Falco workers ink new deal (February 23, 2004)

Falconbridge (FL-T) expects mining and milling at its Sudbury operations to resume to normal levels before the end of March, now that employees have ratified a new 3-year labour pact.

During the strike, the company continued to operate the smelter at about 50% of capacity on feed from the Raglan mine in northern Quebec. Normal operating levels at the smelter will resume almost immediately. Workers are expected to return to work over the next two weeks.

Of those who voted, 93.5% were in favour of the new deal. Some 1,050 unionized production and maintenance workers walked off the job in early February, when a previous 3-year agreement expired.

Key to the new pact is an agreement that limits the use of contract workers on existing and planned projects, including Nickel Rim South and Fraser Morgan. The agreement at those projects will extend for six years and will not have to be renegotiated during the next round of bargaining, in 2007.

At the end of 2003, Nickel Rim South hosted an inferred resource of 11.7 million tonnes grading 1.6% nickel and 3.7% copper, plus platinum group metal credits. Resources at Fraser Morgan were 6.3 million tonnes grading 1.6% nickel and 0.5% copper.

The new contract includes a $2,000 settlement bonus, wage increases, improvements to the pension plan, and a $1,000 bonus if certain production targets are met during the 12-week startup period.

When the strike began, Falco said it expected nickel output to be reduced by 2,000 tonnes for each month of picketing; copper output, by 2,400 tonnes; and cobalt, by 40-50 tonnes.

The current agreement expires Jan. 31, 2007.

Falco is the world’s third-largest nickel producer, after Norilsk of Russia and Inco (N-T). Falco’s Sudbury operations account for 5% of world production.