News release

May 31, 2006

Negotiations broke off at Ekati diamond mine

Yellowknife – Ekati diamond mine owner BHP Billiton tabled a “final” offer called illegal by the Public Service Alliance of Canada, the union representing striking workers, and refused today to compromise despite union acceptance of almost all BHP Billiton proposals.

As a result, PSAC says it will now step up the pressure on BHP Billiton, including targeting the sales of Ekati diamonds, which are sold internationally under the Aurias brand name.

Jean-François Des Lauriers, PSAC Executive Vice-President-North, said that despite a union counterproposal presented today in a determined effort to reach an agreement, BHP Billiton refused to compromise.

“BHP Billiton does not want to settle this strike – that’s why BHP Billiton tabled an agreement that contains provisions which are clearly illegal in our view and then would not compromise – even though we were prepared to accept almost all of their other proposals,” Des Lauriers said.

“But we cannot accept a proposal that clearly breaks the law as well as violates our union constitution and would leave union members in a far worse position than before the strike began,” he said. “BHP Billiton knew that but would not compromise, so we will now apply more pressure internationally over its refusal to bargain a fair first contract with diamond workers.”

“BHP Billiton is going to hear from people around the world who will not buy diamonds being produced behind picket lines,” Des Lauriers said Todd Parsons, President of the Union of Northern Workers component of PSAC, which represents Diamond Workers UNW Local X3050, said the union’s bargaining committee is angry that BHP Billiton would treat its members so disrespectfully.

“Our members at Ekati joined the union because they were unhappy with the way they were being treated in the workplace and that bad attitude by BHP Billiton obviously is continuing in the way they refuse to address workers’ concerns,” Parsons said.“

But diamond workers are tough and we will only get tougher with this employer as a result of its poor behaviour,” Parsons said.

The strike by nearly 400 Ekati workers began April 7 and outstanding issues include wages, vacation time, job security and seniority.

Ekati produces 6 per cent of the world’s diamond supply by value or 4 per cent by weight and yields 3 to 5 million carats annually. It is located 300 km northeast of Yellowknife and 200 km south of the Arctic Circle.

For more information:
Nancy Debreceni - PSAC at 867-873-5670 or cell 867-445-7141 or Bill Tieleman, West Star Communications – 604-844-7827 or cell 778-896-0964

Websites: www.unw.ca & www.psacnorth.com

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