UNION REJECTS TENTATIVE SETTLEMENT OFFER FROM

C O N F I D E N T I A L BOGOTA 005486 SIPDIS SIPDIS E.O. 12958: DECL: 06/15/2016 TAGS: ELAB EMIN ENRG CO SUBJECT: UNION REJECTS TENTATIVE SETTLEMENT OFFER FROM DRUMMOND REF: BOGOTA 5395 Classified By: CDA MILTON DRUCKER FOR REASONS 1 (B) and (D) ¶1. (C) According to Mike Tracy, Drummond's President of Coal Operations, the union representing Drummond's striking miners rejected the June 14 agreement which had been reached between the U.S. company and union negotiators (reftel). The union did not hold a rank and file vote. According to Tracy, the issue of labor stability (i.e. restrictions on termination without cause and termination indemnity) were key to the union's rejection of the proposed settlement. Drummond officials report no subsequent talks have been scheduled. ¶2. (C) Drummond officials expressed frustration over rejection of the settlement offer; and, with talks again at an impasse, Drummond officials hope senior GOC leaders will agree to intervene and move the negotiations toward resolution or immediate arbitration. It is unclear the GOC will support this request. Gary Drummond, President of the company, is seeking Embassy assistance to reach out personally to the GOC in an effort to end the strike as quickly as possible. DRUCKER