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Cameco Suffers Strike Action at Uranium Fuel Manufacturing Plant

Published: 21:32 08 Sep 2009 BST

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Cameco Corporation (TSX:CCO & NYSE:CCJ) announced that unionized employees at Cameco Fuel Manufacturing Inc (CFM) began a strike on Saturday. The industrial action comes after contract negotiations broke down as requested concessions to wages, benefits and pensions were rejected by the trade unions.

The industrial action is localised to the single plant of Cameco’s Fuel Manufacturing sub-division in Port Hope, and does not include the neighbouring uranium conversion facility. 

The last contract between the company and the 137 unionized employees expired on June 1, 2009.

The unionized employees, members of United Steelworkers Local Union 14193, voted in favour of the strike action and took to the picket lines Saturday morning. Normal operations at the Port Hope CFM plant have been suspended, however work normally carried out by non-union employees will continue at the Cobourg facility.

The affected plant is part of Cameco's fuel services division, which is one of two companies in Canada that manufactures Uranium fuel bundles for Candu nuclear reactors. It also makes various components for nuclear reactors.

The revenues from the affected plant are not a significant part of Cameco's overall revenues, as such stock prices remained unaffected with both the Toronto and New York listed securities trading in positive territory throughout the morning.

Cameco is one of the world's largest uranium producers. Its uranium fuel products are used to generate electricity in nuclear energy plants around the world.

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