The union representing workers at Glencore’s Sudbury mining operations have voted in favour of a new contract.
Members of Unifor Mine Mill Local 598 approved a four-year contract with Glencore Integrated Nickel Operations, an agreement the union said was negotiated under tough circumstances.
Low nickel prices and the fact local Glencore officials are seeking approval for $1.4 billion investment to keep Sudbury mines operating long-term were major factors at the bargaining table, said Richard Paquin, Mine Mill's lead negotiator, on Feb. 1.
"It allows us to basically assist the employer to secure our future, because we need the two big projects approved so we can have a future in Sudbury," Paquin said. "The employer is looking for $1.4 billion for the two projects — Onaping Depth and Nickel Rim Deep."
Without those projects, Glencore would exhaust its current ore supply by 2023, he said.
While not discussed at bargaining, it played a role in the four-year contract, which reportedly includes a two per cent wage increase over the life of the deal.
"It wasn't directly, but we knew that somehow they need to be able to secure that funding for us to have a future past 2023," Paquin said. "And the price of nickel didn't help, either."
After soaring six years ago well above $10 a pound, nickel has been hovering around $4.30 in recent years.
The contract was approved by 78 per cent of the roughly 800 members eligible to vote, which includes miners and mechanics. Officer workers are represented by a separate union.
"Overall, it was pretty good,” Paquin said of the response from members to the agreement. “You always have a few individuals that believe you can always get more. But you have to look at balance to achieve what we wanted to achieve at the (bargaining) table."
The agreement was reached 4:30 p.m. Jan. 30 The sides had been bargaining since Dec. 14.
