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Gold/Mining/Energy : Copper - analysis

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To: Night Trader who wrote (1475)9/15/2006 9:42:48 AM
From: Stephen O  Read Replies (1) of 2131
 
United Steelworkers Local 7619 has voted 99.8% in favor of authorizing a
strike against Teck Cominco's Highland Valley Copper (HVC) mine, union
officials reported early Friday.
More than 640 workers voted to strike if a renewed collective agreement can
not be reached between the union's negotiating committee and the employer. The
current collective agreement expires on Sept. 30.
Contract talks are scheduled to resume on Monday and Tuesday, the union
said.
Despite the company's invitation to seek a collective agreement earlier in
the year, and several attempts to negotiate a settlement, talks broke off in
June.
"Outstanding issues for the workers include adequate wages and benefit
increases, including pensions and medical benefits upon retirement," said a
prepared statement from the union.
The union pointed out in a prepared statement that copper prices have risen
by more than 300% in the last three years. It said that the HVC operation
produces more pounds of copper concentrate per man-hour than any mine in the
world and claimed that a profit of more than $1.5 billion is expected in 2006.
"The members of the local union have stepped up to the plate to give their
negotiating committee a strong mandate," said Steelworkers Western Canada
Director Steve Hunt in a prepared statement. "If a satisfactory settlement
can't be reached, picket lines will go up at an appropriate time."
Local 7619 President Richard Boyce said the union has refused to accept
concessions demanded by the company.
"There has never been a better time than now to negotiate good increases for
workers and retirees," he says. "It's too bad that it has to take a strike
vote to get Teck Cominco's attention."
Boyce said that in 1999, when copper prices were down and the mine closed
for four months, workers, the community, suppliers BC Gas and BC Hydro all
pitched in to help re-activate the operation.
"Now that this company is enjoying record profits, it is time that workers
and the community get their fair share," adds Boyce.
He later added, "We are Teck Cominco's No. 1 producer. When you look at the
success of our operation and the number of tons produced per employee and how
hard we have worked, it's a no-brainer to see that this company must negotiate
a fair and equitable agreement with our union."

- By Allen Sykora, Dow Jones Newswires; 541-318-8765;
allen.sykora@dowjones.com

That sure sounds like a strike to me unless Teck shifts a long way.
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