by Doug Ashbury
Northern News Services

NNSL (Dec 31/97) - More than a third of Con mine employees are ending the year without a job.

Word came Sunday at 6 p.m. that Con mine's owner, Miramar Mining Corporation, was slashing 130 positions -- 92 union, 28 management and 10 vacant jobs were eliminated. The Con mine is Yellowknife's fourth-largest employer. "These guys are our neighbors and this affects all of us," Mayor David Lovell said.

The union was told Sunday at 6 p.m. the layoffs would take effect at 7 p.m. that day.

"Right now, we are trying to console some of our members and their families," United Steelworkers Local 802 president Clifford Moroz said Monday morning.

"Ninety-two guys, that's 92 families, add the 28 hourly staff, and that's a lot of people," Moroz said.

"There were fellows showing up for work and finding out they no longer have jobs," Moroz said.

The most senior union member affected has worked at the mine for about 11 years.

Brian Labadie, senior vice-president of operations for the mine, said the company had little choice. "We had to look at radical change. The Con mine is a very high-cost (operation)," he said.

Labadie was in Yellowknife Monday and Tuesday and expected to be back in town all next week.

"The life of the mine is contingent upon gold price and how successful we are with bringing costs down," he said.

Moroz said he understands that the price of gold is low and gold production costs are high in the North, but the timing of Miramar's move has left a bad taste in his mouth.

Tuesday's London gold fix was $293.05 US. Earlier in the month it dipped as low as $278.

Moroz, a miner for 25 years, said he has never seen a layoff between Christmas and New Year's.

"We met with them (Miramar officials) Dec. 17. They were asked at that meeting, we asked if layoffs were scheduled (for December)," Local 802 vice- president Butch Eden said. "We were told 'no, but things will be different in January,'" Eden said.

"Something's wrong if you can engineer a layoff (of this size) in a week."

Eden said he asked Miramar about layoffs to calm concern by workers.

"Our membership was asking questions," Eden said.

Moroz and Eden said they will likely have someone at the union offices all week to answer questions.

Lovell did his best to put a positive spin on the news, pointing out that it is better to have a mine employing 200 people than a mine shutting down, he said.

"This could be a plus for BHP Diamonds, which is looking for skilled Northern labor," he added.

The layoff was not surprising but its magnitude was not known, Lovell said.

Lovell said he met Saturday with territorial government officials which had been informed by the mine that layoffs were coming.

"This is one of the unfortunate sides of mining," Labadie said.

He also said that 1998 hedging is only "short-term protection."

Miramar has already sold 133,050 ounces -- all its 1998 production -- at $441.

Under the cuts, Con is to produce between 70,000 and 80,000 ounces next year.