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Managing mine shutdowns : the case for community preparedness planning Dahlie, Brenda Gayle 1984

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MANAGING MINE SHUTDOWNS: THE CASE FOR COMMUNITY PREPAREDNESS PLANNING by BRENDA GAYLE DAHLIE B.A., U n i v e r s i t y Of Calgary, 1976  A THESIS SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF ARTS in THE FACULTY OF GRADUATE STUDIES School Of Community And Regional Planning  We accept t h i s t h e s i s as conforming to the r e q u i r e d standard  V  THE UNIVERSITY OF BRITISH COLUMBIA October,  ©  1984  Brenda Gayle D a h l i e , 1984  In  presenting  requirements  thesis  I  available  for  agree  partial  for  the  Library  shall  reference  and  study.  I  extensive  may  or  representatives.  of  allowed without my  It for  is  financial  Planning  The U n i v e r s i t y of B r i t i s h Columbia 2075 Wesbrook Place Vancouver, Canada V6T 1W5  1984  further  British  it  freely  agree  Department or  understood  written permission.  School Of Community And Regional  October,  make  the  that  copying of t h i s t h e s i s f o r s c h o l a r l y  be granted by the Head of my  p u b l i c a t i o n of t h i s t h e s i s  Date:  fulfilment  that  purposes her  in  f o r an advanced degree at the U n i v e r s i t y of  Columbia,  permission  this  gain  that  by  his  copying or  shall  not  be  i i  ABSTRACT The purpose of t h i s t h e s i s has been to developing  a  r e a d i n e s s by a dependent  p o s s i b i l i t y of temporary  determine  ways  of  mining community f o r the  shutdown and the i n e v i t a b i l i t y of  mine  c l o s u r e . I t begins with the premise that while the occurrence of either,  in  most cases, cannot be prevented, i t s process can be  controlled  and  preparation.  its  impacts  Specifically,  p l a n n i n g framework  which  if  there  is  approaches  the  need  for  in  the immediate  needs .of the community f o l l o w i n g the  if  adequate  the t h e s i s c o n s t r u c t s a preparedness  preparedness  of  two  managed  community  ways: 1) short-term s t r a t e g i e s to address announcement  shutdown or c l o s u r e ; and 2) long-term s t r a t e g i e s to prevent, f e a s i b l e , the l o s s of an economic mainstay. Through  community  is  able  to  address the u n c e r t a i n t y  mine's l i f e - s p a n and u l t i m a t e l y The need  this,  inherent i n the  i t s own.  f o r a mining community to plan f o r the l o s s of i t s  economic mainstay  i s documented through the case s t u d i e s of  northern  communities  mining  Territory shutdowns  which of  their  involved parties governments, residents), possibility  a  have  Elsa  recently  and  Faro,  experienced  i n the Yukon  the  indefinite  a f f i l i a t e d mines. Based on i n t e r v i e w s with  (the mining company,  union it  -  two  and  appeared  local that  very  federal  and  community little  territorial  officials, planning  for  and the  of a shutdown had been undertaken. Reasons f o r t h i s  included: 1) a lack of r e c o g n i t i o n of i t s p o s s i b l e occurrence as the extent of community  impacts  2) u n c e r t a i n t y as t o i t s occurrence and d u r a t i o n  well  as  3) u n c e r t a i n t y 4)  o v e r how  uncertainty  to prepare  over  roles  for a  and  shutdown  responsibilities  for  such  preparedness. A review of the p e r t i n e n t problems  are  typical  i n most  planned.  not  particular  situations  approach  and  this  crisis-induced  which  economic  to E l s a  appeared  dislocation  responsibilities  and  suggests  and  to  lack  with  assistance  natural and  approach, disaster  community  lessons  were  development 1)  field,  vulnerability  prone  the  need  and  which  due  found  to  be  to  to  prepare,  assist  the  and  for a  systematic  community  with  the  shutdown;  an  i t s social  and  confusion  f o r the  similarities  disaster of  over  preparedness  in  community and planning  fundamental  dependency a  disaster-  efforts,  three  importance  to  the  p l a n n i n g framework: in  advance,  community  economic d i s l o c a t i o n  2) t h e need  a  resulted  draws upon t h e e x p e r i e n c e s i n t h e  both a mining  s h a r e . From  not  measures.  to the  of a p r e p a r e d n e s s  strategies social  the t h e s i s  c l o s u r e s were  to  In d e v e l o p i n g t h e c o n c e p t u a l framework planning  are  exacerbated  delays  such  rather,  of p l a n n i n g has  approach  have  that  F a r o , but  where shutdowns and  In t h e c a s e s t u d i e s ,  i n an a d hoc  literature  by a  planning to  and  long-term  i n r e d u c i n g the  created  'means'  short  shutdown;  process  manage  resulting  to  and  provide  a  minimize  this  efforts  with  dislocation; 3) t h e need national  to integrate policy  comprehensive p r o c e s s and  and  community  planning  in  co-ordinated  consequences  o f mine  preparedness order  approach shutdown.  to to  develop the  a  managing  more the  i v  For  a  mining  community  shutdown or c l o s u r e ,  three  t o be  sets  prepared  of  for either  alternatives  a mine  need  to  be  developed: •  response  alternatives  when e i t h e r • cyclical  actually  i s , who  of  make-work  projects  alternatives  strategies,  one  economic  mainstay).  It  is  proposed  development  that  of  i f possible,  the  these  actual  strategies  be  community.  in a mining  Finally,  implementation  process  should  projects  n o r t h of  be  approached  60° w h i c h  community, of  of  responsibilities  to  established  already in mining existing  financial  of  i s , the development  of  mining  therefore by  the  dependence  from  planning  an  each  the  of  of t h e  two  special  dealing  planning  ways. F o r  before  would be with  of  new an  p l a n n i n g and  s h o u l d be d e t e r m i n e d  for  involved  creation  for preparedness  Such r e q u i r e m e n t s  and  inter-sectoral  preparedness  one  on  the  similar  environmental  projects.  requirements cannot  encouraged  in  requirements  licence.  is  the  periods  done by  the  require  i s s u a n c e o f a water  It  offset  preparedness  parties  For  example,  for avoiding  of r e p r e s e n t a t i v e s  concerns  to  (that  committee comprised  those  (for  and,  preventative  allocation  f o r what  occurs);  • dependency-reduction  affiliated  i s responsible  shutdown p r e p a r a t i o n a l t e r n a t i v e s  development shutdown);  (that  be a p p l i e d suggested  federal  incentives  commmunities  and  and  as  n o r t h of 6 0 ° ,  t h e mine  that  disincentives.  legal  i s already operating.  preparedness  territorial  such  planning  governments  be  through  V  TABLE OF CONTENTS ABSTRACT  i i  LIST OF TABLES  vii  LIST OF FIGURES  viii  LIST OF MAPS  viii  ACKNOWLEDGEMENTS  ix  CHAPTER ONE - INTRODUCTION 1.1 - The Problem 1.2 - T h e s i s O b j e c t i v e s 1.3 - C h a r a c t e r i s t i c s of a Mining 1.4 - Planning for Mine Shutdown 1.5 - T h e s i s R a t i o n a l e 1.6 - Research Methods and Scope  1 1 1 2 7 14 16  Community  CHAPTER TWO -• THE CASE STUDIES: ELS A AND FARO 2.1 - H i s t o r i c a l Background 2.2 - The Mining Communities 2.2.1 - E l s a : A D e s c r i p t i o n 2.2.2 - Faro: A D e s c r i p t i o n 2.3 - Reasons f o r I n d e f i n i t e Shutdown 2.4 - Community Consequences of I n d e f i n i t e Shutdown  19 21 22 22 26 28 32  CHAPTER THREE - CURRENT COMMUNITY RESPONSES TO MINE SHUTDOWNS 3.1 - Planning and P r o v i s i o n s P r i o r to N o t i f i c a t i o n 3.2 - Responses f o l l o w i n g Shutdown N o t i f i c a t i o n 3.2.1 - Elsa 3.2.2 - Faro 3.3 - Problem Areas 3.3.1 - E f f e c t i v e n e s s of Responses 3.3.2 - C o n f l i c t over Roles and R e s p o n s i b i l i t i e s ... 3.3.3 - A Lack of Preparedness 3.4 - Summary  37 37 40 42 47 52 53 55 59 61  CHAPTER FOUR - A CONCEPTUAL FRAMEWORK OF PREPAREDNESS PLANNING 4.1 - N a t u r a l D i s a s t e r Planning 4.1.1 - D e f i n i t i o n of a N a t u r a l D i s a s t e r 4.1.2 - D i s a s t e r Planning Concepts 4.2 - The R a t i o n a l e f o r D i s a s t e r Planning 4.2.1 - An Increase in D i s a s t e r s 4.2.2 - A Lack of I n t e g r a t e d E f f o r t s 4.2.3 - Problems in Developing a Response Framework 4.3 - Summary of D i s a s t e r Planning D i s c u s s i o n 4.4 - I m p l i c a t i o n s f o r Planning f o r Mine Shutdowns 4.4.1 - The Need to Prepare 4.4.2 - O p p r t u n i t i e s f o r Managing ' D i s a s t e r s ' 4.4.3 - The Need for a Comprehensive Approach  63 64 64 65 67 67 68 69 72 72 74 75 76  vi  4.5  4.6 4.7  - A Conceptual Framework of Preparedness Planning 4.5.1 - Community Preparedness Planning L e v e l 4.5.2 - Shutdown Management Planning L e v e l 4.5.3 - Regional and N a t i o n a l P o l i c y Planning L e v e l s - I n t e g r a t i o n of E f f o r t s - Summary  CHAPTER FIVE - PREPAREDNESS PLANNING AT THE COMMUNITY LEVEL 5.1 - Preparedness P l a n n i n g : The Process 5.1.1 - Goal Establishment/Problem Identification 5.1.2 - S i t u a t i o n A n a l y s i s 5.1.3 - Generating A l t e r n a t i v e s 5.1.4 - Assessment and S e l e c t i o n 5.1.5 - E v a l u a t i o n 5.1.6 - Feedback 5.2 - Preparedness P l a n n i n g : The A c t o r s 5.2.1 - The Governments 5.2.2 - The Mining Company 5.2.3 - The Union 5.2.4 - The P r i v a t e S e r v i c e Sector 5.2.5 - The Residents 5.2.6 - I n t e r s e c t o r a l Committee 5.3 - Implementation of the Preparedness Planning Process  .... 78 79 80 80 81 83 85 86 86 87 88 92 92 92 93 93 94 -96 97 98 98 99  CHAPTER SIX - AN APPRAISAL OF THE PREPAREDNESS PLANNING APPROACH 6.1 - L i m i t a t i o n s 6.2 - Value  103 103 105  REFERENCES  108  APPENDICES 1 - L i s t of Interviews 2 - P r o v i s i o n s i n C o l l e c t i v e Agreements for Mine Shutdowns and C l o s u r e s 3 - UKH Lay-Off N o t i f i c a t i o n 4 - N o t i f i c a t i o n of T h i r d Shutdown E x t e n s i o n : CAMC 5 - Planning a Mine C l o s u r e : Selco 6 - Examples of Economic D i v e r s i f i c a t i o n Opportunties  114 115 117 119 122 123 ... 124  vi i  LIST OF TABLES Table 1.1 2.1 2.2 2.3 2.4  -  2.5 3.1 3.2 4.1 -  C a t e g o r i e s of Mine Shutdowns C h a r a c t e r i s t i c s of E l s a and Faro Reasons f o r Shutdown Average Annual P r i c e s of Major Metals I n d e f i n i t e Mine Shutdown at E l s a and Faro - The Process S o c i a l and Economic Impacts of UKH and CAMC Mine Shutdowns Summary of F e d e r a l Government's A s s i s t a n c e Program Chronology of Responses t o CAMC Shutdown A Conceptual Framework of the Preparedness Planning Process  Page 6 23 29 30 33 34 41 48 82  vi i i  Figure  LIST OF FIGURES  1.1 - The Ad Hoc Approach t o a Problem 4.1 - The Planning Process  Page 10 77  LIST OF MAPS Map 2.1 - Map of Yukon Mining Communities  Page 20  ix  ACKNOWLEDGEMENT I would l i k e to thank my two a d v i s o r s , Peter Bill  Boothroyd  Rees, f o r t h e i r enthusiasm, ideas, and endless  support f o r  t h i s t h e s i s p r o j e c t . While our approaches t o the subject always  coincide  substantively,  our  and  d i d not  discussions  were,  nonetheless, s t i m u l a t i n g and p l e a s u r a b l e . I their  am  also  research  opportunity  g r a t e f u l t o the Donner Canadian Foundation f o r  grant  during  for field  1982-83 which provided  research  and  me  for pursuing  t o p i c . To the v a r i o u s people I met and interviewed I extend my g r a t i t u d e  the  this thesis  i n the Yukon,  f o r t h e i r a s s i s t a n c e and kindness.  Completion of the without  with  thesis  would  not  have  been  possible  the support of c l o s e f r i e n d s and f a m i l y . In p a r t i c u l a r ,  I would l i k e t o thank a s p e c i a l t r i o - H a r r i e t , Kathy, and for without them, my experiences a t planning  John  school would not  have been as rewarding. To my parents who have always encouraged me i n my e f f o r t s , Finally,  I would a l s o l i k e t o say  t o P h i l , my deep a p p r e c i a t i o n ,  for  a  warm  thank  everything.  you.  1  CHAPTER  ONE  INTRODUCTION  1 . 1 ^ The  Problem  There  i s a lack  dependent and  the  of s y s t e m a t i c  communities,  for  inevitability  communities  of  precipitates  social  temporary  by  the p o s s i b i l i t y  i t s closure.  a r e unprepared  as t h e a c c o m p a n y i n g  planning,  many  mining-  o f a mine  shutdown  As  a  result,  f o r the o c c u r r e n c e of e i t h e r and e c o n o m i c d i s l o c a t i o n  o r even  permanent community  these as w e l l  that  often  decline.  1.2 ^ T h e s i s O b j e c t i v e s The planning  purpose process  of  this  for  a  mining  shutdown. By p r e p a r e d n e s s readiness  for  government(s), through  the  a  workers, creation  economic  base  for  diversification), outlines  who  shutdown  or  preparedness and  the  mainstay.  is  p l a n n i n g i s meant t h e d e v e l o p m e n t  of a  those  of  to  the and  and p r i v a t e  offset  finally,  closure  of,  the  service  (for  what,  both  loss  the  with  projects);  the l o s s  o f an  economic  framework  when  of  sector),  example,  response  union,  to deal  make-work  either  o c c u r s . The g o a l ,  p l a n n i n g , i s t o reduce  consequences  (company,  ( i f feasible)  a  for  manage  strategies  example,  community  responsible  permanent  involved  short-term  shutdown(for  to  preparedness mine  by  community  residents,  strategies  i s to develop a  a  shutdown  p e r i o d s of c y c l i c a l longer-term  thesis  which a  mine  t h e r e f o r e , of  vulnerability  a mining  to,  community's  2  The  following objectives  have  been  established  for  the  thesis: •  t o document mine  the  shutdown, u s i n g  communities  - Elsa  experienced affiliated •  to  involved studies  disaster  by  have  shutdown  mining  recently of  their  current  two  and  procedural  l a c k of p l a n n i n g  mine shutdowns  i n the  by  case  Three);  a conceptual approach  planning  as  which  substantive  framework  based, (Chapter  t o o u t l i n e i n more d e t a i l approach  -  Yukon  a  Two);  the  f o r the  c o n s e q u e n c e s of  s t u d i e s two  Faro  major  created  to develop  case  (Chapter  the  actors  community  indefinite  (Chapter  planning  •  mines  as  and  the  identify  problems  •  c a u s e s and  in  for  part,  a  preparedness  on  that  used  in  Four); this  preparedness  planning  i t a p p l i e s to mining communities  (Chapter  F i ve) ; •  to a p p r a i s e terms of in  reducing  in  isolated the  communities the  the of  accompanying  shutdown  location  past,  of  its  approach over-all  social  (Chapter  and  in  value  economic  Six).  Community  of most m i n e r a l  n e c e s s i t a t e d the  t o house and  duration  planning  b e n e f i t s , and  C h a r a c t e r i s t i c s of a M i n i n g The  has,  preparedness  its limitations,  dislocation  1.3-  this  s e r v i c e the operations.  deposits  c r e a t i o n of labour  The  in  special  Canada mining  f o r c e of a mine  mining  community  for  differs  3  from other communities i n s e v e r a l important First, majority  i t i s t y p i c a l l y an  of  other  'instant'  communities  over s e v e r a l decades. By  effort  development  by  'instant'  both  community  unlike  i n Canada which have  'evolved'  company  company  and  or  through  government,  but  g e n e r a l l y occurs w i t h i n a short time span of one  1  the  i s meant that not only i s the  community e x p l i c i t l y c r e a t e d by a mining joint  aspects.  a its to  three y e a r s . Secondly,  the mining  community i s 'planned'  p h y s i c a l design and p o p u l a t i o n . The the recruitment of  i n terms of i t s  design, q u a l i t y of l i f e ,  ' s t a b l e ' r e s i d e n t s f o r a mining  the past three decades, been c o n s i d e r e d important reducing  the  t y p i c a l l y high p o p u l a t i o n and  therefore,  have  traditionally  community  planning.  Such  p r o f e s s i o n a l planners  without  been  the  planning any  input  town have, i n components f o r  labour turnover focus  tends by  and  to  of  resource  be  the  and  done  by  community's  future residents. A  third  important  c h a r a c t e r i s t i c of a mining  community i s ,  d e s p i t e the i n c r e a s e d s o p h i s t i c a t i o n of i t s p h y s i c a l s t r u c t u r e s , i t s dependency on  a  single  finite  economic  base.  While  an  economically v i a b l e mineral d e p o s i t c r e a t e s the impetus f o r t h i s type  of  community,  i t s g e o g r a p h i c a l i s o l a t i o n o f t e n precludes  other s o c i a l and economic o p p o r t u n t i e s and  1  t h e r e f o r e , employment  Lucas(l97l) o u t l i n e s four stages i n the development of a resource community: c o n s t r u c t i o n , recruitment, t r a n s i t i o n , and m a t u r i t y . Most planning emphasis has been on v a r i o u s strategies to achieve the 'maturity' stage as q u i c k l y as p o s s i b l e .  