Eleventh-hour talks between Inco (N-T, N-N) and United Steelworkers (USW) locals 6500 and 6200 have delivered a tentative collective bargaining agreement covering the nickel giant’s Sudbury and Port Colborne operations.
Details of the unanimously recommended three-year proposal have not been released, pending presentation to union members.
“The company’s offer includes improvements to wages, benefits and pensions and provides the basis for continuing the business improvement and growth strategy in Ontario,” said Inco’s president of North America and Europe Mark Cutifani in a prepared statement.
“We believe the tentative agreement is a fair and reasonable one,” he added.
The USW will present the deal to its members on May 30, with a ratification vote slated for May 31. The existing collective bargaining agreement expires at midnight on May 31.
USW local 6500 represents about 3,200 employees in Sudbury while local 6200 represents 325 members in Port Colborne.
Farther afield, Inco’s Indonesian unit PT International Nickel Indonesia (PT Inco) says a transformer fire at the Sorowako nickel-laterite mine in Sulawezi could see furnace no. 2 — one of four furnaces shut down for up to eight weeks.
PT Inco had forecast production of 75,750 tonnes of nickel-in-matte in 2006. Production will be reduced by around 453 tonnes per week during the shutdown. The company is considering options to make up lost production once normal operations resume.
During the first quarter, PT Inco’s earnings slipped 20% to US$43.6 million as higher fuel prices increased production costs by 27%. Sales grew by 6.4% to US$181.9 million.
Quarterly production of nickel-in-matte was 17,400 tonnes, up slightly from the year-ago 17,300 tonnes. Unit cash costs between the two periods rose by 27% to US$2.76 per lb. The increase reflects significantly higher prices for high sulphur fuel oil and diesel.
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