Six-year deal at Royal Oak
No wage increase for three years, mine to run seven days a week

by Nancy Gardiner
Northern News Services

NNSL (May 26/97) - Giant Mine should be strike-free for at least the next six years, under a new collective agreement between Royal Oak's Giant Mine and the Canadian Autoworkers Union.

Royal Oak reached a new six-year agreement with CAW Local 2304 last week. The union had been seeking a three-year deal.

The agreement was mediated by Industrial Inquiry commissioners Don Munroe and Vince Ready. It calls for a six-year period without work stoppage.

The union, however, is not happy with it.

Munroe and Ready, apppointed by the Canada Labor Relations Board, had the power to impose binding resolutions on any outstanding issues if negotiations and mediations failed.

There's been no pay increase for the past seven years, said Marc Danis, bargaining committee chair for Local 2304. And there won't be another increase for at least three more years.

"After Nov. 16, 1999, we could bring certain issues up, and the parties must negotiate in good faith," said Danis. If there's no agreement, it would again go to Munroe and Ready.

The last wage increase came in 1990, when Royal Oak brought the mine, said Danis. The employees never received a wage increase despite giving up many concessions and the company being profitable, he said.

The agreement is effective retroactively from Nov. 16, 1996 to Nov. 15, 2002.

In addition, there will be a change in work rotations, Danis says. Instead of a five-days-on, weekends-off schedule -- Giant will be running seven days a week. The new rotation is still under discussion. "We have 45 days to work out a plausible shift," Danis said.

Also, instead of receiving cash for vacation-travel assistance, employees will now be given vouchers that must be redeemed within the year they are given, said Danis.

This will have an impact on Yellowknife's economy, Danis predicted. Often workers would use the cash to make purchases locally instead of taking the trip, but now with the vouchers, they'll be spending their money in Edmonton, he said.

Graham Eacott, vice-president of investor relations with Royal Oak, could not be reached comment. A company press release said Royal Oak looks forward to a period of long-term stability in its partnership with the CAW local, according to a Royal Oak press release. The CAW represents 250 workers at Giant Mine.