Hudbay told local union leaders Wednesday there are no more planned layoffs among unionized workers, the head of the company’s largest union told The Reminder.
Following layoffs involving casual and exploration department employees over the past week, Hudbay’s union presidents were called to a meeting with management to discuss the company’s plans going forward.
Tom Davie, president of USW Local 7106, the company’s largest union, said the group was told there would be no further unionized layoffs at this time.
He said that decision is contingent on factors such as metal prices and grades.
“I don’t think they ruled it out but at this point in time there’s no [further] layoffs [for unionized workers],” Davie said.
Davie said union officials heard employees are being shuffled around at the staff level, which is not unionized.
He said Hudbay provided no details on what that reorganization might look like.
Another source familiar with the meeting said Hudbay announced the Flin Flon zinc plant and cellhouse – the subjects of closure rumours – would remain open for the foreseeable future.
When asked what the company said about those two facilities, Davie said that in order for the facilities to stay open, the company must produce zinc, which it is doing.
Davie said the Hudbay reps confirmed 777 Mine is projected to close in 2020 – news chronicled in The Reminder the same day – and reaffirmed a previous announcement that a new mill once considered for Snow Lake would not proceed.
He also said company officials stated they are looking at Hudbay’s vendors to find cost savings.
Rene Beauchamp, president of IAM Local 1848, confirmed there would be no layoffs for his union and said cost savings were discussed at the meeting.
The news comes as many other mining companies around the world implement layoffs and temporarily close mines until the markets improve.
London-based Anglo American PLC, the former owner of what was then known as HBM&S in Flin Flon, announced this week it plans to shed 85,000 jobs worldwide.
Meanwhile, mining giant BHP Billiton announced 76 layoffs in Canada, most of them in Saskatchewan.
And that’s just a sampling.
The Flin Flon region last saw a temporary mining shutdown in 2009, when Hudbay suspended its Chisel North Mine and accompanying mill in Snow Lake for about a year.
For Davie, the fact that no operations at Hudbay are being suspended at this time is a testament to the work ethic of employees and the company’s efforts to reduce costs.
Still, Davie left Wednesday’s meeting wondering how the company is displeased with revenues given that copper is worth about $2 per pound.
He said he remembers the company being satisfied with revenues in the early 1990s when copper was worth between 90 cents and $1.10 a pound.
Davie said Hudbay has agreed to share with the unions data on its main expenditures for 2016, when that information becomes available.
He said he looks forward to gaining a more in-depth look at the financial situation.
Over the past week in Flin Flon-Snow Lake, Hudbay has laid off casual employees and employees within HBED, its northern Manitoba exploration department.
The exact number of layoffs is not clear, as Hudbay has not publicly spoken about the layoffs. Davie said he has no firm numbers.
However, three sources within the workforce have told The Reminder that 27 casual employees are being let go, and that this number may or may not include layoffs at HBED that included at least one long-term employee.
It is not known when or if those employees might be called back to work. In the past, Hudbay has let employees go during difficult times only to call them back to work at a later date.
Davie called the casual and HBED layoffs, none of which involved his members, “unfortunate.”
‘Significant pressure’
Rob Winton, vice-president, Manitoba Business Unit for Hudbay, declined to comment on details of the meeting provided to The Reminder.
But he did say the following:
“Hudbay Manitoba and every one of our peers in the resource industry are under significant pressure due to commodity prices. This week I took the opportunity to share with our staff employees and union presidents, the current environment we are operating in and our plans to address. There are numerous cost containment initiatives that we had previously started and will continue to implement in order to ensure destiny is in our hands.
“I also shared our recent understanding of 777. 777 resources are now defined and exploration options exhausted. 777’s ultimate life will depend on metal prices and the success of our cost structure reductions in Flin Flon. The future of the metallurgical complex in Flin Flon will depend on these cost improvements and potential exploration or acquisition success. Hudbay is committed to exploration and development in Manitoba and we have a very talented team and the bulk of money budgeted for Hudbay to continue our exploration program in Manitoba.
“By sharing the reality of our current situation and engaging our employees in the opportunity that we have to define our future, we can create a very positive and successful story.”
