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Gold/Mining/Energy : Canmine resources -- Ignore unavailable to you. Want to Upgrade?

To: dave brown who wrote (1901)	9/16/1999 8:29:00 AM
From: Marshhawk	Read Replies (2) \| Respond to of 2769

Dave, it borders on a tragedy for the workers and for the town of Thompson, but what a fascinating story. Inco rejects offer by union to extend current contract by 2 weeks. Inco locks out workers and begins orderly shutdown. The union says INCO actions make no sense. Well there, obviously the union in wrong and INCO is acting logically. How so? How can shutting off production and incurring the costs of a shutdown/startup make sense? Answers: 1) INCO wants to break the union. They figured the union caved 3 years ago and will cave again, maybe accept 10% decrease in wage package 2) INCO has a surfeit of inventory and needs to work it off. [doubt as they are buying in mkt every year to meet contracts] 3) INCO knows laterites sold forward and wants to crush them financially by boosting price. Potential problems for INCO. Miners realize this is it. They can stand firm, or be lap dogs for ever. Tobin sees a political opportunity to say INCO is a big corporation that doesn't care about workers, and doesn't care about people of Nfld. and reasserts smelter/title issues. Wonder who told the funds yesterday there would be no strike and got them to go short? Can anyone say bear trap? Probably wasn't INCO as they need to use the funds in the future.