NEW YORK Kennecott Utah
Copper has offered alternative roles to unionized staff that
would otherwise be impacted by its cost-reduction efforts.
As part of broader
cost-reduction measures following a wall slide at
Kennecotts Bingham Canyon Mine in April (
amm.com, April 11), workers covered by the
Kennecott collective bargaining agreement have been given the
option to take new jobs, in part due to the decision by about
130 retirement-eligible employees to take voluntary
"While difficult, Im proud
of the work that our people have done to create sustainable
cost reductions while reducing impacts to our employees,"
Kennecott president and chief executive officer Kelly Sanders
said in a statement. "I recognize that employees across our
organization are working hard to help the business succeed in
this challenging time."
The company, a division of Rio
Tinto Plc, also has significantly reduced overtime, eliminated
unfilled jobs and reduced contract services while the mine is
operating at reduced capacity.
Further changes to reduce
operating costs will be required in the coming months as
operating plans are finalized, Kennecott said.
The moves are part of a 40-day
plan to tackle post-slide costs while Kennecott is working
through a 120-day plan to evaluate how long it will take to
clear the pit and get the operation back to full capacity.