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Mine Unions in Australia, Canada Reject Xstrata’s Job Cuts

11 January, 2010

While the campaign for retention of coal-mining jobs and a fair contract by the Construction, Forestry, Mining, and Energy Union (CFMEU) with Xstrata in Australia continues, another union is resisting proposed mining and metallurgical job cuts by the Anglo-Swiss mining house.

In North America, the Canadian Auto Workers (CAW) launched a campaign in northern Ontario in mid-December to preserve 676 copper and nickel smelting and refining jobs at Xstrata’s Kidd Creek metallurgical plants in Timmons, Ontario. The company announced on 8 December that it was permanently shuttering a smelter and refinery, effective 1 May 2010, thus heaping further economic havoc on a region already beset by job losses and a strike.

The proposed job losses come on top of 725 mineworker layoffs by Xstrata in February 2009, when it temporarily shut three mines in the region. CAW Local 598 of Sudbury, Ontario, which is currently engaged in negotiations with Xstrata Nickel toward a 1 February contract expiration, has made recall of those jobs its number one bargaining table priority.

In Timmons, CAW Local 599 has started a public campaign aimed at drawing business and government pressure on Xstrata Copper Canada to reverse the Kidd Creek closure. A major part of the campaign is aimed at the federal government, which, the union contends, must protect Canadian jobs as part of the C$19 billion sale of these former Falconbridge assets to Xstrata in 2006.

That issue is similar to one included in the campaign by the United Steelworkers (USW) in its strike against Brazilian Vale. The CAW has supported USW Local 6500 on picket lines and with financial support in its current six-month strike against Vale, and it has also joined USW in calling on the Canadian Parliament to enact legislation that would give transparency to deals made under the Investment Canada Act.

In the corporate takeovers of both Vale buying Inco and Xstrata paying a premium to get Canadian-based Falconbridge, many details between the federal government and the foreign mining houses were kept secret, and the job-slashing now – the unions feel – could have been prevented had more disclosure come in 2006.

CAW Local 599 is pursuing an aggressive petition campaign calling for both retention of the Kidd Creek facility and for government action on the proposed job cuts. Visit the union’s website here to learn more and to join the petition.

In Australia, CFMEU’s campaign against Xstrata in New South Wales on redundancies and lack of a current enterprise agreement continues. Last summer, Xstrata announced it was cutting 180 coal-mining jobs at two collieries, Tahmoor and Ulan.

The union has been engaged in lawful industrial actions at Tahmoor over the past several months (see past ICEM coverage here and here), with miners conducting a march through Tahmoor on 21 December to coincide with a 24-hour work stoppage. Other industrial actions included the refusal to load coal on to trains for shipment to Port Kembla.

Early in the new year, the industrial actions were halted so coal could be loaded on to trains and eventually shipped to German steelmaker ZKS. That request came from metalworkers in Germany due to low inventories and in order to keep operations at ZKS in production.

See the CFMEU's campaign website here.