Hudbay says it has nothing more to offer IAM Local 1848 after union members rejected the company’s latest proposal, prolonging a two-month strike with no apparent end in sight.
By a margin of 77 per cent, IAM members this week turned down a three-year deal that would have increased wages by $4 an hour and boosted pensions by 10 per cent.
“From the very beginning of this negotiation process, [IAM] has been very clear about our goals,” said IAM vice-president Blair Sapergia, “[which are] to improve the grievance procedure, to address our issues regarding contracting out of IAM jobs and a wage rate that is competitive in the existing labour market.
“IAM’s membership gave us a clear mandate to continue to pursue these goals at the bargaining table, which is what we are prepared to do. Hopefully Hudbay agrees that their mandate should be expanded to deal with some or all of the above issues.”
But Rob Winton, vice-president, Manitoba Business Unit for Hudbay, said the latest offer was the best the company can do.
“Since the beginning of June, Hudbay has successfully negotiated new collective agreements with six of its unions and over 1,200 employees are at work helping us to safely achieve our business targets for 2015,” he said. “Every settlement included wage increases of $4 over the life of the CBA [collective bargaining agreement], 10 per cent increase in pension and language improvements specific to each employee group. We are proud of the offer that we presented to the IAM and are disappointed that the employees voted to remain on strike. The mandate has been exhausted and there is not a more generous offer available.”
While IAM has repeatedly suggested its strike could shut down Hudbay’s Manitoba operations, Winton reiterated that business will carry on.
“We have a business to run for our staff, our employees and our communities,” he said. “Our shareholders trust us to manage our assets and business responsibly and we will continue to do so. The short-, medium- and long-term plans ensure we adhere to these requirements in a safe and efficient manner.
“The vast majority of our employees have performed above and beyond the call of duty, and it is for that group that my disappointment in the [IAM vote] result resides.”
IAM’s bargaining committee had recommended members turn down the deal when voting took place this past Monday, June 29, in Flin Flon and Snow Lake.
With 85 per cent of members casting ballots, they did just that, with fewer than a quarter of them supportive of the offer.
The outcome surprised some residents, especially since the strike appeared all but over last Thursday, June 25.
That evening, just before 10 pm, Hudbay management sent an email to employees announcing that a “tentative agreement” had been reached with IAM.
But while IAM members were indeed scheduled to vote on an offer from Hudbay, the union denied telling the company the bargaining committee would recommend the deal.
The next day, Friday, June 26, in an email obtained by The Reminder from multiple sources, Winton told employees he wanted to set the record straight about the process of securing a tentative agreement.
Winton wrote that on Wednesday, June 24, Hudbay and IAM, with the assistance of a senior conciliation officer, met to discuss whether a deal was possible.
“After some good discussion, [Hudbay] and the IAM agreed on a settlement and shook hands with each other and the conciliation officer,” he wrote. “Hudbay prepared the documents and met with the IAM for signature. IAM was unwilling to sign and demanded changes to the agreement.”
Hudbay agreed to those demands on Thursday, June 25, Winton wrote, and the two sides met for signature only to have IAM present more demands, to which the company again agreed.
“Hudbay and the IAM signed off on a Strike Settlement Offer and a Return to Work Agreement,” he wrote. “The two parties shook hands. With an agreement signed and hands shaken on 2 occasions, I was disappointed to listen to the IAM report on the radio [stating that the deal would not be recommend] and even more disappointed with the post on the IAM website [stating the same position], as I have spoken about the importance of honouring and keeping your word, which a hand shake seals.”
On its website, IAM said the June 24 meeting did produce “an agreement in principle on some issues” but when Hudbay prepared documents for the union’s review, there were new proposals that had not been discussed.
“We did not receive these documents until the senior conciliator had already departed on the evening plane,” IAM wrote. “Our Rep stated that these new proposals must be removed in order for any more discussion to take place on the document. He was told no. We never shook hands. We thought the deal was dead.”
IAM said it contacted the senior conciliation officer on the morning of June 25 and informed him of the new items Hudbay had inserted into the document.
That afternoon, IAM said, Hudbay reached out to the union’s rep to arrange a meeting.
In ensuing talks Hudbay showed no interest in getting a recommendation, IAM said, and the two sides discussed the removal of the new proposals from the document.
Later that day, IAM said, the union bargaining committee met with Hudbay and together agreed to some changes to the document.
IAM said it also reviewed and agreed to some changes on a return to work agreement.
“This was the first time that we had signed off on anything during this entire bargaining process,” the union said. “We did shake their hand.”
But during the meetings “there was never any discussion on a recommendation from the IAM negotiating team,” the union said.
“If Mr. Winton wants to speak of honor and keeping your word…” added IAM’s website post before trailing off with an ellipsis.
Sapergia, the IAM vice-president, argued that improving the grievance procedure would be cost-neutral for Hudbay and that hiring more tradespeople instead of contractors would save the company money.
As for paying a higher wage, he said Hudbay has difficulty recruiting and retaining tradespeople represented by IAM and that “a competitive wage rate” would help in this regard.