4  a l t e r n a t i v e s f o r the r e s i d e n t s Limited  (Robinson,1963,p.5;  Lucas,1971).  t r a n s p o r t a t i o n l i n k a g e s , high c o s t s of t r a n s p o r t i n g and  producing goods coupled with a lack of l o c a l entrepreneurship Dependency  local  markets  (Deoux,1983).  i s the c e n t r a l f a c t of l i f e  f o r such communities  (Himmelfarb,1976) and a f f e c t s the s o c i a l and economic of  i t s residents  restrict  for,  according  well-being  to Lucas (1971,p.394), "the  economic  and  technical  factors  that  were  instrumental  locating  and  developing  communities of s i n g l e i n d u s t r y are the  same f a c t o r s which r u l e out a d d i t i o n a l i n d u s t r y ,  diversification  of the economic base, and expansion of the p o p u l a t i o n . " and  Artibise  (1982,p.48)  diversification  suggest  that  the  in  Stelter  lack of economic  i s not n e c e s s a r i l y u n i n t e n t i o n a l :  The economic base i s c o n t r o l l e d by outside corporations or governments who determine the nature and extent of e x t r a c t i v e or p r o c e s s i n g activity and thereby determine the s i z e of the l o c a l work f o r c e and the degree of local prosperity and growth. F l u c t u a t i o n s between boom and bust depend on the vagaries of the i n t e r n a t i o n a l market i n resources or corporate and government decisions, not on local initiative as i s o f t e n the base with other types of communities...[F]urther, i s o l a t i o n from major markets, r e l a t i v e l y high wages p a i d by resource i n d u s t r i e s and high development c o s t s combine to prevent the i n f l u x of secondary i n d u s t r y . " The f o u r t h , and perhaps most obvious, c h a r a c t e r i s t i c mining  community  is  i t s inherent  economic dependency on a d e p l e t a b l e is  exhausted,  although other operating  the  mining  impermanency,  created  ore body. When an  operation  is  closed  ore  a  by i t s body  permanently,  economic f a c t o r s such as l o s s of markets,  costs  of  rising  per tonne of ore m i l l e d , changes i n technology  5  or c o r p o r a t e p l a n s , and grade may  existence  of  alternative  higher  and more economically v i a b l e ore bodies l o c a t e d elsewhere  result  i n permanent c l o s u r e before  addition,  a  downturns  in  temporary  shutdowns  mining  community  external  s t u d i e s i n Chapters  information on  is  markets  the  indefinite  ore  runs  out.  In  a l s o v u l n e r a b l e to p e r i o d i c  reflected  of i t s a f f i l i a t e d  typology of shutdowns and case  the  in  indefinite  mine. Table  1.1  or  offers a  the c h a r a c t e r i s t i c s of each type. 2 and  3  will  provide  more  (The  detailed  shutdown).  Many permanent mine c l o s u r e s threaten the very e x i s t e n c e of mining their  communities,  impacts  important  duration cases  result  inhabitants. Indefinite  similar two  and  to  and  the r e l o c a t i o n of most of  temporary  d i f f e r e n c e s : there i s the u n c e r t a i n t y  of  the shutdown, and  over  living  the  enhances  shutdown  is  investment community  "preceded  occurence  turnover.  and  longer  (Molloy &  Bradbury,1983,p.43).  an  In  round  working,  uncertainty  shut-down  a  to  the  In  duration  long-term srevice  many  of  periods  though  employment.  by the p r i v a t e  by  as  i n t h e i r community,  shutdowns and eventual c l o s u r e discourages by r e s i d e n t s and  create  there i s the o p p o r t u n i t y i n most  access to other sources of l o c a l  Uncertainty  also  shutdowns  those of a permanent c l o s u r e but there are  for workers to continue  without  in  and  mine  commitments sector.  cases, the  increased increased  addition,  of  there  It  final  short-time lay-offs" is  great  as to whether a temporary or i n d e f i n i t e shutdown i s  i s o l a t e d event  or whether the  l a s t i n g d e c l i n e " (Molloy and  mine  is  "undergoing  Bradbury,1983,p.46).  a  more  6  TABLE 1.1  - CATEGORIES OF MINE SHUTDOWNS  Category & Definition  Causes of Shutdown  Causes of Uncertainty  TEMPORARY - a c e s s a t i o n of mine o p e r a t i o n s f o r a known p e r i o d of time. R e - s t a r t up date i s known. -usually term  short-  - c y c l i c a l downturn in international m i n e r a l markets; - need to reduce over-supply of processed ore a t l o c a l mine.  - unexpected c o n t i n u a t i o n of c y c l i c a l downturn c o u l d r e s u l t i n e x t e n s i o n ( s ) of temporary shutdown, i . e . , a temporary c o u l d become indefinite.  INDEFINITE - a c e s s a t i o n of mine o p e r a t i o n s f o r an unknown p e r i o d of time. R e - s t a r t up i s expected but date i s not known.  - downturn i n i n t e r - - extended p e r i o d of a t i o n a l mineral downturn i n i n t e r markets with no n a t i o n a l markets or s i g n i f i c a n t improve- c o n t i n u a l l y decreasment i n s i g h t . ing p r i c e s could render mining operation economically nonv i a b l e and c o u l d r e s u l t i n permanent c l o s u r e of mine a f t e r long p e r i o d of uncertainty.  PERMANENT - a permanent c e s s a t i o n of mine operations.  - exhaustion, e i t h e r economic or p h y s i c a l , of ore body. - long-term s t r u c t u r a l problems w i t h economic v i a b i l i t y of mine.  - o r i g i n a l estimated date of c l o s u r e o f t e n changes due to unforeseen fluctuations in p r i c e or d i s c o v e r y of new ore bodies.  7  While the s o c i a l according  to  the  impacts  of a mine shutdown or c l o s u r e vary  circumstances  i n which i t occurs  type of shutdown, the l e v e l of preparedness, the  community,  and  the  prevailing  f o l l o w i n g p r o v i d e s a general problems which they  picture  the  (e.g., the  remoteness  of  economic c o n d i t i o n s ) , the of  the  basic  community  precipitate:  The loss of mine employment c o n t r i b u t e s to an overall c o n t r a c t i o n of the local economy and p o p u l a t i o n . The consequent l o s s of m u n i c i p a l revenues makes i t d i f f i c u l t to maintain the e x i s t i n g level of community services. Federal and provincial or t e r r i t o r i a l governments must o f t e n expend l a r g e sums of money f o r community and p e r s o n a l income support programs. The social consequences that a declining community faces are severe. Many a d a p t a t i o n s have to be made as r e s i d e n t s are faced with r e l o c a t i n g , coping with the prospect of unemployment or developing new work s k i l l s , and f o r m u l a t i n g new s o c i a l r e l a t i o n s h i p s . Communities a l s o become a e s t h e t i c a l l y depressed as homes and commercial buildings become vacant... (E,M,&R,1976,p.9).  1.4  ~ Planning For Mine Shutdowns Planning  of  i n v o l v i n g the r e c o g n i t i o n  a problem, the development of a l t e r n a t i v e s t r a t e g i e s to  with  it,  alternatives the of  i s a systematic process  the  evaluation  this alternative monitoring  process and  the  effectiveness  of  in achieving d e s i r e d o b j e c t i v e s , a d e c i s i o n  best a l t e r n a t i v e and  Such  of  (once  reflects  finally,  the monitoring  of the  implemented) i n a c h i e v i n g  deal these as  to  effects  objectives.  the i t e r a t i v e nature of the p l a n n i n g  i d e a l l y , leads to  a  better  understanding  of  the  8  nature  of the problem and consequently, the development of more  a p p r o p r i a t e and e f f e c t i v e  s t r a t e g i e s to deal with  it.  A major problem a s s o c i a t e d with a mine shutdown i s the lack of systematic p l a n n i n g f o r i t s occurence. community  literature,  f o r example,  Within  the  only a handful of s t u d i e s -  have focussed on the community consequences of a or  closure  Martin,1981;  mine  shutdown  ( f o r example, Himmelfarb,1976; Hegadoren,1979; S t . Molloy  and  Bradbury,1983). R e c o g n i t i o n  community consequences of the d i f f e r e n t was  resource  forwarded by S t . M a r t i n  of the  stages of mine shutdowns  (1981) i n her 'winding-down' versus  ' c l o s u r e ' concept: the former r e f e r r i n g to the d e c l i n e of mining o p e r a t i o n s , the l a t t e r  t o the complete abandonment  of the mining  o p e r a t i o n and, consequently, of the mining town by the company. E x i s t i n g studies indicate that, actual  shutdown  Molloy  and  unexpected  and  situations,  the  r e s u l t i n g community d e c l i n e have been, as  Bradbury events,  i n many  in  (1983,p.42)  noted,  contrast  the c a r e f u l and r e g u l a t e d  to  establishment of the town." Hegadoren and Day  "[d]isorganized,  (1981,  pp.265-6)  f u r t h e r p o i n t e d out t h a t : ... Mine t e r m i n a t i o n s are i n e v i t a b l y accompanied by charges and counter-charges over the f a i l u r e to plan for the long-term stability of mine settlements, unemployed miners, and l o c a l secondary and t e r t i a r y sector employees who s e r v i c e the mining f r a t e r n i t y . It appears t h a t , by f a r , the most common approach to a mine shutdown  -  whether  permanent  or  indefinite  approach (Fleming, 1978; Hegadoren, 1979; Molloy  - i s the ad hoc and  Bradbury,  9  1983; Task F o r c e ,  ,1982). By ad hoc i s meant  1  unsystematic  and  react i v e . In most cases, the mining company, union, and government(s) have it  attempted has  been  construct  to develop plans f o r d e a l i n g with shutdown announced.  1.1  presents  a  theoretical  of t h i s r e a c t i v e approach and shows the r e s u l t i n g l a g  in developing remedial 'bail-out'  measures.  assistance  to  economic d i v e r s i f i c a t i o n forces  Figure  once  were  Plans  emergency  typically make-work  projects  s t r a t e g i e s . In some cases,  established  to  determine  range  local  from to task  f u t u r e o p t i o n s f o r the  community while, in o t h e r s , employment committees were formed to develop 'make-work' p r o j e c t s f o r those l a i d o f f . In a d d i t i o n to c r e a t i n g community planning  for  mine  shutdowns  problems,  development.  The  communities and t h e i r mines often  results  in  an  lack  of  has had s e r i o u s r a m i f i c a t i o n s f o r  those regions dependent on mines f o r t h e i r economic  the  costs in  a  long-term s o c i a l  of  assisting  'crisis-induced  inefficient  use  of  and  troubled  atmosphere'  financial  and  a d m i n i s t r a t i v e resources which d e t r a c t s from meeting longer-term needs. The shutdowns  1  lack  of  a  systematic  approach  has been a t t r i b u t e d to s e v e r a l  to  managing  mine .  factors:  A Task Force composed of F e d e r a l , P r o v i n c i a l , and T e r r i t o r i a l government r e p r e s e n t a t i v e s as w e l l as industry and union personnel was c r e a t e d i n January, 1982 to examine the problems experienced by mining communities as a r e s u l t of the downturn i n the m i n e r a l markets.  10  FIGURE 1.1 - THE AD HOC APPROACH TO A PROBLEM I n t e n s i t y o f Problem I n t e n s i t y o f Problem S o l v i n g  I n t e n s i t y o f Problem & Problem S o l v i n g  Effort  Effort  Problem emerges  Public Recognition of problem P o l i t i c a l Pressure grows Formulation of ^ Plan \ Adoption o f Policies  Programs Designed & legislation Planned  Programs  s v  implemented  i  Programs b e g i n having impact Programs withdrawn or w i t h h e l d Problem emerges  SOURCE: Adapted from  Gunton(1982)  11  •According  to  Bowles(1982),  emphasis  has  been  manpower p l a n n i n g for the o p e r a t i o n stage of a This  reflects,  to  a  1960s,  a  mining  period  project.  of  unparalleled  during  growth  the  i n the  1950s primary  resources s e c t o r . The  i n c r e a s e d demand f o r minerals during  period  the  resulted  affiliated focus  of  attract,  in  development  communities i n ' f r o n t i e r ' planning retain  f a m i l i e s i n an  reflected  and  of  the  service  effort  to  a  regions. mining  the  mining  'maturity'  has  c r e a t e d by the  community resulted  typically  means  of  need and  high  the to  their labour  remote mines.  social  components  achieving  community  i n a tendency to overlook the problems  community's  employer. Robinson  a  As a r e s u l t ,  workforce  at northern and  as  1  company's  emphasis by planners on the p h y s i c a l and a  this  of a number of mines and  stable  reduce  turnover r a t e s experienced  •The  on  l a r g e degree, the nature of the problems  a s s o c i a t e d with resource e x t r a c t i o n p r o j e c t s and  primarily  economic  dependency  on  a  single  (1963,pp.3-4) p o i n t e d out t h a t :  [Planning] for these towns must be termed a f a i l u r e . With a few exceptions, the plans do not reflect the special social, geographical, economic, or governmental circumstances under which they are b u i l t . The plans have d i f f e r e d little from those being carried out in the more developed urban c e n t r e s i n southern Canada. In s h o r t , there have been no o r i g i n a l or s p e c i a l l y - a d a p t e d s o l u t i o n s equal to the i n d i v i d u a l problems of s i t e and s i t u a t i o n that these towns face. While these permanent new communities are i n many cases models of what a community should look like  1  Between 1945 and 1976, 46 new mining communities were built a c r o s s Canada (Robinson, 1962, p.3). C u r r e n t l y , there are approximately 142 dependent mining communities (Task Force, 1982).  12  (indeed, they are o f t e n r e f e r r e d to as 'planned, model communities'), the one compelling f a c t of l i f e that the planners and b u i l d e r s d i d not, or c o u l d not, plan for was their dependence on a single industrial e n t e r p r i s e , and one h i g h l y v u l n e r a b l e to fluctuations in the supply and demand for i t s r e s o u r c e s . The  tendency  and an  to overlook the d i s t i n c t i o n s between an  'evolved' community as w e l l as  'mature'  community  is  by  Marchak  have been l i t t l e that southern  requirements dearth  evident  in  the  bases  of  resource  l i t e r a t u r e on the economic noted  the  (1983) and Bradbury  evidence  of  'instant' for  planning  communities  of r e c o g n i t i o n by planners of the  such m a t u r i t y Lovosky  fact  communities have evolved p h y s i c a l l y , s o c i a l l y ,  s i n g l e purpose of a mining i n the long  and  whereas  community would seem to preclude  run.  (1970,p.145) d e s c r i b e s  i n s t a n t mining  as  (1980). There appears to  economically over time to produce a 'mature' community, the  a  the  expectations  for  the  community:  Instant towns have o f t e n been r e f e r r e d to as being 'born a l r e a d y grown up'. Such towns are expected to provide, almost instantly, the p h y s i c a l , s o c i a l and even economic environment necessary f o r the growth of a healthy and balanced community. But growth and m a t u r i t y are slow and d e l i b e r a t e processes and i n s t a n t towns r a t h e r than being 'born grown up' seem to be 'born prematurely', unformed and u n s t r u c t u r e d , o f t e n s t r u g g l i n g f o r t h e i r very e x i s t e n c e . Indeed, most ' i n s t a n t ' northern mining 'evolve'  on  fulfillment reached.  their of  The  the problem  foundation  which  stability.  As  own  once  mine's lies  constrains  their  manpower in the  the  communities are 'maturity'  stage  requirements)  has  to  (ie., been  lack of a s t a b l e economic  development  a r e s u l t , most mining  left  of  community  communities, u n a s s i s t e d by  planners or plans to cope with a mine shutdown or c l o s u r e ,  tend  13  to become ' i n s t a n t ' ghost towns.  •Social  and  economic  problems  related  to  the shutdown  mining o p e r a t i o n have tended to be viewed, p a r t i c u l a r l y of  economic  growth,  (Fleming,1978).  as  isolated  and  i n times  temporary  events  In a d d i t i o n , these c o s t s were p e r c e i v e d as part  of the s o c i a l c o s t s of economic growth (Kapp,l971). Any and  economic  dislocation  in  mitigated  other by  social  was c o n s i d e r e d a temporary and  problem which c o u l d be, and o f t e n was, growth  of a  sectors  and  remedial  absorbed  regions,  measures  and  by  local  the  which  rapid  could  (McKersie,1983;•  be  Labour  Canada,1979). The  dearth  requirements  of l e g i s l a t i o n and p o l i c i e s r e g a r d i n g p l a n n i n g  for  resource  community  decline  reflects  these  p e r s p e c t i v e s that the mining town's biggest problem i s turnover, that  isolated  instances  of  mine  e a s i l y be absorbed by the l a r g e r planning means p h y s i c a l Since  the  economy,  and shutdowns can  and  that  community  planning.  