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Union concerned about joint venture between mining companies

BY KEITH LACEY A union boss says unless management with Xstrata PLC's Sudbury nickel operations divulge all the details about plans to enter into a joint venture agreement with CVRD-Inco in Sudbury, there's a good chance more than 1,000 workers could

BY KEITH LACEY   

A union boss says unless management with Xstrata PLC's Sudbury nickel operations divulge all the details about plans to enter into a joint venture agreement with CVRD-Inco in Sudbury, there's a good chance more than 1,000 workers could be walking the picket line in less than two weeks.

Rick Grylls, president of Local 598 of the Mine Mill/CAW, said a lot of progress has to be made in the next 12 days to avoid a strike. The current three-year contract expires at midnight Jan. 31.

"We're at a crucial stage in bargaining and when we bring up at the bargaining table that we know about plans for the two companies to work together to cut costs, we get nothing in response," said Grylls.

"The bottom line is we have the right to know what those plans are and how they are going to affect the workforce within our union."

Union membership gave the bargaining committee an overwhelming 98 percent strike mandate support during voting Tuesday.

Management from Xstrata and CVRD made it clear after they successfully completed historic deals to take over Falconbridge and Inco, respectfully, last summer and fall they would work together to cut costs at Sudbury operations, said Grylls.

Most of the speculation has been over lowering transportation costs and processing ore at facilities closer to their respective mines.

The union isn't necessarily against any such proposals, but they do want details so they can figure out the ramifications and impact on union members.

"We have to know what their plans are and what the impact would be...that's normal thinking," Grylls said.

The union worries dramatic changes might result in layoffs or workers being forced to move to job sites where they don't want to work.

Both companies have written agreements to not have any layoffs for at least three years, but there are no other guarantees in place, said Grylls.

He warned failure to disclose information about synergies with CVRD Inco over the next few days could result in a strike because the union will not sign any agreement until all details are revealed.

"Our workers have made it very clear they're prepared to walk the picket line and go on strike until we get all the information we're seeking," said Grylls.

"And we're going to need some time to figure out where we're going to go once we get that information because we reserve the right to make informed decisions."

On a more positive note, Xstrata management and Local 598's bargaining team returned to the bargaining table Wednesday for the first time in several days with provincial mediator Greg Long listening in, said Grylls.

Negotiations have "bogged down" over contract language relating to posting jobs and vacation, said Grylls.


"Basically over the last two contracts we've given up a lot of contract language relating to these two issues and it's caused a lot of problems and we're not prepared to give up any more language about posting jobs and vacations," he said.

More than 40 percent of all grievances filed by union members over the past three years have related to job postings and this has to be cleared up during this round of negotiations, he said.

Management is also refusing to grant some senior members vacation time owed and this must also be straightened out, he said.

The union is also demanding a significant wage increase for the first time in about a decade, said Grylls.

He said workers have received "basically one percent per year on the base salary" over the past seven or eight years and that's not good enough, especially considering nickel prices are at an all-time high and the company is making record profits.

"Nickel closed at $16.44 a pound (Wednesday)," he said. "These are the best times we've ever had in this community and the workers on the front line deserve a bigger share of the record profits this company is going to make this year and in the coming years."

Members of Local 598 walked the picket line for three weeks before signing a new deal in 2004. There was a bitter seven-month strike in 2000-01.


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