Severance decision pending for giant workers
Doug Ashbury
Northern News Services
Yellowknife (Dec 01/00) - It could take weeks for a decision on the Giant mine workers' severance appeal, says Steve Petersen.
"From what I understand, the judge is reserving judgement," Petersen, plant chair of the Canadian Autoworkers Local 2304, said Wednesday. That means a decision could take weeks, he adds.
Local 2304, the union representing hourly-paid Giant mine workers, claims because Royal Oak receiver PricewaterhouseCoopers acted like a successor company to bankrupt Royal Oak Mines, it should pay severance.
Earlier this year, the union, lost the court case, however, were quick to appeal it.
The appeal, heard in the Ontario Commercial Court of Appeals, commenced Nov. 27, also involves Steelworkers who worked at Royal Oak's Timmins mine, Petersen said.
Petersen said the receiver acted like a successor company because it did follow some of the collective agreement articles.
"We feel PricewaterhouseCoopers is the entity that should be paying," he said.
So far, Giant mine workers who lost jobs when after Royal Oak went into receivership, have been offered $2,500. That amount is subject to tax.
Under collective agreement articles and GNWT rules, about 300 Giant mine workers are entitled to about 10 months severance, said Petersen.
On average, that 10 months severance is around $38,000, Petersen said.
On the separate but related pension issue, Petersen said Giant mine pension recipients are and will get 88 per cent of their entitlement.
Originally, it appeared pensioners, paid from a company-funded program, would only get 75 per cent of what they were entitled to.
