Doug Ashbury
Northern News Services

NNSL (Feb 05/99) - Royal Oak Mines is offering buyout packages to unionized employees at its Giant mine.

"The company said it needed to reduce the workforce by 20. Rather than go with layoffs, they will offer packages," Canadian Auto Workers (CAW) Local 2304 president Marc Danis said Wednesday.

"From what I understand, they (Royal Oak) have achieved that (20 people)."

Danis said it was not up to the union to support or not support the package. Each employee has to make the decision based on his own situation, he said.

The group that has opted to take the buyout includes some long-time employees as well as younger employees, Danis said.

One employee who has opted to take the buyout has 28 years seniority, Danis said.

Some of the employees who took the buyout may have to be replaced because of the types of jobs they performed, Danis also said. This could generate a second batch of buyouts but the total should still be 20 people.

Cutting 20 jobs lowers Local 2304's membership to 175-180 members, Danis, a scoop tram operator, said.

"Obviously, we'd like to see the numbers higher."

The local has been working on meeting the 20-job requirement since last week.

The total number of employees at Giant -- union and staff members -- has dropped dramatically in the past two years.

According the City of Yellowknife's budget, which includes a community profile, Royal Oak employed a total of 280 full-time equivalents at Sept. 30, 1998, down from 320 Sept. 30, 1997 (389 FTEs Oct. 31, 1996).

Downsizing by 20 people comes as Royal Oak's debt problems worsen.

Earlier this week, the company defaulted on its second interest payment in a row to Trilon Financial Corp.