4.0 Issue: Red Dog Mine Labour Relations

Context: The International Brotherhood of Electrical Workers (IBEW) expressed concern that Red Dog management was thwarting attempts to unionize portions of the workforce and slowing negotiations.

Our response: Teck is committed to conducting business in an honest and ethical manner; we value the health and safety of our employees, as well as the environment and communities in which we work. These values are underpinned by our Code of Sustainable Conduct and Charter of Corporate Responsibility, both of which guide our approach to addressing issues specific to the mining industry.

One of the most prevalent issues in mining today is managing employee and union relations. Approximately 75% of our workforce is covered by collective bargaining agreements, including the following Operations: Trail, David Bell (at Hemlo), Antamina, Highland Valley Copper, Elk Valley Coal properties of Elkview, Coal Mountain, Line Creek, Fording River, and Cardinal River. All Teck employees, including non-union employees, receive an attractive compensation and benefits package, and management acts constructively and responsively to all employee concerns, including wages, pension and benefits.

In 2006, the International Brotherhood of Electrical Workers (IBEW) charged management at the Red Dog mine in northwestern Alaska with anti-union behavior, specifically: halting organizing attempts. Talk of an employee strike circulated in mid-2006, but a work stoppage was avoided and operations continued as normal. Employees voted on the union issue again in 2007 and the resulting decision was not to unionize. Since then, labour tensions and union relations have eased, and Red Dog Operation characterizes employee relations as good.

Teck is open to negotiation and is committed to meet with IBEW representatives and interested employees. IBEW has made no recent attempts to revisit unionization at Red Dog, and the issue is currently inactive.