Information meetings

STRIKE NOTICE

INFORMATION MEETINGS

To our members:

We will holding information meetings at the following times and locations:

FLIN FLON

APRIL 30, 2015

2:00 PM AND 8:00 PM

STEEL CENTRE

SNOW LAKE

MAY 1, 2015

4:00 PM AND 8:00 PM

SENIORS CENTRE

In solidarity

Your negotiating team

Controlled Shutdown

It is now clear that management had no intention to bargain with our union in good faith. It is obvious that they had an agenda right from the start and never waivered from their plan. This bargaining process never stood a chance.

None of our outstanding language issues were addressed and the wage enhancements were nowhere near what we had hoped for or deserve. They left us with only one option, taking strike action with the direction our membership has indicated.

We have reached out to management in assisting them with a controlled shut down of all operations. We want to ensure the easiest most efficient restart of the plant once it resumes operation.

Management believes they can continue to run their operation in our absence. Let us make this clear, we are the heart of the operation. We repair and maintain all the equipment and machinery needed to run. Our skill, knowledge and experience CANNOT be replaced. Very soon equipment will break down and the plant will begin to ramp down. Unfortunately it will shut itself down in an uncontrolled manner inflicting damage that could have been easily been avoided.

Now the restart will become very expensive and could take from weeks to even months until the plant resumes full operation.

From the shareholders, board of directors and employees of Hudbay we are all invested in what is about to happen in the future.

Make no mistake about it, this is exactly what will happen regardless of what management wants us to believe.

In solidarity

Your negotiating team

Strike Notice

To our members

As per section of 87.2(1) of the Canada Labour Code. We have given Hudbay the necessary 72 hours written notice for the IAMAW 1848 to commence strike action at 11:59 am on Saturday May 02, 2015.

We are currently setting up dates and times for information meetings for our members and will be posted as soon as possible.

We thank you for your patience at these stressful times.

In solidarity,

Your Negotiating Committee

April 27 update

We met with Hudbays negotiating team on Monday April 27 in one last final attempt to reach a fair agreement that we could recommend to our membership. We met with them over a six hour period. Unfortunately, we came nowhere near to getting an agreement.

Management’s attempt at hijacking our health plan has failed. We were told to stop terrorizing the widows of our community with misinformation. They have agreed to remove all their proposed language changes in the plan and leave it as it sits currently in our CBA.

One of our main objectives was in the reduction in the gap of apprentice and certified trade wage rates. Their solution was a 2 increment increase at the 8th period for Heavy Duty and Industrial mechanics. They somehow forgot that we also have pipe fitters and machinists. Their reasoning was that if apprentices are paid too well, they will be unmotivated to complete their apprenticeship. They would not discuss changes to the service agreement. This is unacceptable.

We were told that there is no more money on the table for wage enhancements. All that could be done is moving the $1.50 increase from the third year into the second. This is unacceptable.

Even though none of our major language issues were addressed such as the grievance procedure and contracting out, we tried in one final attempt in getting a recommendation from this committee. We proposed a $1.25 skilled trade wage adjustment on top of the wage enhancements and a 6 increment pay raise for all apprentices beginning at the start of their apprenticeship. At 3am this morning we were told NO.

These were all verbal discussion and we never received any written documentation from Hudbay. This is where we now stand.

In solidarity

Your negotiating team

Health Plan Rebuttal

The Health Plan will be overseen by a Health Plan Committee with five (5) representatives appointed by the Unions (one (1) from the United Steelworkers, Local 7106, tow (2) from the United Steelworkers, Local 9338, one (1) from the Association of Machinists and Aerospace Workers) and two (2) from the Company.

It is understood that the role of the Health Plan Committee is limited to administering the terms of the Health Plan and that any changes to the Plan would require the approval of the Company and the Union

The above statement is the 3rd paragraph from page 6 of 22 document from Hudbay’s Final Offer to the IAM.

Rob Winton, vice president , Manitoba Business Unit for Hudbay was quoted in The Daily Reminder saying “ THE OFFER PRESENTED TO IAM REMOVED REFERENCE TO THE HEALTH PLAN AGREEMENT,WHICH HE SAID IAM HAS NOT SIGNED SINCE 2006, AND MAINTAINED THE LANGUAGE AS IT WAS IN THE NOW- EXPIRED COLLECTIVE BARGAINING AGREEMENT (CBA)

Let’s once again get the facts straight. The above two paragraphs of language is what management wants deleted from our health plan 

As you can see, management is trying to hijack this plan from under our feet. Not only does he want to remove union’s approval, he wants to completely dissolve any power the health committee had. They want COMPLETE CONTROL of our health plan

Once this happens our benefits will be eroded and removed as they see fit

WE CANNOT LET THIS HAPPEN, WE MUST NOT LET THIS HAPPEN AND WE WILL NOT LET THIS HAPPEN

In solidarity

Your Negotiating Committee

Health Plan Concessions

Health Plan Concessions

Management has said in their update that they did not ask for any language changes. In the final offer tabled to us on April 16/15 they deleted all references to our Health Plan Agreement, the Heath Plan Committee and any changes to the Health Plan would not require Union approval.