late  1970s  environmental, s o c i a l and management,  closures  however,  economic  impact  the  emphasis  assessment,  impact  and monitoring of resource development p r o j e c t s has  helped to d i r e c t a t t e n t i o n to h i t h e r t o ignored e x t e r n a l i t i e s mine  shutdowns  shutdown In  remain recent  recognition  on  of  -  even  though  most  of  of the e x t e r n a l c o s t s of  unexamined.. years, the  there  need  d e c l i n e processes i n order  has  also  been  an  to manage the shutdown to  reduce  increasing and  unnecessary  community  trauma  and  14  inefficiency increasing  (Hegadoren,1979; emphasis  responsibilities orderly  and  being  amongst  Task  placed  Force,1982).  on  the  need  There  for  shared  i n v o l v e d a c t o r s f o r developing  equitable  process  of  decline  is  a more  (Molloy  &  Bradbury,1983). Recognition  of  the impacts of mine shutdown, the need f o r  j o i n t management of the shutdowns, and guide  shutdown  management  the consequences Depression  (Task  affected  an  worst  Force,1982). 80  uncertainty  given  the  need  for  plans  to  stemmed for the most p a r t , from mineral The  out  of  over  recession  since  1981-82 r e c e s s i o n 142  Accompanying t h i s has  increasing  operation,  the  estimated  (DIAND,1982). the  of  has  the  mining  the  adversely  communities  been a greater awareness of  the  life-span  of  a  mining  c u r r e n t u n c e r t a i n t y i n the i n t e r n a t i o n a l  m i n e r a l markets, i n a d d i t i o n to the  physical  finitude  of  ore  bodies.  1.5  2 Thesis This  Rationale  thesis  addresses  several  minimal a t t e n t i o n i n the resource  areas which have r e c e i v e d  community planning  Of most importance i s the l a c k of a p l a n n i n g shutdown  and  possible  community  c o n t r a s t to the l e v e l of planning c r e a t i o n . While p r e v i o u s outline study  has  the  major  decline.  literature.  framework f o r This  mine  i s i n marked  undertaken f o r the community's  s t u d i e s focus on the need to p l a n ,  requirements  proposed a p l a n n i n g  of  process  and  a ' p r o - a c t i v e ' stance, which  outlines  how  no  this  15  might  be  done.  Mechanisms  such  as  a  mining fund, advanced  n o t i f i c a t i o n by the company of a shutdown, f i n a n c i a l compensation, j o b - p r o t e c t i o n programs, economic strategies,  the  c r e a t i o n of mobile  existing  trauma.  Such  isolation, a  studies  viable  mechanisms,  and  mining  as  and  diversification  ' f l y - i n / f l y - o u t ' camps,  the development of r e g i o n a l mining c e n t r e s , in  support  for  however,  have  been  offsetting tend  to  the  be  and  proposed shutdown  applied  in  hence do not address s y s t e m a t i c a l l y the needs of  community  faced  with  the  possible  shutdown  and  i n e v i t a b l e c l o s u r e of i t s mine. In response, t h i s t h e s i s proposes and but  flexible  planning  attempting to precipitate organized takes  manage its  a  account  circumstances of each framework,  the  the  for  shutdown  is  meant  examines  In the  mining  and  considering  community  could  that  this  situation,  possibly  developing underlying  the  and  approach  needs,  the  and  planning  p r i n c i p l e s of  a f t e r i d e n t i f y i n g the circumstances  planning  systematic  i s meant an o r d e r l y  particular  community.  a which  systematic  flexible  thesis  d i s a s t e r planning disaster  mine  d e c l i n e . By  approach; by  into  framework  develops a  requiring  p a r a l l e l s to those of  mining communities. U n l i k e most of the e x i s t i n g s t u d i e s , which have focussed permanent  closure,  this  thesis  s t u d i e s , the problems c r e a t e d appreciation  for  the  by an  examines,  through  the  case  i n d e f i n i t e shutdown. With an  community problems of both c a t e g o r i e s  shutdowns, the t h e s i s i n c o r p o r a t e s  on  the u n c e r t a i n t y  mine shutdowns i n t o the proposed planning  process.  inherent  of in  16  Finally,  the t h e s i s recognizes the need f o r n a t i o n a l p o l i c y  planning as p a r t of the o v e r a l l preparedness p l a n n i n g  1.6  ^ Research Methods and Information  literature Two  for  review Yukon  experienced  and  the  study was  Elsa,  Mayo,  interviewed  Scope thesis  from f i e l d  mining  has  been  obtained  research on two  communities,  Elsa  case s t u d i e s .  and  Faro,  obtained and  through i n t e r v i e w s h e l d  Faro  during  August,  in Appendix  in  1982.  1. The  A list  number of both  This  already  because  many  residents  communities. However, while the may  or may  as a whole, i t i s ascertaining  some  not a c c u r a t e l y represent  nonetheless  considered  the  types  been announced, and  of  those  interviews  left from  the those  the communities be  valuable  in  of the problems i n v o l v e d i n a mine shutdown, regarding  the mine shutdowns, the degree of planning  shutdown,  was  to  on each  communities.  information obtained  as w e l l as p r e p a r i n g for i t . Information for  had  1982-  Whitehorse,  i s small compared to the t o t a l p o p u l a t i o n of  interviewed  which  s t u d i e s f o r the t h e s i s . Information  i s contained  was  from a  i n d e f i n i t e shutdown of t h e i r mines d u r i n g  83, are used as case case  this  framework.  of  responses developed  the  reasons  f o r p o s s i b l e mine once shutdown  the problems a s s o c i a t e d with these  had  responses  sought. A second t r i p  obtain  an  update  was  made to Whitehorse i n  of the two  August,  1983,  to  communities as w e l l as to d i s c u s s  17  the  feasibility  government  a  preparedness  planning  approach  with  officials.  Further national  of  information  newspaper  consequences  of  was  articles  many  also which  gleaned  from  described  the  local  and  community  mining shutdowns, i n c l u d i n g the two  case  s t u d i e s ; while government and company documents were examined to obtain s p e c i f i c  background i n f o r m a t i o n on the two  A d d i t i o n a l l y , v a r i o u s s t u d i e s and a r t i c l e s resource impact  community assessment,  understanding and  -  and  The  that  limited  the  planning.  procedures  mining  descriptive,  necessitated disaster  and  northern were  i n the f i e l d s of  resource reviewed  development, to  of the main i s s u e s i n v o l v e d in mining  shutdowns.  shutdowns  planning,  case s t u d i e s .  literature  evaluative,  review  The  be  latter  on  obtain  communities  planning  and  f o r mine  prescriptive  extended to i n c l u d e n a t u r a l  provided  information  f o r d e a l i n g with u n c e r t a i n t y and  on  for reducing  how  social  economic d i s l o c a t i o n . Information  communities  on the problems  during  1982-83 was  seminar sponsored by the Center University While  i n the f a l l this  of  thesis  experienced  by  other  mining  obtained at a p o l i c y d i s c u s s i o n for Resource S t u d i e s at  "Queen's  1983. recognizes  that i t i s a mine shutdown  which p r e c i p i t a t e s the d e c l i n e of i t s a f f i l i a t e d community, mine  an  shutdown  is  whether the shutdown Rather,  taken  the  as a g i v e n . T h e r e f o r e , the q u e s t i o n of  should  have  occured  is  not  addressed.  the need to plan f o r community r e a c t i o n to the shutdown  18  is  addressed. Secondly,  created  by  illustrate examine  a  while mine  the  shutdown  t h e need t o p l a n  them o r t h e i r  social are  and  economic  presented  f o r shutdown,  the  consequences  and d i s c u s s e d t o thesis  s u b s t a n t i v e m i t i g a t i o n i n any  does  detail.  not  19  CHAPTER THE  TWO  CASE STUDIES: ELSA AND  Since the end of 1981,  FARO  mining companies i n Canada have been  e x p e r i e n c i n g the worst m i n e r a l r e c e s s i o n (Task  Force,1982,p.12).  For  most,  by  with a  attempts  a t t a i n i n g e f f i c i e n c y have been (reflected  the  Such was and  Cyprus  and  made  with  of  production  their  reduction  increased  to  thirteen  Mining  and/or  Corporation  a  demand  profitable  months l a t e r  other hand, o r i g i n a l l y temporary  mining  in  their  p.9). (UKH)  at  (CAMC) at Faro lead,  for level.  their  Elsa,  (see and  particular  UKH  shut  down  o p e r a t i o n f o r a s t a t e d i n d e f i n i t e p e r i o d of time i n and  cutbacks  period  of  shut  Map zinc  both shut down t h e i r Yukon mining o p e r a t i o n s u n t i l  time as p r i c e s  and  l a y - o f f s i n a l l areas of o p e r a t i o n s  2.1). Confronted with r a p i d l y d e c l i n i n g s i l v e r , prices,  their  respective  the response of U n i t e d Keno H i l l Anvil  of  and  at reducing company l o s s e s  shutdowns  expenditures,  (Task Force, 1982,  Depression  restructuring  o p e r a t i o n s f o r v a r y i n g l e n g t h s of time), a capital  the  Confronted with low mineral p r i c e s  low demand, they have responded operations.  since  such  minerals its  July  Elsa 1982,  resumed i t s o p e r a t i o n s . CAMC, on the down  its  Faro  three weeks ( i n J u l y  operation  1982),only  for  a  to extend  the r e - s t a r t i n g date three times. At the time of w r i t i n g , CAMC's operation  remains  shut  down,  r e l a t e d to the mine i s c u r r e n t l y For  their  dependent  although  a  make-work  project  in operation.  communities,  shutdowns have c r e a t e d corresponding  Elsa  periods  and of  Faro, these decline.  The  20  MAP 2.1 - MAP OF YUKON MINING COMMUNITIES  21  purpose  of  the  next two chapters i s to d e s c r i b e the community  consequences of the two shutdowns and to document the approaches taken by i n v o l v e d p a r t i e s t o the r e s u l t i n g s o c i a l dislocation.  and  economic  T h i s background chapter p r o v i d e s the reader with a  d e s c r i p t i o n of the two communities along  with  the  causes  and  consequences of the mine shutdowns.  2.1 ^ H i s t o r i c a T Background Since the s o c i a l  the Gold Rush of 1898, mining has been the b a s i s f o r and  economic  entrepreneurship  development  p r o v i d e d the i n i t i a t i v e  new mines, needed communities World  and  the  Yukon.  Private  f o r the development of  other  infrastructure  until  War I I . Since then, the development of northern mines has  been a c t i v e l y encouraged and a s s i s t e d through  federal  regulatory,  p o l i c i e s and programs. were  of  brought  1  ( d i r e c t l y and  financial,  and  indirectly) developmental  During the 1960s alone, f i v e  new  i n t o e x i s t e n c e i n the northern T e r r i t o r i e s ,  with four new a f f i l i a t e d Between 1966  and  communities. 1975,  direct  mines along  2  assistance  was  provided  1  The F e d e r a l government, under the BNA Act, has j u r i s d i c t i o n not only over lands north of 60° but a l s o over the m i n e r a l resources of the Northern Territories. This i n c l u d e s a l l laws and r e g u l a t i o n s regarding the d i s p o s i t i o n of m i n e r a l r i g h t s , mining regulations, o p e r a t i n g and s a f e t y r u l e s , and m i n e r a l t a x a t i o n and r o y a l t i e s (Wojciechowski,1979,p.3).  2  1962 1964 1967 1967 1969  -  Canada Tungsten, Cantung,NWT; Cominco, Pine Point,NWT; C a s s i a r Asbestos, C l i n t o n Creek, YT; Whitehorse Copper, Whitehorse,YT; Cyprus A n v i l , Faro, YT.  22  through  the  Northern  Minerals  Exploration  A s s i s t a n c e grants  which p a i d up to 40% of the c o s t of e x p l o r a t i o n i n the Yukon and NWT  (Wojciechowski,1979). I n d i r e c t l y , a s s i s t a n c e  the  form  of support  services: railroads  R a i l r o a d f o r the Pine Point Mine, NWT); Resources  program  c o n s t r u c t i o n of airstrips.  Further  recruitment, needed  the  through  skilled  surveying and and  sewage  (e.g.  Roads  resulted  highway  from  Mayo  Keno  to  assistance  was  immigration  programs  actively and  provided  the  City);  and  for  (between  programs  labour 1945-75, as  (e.g. moving  industries). mining  communities, a s s i s t a n c e  i n f r a s t r u c t u r e - the b u i l d i n g of roads,  l a y i n g - o u t of townsites, the facilities,  to  in  r e c r u i t e d from overseas)  mobility  the c o n s t r u c t i o n of new  p r o v i d e d through  roads  example,  labour was  in  (e.g. Great Slave Lake  for  workers between regions and  was  given  which,  w e l l as manpower t r a i n i n g  For  was  power,  schools,  provision  of  h o s p i t a l s , and  the  water other  community b u i l d i n g s (Wojciechowski,1979,p.25).  2.2  ^ The Mining Both  the  representing  Communities mining  different  communities stages  in  of the  Elsa  evolution  communities, can be d e s c r i b e d i n terms of t h e i r t h e i r p h y s i c a l settlement, and  ^ E l s a A Description  Economic Base  Faro, of  economic  while mining base,  t h e i r s o c i a l community. Table  summarizes t h e i r major c h a r a c t e r i s t i c s .  2.2.1  and  2.1  23  TABLE 2.1 - CHARACTERISTICS OF ELSA AND FARO ELSA  FARO  mining company  UNITED KENO HILL (UKH) - F a l c o n b r i d g e (majority shareholder)  type o f mine  s i l v e r / l e a d underground and open-pit  commencement date community status  1947  CYPRUS ANVIL MINING CORPORATION (CAMC) - Dome Petroleum (parent company) l e a d / z i n c open p i t  1970  company town  population  424  (1981 census)  # of mine employees  280  (1981)  distance  immediate  m u n i c i p a l i t y (second l a r g e s t i n Yukon) 1652  660 vicinity  (1981 census)  (1981)  18 km.  from mine turnover rates mine wages  1978: 149% 1981: 39%  1970: 90% 1981: 24%  between $11-15.80/hr  between $ l l - 1 5 / h r  housing  (company owned) houses (90), and bunkhouses(7)  rents  -houses: $30-75/mth. includes u t i l i t i e s -bunkhouses: $2.75/day i n c l u d e s meals  - houses and a p t s . : between $15-80/month - a f t e r 10 y e a r s , no rent  community  - recreation centre, rink, company owned market, gas s t a t i o n , post o f f i c e  - gym, t h e a t e r , a r e n a / rink, playing f i e l d s  facilities  (company owned) houses (479), apts (375) f o r s i n g l e s  h o s p i t a l , s c h o o l (K12), RCMP, d e n t i s t , airport, hotel  24  The of  s i l v e r - l e a d underground mining o p e r a t i o n  the  oldest  in Canada, and  at E l s a i s  c o n s i s t s of s e v e r a l mines in the  Calumet-Reno H i l l - Mayo region  in the Yukon. T h i s area  principal  the  Closed  mining  during  Mining  Co.  region  World War Ltd,  in  Yukon  I I , i t was  whose  one  was  betwen 1914  acquired  by  the  and  1941.  Keno  Hill  name l a t e r changed to United  Mines Ltd.(UKH), of which the major shareholder i s  the  Keno H i l l  Falconbridge  Nickel. The mining  UKH  mining operations  methods. Wooden supports, f o r example, are  underground o p e r a t i o n s , through an open-pit  Physical  it  was  in the one  an  the  in  the so  from  picturesque.  oldest region.  Calumet were l e f t  Aside  early  were  1960's, Calumet was  extracted  and  However,  abandoned and  as  of  several  operations  were  mid  the p h y s i c a l s e t t i n g of E l s a i s  side of a h i l l ,  office  the  i t s work f o r c e moved to E l s a .  wide v a l l e y s . The  store-bank-post  transient  Originally,  s u r v i v i n g communities. In  the mine s i t e ,  and  most  i t is  the mining communities. E l s a , Keno C i t y  as the  B u i l t on the  mountains  the  are  era of mining town in that  it  is  surrounded  town i t s e l f  h a l f by the Mayo-Keno highway. Other than and  bodies  immediate v i c i n i t y of the mine s i t e . of  consolidated,  low  ore  used in  operation.  reflects  communities  and  while newer  still  new  Settlement  Elsa located  comprise a mixture of o l d and  the  by  i s d i v i d e d in  recreation  b u i l d i n g , a l l other  hall  buildings  25  ( i n c l u d i n g houses) are connected owned by  to  the  mining  operation  and  UKH.  S o c i a l Community The 425,  p o p u l a t i o n of E l s a p r i o r to shutdown was  approximately  a l l of whom were employees of the mining company. Many  employees  are  older  immigrants who  came d i r e c t l y to E l s a  v a r i o u s r e g i o n s of e a s t e r n Europe d u r i n g the proportion  of  shutdown was  single  workers  70:30 (Berg,  early  rates  as  a  result  conditions  of  MacDonald,  1982). T h i s culminated  problems  (Berg,  of  1982;  employees. Settlement  agreement  the  low  Mease,  of the s t r i k e  wages and 1982;  P.  involved  an  company to p r o v i d e b e t t e r housing along with According  to  several  interviews,  r e l a t i o n s h i p between management and employees had the time of the shutdown (Berg, 1982; The  population  i n a nine-month s t r i k e d u r i n g  1980-81 by UKH  increases.  