Union Rejects Arbitration In Lengthy Lucky Friday Strike
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(Kitco News) -TheUnited Steelworkers says that some 250 unionized workers at Hecla Mining Co.’s(NYSE: HL) Lucky Friday Mine in Idaho have voted to reject binding arbitrationthat was aimed at ending a year-long strike.
Whenreleasing its last earnings report in mid-February, Hecla announced that thecompany had agreed tothird-party arbitration with the United Steelworkers in an attempt to end thestrike, although this was subject to a ratification vote by union members inMarch.
The UnitedSteelworkers released a statement Wednesday night saying workers“overwhelmingly rejected” the proposal.
USWDistrict 12 Director Robert LaVenture said “membersof Local 5114 remain united in solidarity and their determination to fight forthe fair contract they have earned and deserve."
LaVentureadded that no more meetings with Hecla management are currently scheduled.Meanwhile, a rally will be held in Mullan, Idaho, on March 17, he added.
InHecla’s last earnings report, the company said Lucky Friday silver output wasjust 69,578 ounces in the fourth quarter, compared to 874,019 in the sameperiod of 2016. For full-year2017, silver production at all of Hecla’s mines was 12.5 million ounces, down27% from 2016 although also Hecla’s second highest ever behind the companyrecord 17.2 million achieved in 2016.
“The rejection of the arbitration proposal returns the labordispute to the status quo,” said a research note from BMO Capital Markets. “Thearbitration would have provided a more definitive line of sight to a restart ofthe mine, so the rejection is disappointing.”
By Allen SykoraFor Kitco News
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