By IAN ROSS
Sudbury retailers and the city’s economy do benefit when miners at Xstrata Nickel and CVRD Inco cash their bonus cheques. 
Sudbury retailer Peter Dal Bianco says no question there’s an upsurge in sales at his electronic and video stores whenever bonus cheques are issued.
“We’re sensitive to when the bonus comes out, but we’re so aggressive all the time, we want to keep our name out there.”
Dal Bianco says during the first week of last March, there was a 15 to 20 per cent more traffic at his east end electronics outlet.
“We’ve had significant number of customer say ‘I’m spending here’s my bonus,’ no question, it’s happening.
“The last three or four years have been pretty good. We’ve been having increases every year.”
There is increased consumer confidence, he says. The complaint among businesses is keeping up with the growth rate over the last year and a half. More service people in the retail sector are required.
“We feel like a mini-Calgary in Sudbury, which is nice to see after 32 years in this business.”
The nickel bonus plan is one of the bonuses negotiated between the United Steelworkers and CVRD Inco in its collective agreement. Cheques are issued on a quarterly basis.
John Fera, president of United Steelworkers (USW) Local 6500 says it’s union policy not to discuss the amount of the nickel bonus, but he estimates all of Sudbury’s miners likely save and spend tens of millions annually, maybe even as high as $100 million.
The impact of mining employee spending in Sudbury is hard to measure, he says. But the rule of thumb is one mining job supports four outside jobs.
“That translates into huge positives for the economy in the industrial and commercial sector.”
Fera says many workers put money into RRSPs or cash it for trips, homes, appliances and their children’s education funds.
The union negotiated two bonus plans to ensure long-term employment for his 3,300 members.
The Nickel Price Bonus Plan is based on the average realized price-per pound of nickel in U.S. dollars and is published in quarterly reports by the company.
It’s a complicated formula with agreed-to triggers.
If the average realized price for any quarter, which the company has net earnings of $2.25, each union members receives a lump-sum payment equal to an employee’s hours worked in that quarter. If the average realized price exceeds $2.25, a multiplier formula increases the payment by one cent (Cdn) for each one cent (US) by which the realized price exceeds $2.25.
The USW also negotiated a second bonus (earnings-based compensation) that kicks in when Inco’s Ontario Division shows a significant profit.
“We’ve taken a stand that the mining industry is cyclical,” says Fera. “We want our people to earn good wages, but not at the expense of losing their jobs.”
Years later, a second bonus plan kicked in when Inco’s Ontario Division showed a significant profit.
“If Inco is doing well, then our guys were able to get a reward for that.”
“For all the years, we didn’t get any bonus, when nickel was $3-per pound, those are the years we didn’t lose any members.”
Rick Grylls, president of Local 598 Mine Mill/CAW, representing 1,100 Xstrata Nickel workers, says the nickel bonus was instituted during the 1980s.
The bonus was negotiated when times were tough in the mining industry and the company couldn’t afford wage increases.
“It’s been the collective agreement for five or six contracts and was brought in when workers never got raises for a long time in the mining industry.”
Last February, Mine Mill/CAW members signed a new collective agreement that included an $8,000 signing bonus alone. Some suggest quarterly nickel bonus cheques alone produce $20 million in revenue, tacked on to other bonuses.
“It’s healthy,” says Grylls, declining to reveal numbers. “It’s hit into the teens.
“As long as the price of nickel stays up, the company and workers make money and it’s good for the economy.”
