Local 598 members ready to walk

BY KEITH LACEY

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.

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18 Comments

Jason_134 2/6/2007 3:43:54 PM - Report Abuse

The worst part about this is.. Eventually it'll end up like the auto-industry.. It's only a matter of time. Then they'll blame management.
marc_45 2/3/2007 9:02:03 PM - Report Abuse

now that we have signed our contract all you people that are employed with one of the four spin off jobs that are created from one of ours can refuse to serve us because our we didnt deserve the wage increase that we got and please dont accept any of pur signing bonus thank you for helping me save my money
Vigil_32 2/3/2007 11:40:05 AM - Report Abuse

Willy, You must not work a lot of overtime. Lets say you did not work any overtime. Your hourly rate of pay, I know for a fact (I could not attach a scanned file of your old wage schedule) is at least $27/hour, probably a little more. With 2080 hours in a year you will make about $56000 a year. Now lets say your average bonus payment last year was $8/hour. That makes about $16000 in bonus last year(without OT).That makes for $72000 without overtime. Twice what the average salary in Canada currently is. Do not tell me you slaved last year for this. It would would be very easy with overtime to make close to $100000 a year. Don't try to fool anyone here. In fact, why don't you offer your serial number and I could find out how many OT hours you did put in last year and calculate your total earnings and post them here, with your permission of course. If it is so bad at Xstrata, who is making you stay there?
Willy_4 2/1/2007 9:19:24 AM - Report Abuse

To Moe - If you did in fact work underground 10 - 20 years ago then you should be totally ashamed with yourself for even thinking this company could fire everyone and hire a complete new workforce. Where do you think you live, Brazil? To df 456said you say there are 1000 workers at Xsrtata making 100,000 a year. Are you dilerious buddy. I am a trades person and I don't make that so you can bet there are a lot of people that don't make your very inflated number in dollars. Get some facts before coming on here and lying to everyone that reads this stuff. This company (noranda) has been taking away benifits from us for the last 3 contracts when the times have been very profitable so don't spout off your bull about just wait until the nickel prices drop. We know from many contracts in the past that when the times are tough there won't be anything for us. I bet you didn't know that our pay increase over the last 3 years has been a total of 78 cents an hour. You come on here with no facts to support your jealously that some employees have a union to help protect their health and job security. Now if you work for a non unionized company you should be the one worried about your bills being paid up because it would be your company that could walk up to you today and say SORRY your services are no longer required. A signing bonus is a sum of money the company offers as a bargaining tool to put more pressure on a union bargaining committee. The union knows that the workers would like to have this bonus but it is a one shot deal. Personaly I would rather have it negotiated into pension or wage increases because that way you would benefit from it for years to come.
jeff_17 2/1/2007 12:26:09 AM - Report Abuse

I know what a signing bonus is, it's an incentive to either avert a strike or to minimize the length of it. This should not be looked at any other way except as a lump sum of free money. I was in a union for many years, and it always seemed that the union bosses NEVER listened to the average workers. If they wanted to relay information they would always goto the same people, the ones that could stir things up. As for the public eye, either side could always ask for the negotiating to be done outside of the media. Neither side has to make this public. I think Jim made the best point here, what happens when the price of nickle drops? I think what union leaders (I'm sure not all of the employees think like this), is that this is a negotiation to get back to WORK, not the idea of cashing in at a lottery booth
df 456said 1/31/2007 9:49:31 PM - Report Abuse

I think the workers at Xstrata should be thankful for what they have, there are 1000 workers that make $100,000 a year with bonuses and there are 120,000 people in the basin that don't make that much with both parents working. Grow up because when the price goes down, you better make sure all your bills are paid up. The company will shut down and leave you high and dry with all your bills because you put them in that position. Go to work before it's to late.
James_35 1/31/2007 9:42:55 PM - Report Abuse

I am a union contractor working for Xtrata. Personally, I think that if you want my support in the matter then we all got to get together and support each other. By saying this we got to get rid of non-union companies and be strong union especially the way our Government is going. Wish you all the best in your upcoming contract.
Moe_37 1/31/2007 9:10:28 PM - Report Abuse

To Willy:: Its not that bad working underground in this decade I know I've worked underground, 10-20 years ago it was really bad. Todays workers are very very well paid. But if I was working for a new company like Xstrada and they were talking about strike, I would be really scared to lose my job. Everyone is replaceable, trust me. It would be nothing for them to fire everyone and hire a brand new crew and at a lower rate. I see this happening in the future in our hospitals, because the wages are getting higher and higher and they won't be able to pay them this amount and they will have to cut staff. A cleaner makes over $20.00 an hour in our hospitals the averages pay for a cleaner anywhere else is about $10 to $14 an hour.
Ray_36 1/31/2007 4:46:34 PM - Report Abuse

