Doug Ashbury
Northern News Services

Yellowknife (Feb 04/00) - The union attempting to secure severance money for ex-Giant miners could be back in court later this month, said Canadian Auto Workers Local 2304 plant chair Steve Petersen.

Recently, an Ontario court ruled that the union is owed severance, but from bankrupt Royal Oak Mines.

The union is appealing the decision claiming about a year's severance money from PwC.

Petersen said interim-receiver PricewaterhouseCoopers "acted like a successor company" so it should pay severance like one, referring to PwC's negotiation of a contract for workers at the Kemess (Royal Oak's mine in B.C.).

"They (PwC) negotiated a contract at Kemess, they recognized us as a union and they could have notified the GNWT that Giant would be closed," Petersen said.

If the appeal fails, members of the local will have to settle for a maximum of $2,500 each.

"As far as severance goes, it's terrible," Petersen said, adding, in fact, the $2,500 amount will be even less after tax.

PwC and Revenue Canada plan to apply a 10 per cent tax on the $2,500, he said. Another concern is that the severance will affect employment insurance payments.

Petersen said members collecting the severance will be subject to an employment insurance penalty. Weeks will be added on to the end of their claim periods but this is little comfort, he said.

"One option is to get a trust fund set up, so the amount could be paid out in instalments (without penalties)," Petersen said.

The severance the union is aiming for, a combination of time related to the collective agreement and to government notification requirements on closure of Giant mine, amounts to about $60,000 per person.

So far, none of the members have received any severance money. The cheques are being held in abeyance until the outcome of the appeal.