PotashCorp says crisis could change offer to union

Saskatoon-PotashCorp recently told some 500 striking members of the United Steel Workers Union that it would return to the bargaining table; however, it would not discuss any bonus sought by the USW. The USW responded that all matters had to be open for discussion. The USW is seeking a commodities-based bonus, which it says is similar to others in the mining industry, along with increased wages, benefits, pension, and savings plan. USW says PotashCorp can afford the bonus, citing after-tax profit for first half 2008 of $1.5 million, or about $300,000 per employee. PotashCorp has since countered that due to the world financial crisis, it cannot promise the USW how long its existing offer will continue. PotashCorp said it is willing to return to the table and discuss less substantive issues, but not the proposed bonus. In recent weeks USW has taken its concerns to PotashCorp shareholders, going to major analysts meetings, including the Credit Suisse Chemical Conference in New York, where PotashCorp gave presentations. In other news, speculation continues that PotashCorp industrial customers have not been getting enough product. The Mosaic Co. President and CEO James Prokopanko told analysts Oct. 2 that due to major supply problems at another major producer, some industrial accounts have had force majeure declared on them, and the customers have called Mosaic. He said Mosaic had been unable to find the extra production to serve them. “As you know, we are working hard to meet our customers’ needs,” a PotashCorp spokesman told Green Markets. “We also view our obligations to our customers as proprietary, so we don’t discuss them publicly. It is also the company’s policy not to comment on customers, suppliers or competitors.” The strike began Aug. 7 after attempts at mediation broke down. PotashCorp restarted the Allan mine in Saskatchewan Aug. 25 using management and hired personnel. The company had no figures last week on its rate of production.