Faro mine shut down due to strike

About 300 employees at Curragh Resources’ Faro lead-zinc mine are off the job after voting in favor of a strike June 10.

While about 150 administrative workers and engineers not connected with the union are still reporting for work, production has stopped at the Yukon mine operation.

“Right now the morale is really good and we have 24-hour coverage on the picket line,” said Joan McCurry, President of the United Steelworkers of America Local 1051 which represents the Faro employees.

The Faro employees voted to reject a third contract offer by a margin of 53% and McCurry told The Northern Miner that she doesn’t expect an early resolution to the strike. Representatives from both Curragh and the United Steelworkers have been attempting to negotiate a first contract since January.

“At this time, the effects of the strike aren’t being felt because the employees were paid last Friday (the day they voted to strike),” said Faro personnel director Larry Beitz.

He said the main stumbling block is a proposed 2 -year contract which would include an across-the-board $3.09 an hour wage increase while reducing the working week from 56 to 48 hours.

Under the current system, Faro’s hourly wage employees work an 8-hour shift, six days at a stretch before taking three days off. Workers are entitled to overtime allowance for time worked in excess of the regular 8-hour shift.

Under the proposed contract, the Faro employees are being asked to work under a compressed 12- hour shift (with no allowance for overtime), four days a week with four days vacation in between.

While employees would realize the full $3.09 an hour increase by Nov 1, 1989, McCurry said they would lose much of the overtime payments gained under the current system.

“No one expects the same gross income from a shorter work week but most people can’t afford to take the drop in wages that the new contract calls for,” said McCurry.

The loss of overtime will result in a drop of over $1,000 for the company’s most experienced tradesmen, according to McCurry who couldn’t say when the two sides would return to the bargaining table.

Still one of the largest contributors to the Yukon economy, the Faro mine produced 533,000 tons of lead and zinc concentrates.

A number of other related businesses have been affected by the strike, including the Yukon Alaska Trucking Co. which hauls concentrates from the mine. It recently laid off 65 drivers.