Relief as mine jobs threat lifted, but zinc price remains key factor

The immediate threat of up to 700 job losses at Tara Mines has been lifted with the acceptance by all sides of the cost-cutting package aimed at preventing the closure of the huge complex. However, mine owner Boliden has indicated the continuing operation of the mine depends on the price of zinc and lead and the euro/dollar exchange rate. The new work practices will come into effect on Monday morning next. The Swedish owners have lifted the protective notice served on workers earlier this month. SIPTU"s 350 workers at the mine voted by a 60/40 margin last week to accept new terms providing for continuous, four-cycle shift working. The Unite and TEEU unions also voted to accept the deal over the weekend. Tara"s human resources manager, John Kelly, said this week there was a great air of relief in the mines. 'Hopefully, the price of zinc and lead and the exchange rate will hold so we can stay open,' he said. 'At least now we have done what we can do. The negotiations were tough and a lot of hard work went into it on all sides,' he said. 'We are delighted with the outcome.' Management and employees will be meeting this week to discuss the new arrangements. SIPTU"s Meath branch organiser John Regan said following his union"s ballot: 'The tightness of the vote, especially on pay, shows that a lot still needs to be done by the company on how it implements the new terms.' The deal, which will come into effect on Monday 2nd February, was put forward by facilitator Janet Hughes who had warned that if either side rejected the proposals, there would be an immediate loss of employment at Tara. Under the new plan, the mine will move from a 5½-day to a continuous seven-day operation on a four-shift cycle, and will operate every day of the year, except 25th and 26th December, with payment for public holidays at the same rate as general rates of pay. The shift premium paid to workers for operating the new system will be increased from 26 per cent to 29 per cent. There will be no wage increases this year but all workers at Tara who have to change shift patterns will receive a bonus of €1,400 and there are proposals for workers to receive further bonuses in September 2009, April 2010 and January 2011, if mine production targets have been met. The owner of the mine says it will invest €56 million in the operation this year, and it plans to recruit 10 additional mine labourers and three additional storemen. A total of eight voluntary redundancy packages will be made available at the end of 2009 and a further eight at the end of 2010 under the terms of the agreement reached.