Xstrata workers ratify 3-year contract

Last Updated: Wednesday, February 3, 2010 | 9:53 AM ET Comments2Recommend2

CBC News

Workers for a mining operation in Sudbury, Ont., have voted overwhelmingly in favour of a three-year collective agreement that provides them "major gains," according to their union.

The 876 workers at Xstrata Nickel on Tuesday voted 93 per cent in favour of the contract, which also includes an annual cost of living allowance, a 20-cent hourly raise in the third year, expanded benefits, retirement incentives and an improved pension plan.

"People can retire with the security of knowing their pension is safe," wrote the bargaining committee of the Canadian Auto Workers Sudbury Mine, Mill and Smelter Workers Union Local Union 598, which represents 1,080 production and maintenance employees.

The contract also ensures the reactivation later in February of copper mining at Fraser Mine, a copper-nickel ore body that was placed under "care and maintenance" in February 2009 because of low demand in the nickel market.

That will enable the recall of 100 workers, or one-fifth of the 500 Xstrata employees currently on layoff.

“We are very pleased our employees have supported the agreement and shown that they are committed to the success of Xstrata Nickel’s Sudbury Operations,” said Marc Boissonneault, vice-president, Sudbury Operations, in a press release.

The deal was reached Monday morning, hours after the previous contract expired at midnight ET.