Day 282: Lucky Friday Strike continues on

MULLAN — If things continue the way that they are, it appears that members of United Steelworkers Union local 5114 chapter and Hecla Mining Co. will still not have an agreement on a new contract as we enter the new year.

For months now, little to no new information has come out of either camp as both sides continue to debate over aspects of a new contract.

Several meetings have taken place between representatives of both the company and union since USW 5114 voted to go on strike on March 12, 2017, but little progress has come of them.

From disagreements over vacation packages and recall rights, to a new job selection system and rates of pay — there are many issues that they do not see eye-to-eye on.

After months of status-quo, it appears that the flames of this saga were stoked briefly last week when USW 5114 reported on social media that work trucks from Zanetti Bros. Inc (a local construction company based in Osburn, Idaho), crossed their picket line and went up to the Lucky Friday Mine.

Miners have held a consistent picket in front of the Lucky Friday in Mullan since they went on strike.

Documenting the event on their Facebook page last Thursday, Dec. 14, USW 5114 posted, “It’s very obvious that Zanetti’s have NO respect for working people, unions, and local miners!! Their true colors were exposed today, as they crossed our picket line to haul product for Hecla!! Good job Zanetti’s!! You really have shown what arrogant, greedy people you really are!!”

Dave Roose, USW 5114 unit chairman, explained that the trucks ­— escorted by Shoshone County Sheriff’s Office (SCSO) deputies and private security — went up to collect mineral concentrates and take them to the Teck Resources Limited operated smelter in Trail, British Columbia.

Sheriff Mike Gunderson stated that SCSO is not providing escort services for Zanetti trucks and deputies were only present to ensure that peace was maintained.

Trucks with Zanetti Bros. came through again the next day as well, meeting 15-20 unhappy miners at the front gate.

“ZANETTIS, also known as the SCAB trucking company, is at it again!!” USW 5114 posted on Facebook that day. “Obviously, integrity and pride does NOT mean anything to the drivers or Zanettis!!”

With a social media storm brewing on their page and union tempers rising, USW 5114 held a Christmas party on Saturday and planned to have an informational picket outside Zanetti Bros. office on Monday morning to show their displeasure with the construction company.

Right before the party though, Roose would receive news that made him and his fellow members incredibly happy.

“(I was) showed an email that came from the district three director in Trail, British Columbia,” Roose explained, “and the email (said) that as of Saturday, Teck has canceled all Lucky Friday concentrate orders.”

The Trail, B.C. Teck smelter employs workers with USW District 3.

Roose is not privy to the specifics, but believes that the cause for this announcement was due in large part to those union workers taking issue with the situation and putting their foot down.

“That was a huge, huge, victory for us,” he added.

Representatives with USW District 3 could not be reached for comment.

Chris Stannell, Senior Communication Specialist with Teck, told the News-Press in a statement that “Teck does not comment on commercial arrangements with specific suppliers or customers. Trail Operations receives lead and zinc concentrate from many sources in Canada, the U.S., Central and South America, and Australia, including from Teck’s Red Dog and Pend Oreille operations.”

With the cancellation of the concentrate orders, USW 5114 decided to call-off their planned picket on Monday — as they believe there is now no reason for the trucks to continue going to the Lucky Friday.

Roose says the decision was made in the best interests of the area.

“Zanetti’s has to answer to the community on their own for what they did,” he said. “We just didn’t feel the need to spread our fight any further.”

USW 5114 posted on Facebook Monday afternoon to address the issue, stating that “the membership of USW 5114 would like to make it clear that we do not hold all of the employees responsible for the poor decisions made by the management of Zanetti Bros…The Zanetti employees have jobs to maintain just as we are fighting for ours, and we don’t want any of those people to suffer because of Hecla’s greed.”

Many of Zanetti Bros. employees are members of Teamsters Union Local 690. Roose said he believes that the drivers of the trucks last week were non-union.

A representative with Zanetti Bros. stated in regard to the decision to send trucks to the Lucky Friday, “we are doing what’s best for the community and Zanetti Bros. for the future.”

The USW 5114 post also called out Hecla, blaming them for the entire situation.

“Hecla chose to create a spectacle of the transport by contacting a local contractor (a community divisive move) to haul the material, as well as creating a parade of security to oversee the move to the Canadian border.”

Luke Russell, Hecla’s Vice President of External Affairs, explains that the company “began concentrate shipments last week and expect to ship again in the near future,” and that “using a local contractor is consistent with (Hecla’s) long standing commitment to hire locally when we can, and we used security to assure the drivers were safe.”

Stepping back from this incident, Roose says that Hecla presented the union with a new proposed contract last Friday. USW 5114 will be meeting with Hecla this week to present them their response/counter-offer.

Roose is not optimistic that this latest exchange will lead to anything conducive to an agreement, and expects the strike to go into the new year.

“I won’t say they are deadlocked because there is always room to negotiate, always room to move,” he said. “They (Hecla) have been unsatisfactory the last few sessions…a whole lot of the same from what we saw last March.”

Russel disagrees, saying that negotiations are truly at a stand still.

“The company and the union are deadlocked,” he said. “There was no progress in the last five negotiating sessions, so it surprises us to hear they are claiming they have room to move. If the union has room to move, after being on strike for over 9 months; now is the time to tell us their ideas. We have heard nothing new from them since October.”

As for the new proposal, Russell believes that “the company has made significant movement in the revised final offer submitted last week. These changes reflect the many areas the parties had agreed to during the negotiations before October.”

He added, “we hope the union will schedule and allow a secret ballot vote.”

The company released their third quarter 2017 earning results in early November. Highlights (compared to the third quarter of 2016) on their website include:

- Net income applicable to common stockholders of $1.3 million, or $0.00 per share.

- Adjusted net income applicable to common stockholders of $16.0 million, or $0.04 per share.1

- Cost of sales and other direct production costs and depreciation, depletion and amortization (“cost of sales”) of $97.2 million.

- Silver cash cost, after by-product credits, of negative $0.63 per ounce, the lowest in seven years.2

- All in sustaining cost, after by-product credits, of $6.65 per silver ounce, down 47 percent.3

- Gold production of 63,046 ounces, up 21 percent as a result of strongest performance of Casa Berardi since its acquisition.

- Capital expenditures of $24.4 million, a 44 percent decline.

- Cash and cash equivalents and short-term investments of $205.9 million on Sept. 30, 2017, up $4 million over the second quarter.

- Lowering estimates for annual cash cost, after by-product credits, per silver ounce for Greens Creek and San Sebastian.

- The strike by the union workers at Lucky Friday continues.

Editor’s note: The online version of this article has been updated to include comments from the Hecla Mining Co. that did not make the Wednesday, Dec. 20 print edition and clarification from the Shoshone County Sheriff’s Office in regard to the role they had during the incidents.