Strike at Inco averted, nickel prices still high

In times of prosperity, Inco Ltd. (TSE) has shown that it is prepared to share the spoils with its employees.

That became obvious recently when about 6,300 hourly paid Inco workers voted to accept a new 3- year contract containing some of the most generous provisions ever offered by a Canadian mining company.

After reporting the highest first quarter profits in its history, Inco has assembled a package which includes the first across-the-board raise since 1978 and unprecedented provisions for indexed pensions.

“We thought we had some catching up to do and we have made some breakthroughs,” said Dave Campbell, president of Local 6500, who called the agreement “unique.”

Highlights of the new contract include lifetime pension indexing with inflation protection for pensions up to an inflation rate of 7%.

The contract also provides for indexing for new retirees, and the same indexing formula for pensioners and survivors as well. In a step regarded as a major breakthrough, Inco has agreed to establish a $1- million fund to help survivors of employees without pensions.

“In the past, Inco has refused even to discuss pension and benefits for retirees and their survivors, said Leo Gerard, Ontario director of the United Steelworkers of America.

On the first day of the contract, basic wage rates increase by $1 per hour. As a result average pay will increase from $15.58 at the end of the 1985-88 ag reement, to $18.99 by the end of the new agreement, which represents an increase of 21.8% — $3.41 — over three years or an average of 6.8% per year.

Other features include cost of living increases (COLA) which kick in during the second and third years of the contract at a rate of 25 cents per hour. In addition, $1.42 of the COLA float at the end of the 1985-88 contract was folded into wages on June 1.

“We think it’s a very fair offer and it represents the healthy state of the company,” Inco spokesman Gerry Rogers told The Northern Miner.

Riding on the recent nickel boom, Inco reported first quarter earnings of $125.9 million(US) or $1.18 per share. As reported (N.M., April 25/88), Inco’s first quarter earnings exceeded the entire year’s earnings of $125 million realized in 1987.

Under the terms of a new nickel price bonus formula, Inco will pay most of its employees about $2,080 each, based on hours worked on the second day after the agreement was ratified. Additional bonuses ranging from $46 to $2,678 will be paid out depending on the price of nickel.

“Union locals across Canada will be shooting for our standing especially in the area of pensions,” said Dave Campbell. “We made gains in pretty well everything we went for.”