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28 July, 2008
Strategic and rolling strikes by 500 Canadian miners – members of the United Steelworkers (USW) – could occur at any time now within the three mining operations of Potash Corp. of Saskatchewan, the world’s largest fertiliser company.
On 23 July, three local branches of the USW in the western Canadian province of Saskatechewan issued the necessary 48-hour strike notice against the company. Management countered by giving the unions a 48-hour lockout notice.
Miners have been without a current contract since 30 April 2008. The USW local unions voted by a 96% margin on 21 July for industrial action.
Workers met again on Friday, 25 July, and ballotted for an overtime ban at mines in Allan, Cory, and Patience Lake, beginning the next day, 26 July. In 2007, Canadian steelworkers worked a total of 147,000 overtime hours for Potash Corp., heavily impacting the company’s bloated profit sheet.
The company, capitalising on high commodity prices, posted its largest quarterly profit margin in second quarter 2008, with C$905.1 million in earnings. Its 2007 net income was C$1.1 billion.
USW Canadian National Director Ken Neumann
USW National Canadian Director Ken Neumann, in an opionion article in a provincial newspaper last week, compared the publicly-listed company’s sales figures, together with other potash producers, with royalty fees paid to Canadian units of government. In a decade between 1997 and 2007, the ratio of sales to royalities has dropped from 13% to seven percent.
“Record potash prices and continuing provincial giveaways allowed the company to collect an after-tax profit of C$566 million in the first three months of 2008,” stated Neumann.
“This quarterly profit amounts to well over C$100,000 for each of the company’s 5,000 employees,” wrote Neumann. “Although the company is reveiving far more profit per worker than most mining companies, it pays wages lower than many major Canadian mining operations.”
USW Locals 7468, 189, and 7689 also are seeking, in a renewal labour agreement, greater controls over use of contract labour, a bonus scheme, and improvements in pensions and vacation time.
If Potash Corp. does not return to the bargaining table by mid-week, the likelihood of a full-scale strike across all three mines is great.