Lucky Friday strike enters third month

The cold war that is the Lucky Friday saga continues to remain just that, cold.

After three months and one day since the miners at the Lucky Friday Mine in Mullan voted to strike over unfair labor practices (initially declared an economic strike), the two sides are entrenched as ever.

Both the Hecla Mining Co. and the members of United Steelworkers (USW) Union local 5114 chapter have vowed since day one that they were in it for the long haul, essentially looking to come out on top in a very expensive game of chicken.

With the strike now officially a month longer than the last at the Lucky Friday Mine, which went from March 21 to May 23 in 1981, one could ask if there is any hope of an end in sight.

After speaking with Luke Russell, Hecla’s Vice President of External Affairs, and Phil Epler, USW 5114’s President; the answer is probably not anytime soon.

In terms of how they are holding up, Russell and Epler both stressed that their respective sides are faring well.

“So far, 2017 has been a very good year for Hecla as we build upon the company wide record production and revenue we generated in 2016,” Russell said referring to the status of the company.

“As of the end of the first quarter, we generated positive cash flow, despite the strike at Lucky Friday.”

According to Hecla’s first quarter financial and operating results, the company reported sales of $142.5 million dollars and a net income of $26.7 million dollars.

These figures are measured from March 31, 2016 to March 31, 2017.

The results point out that “sales were 9 percent higher despite lower silver production, mainly due to higher average metals prices.”

For the 18 days that the miners were on strike in the first quarter, the results also show that Lucky Friday suspension costs were $1.9 million dollars.

Russell explained that out of all the silver mines Hecla operates, “the Lucky Friday has the lowest cash margin, so therefore its care and maintenance status has the smallest financial impact on the company.”

On the Union side of things, Epler stressed that USW 5114 is holding strong.

“We’re holding up fine, we are healthy in our local strike and defense fund.”

Since the strike began in mid-march, USW 5114 has received financial support from several other unions from Canada to Mexico to assist the miners with day-to-day expenses.

Supportive locals in the Silver Valley have also donated their time and money to support the miners cause.

With a deep history of mining in the area, Shoshone County residents have generally been supportive of unions and their members in the past when situation like this have occurred.

This support is added to the aforementioned strike and defense fund that was created for this exact situation.

“A lot of our members went out and got part time work,” Epler explained, “some of them full-time work along with the strike and defense fund, so we’re taking care of our own and we’re in it for as long as it takes.”

While the parties have not met since March 14, the day after the Union went on strike, a glimmer of hope may be on the horizon.

Representative on both sides are in the process of setting up a meeting in early to mid July.

At this point, progress is progress.

Any talk between USW 5114 and Hecla is certainly better than none for all involved.

Russell explained that Hecla initiated the proposed parley back in May to discuss “some new ideas we’d be interested in sharing.”

Skeptical, but hopeful, Epler says the Union is open to talks.

“If they are honestly willing to sit down with our entire committee, we’re more than willing to do that.”

Possible topics of discussion at this to-be-determined meeting include hours of work and overtime, vacations and holidays, recall rights, profit-sharing plans, and replacement of the current bid system for jobs in the mine.

From the Hecla side of things, Russell explained that replacement of the bid system is at the heart of this disagreement.

The key issue of the strike from our perspective is the ability of the Company to assign work and set schedules. We are not aware of any other mine in the country where the senior miners dictate where and with whom they work. Other mining operations around the country have evolved beyond the old-fashioned bid systems and we need to do the same.

Our industry is at a tipping point where the adoption of new technologies and systems will separate the industry into those who innovate and improve productivity and safety, and those who will be left behind. Those who cling on to the outdated work rules and bid systems of the past will not be as successful in developing safer and more efficient operations.

Epler and USW argue that the “tried and tested” bid system has a proven history of safety and making money.

“They say that the bid system is outdated and that they can’t find any other mines in this day and age in America that have it,” Epler said, “well the USW represents 126 different mines and there’s many bid systems out there.”

When it comes down to it, the end of this strike, whether in favor of Hecla or USW, is going to come down to money.

“The second quarter will paint a more clearer picture as to how it’s (the strike) going to affect the shareholders/ investors (of Hecla),” Epler said when talking about how the strike has affected the Company’s profits.”

“Mike Clary made a statement in negotiations that they can afford to be patient, well this Union can afford to be patient also.”

The Shoshone News-Press will continue to follow this story and provide an update after the July meeting.