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No cash, no gems

Temporary layoffs at Sirius Diamonds

Doug Ashbury
Northern News Services

Yellowknife (Jan 29/01) - Sirius Diamonds was unable to buy rough diamonds from supplier BHP Diamonds in mid-January, and had to temporarily layoff some workers.

Sirius operates a diamond-cutting and polishing plant at the Yellowknife airport.

Sirius spokesperson Jim Ben-Oliel said the company ran out of stock over Christmas which led to a supply shortage.

"We didn't order enough," he said, adding that when buying rough diamonds, there is often substantial amount of money involved and delivery times are strict.

"We have had the diamonds ready to give to them since Jan. 17," BHP Diamonds spokesperson Graham Nicholls said last week.

BHP -- majority owner and operator of Ekati mine -- talked to Sirius Jan. 15, and met with company officials Jan. 16. BHP, which cannot deliver rough diamonds before payment is received, expected the money Jan. 17, said Nicholls.

On Jan. 19, Sirius temporarily laid off nine or 10 workers due to a lack of rough diamonds. A second group of workers, who are responsible for different duties in the diamond-manufacturing chain, were also out of work for a short time. About 30 workers are employed at the plant.

The company finally bought a shipment of rough diamonds Jan. 22.

Peter Finnemore, Sirius' technical manager in Yellowknife, told News/North Jan. 25 the diamonds had been acquired and as these new rough diamonds make their way through the different manufacturing stages, things are getting back to normal.

Under an agreement with the Government of the Northwest Territories, BHP provides about 7,000 carats of rough diamonds to Northern manufacturers; among them Sirius.

The events of last week follow earlier reports of a undisclosed amount of Sirius diamonds going missing. Earlier this month, Sirius said finished gems went missing en route to Vancouver from Yellowknife Dec. 5.

Labour complaints

Sirius' inability to buy rough diamonds came one day after a hearing related to union organizing.

A Canada Industrial Relations Board one-hour hearing, involving three complaints, was held by phone Tuesday, Jan. 16.

The Union of Northern Workers alleges an employee was fired for being pro-union and that the employer amended the terms and conditions of employment after workers filed for union certification.

Sirius Diamonds alleges an employee approached other workers -- to discuss unionization -- during working hours.

Sylvie Riverine, director communications services with the board in Ottawa, said last week it could be three months before a decision is reached.

Riverine adds the Sirius Diamonds union certification will be dealt with in the board's decision.