Talks on a cost-cutting plan to save more than 600 jobs at Tara Mines in Co Meath have broken down. Both sides have agreed to refer the dispute to the Labour Court, but the management decision to do so depends on approval by a board meeting on Thursday.
Last night angry trade union leaders accused the company, part of the Finnish Outokompu group, of negotiating in bad faith. This followed almost 10 hours of talks at the Ardboyne Hotel in Navan. However, the company insisted its survival depended on the job cuts.
Its human resources manager, Mr John Kelly, said the price of zinc had fallen to $958 a tonne and the price of extracting Navan ore was $1,150 and rising.
"We've got to get at least what we're looking for in the survival plan."
He said the company had unilaterally deferred the introduction of new work practices to allow space for negotiations and that it may go to the Labour Court, if the case could be heard quickly.
However, he pointed out that final decisions on how long new work practices could be put off and on the Labour Court referral will be taken by the board. The board will also consider its position on the acquisition of the Bula orebody. However, Mr Kelly said Tara's costs would have to be reduced, regardless of whether Bula was acquired or not.
"Labour costs are not just the highest in the group but amongst the highest in the world." SIPTU branch secretary Mr Christy McQuillan, who represents the bulk of the workforce including the miners, said that in talks yesterday the unions had offered savings of £1.4 million and agreed to increase productive hours in the mine by 103.75 hours. However, the company had insisted that it would accept only its own targets of £1.75 million and 105 hours respectively.
"Their only solution is a seven-day week and 10.5 hour shifts," he said. "Our concerns are related to issues of fatigue, safety and the effects the new shift patterns will have on family and social life." The miners had offered to work at a lower hourly rate, provided there was a chance to protect earnings through increased productivity. However, he claimed that the reductions sought by management would reduce earnings by between £10,000 and £12,000 a year for miners. Their current rates are between £34,000 and £40,000.
He also claimed that the existing plan agreed with the company in February 1998, when the mine had almost closed, had brought down production costs to $1,003 dollars a tonne by March, but that these had risen again because the company had abandoned a partnership approach.
The chairman of the craft workers at Tara Mines, Mr Eamon Devoy, said that the company had withdrawn concessions offered to his members last week.