Federal inquiry launched into Giant mine dispute

Royal Oak Mines (TSE) President Peggy Witte rejected a call from Canada’s minister of labor and mediators that the status of 45 terminated employees from the Giant mine be turned over to an arbitrator for final resolution.

This prompted the labor minister, Marcel Danis, to appoint mediators Don Munroe and Vince Ready to lead an industrial inquiry commission into the ongoing dispute at the Giant mine near Yellowknife, N.W.T. Royal Oak called the appointment “a positive step,” and said it is committed to the process and to “full participation and cooperation” with the commission. On the advice of independent legal counsel and a report by Don Nightingale of Queen’s University, the company rejected the mediators’ recommendation for arbitration.

After interviewing staff and hourly employees working at Giant, Nightingale advised Royal Oak not to adopt the expedited arbitration recommended by the mediators because it would result in “unacceptably high levels of risk for underground miners and possible closure of the mine.” Witte also said that a number of employees have expressed concern for their lives if the dismissed employees are allowed to return.

Independent legal counsel was of the view that Royal Oak would be acting in a negligent fashion if it accepted the dismissed employees, “knowing full well the potential of further violence underground,” as outlined in Nightingale’s report.

Royal Oak met with mediators on Dec. 20 to put forward its position, but the mediators refused to alter their own recommendation for the 45 terminated employees.

The labor dispute has been ongoing since May. Numerous outbreaks of violence culminated in the deaths of nine miners last September, which authorities are continuing to investigate as culpable homicide.