falconbridge strike over where to the ni price *** fyi - article...

falconbridge strike over where to the ni price *** fyi - article on the falconbridge strike and the time to ramp up production ***

Press Release Source: Falconbridge Limited


Falconbridge employees ratify new three-year collective agreement
Sunday February 22, 4:40 pm ET


SUDBURY, ON, Feb. 22 /PRNewswire-FirstCall/ - Falconbridge Limited announced today that its employees, members of the Sudbury Mine, Mill and Smelter Workers Union Local 598 (CAW) voted 93.5% in favour of ratifying a new three-year collective agreement.
The new collective agreement expires on January 31, 2007 and includes the following:

- Wage increase of 40 cents in the first year plus cost of living
allowance in each of the three years
- Pension improvements from $50 per month per year of service to $53
- Language that clarifies the Company's use of contractors for capital
work and the transition of employees into new projects. The parties
agreed that the commitments on Nickel Rim South and Fraser Morgan
Projects would extend for six years and would not have to be
renegotiated during collective bargaining in 2007.
- Commitment from the Union to work co-operatively with the Company on
benefit cost containment projects initiated by the Company
- Agreement from senior union officials to meet with senior officials of
the Company throughout the life of the collective agreement to review
and discuss existing business challenges, contracting out and future
business growth opportunities.
- A $1,000 ramp-up production bonus to be paid out to employees provided
that budgeted tonnes and grade targets are achieved over the 12 week
start up period after the return to work process is completed.
- Settlement bonus of $2,000


"We are pleased with the results of the ratification vote and look forward to having our employees back to work as soon as possible," stated Allen Hayward, Vice-President Mining, Falconbridge. "We believe the new agreement reached a good balance between the Company's need to maintain costs and flexibility in a global marketplace, while providing our employees with a very competitive settlement."

A return to work agreement has been established for an orderly and safe resumption of operations over the next two weeks. Falconbridge estimates that it will take approximately three to four weeks to return mine production to normal operating levels. Smelter production will resume normal operating levels almost immediately.

Falconbridge Sudbury operations are part of the Company's Integrated Nickel Operations (INO). The operations employ over 1,500 people and consist of four underground mines, a mill and a smelter. Approximately 1,050 production and maintenance workers are represented by Sudbury Mine, Mill and Smelter Workers Union Local 598 (CAW).

Falconbridge Limited is a leading producer of nickel, copper, cobalt and platinum group metals. Its common shares are listed on the Toronto Stock Exchange under the symbol FL. Falconbridge is owned by Noranda Inc. of Toronto (59.2%) and by other investors (40.8%).