MANAGEMENT AND unions at Tara Mines are expected to meet today over the company's threat to make 670 workers redundant unless cost-cutting measures are agreed.
Some 350 members of staff who are members of Siptu met last night to decide their position on the management's proposal to freeze pay and introduce continuous production in response to a slump in world prices for its main product, zinc.
At a meeting that lasted for more than two hours they agreed to seek further engagement with management on the issue.
Boliden, the Swedish owner of the mine in Navan, Co Meath, has put staff on protective notice and says it will lay off workers from January 19th unless they agree to the plan. The mine would then be closed until such time as market conditions made the mining of zinc profitable again.
Zinc prices have fallen by 60 per cent in the last six month as recession bites in the main industries where the metal is used - construction and car manufacture.
The firm, which declined to put forward a spokesperson yesterday, has told unions that even if staff agreed to its plan, it may still close the mine if the price of zinc continues to fall. "This is a crisis situation here. We're losing money hand over fist," one source told The Irish Times.
The company made its proposal to the unions last month but it was rejected by Siptu, which represents the miners among the staff. Siptu then made its own proposals, providing for delayed payment of pay increases and minor variations in shift cycles, but this has been rejected by the company.
Tara is paid in dollars for its zinc but incurs costs in euro, so the weakening of the dollar has caused problems for the company. It produces about 200,000 tonnes of zinc and a further 40,000 tonnes of lead every year.
Gerry McCormack, national industrial secretary of Siptu, said he hoped to "explore every avenue" to sort out the differences between the firm and the union. However, management had made it clear that its proposal was made on a "take it or leave it" basis, and it was clear there were "big differences" between the sides.
Politicians urged the sides to do everything possible to avert closure. Local Fine Gael TD Damien English called on management and unions go "all out" to agree a deal protecting the business. "There are now two plans on the table, one from management and one from the union. I believe that compromise is possible."
Tara Mines has proved highly profitable for Boliden. In 2007, it made €97 million in profit after tax and paid €55 million in corporation tax to the exchequer. One source said the mine was losing more now than it did in 2001, when the last slump in zinc prices forced its closure for nine months.
Last May, management reached agreement with unions on a two-year pay and conditions deal, which was approved by workers and was due to begin this month. However, from October, the price of zinc fell sharply and the company said it was not in a position to implement the deal.
Instead, it came up with a costcutting package that includes a pay freeze, no job losses and a reduction of bonuses to minimal levels.
The most contentious proposal, however, is the plan to move from a 5½-day cycle to continuous production over seven days.
For some miners, this will mean more weekend working; for others who already work at weekends, it will mean less overtime.
Talks about seven-day working, which is common in other mines, have been ongoing since 1999, but did not form part of the deal agreed with unions in mid-2008.
Miners working underground earn €65,000 to €70,000 a year on average, but with overtime some workers earn over €100,000.
