As part of a forthcoming agreement between Swedish-owned Tara Mines and the unions representing its workforce, approximately 160 positions are projected to become redundant. The anticipated reopening of the site will happen gradually. The agreement was reached at the Workplace Relations Commission early on a Wednesday morning, stipulating that any job cuts should be voluntary. The Co Meath facility, operated by Boliden, ceased operations last July due to considerable and unsustainable financial losses linked to the worldwide drop in zinc prices. This resulted in the temporary layoff of 650 workers.
Over the past nine months, up to 50 employees are believed to have retired or accepted early retirement packages. The proposed agreement includes terms of compensation for redundant staff, offering five weeks’ pay for each year of service, as well as statutory entitlements. In addition, it is supposed to include guarantees about maintaining pay levels and future assurances concerning the usage of direct labour as opposed to external contractors.
Prior to its temporary shut down, the facility employed least 160 contract staff. Plans are now in place to resume operations from June, although a specific date has not been confirmed yet. The company had desired alterations to work practices at the mine including changes in shift patterns and rostering. Some of these demanded changes have been included in the new agreement.
The exact phrasing of the agreement is still under review by the WRC officials until Wednesday morning. But both sides are expected to sign off the agreement which will then be put to the mine’s shop stewards early next week before being voted on by all union members affiliated with Siptu, Unite and Connect, who are understood to be recommending the agreement. For their comments, approaches have been made to Unite, Siptu and Boliden.
A squabble ensued earlier this year when Boliden, a Swedish conglomerate, put forth a recovery initiative that the union, Unite, claimed would result in a permanent one-third cut in the manpower at the mines. The plan also aimed to substantially modify the terms and conditions for the surviving workforce, an alteration Unite did not support.
Unite’s general secretary, Sharon Graham, explained in a statement that the unions had submitted practical suggestions that could have led to considerable cost savings while preserving jobs and quality of life. However, these ideas were dismissed, and the company decided to adopt a rigorous strategy to trim down workers’ jobs, salaries, and conditions. Graham described Boliden’s conduct as wholly inappropriate, and urged the government to intervene unless the company reconsidered its decision, to ensure the mine’s future is not put in jeopardy.
Moreover, Unite purported that Boliden was reneging on the working conditions for the remaining workers. They called upon the government to guarantee secure, quality employment and skills at the Co Meath mine unless the company retracts its proposals.
In the following period, Tara Mines reported a substantial 61% drop in their prior year’s revenue. This was triggered by plunging zinc prices, a slump in metal grades, a devalued US dollar, and decreased production resulting from operations suspension.
Earlier, the unions had asked for significant government assistance for the mine during a period of what they deemed transitory cost issues. These issues were linked to global zinc prices and a sudden surge in energy costs at the mine due to escalating oil and gas prices following Russia’s infringement of Ukraine’s borders.