Friday, February 9, 2007

PARAMARIBO, Suriname (Reuters): Labour talks are progressing at Iamgold Corp.'s Rosebel gold mine in Suriname, the company said on Wednesday.

But the Toronto-based company has not been able to resume production at the South American mine because workers are still on what the company calls an illegal strike.

"They are still not working, they are still trying to negotiate a deal," said Iamgold spokeswoman Lisa Doddridge.

"Talks have progressed a bit. The bottom line is that workers want to go back to work, but there is damage done... and we need to provide a safe workplace."

The arbitration council, a group designed to help settle labor disputes, has ordered workers to resume work because the council did not sanction their strike. The company said it will not allow workers back in until the area is safe.

Iamgold said it will hold the union responsible for damage to the operation, which includes punctured pipes at the plant and damage to some of the vehicles.

The union representing workers at the mine and the company are trying to negotiate a first collective agreement.

Earlier on Wednesday, the chairman of the arbitration council said the union had accepted the council's contract proposals, including holiday pay and salary for the days workers were available but not admitted to the plant.

Rosebel management has not accepted the proposals, the council said.

"This is unparalleled in the history of industrial, labor relations in our country," Waddi Deets, chairman of the council, told a local radio station.

Deets said that for the first time in 32 years an employer has reacted to a council proposal by sending amendments, combined with an ultimatum to the union.

Iamgold got Rosebel with its acquisition of fellow Canadian gold producer Cambior. Rosebel, located about 60 miles south of the Suriname capital of Paramaribo was Cambior's key asset and was expected to produce about 335,000 ounces of gold in 2006.

The last time the company suspended output at Rosebel was in May 2006. The suspension lasted for about four days.

  Most popular articles: viewed, printed and e-mailed

  Printable version