Fording ad draws warning over hiring

British Columbia Labour Minister Moe Sihota is warning that violence could break out in the province’s East Kootenay district if Fording Coal hires Albertans to fill jobs formerly held by Elk Valley residents at the Greenhills coal mine.

But Fording President Jim Gardiner said the company is committed to providing first opportunity for employment to residents of the Elk Valley who meet its requirements.

“To say we are hiring Albertans because we placed an ad in The Calgary Sun is wrong,” Gardiner said. “And for the labor minister to talk about violence and link this situation to the Giant mine strike at Yellowknife is irresponsible.” Alberta-based Fording recently purchased Greenhills, one of two coal mines left in limbo by the recent bankruptcy of Westar Mining. Trustee Arthur Andersen reopened the bidding process for Greenhills after an offer by Luscar for Westar’s two mines, Balmer and Greenhills, was blocked by the Bank of Montreal, the major secured creditor for Balmer.

The Balmer mine was eventually acquired by Teck (TSE), which already operates two coal mines in northeastern British Columbia. However, Luscar recently initiated legal action alleging that Teck conspired with Balmer’s creditors to block its bid.

Fording hopes to have the Greenhills mine operating in several weeks. Gardiner said members of the Greenhills Workers Association (GWA — the union representing former workers) are welcome to apply. But GWA Vice-President Dean Ward said Fording refused a meeting to discuss the mine’s startup, and is trying to skirt the province’s new labor laws by bringing in replacement workers.

Gardiner pointed out, however, that the offer of a meeting came with pre-conditions that Fording accept GWA as the bargaining agent and honor the previous collective agreement. “We could not accept the inefficiencies of the previous agreement in light of current weak markets for coal,” he added. Because Fording acquired the mine before the British Columbia government passed its new labor legislation, Fording does not have to honor Westar’s previous agreement with GWA. However, new employees at Greenhills would have the right to unionize under the new legislation, simply by having 55% sign union cards.

A mediator has been appointed to intervene in this dispute. Fording is also involved in an ongoing labor dispute at its Fording River coal mine in British Columbia, mainly relating to the issue of contracting out.