Nearly 200 Hudbay tradespeople began job action Saturday as the company plans to maintain operations during Flin Flon’s first mine strike in more than four decades.
IAM Local 1848 announced Wednesday morning that it has given Hudbay the necessary 72-hour strike notice, with workers set to walk off the job at 11:59 am on Saturday.
“None of our outstanding language issues were addressed and the wage enhancements were nowhere near what we had hoped for or deserve,” IAM said on its website. “[Hudbay] left us with only one option, taking strike action with the direction our membership has indicated.”
Rob Winton, vice-president, Manitoba Business Unit for Hudbay, said the result of the strike could be severe.
“The IAM’s unreasonable actions are threatening the viability and sustainability of our business,” Winton said. “We will be very disappointed if their actions end up causing permanent damage to the communities of Flin Flon and Snow Lake.”
Added Winton: “IAM’s desire to go on strike is disappointing and will impact our employees and their families significantly. Our communities will also feel the impact of their action. We believe this strike is unnecessary given the offer we presented.”
IAM had expected the strike would temporarily close Hudbay’s Flin Flon and Snow Lake operations, but the company said that’s not the case.
“We have reached out to management in assisting them with a controlled shut down of all operations,” IAM said Wednesday morning. “We want to ensure the easiest most efficient restart of the plant once it resumes operation.”
IAM said its members are “the heart of the operation” as they repair and maintain the necessary equipment and machinery.
Winton said Hudbay’s contingency plans were ready and would be enacted once IAM members walk off the job.
“Each plan is intended to ensure the health and safety of our employees and protect our assets,” said Winton. “Our plans are for the continued operation of all our facilities with the appropriate flexibility to ensure safe production throughout.”
While “IAM employees are valuable and contribute to the safe production” of the company, Winton said Hudbay is unwilling to shut down.
“To do so would be irresponsible and against the interests of the company, the employees, the towns and even the striking employees,” Winton said.
IAM predicted that in short order “equipment will break down and the plant will begin to ramp down,” shutting “itself down in an uncontrolled manner” and “inflicting damage that could have been easily been avoided.”
With 190 members, IAM represents an important but small segment of Hudbay’s northern Manitoba workforce of 1,460 people.
Winton confirmed that non-IAM employees, none of whom are in a legal strike position, are expected to continue going to work during the strike.
Those workers will be assisted through the IAM picket line, Winton said.
“Extra security will be used as required to provide for the wellbeing of all of our employees and our operating assets,” added Winton.
“Picket line protocol and safety is a critical element of our contingency plans and ensuring employees have safe access to their work sites.”
IAM confirmed its members would set up picket lines at Hudbay operations in both Flin Flon and Snow Lake.
Unease
The strike notice generated reaction throughout the community ranging from unease and disappointment to optimism that job action might finally bring IAM and Hudbay closer together on a new deal.
Flin Flon Mayor Cal Huntley said he hopes the strike is short-lived.
“Like everyone else, it is my hope that all parties can come to a resolution in a short period of time that satisfies everyone,” said Huntley.
Winton said Wednesday that no further meetings with IAM were scheduled. In a news release issued Thursday morning, IAM Grand Lodge rep Ian Morland said the union is “willing to resume bargaining at any time provided the employer has something better to offer.”
IAM advised members of the strike notice on Wednesday morning, six weeks and a day after they voted nearly unanimously to walk off the job if Hudbay’s final offer disappointed.
“As per section of 87.2(1) of the Canada Labour Code. We have given Hudbay the necessary 72 hours written notice for the IAMAW 1848 to commence strike action at 11:59 am on Saturday May 02, 2015,” read the notice.
Later that morning, after being informed of Hudbay’s plan to maintain operations, IAM accused Hudbay of bargaining in bad faith.
“It is obvious that they had an agenda right from the start and never [wavered] from their plan,” the union said on its website. “This bargaining process never stood a chance.”
The strike notice followed a marathon conciliation session late last Monday and early Tuesday that ended with IAM and Hudbay still far apart on wages and other issues.
Hudbay proposed a 10.9 per cent raise for certified IAM members, consisting of an extra $1 an hour in year one, another $1.25 in year two and an added $1.50 in year three.
IAM said conciliation saw the company offer to move the $1.50 raise to year two but refuse a $1.25 skilled-trade wage adjustment on top of the raises.
The union said Hudbay also turned down a suggested six-increment pay raise for IAM apprentices.
Hudbay had also offered a 10 per cent increase to pensions, among other enhancements.
IAM said some of its concerns, including the grievance procedure and Hudbay’s use of contractors, went unaddressed.
Speaking after the strike notice was issued, Winton again defended the company’s final offer.
“Our offer was generous and met the needs of employees and the company in order to maintain the viability of the Manitoba operations,” Winton said.
But IAM argued that it entered into a long-term agreement in the 1990s “in order to save” what was then called HBM&S “from bankruptcy and ensure our community’s survival.”
With Hudbay now “thriving,” IAM said the company is offering wage increases that are only marginally higher than those put forth in the 1990s.
Rates
Certified trade rates at Hudbay range from $33.85 to $34.27 an hour, IAM said, lower than the top rate of $41.02 at nickel miner Vale in Thompson, $40.55 at lumber company Tolko in The Pas and $52.70 at northern Saskatchewan uranium producer Cameco.
For its part Hudbay has stated it offers competitive wages in comparison to other mid-tier base-metal mining companies.
How do Hudbay’s financials compare to those of Vale, Tolko and Cameco? In 2014, Hudbay recorded a company-wide profit of $72 million compared to $657 million for Vale and $185 million for Cameco.
Financials for Tolko are more difficult to find, but in 2013 the lumber company recorded revenues (not profits) of $825 million compared to $517 million for Hudbay.
Nonetheless, IAM argues its members’ services are in high demand. In a website posting last week, the union said a search of a job-hunting website revealed over 1,300 postings for heavy-duty mechanics, industrial mechanics, pipefitters and machinists in BC, Alberta and Saskatchewan.
The last strike at Hudbay, then known as HBM&S, was in 1971.
