Tara Mines and its unions are to meet at the Labour Court today in an effort to resolve the dispute over 700 lay-offs which are taking place because of record low zinc prices. Unions at the mine are pressing for a deadline by which the company will resume production or provide a redundancy package.
The company has argued that the slump in prices should be short lived and it will need all its employees next year. It has indicated the lay-offs might be for as little as three months, but refuses to put a time limit on the closure. The court is expected to issue a recommendation shortly.
Zinc prices are currently around $7.40 a tonne, compared with $1,200 last September. The price is the lowest since the 1970s and the lowest ever in real terms. Traditionally the Navan plant needs to make at least $1,100 dollars a tonne to make a net profit. Losses have been running at €3 million a month, and rose to €4 million last month.
SIPTU regional secretary, Mr Mike Jennings, said yesterday: "Everybody knows the price of zinc is at an all-time low but we still feel the company did not have to throw the workforce on the dole just before Christmas."
He queried company statements at local level that the price of zinc was the sole consideration, and the statement by the Finnish owner, Outokompu, that it wanted to withdraw from mining operations worldwide. "This raises the question of whether Outokompu is meeting its obligations under the European Works Council directive to consult fully with its workforce on major policy decisions."