Post by
CommonCents123 on Sep 19, 2023 12:50pm
I DID NOT SEE THIS REPORT TILL TODAY...
Looks like employees at Fort Sask received a 13% raise earlier this year! Wondering why no one publicized that?
Certainly warranted given the inflation we have all been experiencing.
The only issue is that it adds costs and squeezes profits since the price of Nickel and Cobalt is declining. Sherritt can't just increase their prices since they are set by the market. Hoping Binedell pauses the 20% expansion at this time. IMO - It's cutting their throats given the glut on the market and declining prices. The only thing they can do is cut costs, improve efficiencies and hopefully come up with other revenue streams.
See the article here:
https://albertaworker.ca/news/fort-sask-refinery-workers-win-13-raise/
Comment by
autofocus111 on Sep 19, 2023 4:42pm
Overall looks pretty reasonable to me, especially if infflation remains elevated for a prolonged period. >>>1st year 6.0% 2nd year 3.5% 3rd year 3.5% The 3-year contract was settled on 23 March 2023 and will cover over 350 workers. The previous contract, which was only 2 years long, saw 2% increases in each year of the contract.
Comment by
autofocus111 on Sep 19, 2023 5:35pm
Annual COGS is ~150M. 350 workers @ 75000 p.a. is ~$26.5M x 0.06 = 1.6M added to cost of goods sold in 2023. I'd say it's a pretty manageable increase. What wage increases did the Moa Cuba workers get?
Comment by
CommonCents123 on Sep 19, 2023 5:44pm
Not sure about your accounting as I don't know what employees earn nor how many they have at any given time. Plus benefits costs etc. Regardless, when the cost of labour goes up, the cost of inputs goes up, the cost of borrowing goes up and the price of the product you sell goes down...I'm sure you can see that profits get squeezed. It's simple math.