Hudbay is reporting partial progress in efforts to hammer out a new deal with the striking tradespeople of IAM Local 1848.
Rob Winton, head of the company’s Manitoba operations, said Wednesday that Hudbay and IAM representatives had twice recently held discussions.
“While the IAM indicated that we are close on resolving any outstanding contract language issues, they are still demanding a wage increase greater than that agreed with our other unions, a position that we reiterated is not acceptable to Hudbay,” said Winton, adding that the discussions involved both local and corporate management for the company.
All Hudbay unions except for IAM have signed three-year deals that increase hourly wages by $4, or about $8,000 a year. IAM argues that a $4 raise still leaves its members below industry standard.
IAM president Rene Beauchamp said Wednesday there was nothing new to report
on the strike, which enters its 12th week
tomorrow.
On its website, IAM continued to criticize Hudbay. On Tuesday the union alleged Hudbay’s Flin Flon and Snow Lake operations are “losing millions of dollars a day in lost production” with IAM members on the picket line.
Winton did not specifically address that claim, but considering Hudbay turned a profit of $71.87 million in 2014 – an average daily profit of $196,900 – that seems unlikely.
“We take a disciplined and focused approach to our business and our priority is ensuring safe production continues for our employees and our communities,” he said. “We make decisions based on the requirements for 2015 and for the rest of our current mine life, which is a significant factor at play here.”
On Wednesday, July 29, Hudbay will release its second-quarter financial results. While the IAM strike began one-third of the way through the quarter, Hudbay’s Constancia mine in Peru also achieved commercial production in the quarter.
That means it could be difficult to discern from the figures what the financial impact of the strike has been.
IAM members went on strike May 2 after rejecting what was then described as Hudbay’s final offer. Members turned down a second offer on June 29.
