, he said.
The union has moved in trailers at its three local mines and smelter complex and has no choice "but to prepare for the worst", said Grylls.
Grylls estimates the price of nickel will hit $20 per pound (US) in the next day or two if and when a labour dispute is underway.
"Nickel closed Monday at the highest price in history and all analysts agree it's going to continue rising because there's so much demand and not enough nickel out there," he said. "We honestly believe the company wants to freeze us out to keep prices rising. They'll make more money with us on the picket lines. This union is firmly convinced that's exactly what is going on."
Grylls said he believes Xstrata management will be using replacement workers if there is a strike.
If the company is willing to move from its position last week and offer a fair settlement, Grylls agreed there's a narrow window of opportunity to avoid a strike and get a deal done.
