Hudson Bay’s Ruttan mine on hold as strike called

Operations at Hudson Bay Mining and Smelting’s (TSE) Ruttan copper mine at Leaf Rapids, Man., are at a standstill after 330 employees called a strike at midnight, May 31.

In the latest setback for the troubled operation, hourly wage members of the United Steelworkers of America Local 8144 voted to strike after a union bargaining committee rejected a new 3-year contract.

The new contract included provisions for a 20.96% increase over three years for entry level employees including a $1.10 increase in the first year after the contract is signed and subsequent 65 cents increases in years two and three.

Under the previous contract, entry level employees at the Ruttan mine earn $11.45 per hour. Level 13 employees earning $13.73 were offered a 19.23% increase over three years under the proposed contract.

“We thought it was a good offer,” said Maurice Kirby, general manager at Hudson Bay Mining’s Ruttan Division. “The competition have settled for less.”

But Mike Lysohirka, President of Local 8144, disagrees. “When the last contract was signed there was no money available and what we got was a premium pay program based on the price of copper, zinc and gold,” he said.

Based on increases which the hourly wage employees have already achieved under the metal price formula, Lysohirka called the $1.10 increase offered to entry level employees “a smokescreen.”

Since current reserves are only sufficient to support current mining rates at Ruttan for another 3 1/2 years, Lysohirka said the union bargaining committee will seek a severance pay package in addition to a much larger pay increase.

“We hope the strike won’t be a long one but if it takes five to six months to get what we want, our members are prepared.”

Vowing to save the 450 jobs at the mine site, Hudson Bay bought the operation from Sherritt Gordon Mines (TSE) in July, 1987. Sherritt Gordon had suffered production cutbacks at Ruttan due to an irregular orebody and low copper prices.