Miners rejected proposals
Tara Mines has expressed grave disappointment at the miners' rejection of proposals on new work practices. In a ballot, the miners turned them down by a four to one majority. In a statement this evening, the company said that the formula had offered a solution to their industrial relations problems. Managing Director, Charlie Brown, said that the company must now act to stem losses running at one million pounds per month and address chronic absenteeism by extending the use of contract miners. However, the unions have warned that the use of contract miners could provoke an industrial relations crisis.
It is more than 20 years since the Tara opened. It was the largest zinc ore mine of its type in Europe. From the outset the plant had serious industrial relations problems. A Finnish company Outokumpu bought the mines several years ago. Falling zinc prices and the company's attempts to increase productivity are at the heart of the present dispute.
Outokumpu says that the mine is losing a million pounds a month and that it can only become profitable again if productivity rises and wages drop. Last July, workers accepted a wage drop of 15% and agreed to productivity increases of 23%. The workers have accused the company of looking for an excuse to abandon the operation.
