Hudbay mechanics and machinists have voted overwhelmingly in favour of strike action, raising the stakes in ongoing bargaining and prompting the company to devise contingency plans.
Members of IAM Local 1848, which also represents pipefitters, utility servicemen and other trades, voted 97 per cent in favour of job action Tuesday.
“We have always been of the opinion that a settlement can be reached,” said Rene Beauchamp, president of IAM. “So far this management negotiating team has been unwilling to address any of the union’s concerns. This vote puts them on notice that they need to get serious.”
Option
The vote does not make a strike inevitable but does give IAM members the option of walking off the job. The union has said the earliest a strike could begin is April 21.
The vote raises the question of how, or if, Hudbay could continue to run its Flin Flon and Snow Lake operations should the 190 IAM members go on strike.
When The Reminder posed that question to Rob Winton, head of Hudbay’s Manitoba operations, he said the company is prepared for any outcome.
“Our focus is the successful renegotiation of our collective agreements,” Winton said. “While we believe both sides can find the common ground necessary to reach mutually agreeable contacts, we naturally have contingency plans in place should the need arise. Our hope and objective is to avoid disruption to families, the community and the business.”
In response to a broader series of questions, Winton added: “The safety and well-being of our employees, our process assets and the communities in which we operate is my number one priority. Risk mitigation and contingency planning will continue to ensure this priority is managed appropriately.”
For IAM members, Tuesday’s vote can be seen as a stark repudiation of the company’s approach to negotiations thus far.
The union far surpassed its 66 per cent threshold for the strike vote to pass. Turnout was 94 per cent, with about 179 of 190 members voting. All but about five members favoured a potential strike.
Pillars
IAM has identified wages, retention and recruitment as key pillars for a new contract. To avert a strike, Beauchamp said Hudbay must present the “full package” of its offer.
“We need to see an effort put forth by management,” Beauchamp said. “Scripted responses by their team are not getting us anywhere near an agreement.
Winton stood by his negotiating team.
“Hudbay continues to focus its efforts on achieving labour agreements with our seven unions in Manitoba,” Winton said. “I am fully confident in the team I selected and support their dedicated work and long hours in achieving these agreements.
“The result of IAM’s vote on March 17 does not change our approach and we look forward to our next scheduled meetings with the concilliator, the week of April 13. A ‘strike vote’ is a necessary action a union must take once concilliation is started and the IAM has completed this successfully.”
Since negotiations began, Winton said, Hudbay has aimed to reach a “fair deal” with each union that “ensures we maintain the flexibility to operate the Manitoba Business Unit sustainably.”
“Through the entire process we have kept our word and look forward to reaching agreement,” Winton added.
But Beauchamp said “dragging out” negotiations hurts both Hudbay and area communities.
“The management negotiating team needs to put a serious effort into resolving the outstanding issues,” Beauchamp said. “We need someone to meet us at the table who can actually make decisions.”
Contractors
Among IAM’s other concerns is Hudbay’s use of contract labour. Beauchamp said about 30 positions that would normally go to IAM members are now filled by contractors.
Winton said the aim is to eventually replace contractors with employees.
“Hudbay has built two mines and expanded our operating capacity at our Snow Lake Mill in the last year,” said Winton. “This $500-plus-million-dollar investment has created many jobs in northern Manitoba and we continue to successfully fill them through our training and recruiting efforts.
“I also must ensure the business unit achieves our safety and production targets in 2015, which means we have had to use contract labour to fill vacancies in the organization. As training and recruitment successes continue, this contract labour will be displaced with Hudbay employees, which is our goal.”
IAM represents 190 Hudbay workers in Flin Flon and Snow Lake. Of those, 32 work in Snow Lake with the rest split between Reed mine and Flin Flon.
None of Hudbay’s six other northern Manitoba unions has held a strike vote.
Negotiations between the company and its largest union, USW Local 7106, are headed to concilliation.
