(The following article is from the September 1-15, 2008, issue of People's Voice, Canada's leading communist newspaper. Articles can be reprinted free if the source is credited. Subscription rates in Canada: $25/year, or $12 low income rate; for U.S. readers - $25 US per year; other overseas readers - $25 US or $35 CDN per year. Send to: People's Voice, c/o PV Business Manager, 133 Herkimer St., Unit 502, Hamilton, ON, L8P 2H3.)

PV Vancouver Bureau

Miners employed at three Potash Corporation of Saskatchewan operations could face a lengthy struggle on the picket lines, as the company digs in to protect its enormous profits. The United Steelworkers, which represents the 500 miners, will encourage workers at other mines owned by Potash and its competitors, Agrium and Mosaic, to refuse voluntary overtime and to work strictly within the boundaries of their collective agreements.

     "It could be things like that (overtime), or where the guys go the extra mile to help out, they just won't. These people keep the places running," said USW Western Canada director Steve Hunt.

     "The company simply refuses to move away from the offer that our members soundly rejected," Hunt said when contract talks broke down. "The company is making enormous profits, and it is time to reflect those profits with fair wages, pensions and benefits. In other words, share the wealth. The union has put all available resources towards finding a way to achieve a fair deal for our members. The company is refusing to see workers as partners in its success. It seems that PCS would rather work against us instead of with us to chart a way forward."

     The union's counter-offer includes a commodities-based bonus similar to others in the mining industry, along with increased wages, benefits, pension and savings plan.

     Workers at the Cory, Allan, and Patience Lake mines walked out on August 7 after mediated talks broke off. The three mines account for 30 percent of PCS production and about six percent of global output. The strike will affect a tight potash market, driving up prices even more quickly for the mineral which is used to boost crop yields.

     "I think that the company will hold out for quite some time," said David Riedel, an analyst at Riedel Research Group. "We believe that the prices will stay high for the medium-term so they can enjoy the high prices after the unrest is settled."

     Record potash prices resulted in second-quarter figures that are 62 per cent higher than first-quarter earnings of $566 million, the previous record for the company. The new record is $905 million. Added together, in the first six months of 2008 PCS collected an after-tax profit of $1.5 billion, about $300,000 per employee.

     Despite this astounding profit level, PCS pays wages lower than many other major Canadian mining operations. Meanwhile, PCS CEO Bill Doyle may be Canada's most highly-compensated corporate executive. A Globe and Mail report in May revealed that Doyle's stock options are now worth more than $600 million, a value never seen before for an executive at a public company in Canada.