Workers at Tara Mines have voted to accept a cost-cutting package aimed at preventing the closure of the site and the loss of nearly 700 jobs, union officials said today.
Some 350 workers at the mines who are members of Siptu were balloted earlier in the week over the proposals, which were drawn up by independent facilitator Janet Hughes.
Under the new plan, the mine would move from a five-and-a-day to a continuous seven-day operation on a four-shift cycle. The mine would operate every day except December 25th and 26th and payment for public holidays would be the same as general rates of pay.
The shift premium paid to workers for operating the new system would be increased from 26 per cent to 29 per cent, although It is understood that this would still be less than the 33 per cent norm in the mining industry.
Workers affected by the introduction of a continuous production cycle, accepted the new terms by 59 per cent while all of the production workers voted by 55 per cent to accept the new pay terms.
Speaking after the vote Siptu branch organiser John Regan said the tightness of the vote, especially on pay, shows that a lot still needs to be done by the company on how it implements the new terms.
The owner of the mine, Swedish company Boliden, says that due to the slump in zinc and lead prices in 2008 it was necessary for Tara Mines to cut costs and increase productivity.
Miners were asked to reform work practices last month as the company seeks to limit hours and bonuses as it battles the effect of low zinc prices and a weak dollar. Tara is paid in dollars for its zinc but incurs costs in euro, so the weakening of the dollar has caused problems for the company.
Tara Mines in Navan is Europe’s biggest zinc mine, producing around 200,000 tonnes of zinc and a further 40,000 tonnes of lead every year.
Elsewhere, more than 200 workers at Galmoy Mines in north Co Kilkenny have been told that the operation is to close a year earlier than first predicted.
Workers at Galmoy had been previously bee told the mine was to close completely on a phased basis by July 2011.
However, Galmoy has decided to accelerate the winding down of its operations by May 2009 because the ore body is almost exhausted", Siptu national industrial secretary Gerry McCormack said today.
"Because of market conditions some of the redundancies are being brought forward so that operations cease by May 2009. However I can confirm that the company is honouring the terms of the redundancy agreement it negotiated with Siptu last year," said Mr McCormack.