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Last Updated: Monday, 31 October 2005, 06:40 GMT
Falconbridge agrees strike deal
Furnace in a steel works
Workers wanted their pay to better reflect company earnings
Canadian mining firm Falconbridge has reached agreement with workers at its Kidd Creek copper facility, ending a four-week strike that had hit output.

The workers had walked out after they failed to agree the terms of a new, three-year contract.

They will return to work on 1 November after four fifths of the workforce voted to accept an improved offer.

Earlier this month, Falconbridge agreed to a friendly 12.5bn Canadian dollars ($10.6bn; �6bn) takeover by rival Inco.

'Made progress'

Workers had complained that the initial pay deal did not reflect a surge in commodity prices, and was less than their previous agreement.

As part of the new deal, workers will get a 2% wage increase in the first year, followed by 2% in the second and 1% in the third. They also will get a cost of living allowance, and a one-off payment of C$1,500.

Falconbridge has also agreed to continue with the "present benefit coverage" and use its own workers before contractors.

"The bottom line is that we have made progress in virtually every area of the collective agreement," said Bob Chernecki, an official of the Canadian Auto Workers union, which had been representing the strikers.

Commodity firms have been enjoying solid times as prices for metals such as copper have been driven to new highs by demand in developing economies like China.

The Kidd Creek operation in northern Ontario produces copper and zinc, and has one of the world's largest smelting operations.


SEE ALSO:
Copper plunges from 15-year highs
13 Oct 04 |  Business
Gold fever grips Chilean island
28 Sep 05 |  Americas
Copper prices boost Antofagasta
13 Sep 05 |  Business
Miner Xstrata seals Canadian deal
15 Aug 05 |  Business
Copper boosts Rio Tinto profits
03 Feb 05 |  Business


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