PSAC Union Files Unfair Labor Practices Complaint Against BHP

The Public Service Alliance of Canada (PSAC) is filing unfair labor practice charges against Ekati diamond mine owner BHP Billiton over the company's "final offer" to striking workers, which PSAC says was illegal.

In a release from the mine, the final offer, tabled by the company on May 30 included:

• annual salary increases averaging a minimum of 4 per cent effective June 30, 2006 and again on June 30, 2007
• a $1,000 back-to-work bonus on their first pay check upon returning to work, and
• a lump sum retention bonus, for all bargaining unit employees that remain with Ekati until the end of 2006, which totals 4 per cent of annual salary for non-Northerners and 8 per cent of annual salary for Northerners.

Jean-Francois Des Lauriers, PSAC Executive Vice-President-North, said the union's legal counsel will file unfair labor practice charges against BHP Billiton under the Canada Labor Code immediately on several grounds. "BHP Billiton tried to remove in its last offer articles that had previously been agreed to and signed off by both sides. And BHP Billiton demanded a ratification process that interferes with the operation of a trade union - another Labour Code violation," Des Lauriers said.

"This company not only shows contempt for its own workers, it also shows contempt for the law," he added, noting that BHP Billiton has already been found guilty by the CIRB for illegally changing workers' pensions, a move that was reversed thanks to the union.

In addition to violating the Labour Code, Des Lauriers said in a release that the BHP Billiton proposals would have led to the unfair firing and discipline of striking union members, force the union to drop all existing complaints at the Canadian Industrial Relations Board against the company while BHP Billiton would keep its own complaint going and would have left union members without security in the workplace.

"It is obvious that union members who have taken strike action against BHP Billiton need to have union protection on the job against any reprisals or unfair actions by the company," Des Lauriers said.

Todd Parsons, President of the Union of Northern Workers component of PSAC, which represents Diamond Workers UNW Local X3050, said BHP Billiton is attempting to mislead members about wage increases in its proposal. "BHP Billiton is claiming there are two years of wage increases but the contract would have only lasted until next August - how can anyone in their right mind think that a one-year contract could deliver two years of wage increases?" Parsons asked.

"And BHP Billiton is not telling workers or the public the truth about the size of those wage increases - only 1.5 percent was guaranteed - not 4 percent. Only workers the company likes would get 4 percent and I'm betting that union members who were on strike would never see that increase because it was totally up to managers to decide," he said.

Parsons said the BHP Billiton offer of one extra paid day off a year from a company that made $7.5 billion CDN in profits last year shows that BHP
Billiton has no intention of sharing its good fortune with the workers who create those profits.

The union had accepted outstanding language, said the release, but talks broke off over employee protection clauses. In light of the fact that 40 per cent of employees have continued to work since the disruption began on April 7, and that the union has stated it intends to fine these employees, Ekati insisted on language that protects employees against union fines and recriminations.

"We can't believe our employees won't have a chance to vote on this offer," said Richard Morland, vice president operations Ekati in a release. "To walk out on talks when we're this close to ending the strike is incomprehensible to us. We believe it is time for all of us to return to work, and we believe that if employees have the chance to have their say, they will agree."

Ekati produces 6 per cent of the world's diamond supply by value or 4 per cent by weight and yields 3 to 5 million carats annually. It is located 300 km northeast of Yellowknife and 200 km south of the Arctic Circle.