Unionized workers at the Niobec mine in the Saguenay region of Quebec have been in a legal strike position since May 1st, following a breakdown in negotiations over their collective agreement. The agreement had expired on April 30th.
The union reported that 300 workers represented by Unifor Local 666 went on strike after a failure to reach an agreement to renew the contract. Some mining industry analysts have said the labour disruption has raised concerns about the fragile state of the global supply chain for critical minerals as the mine is Canada’s sole niobium producer. The strike highlights both the vulnerabilities and strategic importance of niobium—a metal indispensable to industries from aerospace to electric vehicles. The niobium produced at the Quebec-based mine accounts for 8–10% of global supply.
Niobec issued the following statement: “The company worked in collaboration with the Union throughout this process, negotiating at all times in good faith and in compliance with the collective agreement and applicable Quebec laws. Throughout the negotiations, the company presented the union with multiple offers, all of which it considered compelling and fair to blue-collar employees,”
The statement continued, alleging misconduct on the part of workers: “Furthermore, despite the company's good-faith negotiations and respectful conduct during the negotiation process, the company has become aware of certain reprehensible behaviour by blue-collar workers at the site in recent days. These actions include wilful and intentional damage to company property, equipment and infrastructure, and have resulted in significant disruption to the site. In addition, this reckless behavior has compromised the safety and integrity of the company's operations, and has created a dangerous environment for the company's employees, including the blue-collar workers,”
The statement added, “The company will not tolerate any dangerous or damaging behavior and will not compromise the safety of its site and the people who come to work there every day. The company therefore reserves the right to exercise all remedies provided by the collective agreement against blue-collar employees responsible for any damage and disruption on the site, as well as any disciplinary measures that may be necessary. The company also reserves all other rights at its disposal in response to misconduct by blue-collar employees,”
The statement concluded that, “The company remains hopeful that an agreement can be reached within the framework of new negotiations and is ready to resume dialogue with the union at any time.”
Unifor officials released a statement, presenting their side of the dispute: “On April 24, members had voted 99% in favor of a strike mandate, clearly expressing their desire to obtain a fair agreement, particularly regarding wage adjustments to reflect the rising cost of living,”
It added: “The members point out that they have continued their work with rigor and commitment, even during the pandemic, under sometimes difficult conditions. Today, they are asking for a simple catch-up to preserve their purchasing power and protect the gains they have negotiated over the years.”
Daniel Cloutier, Unifor's Quebec director, commented: "We're not questioning the company's competitiveness or working conditions. But when inflation is eating away a little more of a family's income every week, it's only fair to demand a catch-up. We never want this, but a strike is the last resort to make this reality heard.”
He concluded: “Unifor would like to see a rapid resumption of discussions to reach a respectful and balanced agreement.”
Eli Grant, an analyst with AInvest, in writing on the issue stated that the strike’s disruption – while manageable in the short term – highlights two key risks for investors: Geopolitical vulnerability: Brazil controls 90% of global niobium production, with China’s influence growing via its stake in CBMM, Brazil’s dominant producer. Diversifying supply chains—such as through Canada’s Niobec or Australia’s West Arunta Project—will be critical to mitigate risks.
Labour uncertainties can also demonstrate vulnerabilities, according to Grant. He wrote: “Unions like Unifor are increasingly leveraging their power in critical industries. Investors must assess labor relations at mines like Niobec, where strikes could disrupt output for months.”
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