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Vol.63/No.33       September 27, 1999  
 
 
Canada mine bosses link wages to copper price  
 
 
BY LYNN LEBLANC AND STEVE PENNER 
KAMLOOPS, British Columbia — The 990 miners at the Highland Valley Copper mine in Logan Lake, British Columbia, voted by 86 percent on August 29 to accept the contract proposal put forward by the provincial government's job protection commissioner. The company and United Steelworkers of America (USWA) union officials backed the proposal.

The company had said that acceptance of the proposal was the precondition for reopening the mine after a three-month shutdown. The mine is the largest open pit copper mine in Canada, and produces 1.5 percent of the world's copper. It had been closed since May 15.

The company had claimed that it was no longer profitable given the sharp decline in the world price of copper, and demanded concessions from the union and the government in order to stay open.

The New Democratic Party (NDP) government had previously agreed to cut the mine's electricity rates by tying them to the price of copper. The lower the price of copper the lower the charges for electricity. But the company announced it was closing when USWA members refused to accept lower wages.

"It was more like a lockout than a mine shutdown," according to Ed Drinkwater, a truck operator at the mine. "They shut down and said they wouldn't open again until they had a contract that was acceptable to them," he pointed out.

The new contract ties workers' wages to the ups and downs in the price of copper. For example, if the price of copper — currently about US$0.74 per pound — fell to US$0.67, wages would be cut 2 percent. If the price fell to US$0.60 per pound, wages would be cut 15 percent.

Many of those who voted for the contract, like Leon Marks, a welder, felt they didn't really have much of a choice given the price of copper. "The company waited until the people were hungry enough." Moreover, he added, Employment Insurance had warned that workers' unemployment benefits would be cut off if they rejected the contract proposal.

Morgan Emes, a millwright, argued the company was getting what it wants. "All they're doing is tying our wages to the price of copper." This would make workers more vulnerable to maneuvers by the company. "They blackmailed people into voting yes by saying we would lose our UIC [unemployment benefits] if we voted no."

"We were voting with a gun at our heads," Drinkwater added. Some workers were unhappy with the five-year length of the contract. The last agreement was a 9-year pact that resulted from a 107-day strike in 1989.  

Lynn LeBlanc is a member of the Young Socialists.  
 
 
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