Teck to shutter Trail during strike

Teck Cominco (TEK-T) says it will shut down its Trail lead and zinc smelting operations if unionized employees follow through with a recently threatened strike.

United Steelworkers of America Locals 480 and 9705 said they would issue 72-hour strike notice on July 15, after negotiations broke off on July 14. The locals voted overwhelmingly in favour of strike action on June 29, after their old four-year labour pact expired on May 31.

Mediator Mark Brown of the British Columbia Labour Relations Board was to have issued a ruling on maintaining essential services on July 15, leaving the door open for strike action. Such services include the operation and maintenance of key environmental equipment, environmental monitoring, fire watch and the supply of drinking water to local communities.

“We regret that talks have broken down and the impact that a possible work stoppage could have on our employees, their families, and the local communities,” said Teck Cominco spokesperson Mark Edwards in a prepared statement.

Edwards says Teck remains committed to achieving a fair settlement and hopes to see the resumption of productive contract negotiations with the company’s unionized employee group.

Barring that, it is expected that picket lines would assemble by July 19.

Teck says lost operating profit from the smelting operation would be partially offset by increased power sales from the company’s Waneta hydroelectric dam on the nearby Pend Oreille River.

Last year, Trail produced a record 296,000 tonnes of refined zinc, 19.7 million oz. of silver, and 41.8 tonnes of indium. Lead production slipped slightly to 84,300 tonnes owing to a boiler explosion in the Kivcet furnace in February, and a subsequent fire in the lead refinery. The operation also sold 957 gigawatt-hours of surplus power.

During 2004, the operation generated more than $1 billion in revenue, or around 29% of the company’s overall revenue, and $135 million, or 12%, of the company’s operating profit.

Most of the zinc concentrates treated at Trail come from the company’s Red Dog lead-zinc mine in Alaska, with the remainder sourced from other mines in Canada, the U.S. and South America. Lead concentrates are purchased from mines in the U.S. and South America.

USWA Local 480 represents about 1,035 production employees at the Trail; Local 9705 represents some 200 technical and clerical staff.