No strike planned; Hudbay defends offer

IAM Local 1848 members have no immediate plans to strike after rejecting a final contract offer Hudbay defended as generous.

The union, representing 190 tradespeople in Flin Flon and Snow Lake, voted 96 per cent against the offer on Sunday and Monday.

“At this point we want a collective agreement. That’s our goal,” said Rene Beauchamp, president of IAM, after confirming the
union would not strike at this time.

While few expected Hudbay’s offer to win union approval, many expected IAM would serve a 72-hour strike notice at midnight on Monday, its earliest opportunity.

Instead Beauchamp said the union wants to return to the negotiating table.

“We are hoping to start bargaining in good faith,” he said.

Rob Winton, vice-president, Manitoba Business Unit for Hudbay, said the company was disappointed by the offer’s rejection.

“The offer we presented was generous and fair, especially given the economic realities in Western Canada,” he said. “Hudbay requested no language concessions, and we offered enhancements to wages, pensions and benefits.”

The offer would have given IAM members hourly wage increases of $1 in year one, $1.25 in year two and $1.50 in the third and final year, along with pension improvements.

Winton said that amounted to a wage increase of 10.9 per cent for certified mechanics, pipefitters and machinists and a 10 per cent increase to their pensions.

Winton supplied The Reminder with a graph showing cumulative annual increases to IAM wages have increased about 20 per cent faster than the consumer price index (inflation) since 2005.

The gap would have widened to about 27 per cent by 2017 under the rejected offer, according to the graph.

Hudbay also offered increases to other benefits such as vision and paramedical coverage, said Winton, adding that contrary to “misinformation in the community,” the company did not ask for concessions to benefits. 

Winton gave no indication Hudbay was prepared to change its offer.

“Our final offer was presented on Thursday April 16, 2015 and expired at 11:59 pm April 20, 2015,” he said.

IAM members were concerned not only with the wage aspect of the offer, but also non-monetary issues, none of which, according to the union, were resolved.

“The offer does not come close to meeting expectations of our members,” Beauchamp said last week.

Option

Having already endorsed a strike if displeased with Hudbay’s final offer, IAM now has the option of serving a 72-hour strike notice if it chooses.

Winton said Hudbay is prepared for that possibility.

“The decision to strike is in the hands of IAM Local 1848,” Winton said. “We have been in this situation since Saturday and are managing the business and have the appropriate contingency plans in place to continue ensuring the health and security of our employees and our assets.

“We have a responsibility to our employees, our communities and our shareholders to manage the business responsibly. The wage increase we offered was generous and ensures we have a viable business in northern Manitoba.”

It is widely believed that Hudbay’s contingency plan in the event of a strike includes replacement workers.

The Reminder has also confirmed (though not through Hudbay) that security personnel, evidently under contract to the company, arrived in the community over the weekend.

“We have always had a security team and if we need additional assistance we will bring in the necessary resources,” Winton said.

Asked last week whether IAM is asking Hudbay’s six other unions to join any potential strike, Beauchamp said: “Solidarity is a key principle among all unions.”

None of Hudbay’s six other unions have held a strike vote.

Following Sunday and Monday’s voting, IAM posted a notice on its website urging members to keep safety in mind during “these stressful times.”

“We must [ensure] that before we start any job we must [assess] all potential risks,” read the notice. “We must reduce them to an acceptable level. We must follow all of Hudbay’s safety policies, [ensuring] that all articles are met to your satisfaction. Work can not proceed until we are 100% sure that it can be done in the safest possible way. If any concerns should arise, please contact a safety or union steward for any clarification.”

IAM’s contract vote saw 87 per cent of members cast ballots.