Kemess headed to mediation

About 300 unionized production and maintenance workers at Northgate Exploration‘s (NGX-T) Kemess South mine have rejected the recently negotiated three-year collective agreement.

The employees, represented by the International Union of Operating Engineers – Local 115, voted 58.8% in favour of rejecting the deal despite a unanimous recommendation for acceptance from the union bargaining committee.

The union has applied to the B.C. Labour Relations Board for mediation, which is expected to begin May 22.

“We are disappointed that the unionized employees did not accept the three-year contract, which had been agreed to by their bargaining committee after six months of negotiation. We are hopeful that the mediation process will resolve any outstanding issues and result in an agreement that is acceptable to the membership. In the meantime, operations at Kemess continue as normal with productivity at record levels. We intend to commence drilling on our exciting Kemess North project around the end of May,” says Ken Stow, president of Kemess Mines, a subsidiary of Northgate.

The union had planned to stop working on April 23, but kept up the negotiation effort. The workers have been without a contract since the end of 2001.

Northgate posted a loss of $9.9 million last year as low metals prices offset improved operating results at the Kemess South open-pit mine. The operation produced 277,000 oz. gold and 66 million lbs. copper in 2001. Kemess is expected to produce an average of 260,000 oz. gold and 75 million lbs. copper annually over its remaining 8-year mine life.

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