IAM Local 1848 members start going back to work next week after accepting a contract offer from Hudbay to end a nearly four-month strike.
The deal, reached last week with the help of a federal negotiator, will see some 160 tradespeople return to Hudbay’s Flin Flon-Snow Lake operations beginning Sept. 8.
Over three years, the agreement gives IAM workers an hourly wage increase of $4 and a pension increase of $5.50 per year of service, to be paid monthly.
“The new contract ratified by the IAM on [Aug. 28] is not materially different than that ratified by the other six unions,” said Rob Winton, head of Hudbay’s Manitoba operations. “The high level monetary package matches what the other unions negotiated.”
Winton said Hudbay was contacting IAM employees to discuss the back-to-work process.
“It is our intention to have all employees back to work before Sept. 18, with the first wave of employees back on tools next week,” he said.
IAM vice-president Blair Sapergia said an orientation was being held yesterday for some members, with the first group of IAM members expected to be back at work on Sept. 8 and 9.
“The return-to-work agreement gives Hudbay 21 days to return members to work,” Sapergia said.
“Details of the agreement are similar to the June strike settlement offer, with the addition of expedited arbitration to settle the current backlog of outstanding personal grievances.”
“There are some specific items that the IAM negotiated included in their new contract,” Winton confirmed.
The agreement ended a strike that initially involved 180 tradespeople, including mechanics, machinists and pipefitters. By the time IAM rejected an offer in late June, the union said its ranks stood at 161.
The strike began May 2 with IAM citing concerns over wages, the length of grievances, and Hudbay’s use of contractors.
The strike had grown increasingly contentious in recent weeks, culminating in Hudbay filing a court injunction over picket line protocols that was challenged by IAM. The matter never went before the courts, with both sides agreeing to an undertaking that brought a stay in the proceedings.
Days later Hudbay issued a joint statement on behalf of itself and IAM that said a tentative deal had been reached. IAM, however, referred to the company’s proposal as a strike settlement offer.
Last Friday, Aug. 28, IAM members voted 71 per cent to accept the offer, with 79 per cent of the membership turning out to vote.
“[Through] this entire bargaining process and 17-week strike, our goal was to have a constructive dialogue on the workplace issues that were important to our members,” said IAM president Rene Beauchamp.
“Last week we decided to give our members an opportunity to vote on the final offer received through the federal conciliator, as the alternative was to break off negotiation for an indeterminable period of time.”
Beauchamp said that he hoped in the future this “adversarial bargaining strategy” would not be utilized.
“If moving forward issues can be dealt with [through a] problem-solving approach, then future bargaining could be more productive with a different result,” he said.
“A strike is always the last resort to have your voice heard.”
Sapergia said the new contract is “in effect but will be formally signed off at a future date.”
Winton recognized the participation of the federal mediator and an IAM international representative for their work in bringing the agreement to a ratification vote.
“This is good news for our employees and our communities and we look forward to welcoming IAM employees back to work,” he said.
Beauchamp also recognized the support of businesses, individuals and the community over the period of the strike.
Winton added that commodity markets are putting significant pressure on base-metal mining companies.
“Our challenge is to quickly optimize our operations and apply the efficiencies we have learned in the last two quarters,” he said. “I am confident we will achieve these targets.”
Winton said Hudbay will be doing significant work over the next six months to ensure its Snow Lake projects are designed to maximize the potential of the Lalor ore body.
IAM members will receive wage increases of $1 in the first year, $1.75 in the second year and $1.50 in the third, according to Sapergia. Pension increases are, per year of service, $1.50, $2 and $2 for years one, two and three respectively.