to  1982).  living  wage  The  to those with f a m i l i e s p r i o r  inadequate  by  from  1950s.  The community' has h i s t o r i c a l l y experienced high turnover  UKH  development  of  Elsa  i n i t i a t i v e - both on the p a r t of  has the  Franke, been  until  1982).  one  mining  improved  the  based company  employees. The c h a r a c t e r i s t i c s of the town r e f l e c t ,  on  private and  its  f o r the most  part however, the e v o l v i n g v a l u e s and p r i o r i t i e s of the company, since E l s a  i s a company town, e n t i r e l y owned and a d m i n i s t e r e d by  the company.  26  2.2.2  — Faro: A D e s c r i p t i o n  Economic Base In  1969, a f t e r  negotiations, Cyprus  years  of  the "one b i g mine needed  Anvil  existence.  five  lead-zinc  Considerable  mining  intensive  f o r the Yukon"  project  investment  studies  was  -  was  made  and  - the  brought  by  into  the f e d e r a l  government, Northern Canada Power Commission, and the White Pass and  Yukon C o r p o r a t i o n .  production  The c a p i t a l cost was $63 m i l l i o n  equipment,  facilities, railway  and  townsite.  White  transportation  concentrate  from Faro t o  government  invested  the townsite,  townsite,  and  related  Pass  equipment Skagway,  $28 m i l l i o n  servicing  River  concentrator,  needed  plant $22  to  Alaska,  million  haul  while  in  the ore  the  federal  power  to  the mine  and  of a highway from Carmacks t o Ross  (MacPherson,1978, p.127). In  1975, CAMC  purchased  new  deposits  as  extending the l i f e - s p a n of the mining o p e r a t i o n Currently,  CAMC  zinc  a  means of  beyond 2000 A.D.  i s the l a r g e s t mine i n the Yukon, the l a r g e s t  open p i t mine i n Canada, and one of the l a r g e s t  is  services  i n c o n s t r u c t i n g an access road,  delivering  construction  spent  f o r mine  Canadian  producers. I t s importance to the Yukon t e r r i t o r i a l reflectec  indirectly labour million In  i n the f a c t  provided  that  employment  in  economy  1981, i t d i r e c t l y  f o r 20%  f o r c e , with t o t a l wages and  lead-  and  of the Yukon's t o t a l  salaries  approximately  $60  (DIAND, 1982) 1981, CAMC was bought by Hudson Bay O i l and Gas,  in turn was bought by Dome  Petroleum  L t d . Due  to  cash  which flow  27  problems of the parent company, the mine i s c u r r e n t l y  Physical  for sale.  Settlement  The development of Faro s i g n i f i e d a new era i n Yukon mining communities; not only i n the degree to which i t was planned, but in  the  well  extent  as  of government a s s i s t a n c e f o r i t s development as  i t s designation  community.  Its  as  construction  an in  'open'  (e.g.,  1969 i n v o l v e d 3 main p a r t i e s :  Cyprus A n v i l , the Yukon T e r r i t o r i a l government Department  of  form  (YTG),  Indian A f f a i r s and Northern Development  r e p r e s e n t i n g the f e d e r a l government. I t s and  municipal)  location,  and  the  (DIAND),  development  was planned by a Vancouver f i r m . The d e c i s i o n to make  Faro an 'open' community  rather than a 'closed' company town  based on c o n s i d e r a t i o n s  of  administration  (Foster  townsite Economic  financing  and  Consultants,  was  community quoted  in  Macpherson,1978, p.124). Currently, municipality areas  for  Faro  is  the  second  i n the Yukon. I t s community the  town  centre,  s e r v i c e i n d u s t r i e s . S i m i l a r to  largest  and  plan i n c l u d e s zoning of  residential most  community  mining  neighbourhoods, and communities  built  s i n c e the 1950's, the townsite i s separated from the m i n e s i t e by some modern  18  kilometres.  Faro,  suburban community,  i n c o n t r a s t to E l s a , i s a young and  complete with $120,000 houses, modern  apartment b u i l d i n g s , townhouses, and. an  abundance  goods such as boats, t r a i l e r s , and campers.  of  consumer  28  Social  Community  The  community  of  Faro  consists  of  CAMC management and  employees, government workers, and a p r i v a t e s e r v i c e s e c t o r . The population ages  of  i s r e l a t i v e l y young, with most r e s i d e n t s 29  between  and 3 4 . Interviews with Faro r e s i d e n t s  the  indicated a  good r e l a t i o n s h i p between CAMC and the community. In  spite  sophistication, characterized their  of  their  differences  in  size,  status,  and  social  c h a r a c t e r i s t i c s , E l s a and Faro are  by t h e i r dependency on t h e i r r e s p e c t i v e mines f o r  economic mainstays and f o r t h e i r continued e x i s t e n c e . The  following  section describes  the problems  associated  with  such  dependency.  2.3  2 Reasons f o r I n d e f i n i t e Shutdown  [Mjinerals have time v a l u e . . . Resources a r e not, they become. They expand and c o n t r a c t i n response t o human wants and needs and t o t e c h n o l o g i c a l , e c o n o m i c and p o l i t i c a l c o n d i t i o n s (Spooner,1981, p.9). It appears that three major f a c t o r s the  decisions  operations  of  indefinitely  •declining silver, 2.3, 50%,  UKH  silver  and (these  CAMC  to  were shut  responsible down  t h e i r mining  a r e summarized i n Table  lead and z i n c p r i c e s . As  for  depicted  2.2):  i n Table  and lead p r i c e s had d e c l i n e d approximately 60% and  r e s p e c t i v e l y , between 1980 and the end of 1982, while  p r i c e of z i n c had dropped about 20% from i t s 1981 peak;  the  29  TABLE 2.2  - REASONS FOR SHUTDOWN  UKH - ELSA  CAMC - FARO  - high o p e r a t i n g c o s t s and low s i l v e r p r i c e s were given as o f f i c i a l reasons  - high o p e r a t i n g c o s t s , heavy l o s s e s , low l e a d & z i n c prices  - $13.6 m i l l i o n l o s s i n 1981 f o l l o w i n g a $7.7 m i l l i o n p r o f i t i n 1980  - heavy l o s s e s i n c u r r e d i n 1981-82: - $7.2 m i l l i o n i n f i r s t nine months o f 1981 - $15.7 m i l l i o n i n f i r s t q u a r t e r o f 1982 due t o : 1) d e c l i n e i n s a l e s revenue due t o lower l e a d p r i c e s & production; 2) o p e r a t i n g expenses/tonne of o r e m i l l e d i n c r e a s e d by 108.6% between 1978 & 1981; 3) a debt-financed expansion p r o j e c t ($240 m.) designed t o extend l i f e span o f o p e r a t i o n t i l 2000 A.D. CAMC borrowed $130 m i l l i o n t o a c q u i r e and begin p r o j e c t . $7 m i l l i o n was p a i d i n i n t e r e s t i n 1 s t q u a r t e r o f 1982.  - loss attributable t o : 1)  $10.6 m i l l i o n w r i t e - o f f of expansion p r o j e c t c o s t s , p r o j e c t suspended Nov/81  2) nine month s t r i k e between Sept/80 and May/ 81 a t a time o f r e c o r d high s i l v e r p r i c e s . 20% d e c l i n e i n s i l v e r production.  TABLE 2.3 - AVERAGE ANNUAL PRICES OF MAJOR METALS  A v e r a g e annual p r i c e s of major metal3 i n Canadian funds , (1075 - 1932) 1978  68.389  Copper (cents/lb) • Gold' (Sper/oi) L e a d (csi'.'is/ib)  Siivor ( S / o i ) 2inc (cents/lb)  69 SC6 157 089  74 586 ' 227.907  107.546 359 289  22.6S3 2 909  31 4 8 2 3 917  36 823 5 371  59 923 8 957  2 225 ,'. 4 . 2 G 8 37 6J4  2 446  2 466 6 1/1 34.757  3.171 12.974 43.717  4 920 35.531  E x c h a n g e pottf ( U S d o l l a r - - ) S o b f c i f . M « M I . W»ok ' L o n d o n . P . M .  SOURCE: Tibbo  1  .  1.17152103 :.;  •  (1983)  ,.  :  1980  1979  123.107  l / i o l y b d u n u i n O r e (S/lta) Nickal MetM (S/ib)  1973  1977  ,  •  .  1982  117.75  100 370  716.087  §51  178  8 8 241 461 711  49.350  4 4 521  32 845  , 11 4 2 0 3 992 24.058 44 05  - 10 183  9 740  :.;  1,16900356 r  1981  4 111 12 617 • 54.240 1.19898035  ^  .  .  3 944 9.780 43.670  1.23247352  31  •higher  operating  costs  and  companies c i t e d  increased  transportation,  power  UKH,  a high  increased 1978  wage  and 1981  appears  operating  and  production. costs  Both mining  i n the areas  of  l a b o u r . For example, i n the case of  settlement  labour  lowered  after  a  bitter  strike  created  c o s t s . CAMC c i t e d an i n c r e a s e of 108% between  i n operating  costs  (DIAND,1982).  However, i t  that t h i s was p r i m a r i l y due t o i n c r e a s e d a d m i n i s t r a t i o n  c o s t s and i n t e r e s t charges connected t o  the expansion  program  d i s c u s s e d below;  •heavy  losses  as a r e s u l t of i l l - t i m e d expansion programs. The  mineral  boom of 1979-80 r e s u l t e d i n expansion programs  by  both  companies. A d d i t i o n a l employees were h i r e d , mine f a c i l i t i e s were expanded  or improved, and new p r o p e r t i e s were a c q u i r e d . By 1981  however,  metal  expansion  no  project  at  prices longer  a  loss  were  rapidly  declining,  making  such  v i a b l e . UKH wrote o f f i t s Venus expansion of  $10.6 m i l l i o n  aggravated i t s l o s s of revenue d u r i n g  (UKH,1981,p.5).  This  the s t r i k e p e r i o d i n 1980,  a time of r e c o r d high s i l v e r p r i c e s (UKH,1981,p.11). CAMC  had embarked on an ambitious  8 year expansion program  i n v o l v i n g the a c q u i s i t i o n of two new p r o p e r t i e s $240  million,  of  which  1981, rates  cost  increase  in  consequently,  cost  of  of  the  total  1981. Since the f i r s t q u a r t e r of of  interest  a t $2 m i l l i o n per month and low m i n e r a l demand.  CAMC found i t i n c r e a s i n g l y d i f f i c u l t and  42%  CAMC has been i n a l o s s p o s i t i o n as a r e s u l t estimated  a  $130 m i l l i o n were borrowed funds. The  cost of f i n a n c i n g t h i s expansion represented operating  at  had no  choice  t o meet i t s o p e r a t i n g  but  to  shut  down  costs  i t s mine  32  (DIAND,1982;  J . Carrington,  1982). C u r r e n t l y , the mine i s f o r  sale.  2.4  - Community Consequences of I n d e f i n i t e Shutdown The  indefinite  economic  shutdowns  dislocation  resulted  f o r the r e s i d e n t s  p r e c i p i t a t e d the i n d e f i n i t e d e c l i n e Table  2.4  i n major  indicates,  however,  and  of E l s a and Faro and  f o r both  such  social  communities.  dislocation  As  had a l r e a d y  commenced with the permanent l a y - o f f s experienced a  few  months  earlier. The  following  community national  •loss were  provide  consequences impacts  a  (these,  brief along  overview with  of  the major  Territorial  and  a r e summarized i n Table 2.5):  of employment f o r the m a j o r i t y of r e s i d e n t s . In E l s a , 270 laid  maintenance  o f f , while work.  In  the remaining  20  were  kept  on f o r  Faro, a t o t a l of 600 mine employees were  l a i d o f f i n d e f i n i t e l y . The CAMC shutdown a l s o caused  the l o s s of  83 c o n s t r u c t i o n jobs i n Faro, along with approximately  124  jobs  in the p r i v a t e s e r v i c e s e c t o r (DIAND, 1982, p.61). L a y - o f f s were a l s o experienced  i n Whitehorse as a r e s u l t of the CAMC shutdown.  For example, immediately  f o l l o w i n g that shutdown, 131 White Pass  employees were l a i d o f f (DIAND, 1982, p.59).  •loss  of  community  population  choice  (Faro) or by e v i c t i o n  due to o u t - m i g r a t i o n e i t h e r by  ( E l s a ) . In  the l a t t e r  company d e c i s i o n t o c l o s e the town r e s u l t e d  case,  the  i n the r e l o c a t i o n of  33  TABLE 2.4 - INDEFINITE MINE SHUTDOWN AT ELSA AND FARO: THE PROCESS  UKH - ELSA -Mar 3/82- permanent l a y o f f o f 88 o r 280 workers -June 28/82 - i n d e f i n i t e shutdown announcement made by Bd. o f D i r e c t o r s (Toronto) - 2 wk. n o t i c e terms: 135 u n i o n i z e d workers l a i d o f f J u l y 13 -46 t o shut down mine - 25 l a i d o f f Oct 31 - relocation of a l l but c a r e t a k e r s by end of Aug/82 -July 1/83 - 120 workers recalled -August 11/8 3 - o p e r a t i o n of mine resumed, t o t a l employees=140  CAMC - FARO Feb 4/82 - announcement o f 10% s t a f f c u t by end o f year through a t t r i t i o n Mar 9/82 - announcement o f l a y o f f o f 95 of 770 employees Mar 18/82 - permanent l a y - o f f of 95 Mar 24/82 - announcement o f 3 week temporary shutdown starting July 1 A p r i l 3 0/82 - announcement o f e x t e n s i o n o f shutdown t o 2 months from June 4-Aug 2 June 4/82 - 600 l a i d o f f J u l y 9/82 - e x t e n s i o n o f shutdown t o October/82 Sept 8/82 - e x t e n s i o n o f shutdown t o s p r i n g 1983 May 24/83 - j o b c r e a t i o n p r o j e c t begins  TABLE 2.5 - SOCIAL AND ECONOMIC IMPACTS OF UKH & CAMC MINE SHUTDOWNS  LEVEL individual  UKH - forced r e l o c a t i o n - unemployment - u n c e r t a i n t y as t o recall  community  - reduced s e r v i c e s - loss of s o c i a l networks f o r those remaining  CAMC - 1st extension: extended h o l i d a y - 2nd e x t e n s i o n : u n c e r t a i n t y & anxiety esp. f o r those w i t h school-aged c h i l d r e n - 3rd e x t e n s i o n : continued u n c e r t a i n t y  - p o p u l a t i o n halved - l o s s o f major source of revenue ( $ l m i l l i o r m u n i c i p a l taxes) - r e d u c t i o n i n amenity provision  t e r r i t o r i a l - i n c r e a s e d demand f o r s o c i a l s e r v i c e s as a r e s u l t o f these two shutdowns; unemployment i n c r e a s e d by 4% t o 17%,-as a r e s u l t o f l o s t revenue, YTG had t o borrow $4 3 m i l l i o n from f e d e r a l government t o pay b i l l s ; l o s s o f p o p u l a t i o n (7%) o f whom a l a r g e m a j o r i t y were s k i l l e d workers; shutdown o f other major p r i v a t e employers dependent upon CAMC - p r o v i s i o n o f e x t r a a s s i s t a n c e t o CAMC ($2.6 m i l l i o n assistance) n a t i o n a l - i n c r e a s e d demands f o r UIC and w e l f a r e . CAMC r e c e i v e d a s p e c i a l a s s i s t a n c e package o f which $19.6 m i l l i o n i s an i n t e r e s t f r e e f e d e r a l loan as w e l l as $4 m i l l i o n i n a i d from UI A c t and NEED program.  SOURCES: DIAND (1983a), YTG (1982), i n t e r v i e w s .  35  all  but  a  h a n d f u l of employees who  the mine. In Faro,  increasing  were r e t a i n e d to shut down  out-migration  occurred  as  the  shutdowns were extended. Many mining employees chose not to wait out  the winter at Faro, where the cost of l i v i n g  than elsewhere. shutdown  The  level  approximately  p o p u l a t i o n of Faro had dropped from  of  750  just  of  created  in  2000  to  a  current  pre-  l e v e l of  by  the  loss  of  population  employees. Residents of E l s a were shocked  company's e v i c t i o n period  below  a  (Bazowski,1983).  •social dislocation relocation  i s much higher  1980,  requirement; they  had  for  been  even  during  the  by  and the  strike  allowed to remain i n company  houses (P. MacDonald, 1982). F u r t h e r , both  Faro  had  experienced much lower p o p u l a t i o n turnover r a t e s w i t h i n the  last  few  years,  resulting  networks. The  in  the  development  consequent l o s s of  population  Elsa  and  of stronger  social  precipitated,  for  example, a d e c l i n e i n the number of v o l u n t a r y o r g a n i z a t i o n s . One Faro  resident  pointed  regain the sense Carrington,  out  that  i t would take a long time to  of community that e x i s t e d p r i o r to shutdown (E.  1982).  •a r e d u c t i o n i n s e r v i c e s and a m e n i t i e s . In the  shutdown of the mine and  a l o s s of income and consumer services services) payments.  base  (such as and  the  air  in  for  example,  the l o s s of p o p u l a t i o n r e s u l t e d i n  subsequent d e c l i n e  which,  Faro,  turn,  flights,  in  the  tax  affected  the  a v a i l a b l i t y of  banking,  municipality's  ability  grocery to  base  and  meet  and  postal i t s debt  36  •uncertainty. consequences  Those  interviewed  experienced  indicated  that  of  all  the  at a community l e v e l , u n c e r t a i n t y was  the most d i f f i c u l t  to deal  uncertainty  the d u r a t i o n of the shutdown made long-range  planning  over  difficult  shutdown,  while  The  psychological  costs  u n c e r t a i n t y over what to do d u r i n g  f o r example,  considerable  with.  whether t o leave or not l e a v e ,  instability  at  both  individual  and  of  the  created  community  levels. In  addition,  r e s i d e n t s i n Faro were exposed t o continuous  rumours as t o the reopening of the mine. T h i s was due t o : •the lack of an company  or  current in  information  government  system  whereby  a  sponsored  by  either  the  r e s i d e n t c o u l d l e a r n of the  s i t u a t i o n . Queries were d i r e c t e d to Dome's  head  office  Calgary.  •meetings  between  CAMC  and  the  CAMC/DIAND/union were h e l d i n other Calgary, heighten  with  little  federal  centres  government,  such as  Ottawa  and and  or no l o c a l community i n p u t . T h i s tended t o  f e e l i n g s of u n c e r t a i n t y and i n s e c u r i t y , e s p e c i a l l y f o r  the p r i v a t e s e r v i c e s e c t o r . The the  UKH and CAMC i n d e f i n i t e shutdowns, while  economic  efficiency  of  both  companies,  necessary created  s o c i a l and economic d i s l o c a t i o n f o r t h e i r r e s p e c t i v e communities, little  Elsa  and  Faro.  had been undertaken  preparation  f o r such  an  by  It  quickly  involved  occurence.  The  created.  affiliated  in  following  o u t l i n e s the responses of those i n v o l v e d and documents the problems which these responses  serious  became evident  parties  for  terms  that of  chapter some  of  37  CHAPTER THREE CURRENT COMMUNITY RESPONSES TO MINE SHUTDOWNS The  o b j e c t i v e of a shutdown, from a company p e r s p e c t i v e , i s  to cut c o s t s and market.  For  reduce company l o s s e s in  a  declining  mineral  the a f f e c t e d community however, shutdown means the  l o s s of employment for the m a j o r i t y of the r e s i d e n t s , as w e l l as a t h r e a t to i t s f u t u r e e x i s t e n c e . From a s o c i e t a l p e r s p e c t i v e , a shutdown o f t e n r e s u l t s i n resulting equity"  social  pressure  p u b l i c c o s t s and  (Gordus,1981, p.9).  conflicting to  and  political  It  is  i n t e r e s t s , g o a l s , and  to  "reduce  to introduce  within  this  the  some s o c i a l  framework  p r i o r i t i e s that the  of  responses  the community d i s l o c a t i o n c r e a t e d by a mine shutd.own w i l l  be  examined.  3. 1 2. Planning  and  P r o v i s i o n s P r i o r to N o t i f i c a t i o n  In both s i t u a t i o n s , there was i n v o l v e d s e c t o r s p r i o r to the f i r s t this  lack  of  planning  little  planning  undertaken by  l a y o f f s . S e v e r a l reasons for  were c i t e d during  management, community r e s i d e n t s , union  i n t e r v i e w s with mine  o f f i c i a l s and  government  r e p r e s e n t a t i v e s . These i n c l u d e :  •the  focus  on  continued  r e s u l t of the mineral  growth and  boom of  1979.  manager, "No  plans were made a year  indefinite)  closure  as  all  1982). T h i s p e r s p e c t i v e was employees  both  at  Elsa  even expansion plans as a  In the words of the UKH ago  for  eyes were on expansion"  echoed by union and  temporary  mine (i.e.,  (Dickson,  e x e c u t i v e s and  mine  Faro. F u r t h e r , the sudden drop in  38  metal p r i c e s had caught most o f f guard and gave l i t t l e developing  •the  alternatives.  lack of p r e v i o u s shutdown experience at UKH and CAMC. Most  of those i n t e r v i e w e d mentioned experienced any  time f o r  a  shutdown  that n e i t h e r  UKH  nor  CAMC had  before and t h e r e f o r e there hadn't  reason t o prepare f o r i t s p o s s i b i l i t y . Perhaps  this  reflects  a c o g n i t i v e dissonance on-the.part of those i n t e r v i e w e d , as  has  been  mentioned  above,  shutdown  i s an  been  since,  inherent and  i n e v i t a b l e f e a t u r e of mining which had been experienced by  some  of the miners at other mines. A c c o r d i n g t o long-time UKH miners, the  company  basis  been  (Mease, 1982).  permanent never  had  closure  In of  since  1966, UKH i t s Elsa  gave  'mother  Anvil'  belief  Yukon t e r r i t o r y  that  indicated  shutdown,  economic  (Power, 1982; M i t c h e l l ,  there  townsite.  appeared  that  some  had  been  to  be  importance  The  permanent  residents  to  1982). The s e c u r i t y compounded  by the  investment  s t r u c t u r e of Faro  credence to the i n v i n c i b i l i t y and permanency of It  similar  (YTG,1967).  expansion plans by CAMC as w e l l as by i t s new housing the Faro  a  the government would never l e t Cyprus  which such a b e l i e f c r e a t e d appeared  in  of the  syndrome. From i n t e r v i e w s i n August, 1982,  A n v i l continue i t s shutdown due t o i t s the  notification  by those t o be a f f e c t e d  with those a s s o c i a t e d with the CAMC widespread  1947 on a year t o year  o p e r a t i o n , an event which was  r e a l i z e d . A study taken a t the time  lack of preparedness  •the  operating  the  lent  community.  were making plans f o r t h e i r  f u t u r e i n Faro, not elsewhere. The wife of the CAMC mine manager  39  p o i n t e d out that because she and their  home  alternatives The of  they  had  done  her  husband  little  considered  planning  as  Faro  to  other  (E. C a r r i n g t o n , 1982).  same f e e l i n g s of s e c u r i t y were evident i n E l s a  i t being a company town. There was a widespread  in spite  belief  that  even i f the mine shut down, employees would be allowed to remain in  company houses and hence,for  the m a j o r i t y , few  'contingency'  plans were made (G. MacDonald, 1982).  •the  'crying  familiar  wolf'  syndrome.  According  several  people  with the E l s a o p e r a t i o n s , UKH had been g i v i n g  informal  n o t i c e of the temporary nature of while,  few  took  to  i t s operations  After  a  people  were s u r p r i s e d when i t a c t u a l l y happened.  I t appeared that many of those  interviewed had not c o n s i d e r e d the f u l l  1982; in  Wight,  accruing  in  from  a  shutdown  (Berg,  1982). In p a r t , t h i s may have been due to changes past,  dislocation  has  o f f s e t by employment o p p o r t u n i t i e s i n other mines, regions  or s e c t o r s ; whereas c u r r e n t l y , impacts by  nature and extent of the  the general economic c l i m a t e . In the  been  1947.  these warnings s e r i o u s l y and hence,  • p e r c e p t i o n s of shutdown impacts.  s o c i a l and economic impacts  since  the  exacerbated  s e v e r i t y and extent of the c u r r e n t r e c e s s i o n which has,  effect,  shut o f f other employment o p p o r t u n i t i e s .  D e s p i t e the lack of shutdown  appear to be  notification,  preparedness some  plans  at  the  time  of  b a s i c p r o v i s i o n s were i n place i n  C o l l e c t i v e Agreements as w e l l as v a r i o u s  social  programs.  The  40  unions  and  mining  companies  had  negotiated  termination  c o n d i t i o n s which were i n c l u d e d i n  Collective  Agreements.  Agreements are  The  1  relevant  lay-off  their  sections  and  respective of  these  reproduced i n Appendix 2; as w i l l be noted, these  c o n d i t i o n s s t i p u l a t e a minimum n o t i f i c a t i o n p e r i o d for both l a y offs  and  terminations  termination  only  i n the case of the E l s a o p e r a t i o n  in the case of CAMC. Both o u t l i n e the  and  for  specifics  of r e l o c a t i o n a s s i s t a n c e . In a d d i t i o n , p u b l i c a s s i s t a n c e programs were assist  in  mitigating  some  of  the  economic  unemployment. These r e l e v a n t programs are 3.1.  It  should  be pointed out  to help a l l Canadians and the s o c i a l and  3.2  occurred  consequences of  summarized  in  Table  that these programs are designed  were not  developed  specifically  for  Shutdown N o t i f i c a t i o n  f o l l o w i n g provides during  to  economic d i s l o c a t i o n c r e a t e d by a mine shutdown.  ^ Responses Following The  available  an o u t l i n e of the adjustments which  the months immediately  following n o t i f i c a t i o n  of  shutdown.  1  Both Collective Agreements r e f l e c t the minimum standards established by the Canada Labour Code for termination requirements. The Code does not require notification for temporary or i n d e f i n i t e l a y - o f f s .  i-3 > W L -1  Unemployment 1nsurance (Ul)  Work  Sharing  Manpower C o n s u l t a t i ve Services (MCS)  3  Mobi1i t y rogram  Job  Creation  Federal Canada Employmen £ Immigration C o m m i s s i o n (CEIC  - t o m a i n t a i n a minimum l e v e l o f income f o r a p e r i o d o f time.  - a l l those employed i n the l a b o u r f o r c e f o r a min. o f 1 0 - l ' l wks. and who h a v e c o n t r i b u t e d .  - automatic program a l t h o u g h the l a i d - o f f w o r k e r must a p p l y f o r IU b e n e f i t s .  Federal Sec. 37 o f Ul Act  - to a v e r t temporary l a y o f f s through s h o r t e r w o r k week, work s h a r i n g and Ul b e n e f i t s f o r d a y s not worked.  - e m p l o y e r must d e m o n s t r a t e - r e q u i r e s an a g r e e t h a t t h e s h o r t a g e o f w o r k ment b e t w e e n e m p l o y e r i s t e m p o r a r y £ u n a v o i d a b l < :.£ e m p l o y e e t o d i v i d e a v a i l a b 1e w o r k i n - e m p l o y e e s must be order to avoid layoffs el i g i b l e f o r U l .  Federal  - CE£IC  - to a s s i s t employers £ employees i n f i n d i n g re-employment o r a l t e r n . s o l u t i o n s to l a y - o f f s through j t . negotiations  - individual - industrial - particular areas  Federal  - CESIC  - to a s s i s t employers i n f i n d i n g new employment for l a i d - o f f workers 6 to ass i st in t h e i r relocat ion.  - assistance i s o f f e r e d to - up t o 50$ o f e m p l o y e r s who have e s t . relocation costs a MCS a d j u s t m e n t committe< r e i m b u r s e d .  Federal - S e c t i o i - to create short-term 38 o f Ul A c t employment p r o j e c t s f o r t e m p o r a r i l y unemployed w o r k e r s £ t o r e t a i n them i n t h e community.  Canada Communi t y Development Projects  Federal  - CE£IC  NEED (New Employment £ Expansion Development)  Federal  - CE&IC  - to c r e a t e jobs f o r unemployed i n c o m m u n i t i e s w h i c h w o u l d be o f v a l u e to c o m m u n i t y  firms sectors geographic  - r e q u e s t f o r MCS must be made by e m p l o y e r i n agreement w i t h u n i o n . - primarily for terminations/closures  are  - firms faced w i t h short - permits extension of term l a y - o f f s job creation project - must n o t r e s u l t i n u n f a i r f r o m 52-58 w e e k s competitive advantage to f i rm - non-profit organizations - Band C o u n c i I s  - j t . program between f e d e r a - to create incremental £ prov. o r t e r r i t o r i a l gov't: employment o p p o r t u n i t i e s - must e m p l o y l o c a l p e o p l e f o r unemployed. - j o b s must be s h o r t t e r m i n n a t u r e but l e a d t o o n g o i n g  - e m p h a s i s i s on t h e h i r i n g of. 'disadvantaged' p e o p l e - maximum t i m e f o r program i s 3 y e a r s . - d i r e c t job c r e a t i o n . project with private sector, -min. 12 wks; max52 perm, j o b s a t e n d .  I  42  3.2.1 The  ^ Elsa Mining Company The  responses of  meeting  its  as w e l l  as  UKH  reflected  o b l i g a t i o n s contained with  operations.  reducing  As  terminations,  mentioned  and  These  company and  union, followed  T h i s was the  (Franke, 1982;  Elsa  of the  were  bound  included  provided  1  the  Falconbridge/UKH  two  by  down  of  its  lay-offs,  its  Collective  to  the  United  3.  weeks n o t i c e for both  i t s employees  (P.  by the union who  MacDonald, negotiated  month to the end  all  attempts (YTG)  shutdown, was"  to  by  the  allow  raising  1980  union  the  1982). to have  of August  strike  and  Yukon  employees to remain i n the  ' c l e a n i n g house' - that  suspicion  that  i s , g e t t i n g r i d of  were i n v o l v e d  in  - or e l s e were wanting to l e t go of  o l d e r , l e s s product ive workers (Franke,  1  terms  in Appendix  some of the more r a d i c a l union members who prolonged  shutting  G. MacDonald, 1982).  Government  during  costs  date extended by one  resisted  Territorial  i n i t s C o l l e c t i v e Agreement,  by a w r i t t e n n o t i c e  with o p p o s i t i o n  relocation  UKH  UKH  r e l o c a t i o n of  met  with  (USWA) union l o c a l by the mine manager.  Copies of t h i s n o t i c e are  l a y - o f f and  concern  c o n d i t i o n s were o u t l i n e d in a meeting between  of America  Originally,  primary  above,  relocation  Agreement.  Steelworkers  the  a  1982).  This  the the  suspicion  The a c t i o n s of UKH r e f l e c t e d , f o r the most p a r t , the directions of i t s parent company in Toronto, F a l c o n b r i d g e . The l o c a l mine manager, f o r example, r e c e i v e d n o t i f i c a t i o n of shutdown the day before he n o t i f i e d the union (Dickson, 1982).  43  was  compounded  shortly after  by  the  shutdown was  According to UKH, accounts:  fact  1)  that s i l v e r p r i c e s began to r i s e  announced.  this  suspicion  was  erroneous  a l l union employees were on r e c a l l  and 2) the company r e q u i r e s workers s k i l l e d techniques used  on  f o r two  two  years;  i n the o l d - f a s h i o n e d  i n i t s underground o p e r a t i o n s and would be hard-  pressed to f i n d  such  workers  elsewhere  in  Canada  (Dickson,  1982). Hence,  while UKH  participated  i n the many d i s c u s s i o n s h e l d  between v a r i o u s s e c t o r s , i t appeared both l a y o f f and r e l o c a t e  its UKH  resolute  workers.  claimed that  At  i n i t s d e c i s i o n to the  time  of  the  shutdown  announcement,  i t had only $3 m i l l i o n  remaining  i n i t s o p e r a t i n g budget and c o u l d not a f f o r d to r e t a i n  i t s employees in E l s a d u r i n g shutdown (Dickson, 1982).  The  Union It appears  were  that the responses of the USWA union l o c a l  concerned  more with the i s s u e s of r e l o c a t i o n and  #924  housing,  than of the a c t u a l l a y - o f f s . For while the union had compiled list  of  its  following  members'  the  compilation  first  was  not  work round  skills of  undertaken  employees over settlement of t h e i r  f o r p r o s p e c t i v e employers  terminations due  a  in  March,  such  to a g r e a t e r concern among  housing  (Franke,  1982;  G.  MacDonald, 1982). As  mentioned  above, the union was  month e x t e n s i o n of the r e l o c a t i o n date.  able to n e g o t i a t e a However,  it  was  one less  44  successful  i n i t s attempts  f a m i l i e s to remain  UKH  to allow a number of  in E l s a . Interviews with union  both E l s a and Whitehorse, reports,  to persuade  revealed  a  officials  along with a review of l o c a l newspaper  strategy  to  use  the  media  as w e l l as  p o l i t i c a l pressure to o b t a i n t h i s c o n c e s s i o n . However, for a c t i o n  requests  regarding " r e s i d e n t s being f o r c e d out of t h e i r homes"  were brought  up at both the House of Commons and  Legislature,  in  addition  It was employees  wished  there  were  24  to stay i n E l s a , many of these l e f t d u r i n g  the p e r i o d of housing n e g o t i a t i o n s . The obtain  Territorial  were u n s u c c e s s f u l .  l a t e r r e v e a l e d that while i n i t i a l l y who  the  to a s e r i e s of t e l e x e s between union  executive and DIAND o f f i c i a l s ,  to  in  a d d i t i o n a l s i g n a t u r e s , and  union  was  hard-pressed  f i n a l l y dropped  the  issue  (Rudychuk, 1982).  The  Residents Few  the  employees and t h e i r  time  of  field  f a m i l i e s were remaining  r e s e a r c h in l a t e August, 1982.  in Elsa Most  single  workers had been r e q u i r e d to leave by J u l y 20th, as o u t l i n e d the  lay-off  n o t i c e c o n t a i n e d i n Appendix 3. Of those  46 were r e t a i n e d f o r maintenance work, while an  at  in  remaining,  additional  few  d i d not know where they were going to move t o . A and  handful  of  long-time employees had b u i l t p r i v a t e homes  farms i n the area and planned to l i v e  out first  the  shutdown.  to be  recalled.  Due  to  i n them while  waiting  s e n i o r i t y , they would be among the  45  It planned  i s not c l e a r whether those  who  had  already  left  had  f o r the p o s s i b i l i t y of shutdown. Interviews with those  remaining suggested that t h i s was  not the case  (Berg,  1982;  Mease, 1982), although v e r i f i c a t i o n a t the time was i m p o s s i b l e .  The Governments Essentially, federal  the responses by both DlAND ( r e p r e s e n t i n g the  government)  minimizing  and  YTG  reflected  concerns  MLA  to discuss  local  executive,  and the  the a v a i l a b i l i t y and implementation of  a s s i s t a n c e programs (P. MacDonald, 1982). The f i r s t meeting held  one  week  after  decided to f i r s t before  with  the s o c i a l c o s t s of the shutdown. R e p r e s e n t a t i v e s of  both l e v e l s met with UKH, the USWA local  their  visit  the shutdown  n o t i f i c a t i o n where i t was  E l s a to determine  implementing  these  was  programs.  the residents' Essentially,  needs efforts  focussed on: •employment  opportunities  •vocational  training  • p r o c e s s i n g of Unemployment Insurance  applications  • s u b s i d i z e d housing i n Mayo and Whitehorse Corporation •  by the Yukon  Housing  (the T e r r i t o r i a l c o u n t e r p a r t of CMHC)  availability  of  w e l f a r e , i f needed, u n t i l  the U.I.  benefits  were a v a i l a b l e . However, unsuccessful.  