14 April, 2011Some 2,000 iron ore miners and pellet-plant workers in northern Québec, members of four United Steelworkers (USW) locals, came to excellent wage, pension, and work terms with ArcelorMittal Mines Canada.
CANADA: The six-year agreement, ratified by 75 per cent of union members on April 3, came after arduous bargaining dating to last November. A prior labour agreement in Québec between the USW and the world's largest steelmaker expired in February.
The contract will give hard-rock miners and processing-plant workers a 45 per cent pay increase over the six years, inclusive of enhanced bonuses and hefty improvements to the yearly cost-of-living adjustment. The hourly wage increase will average 4.1 per cent per year, and 25.6 per cent over the six years.
Additionally, USW Québec region and local branch negotiators withstood a management affront to create a two-tier pension scheme, with a proposal to cast new hires into a defined contribution plan. Not only did the bargaining units retain a defined benefit pension plan, but they made improvements to it as well.
Workers with 30 years of service will realise a monthly increase of C$210 per month, or 18 per cent, and the union negotiated a 3 per cent increase for current retirees. Steelworkers under the new agreement are employed at the Mont-Wright and Firelake mines near Fermont in northern Québec, along a 400-kilometre rail link, and at an ArcelorMittal pellet plant at Port-Cartier on the Gulf of St. Lawrence.
"This employment contract reflects the mining boom currently underway in the north coast and Québec region," stated USW Region Five Director Daniel Roy. "It is also the product of difficult negotiations, during which the committee showed determination and solidarity.
"I invite non-unionised mine workers a take a look at what we accomplished at ArcelorMittal Mines."
The labour agreement contains new restrictions on outsourcing by strengthening the union-rostered stability list. Luxembourg-based ArcelorMittal purchased the iron ore assets in 2006 from Québec Cartier Mining Co., then owned by an investment company. ArcelorMittal produces 40 per cent of Canada's iron ore output.