EKATI snubs union’s proposal

EKATI Diamond Mine says the latest offer from the union doesn’t meet the “flexibility requirements” it needs to operate a mine in Canada’s far north.

EKATI’s bargaining team met with the Public Service Alliance of Canada’s (PSAC) team yesterday to hear the union’s counter proposal.

“After reviewing the PSAC offer, I don’t believe that the union executive understands how a Northern mining business operates or how private industry labour can effectively function in a competitive marketplace,” says Roy Lenardon, vice president of human resources at EKATI in a press release.

Management at EKATI a joint venture that is 80% owned by Australian-based BHP Billiton (BHP-N, BLP-L) says it is in the process of putting together its final counter-offer. It will be presented to the union next week.

The company says the union offer doesn’t allow the mine to promote or retain people based on merit and performance “a serious restriction on our ability to attract and retain the people best suited to a successful business,” the company says.

Another sticking point for management is the issue of ‘work ownership’ a concept whereby all team members must work cooperatively and be flexible. The union is arguing that employees work should be specific to a narrower task.

A spokesperson for EKATI, Deana Twissell, says that the team atmosphere at the mine would be threatened by such a task-specific approach.

“We strongly feel these concepts will prevent us from building a strong, lasting business with our various partners. It is not a sustainable model for EKATI.” Lenardon is quoted as saying.

The company says its proposal will seek to both offer “world class” compensation to its employees, and honour its obligations to aboriginal and Northern communities.

Twissell says those obligations made back when the mine was first being commissioned would be threatened by implementing the type of seniority structure the union is arguing for.

The EKATI mine is still operating at full capacity with its existing employees, contract workers and alliance partners. The company says it is not using replacement workers, and doesn’t plan to in the future. Twissell says some 40% of its workers have crossed over the picket line to continue working.

According to a release from the union, the main issues in dispute are salaries, job security, seniority and vacations.

The workers at EKATI became members of PSAC in July 2004.

EKATI is 300-km northeast of Yellowknife and is a joint venture between BHP and geologists Charles Fipke and Stewart Blusson — who hold 10% each.