a l l but Both  the p r o c e s s i n g  the company  town  of  U.I. c l a i m s  status  i n d e f i n i t e l e n g t h of the mine shutdown made E l s a the  federal  government's  work-sharing  of  Elsa  were and  ineligible for  and make-work programs  46  (Pearson,  1982).  Secondly, attempts at o f f e r i n g v o c a t i o n a l t r a i n i n g YTG  and  to UKH  Canada Manpower j o i n e d f o r c e s and submitted a p r o p o s a l  in which  examination  YTG  for  a  would  offer  trade  ticket  up-grading to UKH  l e a v i n g both governments with no o p t i o n have  no  failed.  classes  workers. UKH  as  the  and  refused,  workers  p l a c e to stay while t a k i n g the courses s i n c e UKH  the housing  (Pearson,  would owned  1982).  S i m i l a r l y , e f f o r t s to o b t a i n s u b s i d i z e d housing i n E l s a a  means  to  retain  the  workforce  response to YTG's attempts open  during  the winter months, UKH  or  its  houses  etc.  According  to  UKH,  the  fact  workforce them.  1  costs  to  be  $15,000  that  given to the accuracy of such  it  would  f o r the d u r a t i o n of  be cheaper the  f o r UKH  shutdown  than  costs  houses  i n s p e c t them f i r s t  to  be  (Robb,  subsidized  by YHC,  and  to r e t a i n i t s to  F u r t h e r c o m p l i c a t i o n s arose from the f a c t that  the  per  approximately $625 per house per month (P. MacDonald,  1982). Much debate was  1  keep  were too high f o r i t to s u b s i d i z e i t s housing without the  month  for  to  agreed to do so only i f YHC  heating  mine i n o p e r a t i o n . It estimated the  to  as  were a l s o u n s u c c e s s f u l . In  to persuade UKH  would s u b s i d i z e the c o s t s of costs  an  relocate in  order  CMHC would have to  1982).  Indeed, i f everybody stayed, a c c o r d i n g to the f i g u r e s provided to the w r i t e r by the l o c a l mine manager, heat and electricity costs were estimated to be $1.5 m i l l i o n per year, whereas the c o s t s f o r r e l o c a t i o n and t e r m i n a t i o n were c a l c u l a t e d to be a little over $2 million. In h i s eyes, $.5 million was i n s u f f i c i e n t f o r contingency funds.  47  The housing most  of  dropped a f t e r  the r e s i d e n t s who  remaining willing  i s s u e was  remain  in  was  realized  had o r i g i n a l l y expressed  i n E l s a had a l r e a d y l e f t . to  it  Elsa  I t appeared  during  the  interest in  that  winter  that  few  were  months while  unemployed and pay comparable rents to those i n Vancouver. Finally, residents  the  provision  proved  requirements  to  be  a  of  welfare  situation  benefits  i n which the  to  their  high  wages  Further  c o n f u s i o n a l s o surrounded  a s s i s t a n c e and  the a v a i l a b i l i t y of YHC  Elsa  residents  no vacancy  i n those  levels  rental  were t o l d how  i n Whitehorse  units  housing  elsewhere.  to apply f o r housing informed  that  (Davies, 1982).  ^ Faro It  i s more d i f f i c u l t  to o u t l i n e responses  by s e c t o r to the  CAMC shutdown announcement owing to the i n t e r s e c t o r a l nature adjustments which  of  for welfare.  the p r o v i s i o n of  u n i t s i n Whitehorse and nearby Mayo, but were not  3.2.2  eligibility  and  e q u i t y , none of the r e s i d e n t s of E l s a were e l i g i b l e  there was  Elsa  were not p r o p e r l y examined p r i o r to d i s c u s s i n g them  with the r e s i d e n t s . Due  Apparently,  to  as w e l l as the number of shutdown e x t e n s i o n s  followed  Table 3.2,  the  a number  s u i t a b l e responses First,  the  initial of  announcement. As  factors  were  of  (three)  i s summarized i n  involved  in  developing  to the shutdown. Territorial  r e p e r c u s s i o n s of the shutdown were  recognized e a r l y on by DIAND and YTG;  hence, t h e i r  not so much with the a s s i s t i n g of a mining  concern  was  o p e r a t i o n as with the  48  TABLE 3.2 - CHRONOLOGY OF RESPONSES TO CAMC SHUTDOWNS  JUNE  1 982  Mine  JULY  1 !?82  Make-work CAMC  Shu  tdown P r o j e c t  requests  government open SEPT  1 982  3rd  $ 88  m i l l i o n  a s s i s t a n c e  i n  t or e -  i t s mi n e e x t e n s i o n  o f mine  shutdown  DIAND M i n i s t e r r e c e i v e s Federal Cabinet approval t o seek 4 party agreement on mine re-opening OCT  1 982  4 part pact signed between CAMC, DIAND, Y T G , a n d USWA #1051 o b t a i n i n g consensus on requirements for re-opening mine: (1) (2) (3)  settlement of n e w C o l l e c t i v e Ag r e e m e n t development o f an ' a c t i o n plan by CAMC i n i t i a t i o n by M i n i s t e r o f DIAND of d i s c u s s i o n a t Cabinet level of CAMC's a n dYTG s problems. 1  1  DEC  1 982  Signing between  of n e w C o l l e c t i v e Agreement CAMC a n d USWA #1051  MAR  1983  D i r e c t lobbying i n Ottawa by 'Common Front f o r re-opening i , ;  APRIL  1983  MAY  1983  Federal  Cabinet  a s s i s t a n c e Two  year  Approval  of  Yukon of mine  $50  m i l l i o n  plan  waste  SOURCES: DIAND (1983a); i n t e r v i e w s  s t r i p p i n g  program  begins.  49  Territorial  economy. Secondly, CAMC's parent  company, Dome, was  i n v o l v e d i n s e r i o u s n e g o t i a t i o n s at the time government  i n an  effort  with  the f e d e r a l  t o reduce the l i k e l i h o o d of i t s t o t a l  f i n a n c i a l c o l l a p s e . As a r e s u l t , d i s c u s s i o n s  between  CAMC and  DIAND were but a part of these n e g o t i a t i o n s . Finally,  CAMC  and USWA  C o l l e c t i v e Agreement t o enter the  fall  of  1982. The  #1051  were  required  by  their  into contract negotiations  during  consequences of t h i s b a r g a i n i n g  o b v i o u s l y have c o n s i d e r a b l e  would  e f f e c t on the economic v i a b i l i t y  of  re-opening. Responses  t o the shutdown  initially  development of make-work p r o j e c t s . Before June,  CAMC  approached (CEIC) about  workforce  i n Faro (Pearson,  i t submitted  proposal  was  the f i r s t  of the  shutdown i n  the Canadian Employment and Immigration  Commission  local,  consisted  available  a  options  for retaining i t s  1982). In c o n j u n c t i o n  community  make-work  unique i n the sense that  with  i t s USWA  proposal.  i t was the f i r s t  This 'joint-  e f f o r t ' proposal  t o be submitted t o CEIC, and i t was open t o a l l  Faro  including  residents  Basically,  i t involved  private a  service  sector  v a r i e t y of community b e a u t i f i c a t i o n  p r o j e c t s which e v e n t u a l l y employed a maximum of 25 success  As o u t l i n e d i n i t s press CAMC p r o v i d e d  addition,  people. I t s  was undermined by payment delays of 6-7 weeks which l e d  to s e v e r a l p a r t i c i p a n t s q u i t t i n g i n p r o t e s t  employees  employees.  release  r e n t a l and h e a t i n g  remaining  (Power, 1982).  (contained  subsidies  to  i n Appendix 4 ) , those  laid off  i n Faro f o l l o w i n g the t h i r d e x t e n s i o n . In  i t maintained the community r e c r e a t i o n c e n t r e and was  50  involved  in  the o f f e r i n g of a d u l t education  courses during the  winter  (Whitehorse S t a r , Sept. 8 1982, p.3).  1983,  f o l l o w i n g the development of the a s s i s t a n c e program which  is discussed  below, CAMC o f f e r e d  a  In  the  relocation  spring  package  of  (e.g.,  moving expenses t o Vancouver or Edmonton) to those remaining but who  were  u n l i k e l y to be r e h i r e d . Many r e s i d e n t s took advantage  of the o p p o r t u n i t y  and l e f t  (Bazowski,  Attempts t o reopen the mine which  1983).  involved  components,  are o u t l i n e d i n Table 3.2 (see page 48). In October, 1982  - some four months f o l l o w i n g the i n i t i a l was  several  reached  between  YTG,  shutdown  -  agreement  DIAND, CAMC, and USWA regarding the  necessary c o n d i t i o n s and s e c t o r a l r e s p o n s i b i l i t i e s f o r o b t a i n i n g consensus on the c r i t e r i a  f o r reopening. These  •the n e g o t i a t i o n of a new union •the development  of  a  included:  contract  feasible  'action'  plan  by  CAMC f o r  resumption of i t s operations •the  initiation  by  the M i n i s t e r of DIAND of d i s c u s s i o n at the  f e d e r a l Cabinet l e v e l of CAMC's and YTG's  problems  (Globe  and  M a i l , Oct.8, 1982, p . B l 2 ) . A  new  Collective  Agreement  i n c r e a s e s and b e n e f i t s , among lengthy  negotiations  in  which i n c l u d e d  other  December  p r e s s i n g DIAND f o r acceptance  of  items, 1982;  i t s $88  was  million  •$75 m i l l i o n t o develop the new ore body; million  •contined  i n power and t r a n s p o r t a t i o n  deferment of r o y a l t y payments  signed  while CAMC was  package which included the f o l l o w i n g :  •$13  l i m i t i n g wage  subsidies;  after still  assistance  51  • c o n t i n u a t i o n of the f e d e r a l government's moratorium of  northern b e n e f i t s Not  (Whitehorse S t a r , Jan.5,  surprisingly,  the f e d e r a l  agreement with the amount nor request.  However,  between  the  1983, p . 3 ) .  government  intent  October,  on t a x a t i o n  of  was  this  not i n  assistance  1982, and e a r l y  1983,  it  o f f e r e d no c o u n t e r - p r o p o s a l s . In  March  lobbied'  1983, a  the  federal  delegation  from  the Yukon  government i n Ottawa r e q u e s t i n g that the  mine be re-opened. One month l a t e r , and almost the  initial  shutdown,  10  i s funded with $25 m i l l i o n  and  after  $1 m i l l i o n  This  two  year  i n CAMC funds, a $19.6 m i l l i o n  f e d e r a l government loan, $4 m i l l i o n programs,  months  the M i n i s t e r of DIAND announced Cabinet  approval of a $50 m i l l i o n mine re-opening p l a n . plan  'directly  from f e d e r a l  U.I. and NEED  from YTG (DlAND,1983a). Commencing i n  l a t e May 1983, i t i n v o l v e s a w a s t e - s t r i p p i n g program,  employing  approximately 210.  Faced with the prospect of two of i t s three o p e r a t i n g mines (UKH  and CAMC) s h u t t i n g down, and the t h i r d  c l o s i n g permanently an  (Whitehorse Copper)  i n December 1982, YTG, i n May 1982,  i n t e r d e p a r t m e n t a l Task Force t o examine t h e i r  Specifically,  the mandate was t h r e e - f o l d  implications.  (YTG, 1982):  •to  prepare a f u l l and comprehensive  •to  develop a short term economic  •to  propose short and long term remedial a c t i o n s that  taken  by  both  Territorial  and  created  assessment  of the problem  forecast  Federal  governments  a l l e v i a t e the c u r r e n t and expected impacts on Yukoners.  might  be  to help  52  Four •no  'action  a l t e r n a t i v e s ' were  action  •request  direct financial  •reallocate •develop a both  YTG  resources  joint  and  program a s s i s t a n c e  to m i t i g a t i v e  Canada-Yukon a c t i o n  option  proposing  Relief  chosen  joint  minimizing  the  last  mitigation  of  employment  was  losses  Action  Program  m a i n t e n a n c e of  existing  business  p o l i c i e s and  plan  using  the  Canada programs  resources  of  support  YTG  for  reluctant  ^  was  some of  to  invest  Problem  Areas  According  to  several  which  focussed  economic  ( f o r example,  involving  the  'threatened'  primarily  impacts  through  a  through Temporary  d i r e c t c r e a t i o n , of  jobs,  on  training,  and  jobs, small  contracts).  While  underlying  appropriate  successful  in obtaining  i t s proposals, in only  the  short-term,  interviews  with  involved  to  both  shutdowns.  delays  programs,  co-ordination  eligibility  r o l e s and  and  responsibilities.  was  measures.  actors, the  financial  government  'stop-gap'  problems which c o n s t r a i n e d  responses  federal  federal  were: l i m i t e d n o t i f i c a t i o n ,  over  from  governments. The  3.3  identified:  there  were  development  Essentially,  in implementation  of  these  of  remedial  p r o b l e m s , and  conflict  53  2 E f f e c t i v e n e s s of Responses  3.3.1  The  two  shutdown,  week  and  notification  the  relative  period  given  suddenness  (given  importance) of CAMC's o r i g i n a l n o t i c e as w e l l three  extensions,  work out as  provided  appropriate  little  response and  for  the  its  as  UKH  economic  each  of  its  time for i n v o l v e d p a r t i e s to  m i t i g a t i v e s t r a t e g i e s as  well  responsibilities. While  inadequate  limitations  of  insufficient  existing  provisions  cases i t was regarding  advance n o t i c e may  the  lay-off in  parent  stem i n part from  legislation  as  well  the as  the C o l l e c t i v e Agreements, i n both  companies  which  shutdowns  and  the  speed  at  obvious  that  the  earlier  made  the  decisions  which they would take  place. It  is  regarding  a  closure  or  i t s s o c i a l and  stringent  notification  company would be  It might  has  to  a  the  by  surprisingly,  reduce  or  i s to  at  least  economic d i s l o c a t i o n . Proponents of more requirements  argure  that  the  mining  shutdown more s e r i o u s l y  a l t e r n a t i v e s (Heartwell,  and  1982).  adversarial  atmosphere  that  tends  a sudden unexpected shutdown (Fleming, the r e a c t i o n by a mining community and  shutdown  n o t i c e and  given  a l s o been argued that adequate advance n o t i f i c a t i o n  reduce  generated  therefore  f o r c e d to c o n s i d e r  would perhaps seek other  is  a shutdown, the more-time there  develop s u i t a b l e responses and mitigate  notification  has  as  much  to do with the extent  degree of c o n s u l t a t i o n as  it  does  with  to  be  1978). Not government of advance the  actual  54  occurrence.  For example, c o n f l i c t s between UKH and USWA #924 at  E l s a were heightened by UKH's two-week n o t i c e and  both  layoff  relocation. Several  problems  relating  to  the  implementation of the f e d e r a l government's have  already  Faro  were  Services,  been  able as  noted  to  make  job  assistance  and  programs  use  of  the  Manpower  Consultative  t h i s i s used p r i m a r i l y i n s i t u a t i o n s of permanent  shutdown and community the  eligibility  above. In a d d i t i o n , n e i t h e r E l s a nor  c l o s u r e s . Few programs f o r d e a l i n g with  of  for  of  indefinite  d e c l i n e were a v a i l a b l e with the  creation  program under S e c t i o n  which was ammended  in  December  initial  to  permit  shutdown)  periods  1982  exception  38 of the U.I. Act  ( s i x months  after  p r o j e c t s that were mine  the  (but not  mine p r o d u c t i o n ) a f f i l i a t e d . The a s s i s t a n c e programs developed by the f e d e r a l government are, of n e c e s s i t y , Canadians, the  mining  perspective facing  time  not  only  to be a p p l i c a b l e to  a l l unemployed  to unemployed miners. T h i s means that  s o c i a l and economic d i s l o c a t i o n experienced  dependent  the  and  intended  community  as i f i t occurred  is  being  in  a  northern  addressed from the same  i n Vancouver. While  the  problems  such communities were acknowledged at the f e d e r a l l e v e l ,  fact  remained that the Yukon mine shutdowns  when other  mining o p e r a t i o n s  also experiencing  happened  as w e l l as other  l a y - o f f s and r e q u i r i n g  government  at  sectors  a  were  assistance  as w e l l . In resource  part,  the  lack of a p p r o p r i a t e  communities may  programs f o r d i s t r e s s e d  stem from the dearth  of information  on  55  the  various  ways i n w h i c h mine shutdowns and  have been d e a l t exists  and,  with  and  dislocation  created  studies  i n t h e p a s t . C u r r e n t l y , no  therefore, l i t t l e  strategies  programs  exist,  by  with  is  in a  known  shutdown  most  be  determine  (E,M&R, 1981), s u c h  a study  (Keyes,  1983).  of  i n f o r m a t i o n .on t h e shutdowns  3.3.2  In b o t h  and  appropriateness  Over R o l e s and  Yukon  situations,  than  economic  dislocation.  For  between YTG  provision  responsibility, responsibility  Another YTG  of  and  arguing  (Whitehorse  example  was  for control  to  the  social  economic  UKH  housing,  each  According and  1983).  economic Few  hardships  case  found  that a  y e t been data  and  in  study from  a  conducted  giving  and  jurisdictional  responsibility  DIAND and  and  of  specific  frequency  of  effectiveness  of  Responsibilities  and  negotiations the  not  duration,  p a r t i e s more o f t e n r e f l e c t e d  of c o n t r o l  success  measures.  ^ Conflict  involved  the  the  costs resulting  empirical  nature, costs,  limits  mitigative  lack  has  'inventory'  proposed  the p u b l i c  decline  such  social  (Haugh,  i t was  shutdown  This  the  r e p o r t s of l o c a l  Further, while  to  about  reducing  newspaper a r t i c l e s . undertaken  community  Yukon  over  over  concerns,  one  that  the  the  it  areas social  came  assisting,  to with  would  accept  the  other  bore  the  1982).  