Lead and zinc prices will rise sharply if Canada’s two largest producers, are unable to reach new contract agreements soon say some analysts. Contracts between Cominco (TSE) and Brunswick Mining and Smelting (TSE) and the United Steelworkers of America expire at the end of June. Union officials say negotiations are a long way from reaching a satisfactory settlement.
Cominco’s Trail smelter in British Columbia produces about 5.8% of the Western world’s refined zinc and 2.6% of its lead. Brunswick’s lead-zinc mine near Bathurst, N.B., accounts for another 5% of the Western world’s zinc output, and 1.5% of its lead.
Negotiations between Cominco and the union broke off recently after Cominco proposed a 2-year contract with annual wage increases of 5%, but no cost-of-living allowance. During the previous round of contract talks three years ago, union workers staged a 4-month strike at the Trail smelter.
Brunswick is offering a 20% wage increase over three years and increased monthly pension payments.
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