Company repeatedly fails to provide profit details as workers face layoff

In a joint statement issued after a meeting between unions and management at Tara Mines today (Monday), trade unions Unite and Connect said that management has repeatedly failed to provide information on current and future profits generated by Tara mines, choosing instead to focus solely on their cost base.  Pointing out that the Boliden group, of which Tara Mines is a subsidiary, is an exceptionally profitable company returning significant dividends to its shareholders, the unions warned Boliden against attempting to cut operating costs on the backs of workers in Ireland.

Commenting, Unite Regional Officer Brian Hewitt said:

“It is clear from both the parent group’s annual reports and the accounts of their Irish operations that Tara Mines is an integral part of the Boliden group, which has been consistently profitable over the past thirteen years. 

“In the absence of evidence to the contrary, it appears to us that the decision to suspend operations at Tara was taken to reduce Boliden’s operating costs at a time when zinc prices are temporarily falling and demand can be met from inventory.  Indeed, it is noteworthy that zinc prices rose by 3% following Boliden’s announcement regarding Tara”.

Connect Regional Organiser Tom Faulkner added:

“To date Boliden has failed to provide any real financial justification for their decision to suspend operations at Tara.  In particular, they have repeatedly failed to provide details regarding current and projected profits, preferring to focus on costs.  Even with regard to costs, the figures provided by management have fluctuated from meeting to meeting.

“Our members believe it is no coincidence that the announcement regarding Tara was made following an extensive fire at the Rönnskär copper smelting plant in Sweden which forced the suspension of operations there, and is likely to be associated with significant repair and clean-up costs.

“Our members should not be asked to pay the price for difficulties that Boliden may be experiencing elsewhere”.

Concluding, Brian Hewitt of Unite said:

“We are calling on Boliden to immediately reverse their decision to suspend operations at Tara.

“We would also urge the Government to make any assistance to Tara Mines, as well as future licenses, contingent on Boliden reversing its decision”, Mr Hewitt said.