by  social has  while  when  actually  neither  A c t , YTG  to reduce  example,  provided  between  power s t r u g g l e s o v e r  attempts  S t a r , Aug.  conflict  the c o m p e t i t i o n and  economic  legal the  between matters.  responsibility  federal  for  government,  56  under the B r i t i s h North America A c t , has j u r i s d i c t i o n over land, resources, and resource development i n the northern In  addition,  Territories.  the f e d e r a l government, through other departments  such as CEIC, p r o v i d e s most of the a v a i l a b l e s o c i a l and economic a s s i s t a n c e programs f o r d i s t r e s s e d communities. C o n f l i c t s over who  should be p r o v i d i n g a s s i s t a n c e f o r Faro.  Reasons  for  responsibility •a  dearth  of  responsible Collective and  these  conflicts  over  the  issue  of  who  is  stem from: regulatory  measures  f o r what. Such measures  which  outline  i n c l u d e labour  Agreements, and j o i n t agreements  legislation,  between  government  industry. While c e r t a i n c o r p o r a t e r e s p o n s i b i l i t i e s  costs  of  Canada  f o r m i t i g a t i n g the  an i n d u s t r i a l c l o s u r e and t h e r e f o r e t e r m i n a t i o n , have  been l e g a l l y d e f i n e d through  labour  legislation  such  as  the  Labour Code, there i s very l i t t l e a t t e n t i o n given to the  p o s s i b i l i t y of temporary and i n d e f i n i t e Collective corporate  Agreements, w h i l e  responsibilities  compensation.  A  more  for  c o n t a i n few p r o v i s i o n s f o r t h e i r and  arose  lay-offs. specific  lay-offs  and  in  outlining  terminations,  occurence, beyond  notification  recent F e d e r a l Commission of I n q u i r y  Redundancies and L a y o f f s forwarded three reasons f o r t h i s  into  (1979,  pp.36,97): • u n t i l very r e c e n t l y , l a y - o f f s  have not been  perceived  by  the  unions as a major problem; •government  assistance  in  the form of Unemployment  manpower s e r v i c e s and r e t r a i n i n g  programs have  been  Insurance, viewed  by  57  unions as p r o v i d i n g adequate p r o t e c t i o n ; and •employers  have  negotiated  other p r o v i s i o n s i n an manage' without  higher wage settlements along with  attempt  to  maintain,  their  'right  which g i v e s them the freedom to a d j u s t t h e i r o p e r a t i o n s recourse to employees, unions, or p u b l i c  authorities.  More r e c e n t l y , agreements between a mining company and federal  to  government  (in  the  case  the  of mines n o r t h of 60°) have  c o n t a i n e d c l a u s e s which o u t l i n e a s p e c i f i c  notification  period  f o r a permanent c l o s u r e i n a d d i t i o n to determining the company's responsibilities.  The  following  agreement i l l u s t r a t e s such  s e c t i o n of the  1974  Nanasivik  requirements:  P r i o r to the permanent c l o s u r e of the mine due to the exhaustion of ore r e s e r v e s the Company agrees to give at l e a s t twelve months n o t i c e of such c l o s u r e , to the Minister. In the event of the permanent c l o s u r e of the mine i t s h a l l be the r e s p o n s i b i l i t y of the Company: (a) to dispose of m a t e r i a l s , equipment and b u i l d i n g s including housing, under i t s ownership or title, w i t h i n a time p e r i o d , and i n a manner s a t i s f a c t o r y to the M i n i s t e r and the Commissioner,  •  (b) to submit to the a p p r o p r i a t e government agencies plans and schedules f o r the abandonment, clean-up and r e s t o r a t i o n of the s i t e . The abandonment, clean-up and restoration s h a l l be undertaken i n a manner s o c i a l l y , a e s t h e t i c a l l y and e n v i r o n m e n t a l l y acceptable to the government agencies concerned. In the case of the t a i l i n g s d i s p o s a l system, the p l a n n i n g a c t i v i t i e s are to be undertaken before Stage 2 commences, (c) to pay r e l o c a t i o n c o s t s not otherwise reimbursable for employees and t h e i r dependents having to move due to impending or a c t u a l c l o s u r e of the mine and (d) to r e t i r e f u l l y any o u t s t a n d i n g p o r t i o n s of loans, o u t s t a n d i n g user-charges and other debts payable to Her Majesty and chargeable to the p r o j e c t . As  i s evident, l e g a l l y defined corporate  responsibilities,  58  such  as  those  primarily  discussed  above,  are  minimal,  and  pertain  to the o b l i g a t i o n s of the company to i t s employees in  such matters as n o t i f i c a t i o n , Further,  severance  they p e r t a i n to the permanent  pay,  and  relocation.  c l o s u r e of the mine with  no mention of o b l i g a t i o n s should an i n d e f i n i t e and/or shutdown  occur. F i n a l l y ,  of r e s p o n s i b i l i t y due  there i s no r e f e r e n c e made to the i s s u e  f o r the community and i t s continued  to an absence of e x p l i c i t  for  example,  has  f o r the mining community.  played  an  important  development of new mining communities little  existence,  p o l i c i e s by e i t h e r the government  or company as to r e s p o n s i b i l i t y DIAND,  temporary  in  the  role  past,  While in  there  the is  p o l i c y guidance as to what to do with the community once  the mine i s shut down. S i m i l a r l y , enunciated  policy  responsibility  by  for  a  a  there  mining  community  has company  which  has  been  no  clearly  regarding been  its  established  p r i m a r i l y to serve the company's needs. The  reluctance  by  YTG,  on  the  other  hand,  communities such as E l s a and Faro s p e c i a l a t t e n t i o n the  fact  that  many  of  a s s i s t a n c e . For example, special  treatment  i t s other  communities  of  those  (Heartwell,  1982).  With no c l e a r the  is  f o l l o w i n g the mine shutdown  due  also  i t argues that Faro should not  which was d i r e c t l y a f f e c t e d by the shutdown layoffs  to  give to need  receive  when Whitehorse,  as w e l l  (due to  the  working i n mine support s e r v i c e s ) , would not  i n d i c a t i o n of r e s p e c t i v e r e s p o n s i b i l i t i e s  two case s t u d i e s ,  in  i t i s not s u r p r i s i n g that each s e c t o r had  d i f f e r i n g p e r c e p t i o n s of i t s  rights  and  responsibilities,  as  59  well  as  those  concensus  of  the other p a r t i e s . For example, the general  that YTG expected CAMC t o s o l v e i t s own  supported  in  with  a l l parties  was  (Byblow,  1982;  Mitchell,  1982; H e a r t w e l l , 1982). The c o m p e t i t i o n between  DIAND  and  over socio-economic comcerns has a l r e a d y been noted. A  YTG  interviews  problems  t h i r d example i s p r o v i d e d by the USWA's e x p e c t a t i o n that YTG  or UKH would provide housing f o r USWA's members.  3.3.3  2 h. Lack Of Preparedness The  UKH  and  CAMC shutdowns c r e a t e d a ' c r i s i s - s i t u a t i o n ' ,  not only i n terms of t h e i r s o c i a l but  also  and  economic  repercussions,  i n the response c a p a b i l i t i e s a t both t e r r i t o r i a l and  community l e v e l s . With response c a p a b i l i t y the  either  relative  employment  isolation and  preparedness  and  economic  lack  of  already  limited  by  opportunities for local  diversification,  the  lack  appears to have exacerbated the problems  of  generated  by the high degree of dependency on a v o l a t i l e mining  industry.  Without  outlining  a  pre-determined  strategies, co-ordination programs  to  fall  framework of  roles  of and  responses available  back on, the o p p o r t u n i t i e s f o r e f f e c t i v e and  a p p r o p r i a t e responses were g r e a t l y reduced. priority as  assistance  As  a  consequence,  seemed t o be given t o d e v e l o p i n g stop-gap measures such  make-work  agreements  projects  that  'hanging on' u n t i l Despite  were  and  intended  government-industry to  assist  financial  the T e r r i t o r y  in  such time that the mines resumed o p e r a t i o n s .  the problems  which  surrounded  the  unexpected  60  c l o s u r e of the C l i n t o n Creek mine i n 1978 that  both E l s a and  and  1  is  being  exception  development  preference  f o r the  guidelines  appears  that  very  done to prepare f o r future Yukon shutdowns or  c l o s u r e s . With the future  inevitability  Faro w i l l experience s i m i l a r problems in the  future when the mines c l o s e permanently, i t little  the  of  of  single  YTG's  policy  resource  regarding  towns  (with  f l y - i n / f l y - o u t arrangement), no  a c t i o n c o n t r a s t s with the  r e c o g n i t i o n by YTG  strong  policies  appear to have been developed regarding  or m i t i g a t i v e measures f o r e x i s t i n g communities.  the  or  preventative  This  lack  of  of the need f o r  "long term measures i f the Yukon i s to a v o i d the same problems, in the f u t u r e . The Yukon economy, dependent as i t i s on a s i n g l e i n d u s t r y s e c t o r y , has f o r too long been at the mercy of e x t e r n a l f o r c e s . The c u r r e n t problems should be seen as an o p p o r t u n i t y f o r both the f e d e r a l and t e r r i t o r i a l governments to develop longterm economic plans designed to broaden and strengthen the Yukon's economic base "(YTG,1982,p.3). Obviously,  t h i s would apply  Reasons for  for  preparing  possible  learned  often  1  both  paucity  the  perceptions  that planning  perceived  as  of p o l i c y and  communities  mine shutdowns can  a t t i t u d e s and was  this  to the community l e v e l as w e l l -  be  and  planning  the  measures  Territory  found, f o r the most p a r t ,  for  in the  of those i n v o l v e d . From i n t e r v i e w s , i t f o r mine shutdowns  being  difficult,  i f not  and  closures  impossible,  to  was do,  T h i s mine c l o s e d e i g h t years e a r l i e r than was expected by both the Territorial and Federal governments. T h e i r combined $4 m i l l i o n investment i n t o the community was viewed as a w r i t e - o f f . In response, a socio-economic impact was undertaken (Lerches,1977) to, in p a r t , determine p o s s i b l e measures open to the government for reducing the impact of closure. U n f o r t u n a t e l y , these measures never m a t e r i a l i z e d .  61  given the u n c e r t a i n t y over Others argued strategies  the need to manage a  possibility  diversification;  of  shutdown  contractual  legislation (Heartwell, coincide  and  closure;  agreements  which  requiring 1982;  shutdown d i s l o c a t i o n ;  sufficient  such  economic  establish  a  Byblow, 1982;  and  finally,  advance n o t i f i c a t i o n of both  Power, 1982).  mitigation  procedures  programs,  include:  economic  Such  suggestions  and Bradbury, These  proposals o f f e r  announcement.  To  (Hegadoren,  job-  community  1979;  Molloy  typically  developed  on t h e i r own,  preparing  a  following  a  they tend to be  community  for  a  mine  be e f f e c t i v e , they should be i n c o r p o r a t e d i n t o an  planning  responsibilities adjusted  notice,  i n n o v a t i v e a l t e r n a t i v e s to the stop-  However,  in systematically  shutdown.  suggested  1983).  gap measures which have been shutdown  advance  d i v e r s i f i c a t i o n , mining  reserve funds, and p o r t a b l e pensions  overall  through  with those p r o v i d e d i n the l i t e r a t u r e , where  creation  limited  shutdown  l i f e - s p a n of the o p e r a t i o n as w e l l as the establishment  of a reserve fund to o f f s e t  impact  (Rudychuk, 1982).  as: c o n t r o l l i n g the e x t r a c t i o n process as a means of  reducing the  specific  i t s occurence  framework  which  outlines  the  roles  and  i n each p r o p o s a l . In a d d i t i o n , they need to be  according  to  the  particular  circumstances  of  the  community as w e l l as to the u n c e r t a i n t y w i t h i n shutdown.  3.4  - Summary These  two  case  problems c r e a t e d by a  studies lack  of  have  provided  community  examples  preparedness  of the for  a  62  p o s s i b l e mine shutdown. The ad hoc approach employed by i n v o l v e d parties  in  both  communities  appeared  problems to those d i r e c t l y c r e a t e d unemployment experienced confusion  and  out-migration.  conflicts in  the  between  provision  mention a lack of a p p r o p r i a t e reducing  the  shutdowns,  namely,  For example, both communities involved  of  sectors,  assistance  delays  measures,  and  not to  short and long-term s t r a t e g i e s f o r  the l e v e l of s o c i a l and economic d i s l o c a t i o n .  It was learned the  by  to generate a d d i t i o n a l  lack  of  from i n t e r v i e w s  planning  for  that much of the reason  shutdown  lay  in  for  the u n c e r t a i n t y  i n h e r e n t . i n the occurrence of shutdown as w e l l ,as i n how and who should  be i n v o l v e d i n p r e p a r i n g  for  i t . In  order  to  assist  communities such as E l s a and Faro to prepare f o r and, t h e r e f o r e , manage  a shutdown, the f o l l o w i n g chapters  preparedness planning  framework.  focus on developing  a  63  CHAPTER FOUR A CONCEPTUAL FRAMEWORK OF PREPAREDNESS PLANNING From the two case literature,  s t u d i e s as w e l l as from a review  i t appears  that  mine  of the  shutdowns and c l o s u r e s are  p e r c e i v e d as ' a c c i d e n t s ' or at most, ' i s o l a t e d  incidents'.  Such  a  view i s r e f l e c t e d by the lack of planning as w e l l as the lack  of  explicit  p o l i c i e s d e a l i n g with t h e i r  As was i l l u s t r a t e d concomittant  view  i n the  that  u n c e r t a i n t y over However,  chapter,  there  is a  f o r a shutdown and p o s s i b l e  i f not  impossible,  given  planning  f o r and  planning.  under  the  uncertainty  approach  used  Here, the p l a n n i n g process  i s indeed in  natural  i s undertaken to  d e a l with n a t u r a l d i s a s t e r s where u n c e r t a i n t y p r e v a i l s not regarding  only  the occurence o f , f o r example, a f l o o d or tornado but  a l s o r e g a r d i n g the l e v e l and exact causes. U n d e r l y i n g  such p l a n n i n g  this  could  devastation  actions,  the  i t s occurrence.  p o s s i b l e as i s demonstrated by disaster  previous  planning  community d e c l i n e i s d i f f i c u l t ,  occurrence.  and  by  be  approaching  nature of the d e v a s t a t i o n  it  i s the r e c o g n i t i o n t h a t much of  avoided  or reduced  disasters  not  through advance as  'isolated  i n c i d e n t s ' but as longer term development problems. Contending that p l a n n i n g shutdown  of  a  i s as v i a b l e and necessary  mine i n a mining community as i t i s i n d i s a s t e r  p l a n n i n g , t h i s chapter  draws on the experiences  planning  developing  preparing  field  f o r the  in  a  conceptual  f o r mine shutdowns. I t begins with an  i n the d i s a s t e r framework f o r examination  of  64  disaster  planning,  followed  by  a  discussion  a p p l i e d to p l a n n i n g f o r mine shutdowns, and  of what can be  finally,  offers  a  conceptual framework f o r preparedness p l a n n i n g .  4.1  ^ N a t u r a l D i s a s t e r Planning 2 D e f i n i t i o n Of A N a t u r a l P i s a s t e r  4.1.1  A n a t u r a l d i s a s t e r may consequences  resulting  be d e f i n e d as the d e s t r u c t i v e from  the  occurrence  of  a  social natural  phenomenon such as an earthquake, mudslide, f l o o d and tornado. Its  severity  i s dependent  upon two  •the c h a r a c t e r i s t i c s of the p a r t i c u l a r suddeness,  duration,  uncontrollable);  and  or  'disaster'  frequency,  agent  (e.g.,  are  usually  which  and  •the c r i s i s management c a p a b i l i t y region  factors:  country,  which  of is  the  affected  controllable  community,  (Wenger,1978;  Brown,1979). The consequences directly, to  life  of a d i s a s t e r are experienced  indirectly, and  (Mileti,1975;  and  property  as  Habitat,1983).  severly  well For  damaged  flooding  (Foster,1980,p.189).  property  damage  between 1915 and  caused 1970  society  and c u m u l a t i v e l y through l o s s and as  systemic  example, the 1970  c y c l o n e k i l l e d a q u a r t e r of a m i l l i o n people, as cattle,  by  by  crops In  O f f i c e of Emergency Preparedness,  disruption Bangladesh head  of  as a r e s u l t of a s s o c i a t e d  the  U.S.,  hurricanes  averaged  many  injury  $142 1972).  on  the  estimated  the A t l a n t i c Coast  million  annually  (U.S.  65  Impacts are a l s o experienced development poorer  (Habitat,1983;  Brown,1979). Some of the smaller and  c o u n t r i e s , such as H a i t i ,  t h e i r GNP due to h u r r i c a n e s cases,  i n l o s s of economic growth and  i t i s impossible  s u f f e r damage as high as 15% of  (Habitat,1983).  