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Xstrata is a global diversified mining group with its headquarters in Zug, Switzerland. The company mines seven major commodities: copper, coking coal, thermal coal, ferrochrome, nickel, vanadium and zinc, with additional exposures to platinum group metals, gold, cobalt, lead and silver.
Xstrata reaches agreement with nickel workers in Sudbury ahead of planned ramp-up
Xstrata (LSE: XTA) said its nickel unit has successfully renewed a three-year agreement with the workers union representing production and maintenance employees at its operations in Sudbury, Ontario. The new deal sees the workers receive improved employment terms. Also a result of the agreement, Xstrata will re-call 100 workers, and plans to reactivate the Fraser copper mine in February.
"Together we can move forward to successfully transition Nickel Rim South to full operation, ramp up production at our Fraser Copper Mine and pursue performance enhancements at our Strathcona Mill and Sudbury Smelter, positioning our Sudbury Operations for success for the longer term", Xstrata’s VP of Sudbury operations, Marc Boissonneault, commented.
The negotiations with the Canadian Auto Workers Sudbury Mine, Mill and Smelter Workers Union Local Union 598, began in December and the agreement was ratified by the union members last night. Highlights of the Agreement include an annual cost of living allowance with a 20-cent hourly wage increase in the third year, a C$2,500 continuity allowance, an inflation-adjusted pension and benefit improvements, and a performance-based incentive program.
Xstrata said that the agreement also provides a framework for a new joint company-union initiative aimed at mitigating longer term challenges with the current defined benefit pension program.
