Arcon takes protective action with `force majeure'

Arcon Mines, the exploration company developing the zinc and lead deposit at Galmoy, Co Kilkenny, has moved to protect itself…

Arcon Mines, the exploration company developing the zinc and lead deposit at Galmoy, Co Kilkenny, has moved to protect itself against legal action in case of failure to meet contractual obligations because of a week-old strike at the mine.

A spokeswoman said that Arcon had declared force majeure, a standard procedure to protect it against litigation by customers who fail to receive supplies because of the strike action.

Force majeure, or superior force in French, refers to an event outside the control of either party to a contract such as a strike, riot, war or act of God that may excuse either party from fulfilling its contractual obligations in certain circumstances.

Arcon has shipped some 72,000 tonnes of zinc and lead concentrate since the mine opened last April but its stocks are now very depleted, standing at just 1,000 tonnes as the impact of the strike begins to be felt.

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At present, 64 workers in the mines and mill at Galmoy are on strike in pursuit of pay improvements.

SIPTU, which represents the workers, says they are paid between one-third and a half of the amount paid to workers at Tara Mines for mining the same minerals.

Related grades, including administration, laboratory and stores personnel, will join the picket line on February 11th in support of their colleagues in the mines and mill and in pursuit of improvements in their own pay and terms of employment, SIPTU has said. This should see a further 14 workers become involved in the industrial action which began last Thursday, Arcon says.

The company, which employs a total of 145 at the mine, issued protective notice to the remaining 81 employees, who are refusing to cross the picket line, last Friday.

The dispute centres on the company's refusal to address pay increases in advance of reaching a joint company/union agreement.

Arcon says it views this as an unreasonable request which is out of step with normal industrial relations procedures.

Mr Philip Funchion, secretary of SITPU's Kilkenny branch, claims that each time the union wishes to negotiate, the company puts obstacles in the way of progress.