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11 January, 2010
In Hobart, Tasmania, the Construction, Forestry, Mining, And Energy Union (CFMEU) and Belgian-based lead and zinc producer Nyrstar NV agreed to a 14-day cooling down period last week following escalated industrial tensions that included the threat of a lock-out under Australian’s Fair Act by the company.
Nyrstar operates a 300-worker zinc smelter in Hobart and exports some 250,000 tonnes of zinc cathode annually from Tasmania. The two parties resume negotiations under the supervision of Fair Work Australia, the government’s new labour dispute agency.
The dispute flared in mid-December when some workers opted to take lawful industrial actions, including work bans and other stoppages. Strikes occurred on December 19 and December 24. Nyrstar immediately responded by issuing letters to strikers stating they would face a 16-day lockout, while another letter to those not striking stated that implementation of partial work bans will be construed as refusal to do any work, thus staff will not be paid at all.
The central issue in the Nyrstar Australian dispute is the company insistence to continue a performance-based pay system, while the CFMEU and another workplace representative is seeking renewal of an enterprise agreement that contains automatic and set pay increases. The current operating enterprise contract expired three years ago, with no accord reached in that time period.
Nyrstar was formerly a joint venture between Belgian metals and chemicals company Umicore and Australian mining and development company Zinifex Ltd. It was spun off into a separate company in late 2007 and wholly owns GM-Metal of France and 25% of Thailand’s Padaeng Industry Public Company Ltd. Zinifex remains Nyrstar’s primary source for raw zinc, while Umicore is a main buyer of Nyrstar’s processed zinc. Globally, Nyrstar also processes some copper, gold, indium, and refined silver.