Goldcorp, union reps at odds

Talks between Goldcorp (G-T) and union officials from the United Steel Workers of America, who represent workers at the Red Lake mine in northern Ontario, have broken down again. The latest sticking point is the outsourcing of mine maintenance.

Hoping to end the 3-year old strike, Goldcorp revised its offer to include a $1,500 signing bonus and an option to purchase 1,500 Goldcorp shares.

The company also changed training requirements to accommodate employee concerns about terms offered last October and renewed its offer of $6 million in severance pay. The severance package would give all employees eight weeks’ pay, plus three weeks’ pay for each year of service and wage increases of up to 22%.

Prior to the strike, the mine had operated steadily for 48 years, producing more than 3 million oz. gold. Goldcorp recently outlined 1.4 million tons grading 1.37 oz. gold per ton below the lowermost workings, sufficient to resume production at the annual rate of 240,000 oz.

Contract workers have now completed more than 45% of development work, and startup is scheduled for November. Goldcorp says, if necessary, it will employ contractors to carry out production.

The revised offer expires Jan. 31.