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SOUTH JORDAN — Utah's largest copper mine on Friday announced that it has reached a new collective bargaining agreement with unions representing approximately 1,300 workers employed by Rio Tinto Kennecott.
After seven weeks of negotiations, the new five-year agreement was ratified Thursday night through a vote by union members representing United Steelworkers, the International Union of Operating Engineers, the International Association of Machinists and Aerospace Workers and the International Brotherhood of Electrical Workers.
The agreement, which went into effect Friday, delivers fair and competitive wages and enhanced benefits for all represented Rio Tinto Kennecott employees and provides new pathways to career progression, according to a company press release.
"We deeply care about our employees," said Gaby Poirier, managing director at Rio Tinto Kennecott. "We listened to their feedback and we worked with the unions and we adjusted the offer accordingly."
Poirier noted that Rio Tinto worked closely with the union's leadership throughout the process of reaching the new agreement.
"It was a successful agreement and (it) will provide for substantial wage and benefit increases and better working conditions over the next five years," said Brandon Dew, district representative for the International Union of Operating Engineers.
United Steelworkers District 12 director Gaylan Prescott, who co-chaired the negotiations, said that workers stood together to demand the fair contract they have earned.
"Members of four different unions showed tremendous solidarity throughout the bargaining process," Prescott said in a statement. "Together, we sent management the unmistakable message that union workers would settle for nothing less than the opportunity to continue improving the standard of living for ourselves and our families."
Wages and raises
Under the new collective bargaining agreement, in 2022, Rio Tinto operators and lab technicians will see a 5% wage increase. Crafts, electrical and mechanical workers will see a 10.9% wage increase, while the line crew will see a 23.3% wage increase.
After 2022, all of those positions will have an annual 3% wage increase until 2027 when the agreement expires.
Poirier said that the wage increases are an "improvement" from the last agreement.
Retiree, health and pension benefits
Previous rules required employees to wait 90 days before they were eligible for medical insurance, and eight months after they were hired before they were eligible for dental insurance.
Under the new agreement, employees will be eligible to receive those insurance benefits upon hire.
Life insurance benefits increased from $50,000 to $85,000, and accidental death and dismemberment insurance benefits increased from $15,000 to $85,000.
"This is one of the main things we wanted from this contract, to make sure to position Kennecott as an excellent place to work," Poirier said.
More benefits
Previously, Rio Tinto Kennecott employees didn't have the option to take paid sick leave. That has changed under the new collective bargaining agreement, as employees will now have the option to utilize paid time off for an illness involving them or a dependent.
Another big component of the new agreement, Poirier said, was creating a "simplified" process for employees looking for promotions or transfer opportunities.
"We put together a stair-step model in terms of (the) wage structure," Poirier said. "Depending on what level you come in, you can progress (to) a different level, either in the same role or move to different roles."
"Having skilled workers is extremely important to make sure that we can produce safely but also produce quality copper and critical minerals to supply the U.S. market," Poirier said. "With this agreement, we're definitely setting ourselves up for success for the future."
