Hudbay, labor unions sign agreement on Copper World construction

Hudbay Minerals Inc. and seven labor unions have signed a letter that commits the company to providing union contractors “a significant opportunity in the construction of the Copper World mine.”

The company and the unions have agreed on “a letter of commitment concerning the construction of Hudbay’s Copper World project” near Tucson, Toronto-based Hudbay said in a news release Thursday. The letter represents a commitment by both sides to a future labor agreement covering wages, benefits and other issues, although one hasn’t been signed yet.

The letter was signed by the International Brotherhood of Boilermakers, Iron Ship Builders, Forgers and Helpers Local 627; Southern California District Council of Laborers and Its Affiliated Local 1184; International Brotherhood of Electrical Workers Local 570; International Union of Painters and Allied Trades District Council 36 Local 86; International Union of Operating Engineers Local 12; International Association of Bridge, Structural, Ornamental, and Reinforcing Ironworkers Local 847; and the Western States Regional Council of Carpenters, Hudbay said.

Hudbay declined to release the letter, terming it correspondence between two private entities -- itself and the unions.

Mark Contreras, a spokesman for the unions, didn’t respond to a request from the Star for information about the agreement.

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The Copper World complex of six open-pit mines would be built in the Santa Rita Mountains, about 28 miles southeast of Tucson. It would mine copper for at least 20 years and possibly up to 44 years. Hudbay expects to contribute more than $850 million in U.S. taxes, including over $420 million in state and local taxes, the company has said. Copper World is also projected to create more than 400 long-term direct jobs and up to 3,000 indirect jobs in Arizona.

But while it has received all state permits needed to build the mine, Hudbay faces two lawsuits from mine opponents seeking to overturn permits granted by the Arizona Department of Environmental Quality and the state Land Department.

In Thursday’s news release, Hudbay Vice President Javier Del Rio said, “The expertise and dedication of our local trade unions are vital to the success of large-scale projects like Copper World. ... Our commitment to a project labor agreement strengthens our partnership with the unions, guaranteeing high-quality, well-paying jobs that uphold robust safety standards, provide essential benefits to workers, and support local families.”

Jacob Evenson, business manager for the boiler makers and ship builders union, said in the news release that the letter of commitment “signifies mutual respect and understanding for a productive work environment for the workforce that will build Copper World. The timely and efficient construction of the Copper World project will require a substantial number of employees from construction and supporting crafts.”