People ! Yes all of you that keep critisizing union workers about how happy we should be having good paying jobs with all the benifits we have. I just want to let you know these benifits are needed to pay for for the abuse our health takes because of the work we do. Furthermore the money we receive may seem a lot but we have a shorter life span because of the conditions we have to deal with. That is the price you pay to work in mines. You lose your health and work in terrible conditions most of the time. Sure mining is changing but not fast enough to be a healthy work place. It is sad to see that because you may not be happy in your position, you critisize others that fight for a better life. If you get hurt or someone else would be responsible for putting your health at risk you would try getting compensated. So does everyone else. That is the very reason why we fight for a better contract. Greed is when you profit from the sweat of others and do not want to share with those profits.Companies profit, workers fight to be compensated.
mike_41 1/31/2007 4:31:00 PM - Report Abuse

I am writting to thank willy for saying it like it is.Yes they are really a lot of bubble blower out there cause it is another world down there.PEOPLE WITH FRAGILE SKIN KEEP YOUR LITTLE REMARK TO YOURSELF OR I''LL BRING YOU FOR A SHIFT SOME DAY
willy_3 1/31/2007 12:37:49 PM - Report Abuse

Geez it seems the only people that can post a comment in here are the ones that oppose what a union is all about. I guess it is pay for what you can say. These same posters are probably always whining about the tax breaks awarded to these huge corporations. You people that say you would be more than happy to work underground for much less are definately blowing bubbles because most of you would be afraid to even go underground. It's a whole different world down there which you know nothing about.
Willy_2 1/31/2007 11:04:54 AM - Report Abuse

Well it looks like the company has once again put the carrot of the signing bonus out there to make the profit makers (employees) look like greedy little brats. People that don't understand what this signing bonus really does is that it is designed to make the negotiating team for the workers make a rush decision. While being in a rush to make a decision because of the signing bonus the company has probably taken out some of the language in the collective agreement that will effevt the workers much more than not getting the signing bonus. THE SIGNING BONUS IS TO MAKE THE WORKERS LOOK BAD IN THE MEDIA AND THE PUBLIC EYE IF THEY DON'T ACCEPT IT.
abc123_1 1/30/2007 10:54:56 PM - Report Abuse

Gee, let me see--$8000divided by 6240 hrs (over 3 years)=$1.28/hour plus the extra $1.00 per hour plus nickel bonus plus incentive bonus plus all the medical,dental and pension benefits-who's greedy?
M Savage. 1/30/2007 7:27:14 PM - Report Abuse

The only thing that Grylls is saying that makes sense in this article is that "Xstrata management will be using replacement workers if there is a strike". I hope they do, and I hope the miners get real about this hair brained scheme to strike. I read that Grylls thinks the company WANTS a strike so the price of nickle goes up. And. If it does go up, they should make a huge profit. That is what shareholders demand, and that is what the sole reason for a corporation is to make a profit. The more the better. I hope the company makes such a huge profit they can let the union strike for as many months or years it takes to BREAK that union, and any union attached to it. Now is the time for Xtrata to take control of their company. The only people to lose out in this scenario is the avergage worker that has to "knuckle" under to the union and its hard nosed scare tactics. They must be stopped. Let ordinary peopel work and live they way they should. Without the money grabbing Union that is trying to justify its existance.
craig_91 1/30/2007 6:14:56 PM - Report Abuse

Ya 8000.00 bonus is only pennies per hour 133 pennies to be exact. You could drop that in your rrsp and at 11 percent over the 3 years it adds up to 188 pennies per hour and add to that the 1.00 per hour raise offered gives a net increase by the next contract of 2.88 per hour or about 10% over 3 years. That is just about even with inflation. I think the company could bring a little more to the table. I have given this offer the best light I could and it still adds up to a dark day in Sudbury.
Jim Dhandy_157 1/30/2007 4:21:29 PM - Report Abuse

Poor CAW. They think $8,000 is pennies. Let's be perfectly clear and see both sides of this. Yes nickel is very high and the company is making profits. HOWEVER- The union negotiated a profit/nickel bonus years ago. That they bring in huge bonuses right now. Also, they have COLA (Cost Of Living) written into their contract. That means as goes inflation. So do they automatically get pay increases. They got job protection last time. And it is still in place. And they were to get an extra $1 per hour on top of those! Here's a thought. Does the union offer wage cuts when the company is hurting? The workers want it all in good times, yet conveniently forget when the market cycles down and there are record losses. Just like in the late 1990's. Don't companies deserve the right to make good profits when they can. Especially when the nickel market downturns are so predictable. It's enevitable. It's horrible and dirty for Grylls to state the company wants a strike. Logic is they want to make nickel while the price is up. Perhaps it is the union that is bent on a strike. This will be the 4th in a row. Shame on the union for being so greedy. There are 1000's of people that would take your place in a second if given the chance. And would do just as good, if not a better job. Don't push your luck with Xstrata. They are not the friendly Falco folks from years past.
Chris_110 1/30/2007 3:01:18 PM - Report Abuse

I meant Falconbridge but INCO is no different.
Chris_109 1/30/2007 2:25:44 PM - Report Abuse

I've said it before and I'll say it again. INCO workers are greedy. They make more money than anyone I know and they do the least amount of work. I've witnessed first hand at the "work" they do (and I use that term loosely).

Local 598 members ready to walk

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