Americas Silver says needs new Galena labor deal ahead of further capex

Chemical News: Americas Silver says needs new Galena labor deal ahead of further capex

https://www.chemnet.com Feb 22,2018 platts
Canada's Americas Silver has told the United Steelworkers union it needs a new labor agreement at its Galena lead and silver underground mine in Idaho before it can commit to additional capital investment in an operation it says is only marginally profitable.

"We are at an impasse" in contract talks with the United Steelworkers union, Peter McRae, senior vice president of corporate affairs for the Toronto-based company, said Wednesday. "We have made it very clear we're done negotiating." USW Local 5114-3 twice has rejected the company's final contract offer, and Americas wants the union to take a third vote.

McRae denied union claims the company has "threatened" to close the mine if Americas' proposal is not ratified, but acknowledged profitability concerns.

"The mine has struggled with being economically profitable," he said. "We need an agreement to be sure of a continued investment in the mine."

Labor costs are one reason why the mine is not very profitable, he said, adding the company's offer includes a 10% wage hike over five years.

Galena has transitioned from largely a silver-copper mine to a silver-lead mine in recent years, "and it performed well," he said. "Producing more lead would help."

USW officials could not be reached for comment Wednesday.
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