More trouble

Laid-off Ekati workers frustrated by Burgundy severance process

CABIN RADIO

Ollie Williams·Thursday August 21, 2025 at 5:54am MT

People laid off at the NWT’s Ekati diamond mine say owner Burgundy isn’t living up to the collective agreement over severance. Burgundy says it’s complying.

Burgundy suspended mining at an Ekati open pit a month ago, saying the work was not economically viable in the current diamond market.

At the time, the company said “several hundred” employees and contractors were affected.

The collective agreement between Burgundy and Ekati’s unionized workers states that “upon commencement of a lay-off, an employee can elect to receive severance …. immediately.”

Two workers contacted Cabin Radio this week to say they had asked to receive their severance immediately, but instead were being presented with a payment plan stretched over months.

One said they had been told by their union – the Union of Northern Workers – that Burgundy had cashflow problems, meaning the company didn’t have enough money to meet all of its severance obligations in one go and was having to stall.

The union did not respond to requests for comment.

Another former Ekati worker said they had been previously told severance payouts would take place on Wednesday, August 20.

Instead, some laid-off workers reported receiving an email from Burgundy on Wednesday that told them: “Starting September 6, 2025, the company will begin issuing severance payments to employees who submitted their election within the required deadline.

“Each eligible employee will receive payments of at least six weeks of severance on the 6th of each month until their full entitlement is paid.”

Burgundy told affected workers it was taking this approach “to process payments carefully while ensuring that everyone who is eligible receives their full entitlement as quickly as possible.”

In a statement to Cabin Radio, Burgundy said the company believes it is complying with its obligations.

“Burgundy employees who have elected temporary layoff maintain recall rights and are eligible for re-employment as business requirements evolve,” a spokesperson stated.

“Employees who have resigned or have regretfully been terminated will receive treatment compliant with relevant legislation and the collective agreement where applicable.

“More broadly, the global diamond market remains challenged, further compromised by US global tariffs impacting all diamond producers including Canada. Burgundy’s decision to pause the Point Lake surface mine was informed by the current circumstances.”