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Providing coverage of Alaska and Northwest Canada's mineral industry
May 2006

Vol. 11, No. 22 Week of May 28, 2006

MINING NEWS: Diamond mine workers continue strike

Workers at the huge Ekati Diamond Mine in the Northwest Territories may soon enter a third month on strike with no end to the walkout in sight.

The Ekati mine is 186 miles Northeast of Yellowknife and 124 miles south of the Arctic Circle. It became Canada’s first diamond mine when it opened in 1998 at a cost of C$900 million. Ekati currently produces 6 percent of the world’s diamonds.

The mine’s 400 unionized workers walked off the job April 7 when last-ditch talks broke down. The Public Service Alliance of Canada, the union that represents Ekati’s unionized employees, had spent more than 14 months negotiating a first contract with mine owner and operator BHP Billiton.

Union representatives say the multinational giant failed to address any of the workers’ major concerns about wages, seniority and benefits.

A BHP Billiton spokeswoman, however, said the company bargained in good faith, and will continue to operate the Ekati mine during the strike with other employees and the employees of its alliance partners.

Unions warns against replacement workers

The union, however, has warned the company against using replacement workers to keep the mine producing.

Meanwhile, the Canada Industrial Relations Board ruled May 3 that BHP Billiton erred in changing the company’s pension plan without the union’s consent.

The board said BHP violated Canada labor laws by unilaterally changing the pension plan from a defined benefit plan to a defined contribution plan.

Under a defined benefit plan, workers get a fixed guaranteed income when they retire, and the company is committed to meeting that pension obligation. Under the defined contribution plan, the amount the retiree receives depends on the performance of his or her investments in the pension plan.

The latter plan, then, holds a much greater risk for workers.

The board ordered both sides to meet by May 23.

—Mining News






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