They propose a Group benefit Plan that is governed by themselves.

When they say no concessions, they mean for right now. We believe that this is the first step in eroding the benefits in our current plan as we know it. We fear that concessions could begin as early as this contract is ratified.

We CANNOT let this happen

In solidarity

Your negotiating team

Wage Analysis

In 1997, our union entered into the 2012 agreement with HBM&S. At that time the company had a long term debt of 201 million dollars and would require an additional 33 million dollars to continue operating. At that time they offered wage increases of 3% /year over 3 years. We entered into the agreement in order to save the company from bankruptcy and ensure our community’s survival.

Today is 2015, the company is thriving. They are sending hundreds of millions of dollars to fund their major projects in Peru, Snow Lake and Arizona. Let’s make it clear, the only positive cash flow for Hudbay is from their Manitoba unit consisting of Flin Flon and Snow Lake. This is no longer a company starving.

When we look at the wage enhancements we were offered, we find year 1 at 2.83%, year 2 at 3.42% and year 3 at 3.94% for a yearly average of 3.39%. From a company on the verge of financial collapse in 1997 to the major player in the mining industry it is today, its a difference of 0.39%. WHAT IS WRONG WITH THIS PICTURE?

Over the 15 year agreement we have seen this company take advantage of their labor force and our wages tumble from the industry standard.

Certified trade rates at Hudbay range from $33.85-34.27/hr. At Vale in Thompson, apprentices earn $34.66/hr and certified trades is $41.02/hr. It is a difference of $7.17/hr. At Tolko in the Pas, apprentices earn $37.95/hr and certified trades is $40.55/hr. It is a difference of $6.70/hr. Cameco, a company that we are losing most of our skilled workers to has a trade rate of $52.70. They fly their employees in and out of work from the Flin Flon Airport. Pretty convenient.

ENOUGH IS ENOUGH! IT’S TIME THIS COMPANY STARTS TO PAY THEIR WORKERS WHAT THEY ARE WORTH!

In solidarity

Your negotiating team

Truth on the Western Economy

Does the arrogance of this company have a limit ? Is trying to instill fear and intimidation all they know ? Rob Winton, Vice President, Manitoba Unit for Hudbay, was quoted in the Daily Reminder saying, “THE OFFER WE PRESENTED WAS GENEROUS AND FAIR, ESPECIALLY GIVEN THE ECONOMIC REALITIES IN WESTERN CANADA”

Let’s get the facts straight. We want to assure the membership that this is nothing more than another ploy to scare us and our community. After a little research, and by just looking at ONE job search website called INDEED.COM, nothing could be further from the truth.

Looking at Western Canada, consisting of British Columbia, Alberta and Saskatchewan, we found that there is a total of 1,305 skilled worker jobs available to us. 656 available to Heavy Duty Mechanics, 245 available to Industrial Mechanics, 172 available to Pipe fitters and 232 available to Machinists.

Do you think Hudbay advertised $60/hr for scab workers out of the goodness of their hearts ? The reality of it is, that this is the new price to get skilled workers, when the demand greatly outweighs the supply.

Is this company willing to risk losing their seasoned, experienced skilled workers ? If they leave, many of them will NEVER COME BACK

Here’s some corporate strategy, LET’S SIT DOWN AND NEGOTIATE A FAIR AGREEMENT FOR EVERYONE.

In solidarity

Your negotiating team

cancellation of extended shifts

On April 21, 2015 our Collective Bargaining Agreement and all other letters outside the CBA expired. We would like to advise the membership that our union will continue to honor the terms and conditions of the expired collective agreement. However effective immediately the extended shift agreements between Hudbay and this union will be canceled. From now on, all employees who work more than 8 hours will be paid overtime rates for the duration of the shift. We also want to remind the membership that overtime is only mandatory in emergency situations, not for daily operations. You do not have to work overtime if you choose not to.

Hudbay is willing to pay scab workers $60/hour for 8 hours and $90/hour for any extended shift. They are willing to pay for a security firm at an estimated $50,000/day. Surely, paying their own employees overtime that we are entitled to should not be a problem.

In solidarity,

Your Negotiating Committee

Hudbay stock

TO: ALL MEMBERS

If you were a person who follows the stock market, you will already know that Hudbay’s stock plummeted 3.43% yesterday. Smart investors want a positive return on the stock they invest in. Smart investors also know that a company’s #1 asset is it’s employees. As we can see now, investors are not willing to buy stock in a company that is unwilling to treat it’s employees fairly and table an offer to reflect that. 96% REJECTION by the membership speaks volumes of how fair the final offer actually is. It is crystal clear that Hudbay’s employees are not their #1 asset. If Hudbay itself is unwilling to invest in their #1 asset, why would any smart investor ??

In solidarity

Your Negotiating Team