1992 — A LOOK BACK — Tragedy unsolved at Giant mine

The roots of the labor dispute between Royal Oak Mines (TSE) and the union representing workers at the Giant gold mine near Yellowknife, N.W.T., can be traced to the company’s acquisition of the mine in late 1990.

At that time, Royal Oak began efforts to cut costs and improve productivity at Giant and its mine at Timmins, Ont., both labor-intensive operations where combined cash costs of production exceeded US$400 per oz. of gold produced. The company did achieve a remarkable turnaround at both mines, an accomplishment which impressed skeptical mining analysts and led to a decision by the The Northern Miner to name President Margaret Witte its “Mining Man of the Year” for 1991.

But the positive reviews didn’t sit well with Local 4 of the Canadian Association of Smelter and Allied Workers in Yellowknife, which fired off missives to the media last January complaining of Royal Oak’s “American-style” management and “unfair” labor practices at Giant. A collective agreement between the parties expired at the end of March, but with the help of a government conciliator, the parties reached a tentative renewal agreement in mid-April. The settlement was voted down by union membership who elected not to grant concessions, including changes in work practices and overtime-pay requirements, which Royal Oak felt were absolutely essential for survival during a time of declining gold prices. The union held firm to its tough stand, and a strike began on May 23. Royal Oak then took the unprecedented step (in Canada) of bringing in replacement workers to keep the mine operating. Some union members also crossed the picket line and returned to work, despite threats and harassment from strikers.

This turn of events led to numerous outbreaks of violence at the mine site, reaching tragic proportions on Sept. 18 when an explosion killed nine miners, including six from Yellowknife. Police authorities are continuing to investigate the explosion and resulting deaths as a culpable homicide, although no arrests have yet been made.

Canada’s Labor Minister Marcel Danis then appointed two of Canada’s top labor experts to mediate the dispute, only to be advised that both Royal Oak and the union had not made the efforts necessary to reach a negotiated collective bargaining agreement.

Both sides are now studying the recommendations, although the mediators noted they remain “far apart” with respect to the acceptable content of a new collective agreement and the fate of 45 striking employees dismissed by Royal Oak for alleged misconduct. In the meantime, there is a local movement afoot to displace the union, now that a 6-month deadline prohibiting such changes has passed.

The frequency and intensity of strike-related violence appears to be slowly subsiding at Yellowknife. But for the families and friends of the nine dead miners — identified as Vern Fullowka, Norman Hourie, Chris Neill, Josef Pandev, Shane Riggs, David Vodnoski, Malcolm Sawler, Robert Rowsell and Arnold Russell — the tragic events that unfolded in this northern city during 1992 will never be forgotten.