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Workers threaten strike at Teck

BC’s biggest miner might face a picket line on Sunday for the second time in less than a year. On Thursday, Vancouver-based Teck Resources Ltd. (TSX:TCK.B), which operates five coal mines with more than 2,500 workers in southeast B.C.

BC’s biggest miner might face a picket line on Sunday for the second time in less than a year.

On Thursday, Vancouver-based Teck Resources Ltd. (TSX:TCK.B), which operates five coal mines with more than 2,500 workers in southeast B.C., was served with a strike notice at its Elkview operations.

The United Steelworkers Local 9346 union said January 25 that 98.2% of its workers voted in favour of a strike to back collective bargaining demands that have been on the table since September.

Teck said the notice entitles the workers to commence strike action January 30.

The previous labour agreement expired October 31.

Last August, workers at Teck’s nearby Coal Mountain mine formed a picket line after eight months of collective bargaining fell through (see “Teck fighting operational and labour fires in southeast B.C.” – issue 1086, August 17 to 23.)

That strike was settled September 29.

Local 9346 president Chris Nand said the latest strike notice sends a message to the company “that the members’ needs have to be addressed.”

He also said the notice is not about wages but rather retirement savings plans for Elkview’s workers.

Marcia Smith, Teck’s vice-president corporate affairs, told Business in Vancouver the company is preparing contingency plans in the event of a work stoppage.

“However, we continue to be hopeful that we can work with the union to reach a settlement that works for both parties,” Smith said.

There’s no word yet as to how the strike might affect the company’s production, though in August analysts said the Coal Mountain strike would have to last a significant amount of time to hurt annual volumes.

But labour concerns aren’t the only issues the company is contending with these days.

Last week, Teck updated its coal guidance amid avalanche concerns that could affect rail shipments through B.C. and a mechanical failure at export facilities in Delta (see “Teck reduces coal output after unfortunate events” – BIV Business Today, January 19.)

The mechanical failure has since been fixed.

At press time, Teck’s shares were down $0.20 to $58.93.

The company’s stock hit an all-time high of $64.62 on January 12.

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