Public Service Alliance of Canada BC

Workers at Ekati Diamond Mine reach tentative settlement for 2nd collective agreement

YELLOWKNIFE - Workers at the Ekati Diamond Mine represented by the Public Service Alliance of Canada North have reached a tentative settlement for a second collective agreement at Canada’s only unionized diamond mine.

The proposed 4-year agreement comes after a series of negotiations concluded November 7 and the union bargaining team is recommending members vote in favour, says Jean-François Des Lauriers, Regional Executive Vice-President PSAC North.

Des Lauriers says the new contract contains significant improvements for diamond workers, including annual indexed wage increases above the rate of inflation, a very good incentive pay plan, improved seniority and layoff protection, better Short Term Disability program and other benefits to workers.

“Ekati Diamond Workers can today see the great benefits of joining a union and sticking with their union. This new contract is a substantial improvement on wages and working conditions that will serve our members well,” Des Lauriers said.

Todd Parsons, President of the Union of Northern Workers (UNW), said the deal comes a little over one year after Ekati diamond workers launched a tough three-month strike to win a first contract for a one-year term.

“This is a tribute to the solidarity of our members after the difficult strike in 2006 and it shows our union is strong. We are pleased that BHP Billiton has worked cooperatively with our negotiating committee to reach this contract without a labour disruption or any acrimony.”

Des Lauriers said other gains reached in the four-year contract starting September 1, 2007 include: an annual salary increase equal to the Canadian Consumer Price Index for the NWT plus 1.25% each year; use of Alternate Dispute Resolution as a quicker and simpler alternative to the formal grievance and arbitration process; better layoff protection where seniority is the factor with the greatest weight, with a 12-month worker recall period and potential for worker retraining; and an 11.5% increase in Short Term Disability coverage.

Parsons said another benefit for workers is creation of a Northern Social Justice Fund to support Northern community issues.

“BHP Billiton will contribute $10,000 each year that will go to a fund jointly administered by the union and management for worthy social justice projects in the north,” Parsons said. “This is a tangible benefit for all our communities.”

The Union Bargaining Team reached a tentative settlement with BHP Billiton Diamonds Inc. on November 7, 2007 on behalf of its workers, Ekati Diamond Workers Local X3050 and is recommending acceptance by the membership.

Ekati is Canada’s first diamond mine. It produces 6 per cent of the world’s diamond supply by value or 4 per cent by weight and yields 3 to 5 million carats annually. It is located 300 km northeast of Yellowknife and 200 km south of the Arctic Circle.