However,  i n most  to c a l c u l a t e the l o s s of development  momentum and of b e n e f i t s from economic a c t i v i t y not r e a l i z e d  as  a r e s u l t of a d i s a s t e r . Finally,  few  r e s u l t a n t higher unemployment, others  disaster  figures contain  incidence of d i s e a s e , l o s s  loss  of  (Habitat,1983).  population  i n f o r m a t i o n on the of  housing  stock,  through o u t - m i g r a t i o n ,  There i s a s i m i l a r dearth of  among  information  on the community impacts c r e a t e d by a mine shutdown.  4.1.2 ^ P i s a s t e r Planning Traditionally, and  relief  primarily  Concepts  disasters  have  been viewed as ' a c c i d e n t s '  as the remedy  (Brown,1979).  Planning  been  provision  "relief,  on  the  of  a s s i s t a n c e , and r e c o n s t r u c t i o n e f f o r t s "  emphasis  has  rehabilitation  i n an attempt to r e s t o r e  'normalcy' as q u i c k l y as p o s s i b l e ( M i l e t i , 1 9 7 5 ) . T h i s approach can be d e s c r i b e d as d i s a s t e r s p e c i f i c as w e l l as  reactive  developing  i n that  appropriate  has a l r e a d y  attention  i s typically  focussed  on  responses f o r a c u r r e n t d i s a s t e r a f t e r i t  struck.  However,  i s characterized  by  numerous problems i n v o l v i n g response d e l i v e r y , c o - o r d i n a t i o n  of  involved  this  agencies  'reactive'  (particularly  approach  in  international disasters,  66  where.numerous r e l i e f information  concerning  i n e f f i c i e n t use of problems  organizations the  needs  financial  are  involved),  of  those a f f e c t e d , and  resources,  to  name  but  a  the few  (Brown,1979).  Within  the  past  decade  however, concern  f i e l d has broadened from d i s a s t e r r e l i e f of  inaccurate  disaster  planning.  Essentially,  awareness that d i s a s t e r s are no longer development  to embrace the  this  (Brown,1979,p.101).  reflects  "isolated  problems r e q u i r i n g "planned,  term responses"  in the d i s a s t e r concept a growing  incidents  c o - o r d i n a t e d and  This  involves  but long-  developing  measures f o r d i s a s t e r p r e v e n t i o n and d i s a s t e r preparedness based on  "[a]n  understanding  of  the  causative  v u l n e r a b i l i t y , t h e i r a n a l y s e s and e v a l u a t i o n , and f a c t o r s ) adjustment" The  their  of  (i.e.,  (Habitat,1983,p.16).  goals of reducing  the v u l n e r a b i l i t y to and  a d i s a s t e r , as w e l l as of being prepared are  factors  for  a  l o s s e s from  disaster  agent  c e n t r a l to d i s a s t e r p l a n n i n g . In the l i t e r a t u r e , the former  c o n s t i t u t e s the framework f o r p r e v e n t a t i v e latter  planning  while  the  f o r preparedness p l a n n i n g . Brown (1979,pp.32-34) p r o v i d e s  the f o l l o w i n g d e f i n i t i o n s  f o r each:  [Preventative planning i n v o l v e s the f o r m u l a t i o n and implementation of long-range p o l i c i e s and programs to prevent or e l i m i n a t e the occurence of d i s a s t e r s . On the b a s i s of v u l n e r a b i l i t y analyses of a l l r i s k s , prevention includes land use, zoning, b u i l d i n g construction r e g u l a t i o n s and settlement planning strategies. [P]reparedness planning, on the other hand, i n v o l v e s developing a readiness to cope with disaster situations which cannot be avoided. This involves warning the affected population, developing an operational plan of a c t i o n and an o r g a n i z a t i o n to  67  manage and c o - o r d i n a t e that a c t i o n , the t r a i n i n g of personnel in rescue and r e l i e f techniques, the s t o c k p i l i n g of s u p p l i e s and the earmarking of funds for r e l i e f o p e r a t i o n s .  4.2 ^ The R a t i o n a l e For D i s a s t e r Planning 4.2.1 ^ h. Increase In P i s a s t e r s The in  need f o r d i s a s t e r p l a n n i n g stems from a marked i n c r e a s e  the  number  of  disasters  o c c u r r i n g i n the world, and with  t h i s , an i n c r e a s e i n the extent of t h e i r d e s t r u c t i o n . While i n c r e a s e can be a t t r i b u t e d t o , i n p a r t ,  better  this  r e p o r t i n g , the  primary  reasons appear to stem from:  • rapid  p o p u l a t i o n growth i n d i s a s t e r prone a r e a s . In the U n i t e d  S t a t e s , f o r example, the two f a s t e s t growing s t a t e s and  Florida)  are  vulnerable  to  earthquakes  (California  and  hurricanes  r e s p e c t i v e l y . I n t e r n a t i o n a l l y , there i s a ' d i s a s t e r path' runs  along  the  Mediterranean  to the Middle E a s t , A f g h a n i s t a n ,  P a k i s t a n , I n d i a , Bangladesh south Japan  (Brown,1979).  earthquakes,  These  areas  to  Indonesia  are  and  subject  to  north  to  recurring  c y c l o n e s and typhoons which are, f o r the most p a r t ,  u n c o n t r o l l a b l e . At the same time, t h e i r p o p u l a t i o n to  which  is  expected  i n c r e a s e by 50% between 1975 and 1990 (Brown,1979);  •increasing  u r b a n i z a t i o n i n areas a l r e a d y v u l n e r a b l e t o n a t u r a l  d i s a s t e r s . Greater c o n c e n t r a t i o n of people seen t o be a prime f a c t o r well  as  the  extent  of  in  urban  areas  is  i n the i n c r e a s i n g number of deaths, as p r o p e r t y l o s s e s . In f a c t , many of the  d i s a s t e r s of the 1980s are viewed as 'megadisasters'  as a r e s u l t  68  of the enormous l o s s e s  which  mentioned  Bangladesh  above,  250,000 people and  caused  the  while Hurricane  over  A t l a n t i c coast  they  cyclone  Camille  $1.4 b i l l i o n  (U.S. O f f i c e  inflict.  For  example,  as  k i l l e d an estimated  (1969) k i l l e d  256  people  i n property damage along the U.S.  of  Emergency  Preparedness,  1972,  p.184) .  4.2.2 ^ A Lack Of I n t e g r a t e d Settlement an  area's  planning  exposure  to  Efforts  which ignores or does not i n c o r p o r a t e natural  hazards  only  increases  v u l n e r a b i l i t y of that area t o a d i s a s t e r . Coupled with population greater  growth  and  devastation  inappropriate  rapid  is  increased  u r b a n i z a t i o n , the p r o b a b i l i t y of  encouraged.  settlement  Obvious  p l a n n i n g can be found  examples  areas also  rock  slides  (e.g.,  Lions  during  recovery when housing Recognition developed  of  the  disaster  and developing  settlement  reconstruction  i s rebuilt  mud  B a y , B . C ) , and exposed c o a s t a l  (e.g., C a l i f o r n i a ) . I n a p p r o p r i a t e evident  of  i n the l e v e l of  development i n f l o o d p l a i n s , h i l l y areas which are prone to and  the  planning  phase  of  is  disaster  i n the same l o c a t i o n . hazards  in  many  countries  - tends not to be r e f l e c t e d  in national  or s u b n a t i o n a l s o c i a l , economic or s p a t i a l p l a n n i n g and p o l i c i e s (Habitat, 1 983;  Brown, 1979;  S t o t t , 1 979)..  E f f o r t s t o reduce the  degree of v u l n e r a b i l i t y to r e c u r r i n g d i s a s t e r s have fragmented  and  have  often  been  not r e f l e c t e d a comprehensive approach to  disaster reduction. Reasons f o r t h i s stem from  jurisdictional  competition  or  69  conflict  as  well  which binds  these  as  the  lack of an o v e r a l l planning program  different  levels  example, i t has already been noted disaster  plans  which  could  through  At  a  common  the  the  same  their  they  may,  Given  on  once  Preparedness,  are  reluctant  in to  v u l n e r a b i l i t y to d i s a s t e r s , they are, at the same  relying  assistance  of  time,  l o c a l zoning by-laws, encourage i n c r e a s e d settlement  reduce  two  For  l e v e l of d e v a s t a t i o n  d i s a s t e r - p r o n e areas. While such communities  time,  goal.  that many communities have no  reduce  i n f l i c t e d by a d i s a s t e r agent.  to  regional disaster  and occurs  national (U.S.  governments  Office  of  for  Emergency  1972).  the i n c r e a s e in the number of d i s a s t e r s i n  the  past  to three decades, as w e l l as a marked i n c r e a s e i n the c o s t s public  assistance,  1  such  a  r e p r e s e n t s both an i n e f f i c i e n t and  lack  of  co-ordinated  i n e f f e c t i v e use of  effort  financial  and a d m i n i s t r a t i v e r e s o u r c e s .  4.2.3  - Problems in Developing While  there  is  a Response Framework.  growing  awareness  v u l n e r a b i l i t y to d i s a s t e r s , c o r r e s p o n d i n g l y , r e c o g n i t i o n of the problems response  1  framework. The  surrounding  the  of  the  greater  there i s i n c r e a s i n g current  following offers a brief  disaster  summary of  the  F o r example, the number of major d i s a s t e r s d e c l a r e d i n the U.S. between 1953 and 1973 jumped from 14 to 46: the estimated f i n a n c i a l a s s i s t a n c e p r o v i d e d by the F e d e r a l D i s a s t e r A s s i s t a n c e A d m i n i s t r a t i o n alone (one of nine f e d e r a l agencies i n v o l v e d in d i s a s t e r r e l i e f ) rose from $2 m i l l i o n i n 1953 to $264 m i l l i o n in 1973 (Mileti,1976,p.41).  70  more common  ones  (sources  include:  Brown,1979;  Foster,1980;  Habitat,1983; and U.S. O f f i c e of Emergency Preparedness,  •Prediction  And  Warning  Systems. In many d i s a s t e r s , there was  inadequate warning about the imminence of a d i s a s t e r to  non-existent  forecasting  which had already In other monitored  1972):  systems,  or  agent  forecasting  due  systems  been damaged by the d i s a s t e r agent.  situations,  where  by t r a c k i n g d e v i c e s ,  a  disaster  there  system whereby the l o c a l p o p u l a t i o n  agent  had  was no e s t a b l i s h e d  been  warning  c o u l d be n o t i f i e d .  Further,  a lack of p u b l i c education over d i s a s t e r procedures has, i n many countries,  contributed  Recognition resulted  in  the  programs  to  following  the  Organization  the  need  creation  plan  and  f o r improved warning  of  numerous  develop  Bangladesh  i n j u r i e s and deaths.  such  cyclone,  for "detecting  interorganizational  systems.  the World  the o r g a n i z a t i o n  systems, as w e l l as other aspects of d i s a s t e r  example,  Meteorological which  cyclones  of e a r l y  warning  preparedness  and  (Brown, 1979,p.37).  •Organization. responses  For  and f o r e c a s t i n g t r o p i c a l  the SouthEast A s i a r e g i o n ,  prevention"  systems has  (WMO) e s t a b l i s h e d a T r o p i c a l Cyclone P r o j e c t  is responsible in  of  t o unncecessary  to  Brown(1979,p.25) notes that t y p i c a l l y problems i n a  interorganizational informational,  and  disaster  occur  co-ordination relief  in  assistance  in  the  matters  areas of  operations  of a),  financial, where  co-  o r d i n a t i o n has not been pre-determined. Consequences of t h i s are  71  found i n disagreement between i n v o l v e d responsibilities,  duplication  neglect  and b) p o l i c y c o - o r d i n a t i o n  of o t h e r s ;  of  groups  l e v e l s of governments, among t h e i r international  relief  efforts  over  in  some  and  and  areas and  among the v a r i o u s  respective  agencies,  roles  agencies,  among  among  a l l involved  organizations. Some c o u n t r i e s national  disaster  have  now  relief  p u b l i c and p r i v a t e r e l i e f "study,  prevention,  established  organizations e f f o r t s as  control,  disasters"  (Brown,1979,pp.15-17).  •Disaster  Legislation.  legislation  establishing  a u t h o r i t y , and c o - o p e r a t i o n  to  well  and  Generally,  permanent  as  co-ordinate to  jurisdictional  is  of  a  confusion  natural  i n times of d i s a s t e r . In many  cases,  and the  (U.S. O f f i c e  1972, p.167).  • D i s a s t e r Response P l a n . A l a c k of e s t a b l i s h e d procedures, of a u t h o r i t y , and r e l i e f and  confusion.  measures, has o f t e n r e s u l t e d i n  In some cases,  these have i n c r e a s e d  It  delays  of the  period. appears  that  many communities which a r e v u l n e r a b l e to  n a t u r a l d i s a s t e r s have yet to develop d i s a s t e r p l a n s , them  lines  the s e v e r i t y  of l o s s e s and o v e r a l l c o s t s , while a f f e c t i n g the l e n g t h recovery  of  responsibilities,  and trauma was experienced  of Emergency Preparedness,  the  dearth  ad hoc l e g i s l a t i o n was passed a f t e r d i s a s t e r s occurred accompanying  both  promote  prediction  there  standing  dependent  and  helpless  should  a  disaster  rendering occur.  In  72  response, the  federal  States  developed  have  incentives, local  governments  administrative  created  Emergency  Planning  Canada  operation  with  undertakes  and  enhance  the  Approximately projects  assistance  by the  etc.)  provincial  United  financial  which  encourage  in  consultation  it in  disaster  p r o j e c t s which  national  emergency  is  per  unlikely  the  response  year  is  capability.  allocated  true  of  pp.290-91).  that  disasters  will  ever  through As  community  actions  both the  and  levels  the  degree  preventative  preceding  section  and  of  and has  readiness  organization.  framework p r o v i d e s  The  the  basis  comprehensive d i s a s t e r management than  that which i s o f f e r e d by the d i s a s t e r r e l i e f  2. I m p l i c a t i o n s  a  of  e f f o r t s undertaken at these l e v e l s  i n t o an o v e r a l l d i s a s t e r planning effective  be  sense of the word, i t i s p o s s i b l e to  r e q u i r e s a commitment to developing and  for these  Discussion  l e v e l of d e s t r u c t i o n as well as  both n a t i o n a l  integration  co-  to emergency planning  vulnerability  this  and  contributes  preparedness d i s a s t e r p l a n n i n g . outlined,  through  governments,  milllion  and  government  territorial  $6  reduce both the  more  federal  which,  2. Summary Of D i s a s t e r Planning  'prevented'  4.4  the  ( F e d e r a l - P r o v i n c i a l R e l a t i o n s O f f i c e , 1984,  While  for  and  a s e r i e s of mechanisms (e.g.,  Program was  at  Canada  development of such p l a n s . For example, a J o i n t Emergency  Planning  4.3  of  For Planninq  S i m i l a r i t i e s e x i s t between  approach.  For Mine Shutdowns a  dependent  mining  community  73  which  i s vulnerable  to the shutdown of i t s s o l e employer and a  community which i s v u l n e r a b l e earthquake.  For  example,  c r e a t e a socio-economic  to the occurrence of . a  community.  ' d i s a s t e r ' i n much the same way that the  In  addition,  experience a great  deal  'disaster'  might  agent  or  a mine shutdown has the p o t e n t i a l to  occurrence of an earthquake may c r e a t e a p h y s i c a l another  flood  of  both  kinds  uncertainty  occur,  as  of  over  well  disaster  for  communities  jLf and  when  as the extent  a  of i t s  impacts. However,  one  underlying  difference  ' d i s a s t e r ' that each one experiences l i e s the  disaster  such as  an  whereas  the  could  have  earthquake decision  the  type  of  i n the degree to which  been prevented. A n a t u r a l phenomenon  cannot to  in  be  shut  prevented  down  occurring,  or c l o s e a mine c o u l d be  prevented through changes i n the mineral a c t i o n s such as employee takeovers or  from  markets or p r e v e n t a t i v e  government  intervention.  Recognizing that a mine shutdown c o u l d be approached by a mining community  in  or p r e p a r a t i o n  e i t h e r of two ways - p r e v e n t i o n  f o r i t s occurrence - the t h e s i s focusses  l a t t e r , contending that for  of i t s occurrence  systematically  on  the  i t i s by f a r the most e f f e c t i v e approach  dealing  with  the  possible  loss  of the  has  provided  community's economic mainstay. The an  previous  understanding  d i s c u s s i o n on d i s a s t e r p l a n n i n g of  how  i t i s possible  to  plan  f o r the  occurrence of a n a t u r a l d i s a s t e r and u l t i m a t e l y , c o n t r o l , large  degree,  inherent  the  level  uncertainty.  What  of  i t s destruction  lessons  can  be  to a  as w e l l as i t s drawn  from  the  74  disaster  p l a n n i n g f i e l d which would a s s i s t  approaches are  closures?  Essentially,  there  three.  2 The Need To Prepare  4.4.1  In ad  to mine shutdowns and  i n improving c u r r e n t  both the n a t u r a l and economic  ' d i s a s t e r ' s i t u a t i o n s , the  hoc and r e a c t i v e approach c r e a t e d by a lack of r e a d i n e s s has  r e s u l t e d i n a d d i t i o n a l s o c i a l and economic d i s l o c a t i o n at l o c a l , r e g i o n a l , and n a t i o n a l  levels.  Within the mining community c o n t e x t , the case the  literature  indicate  the  need  for  l e v e l where the s o c i a l and economic consequences  of  are  experienced most d i r e c t l y and immediately. Not  it  is  way  (Robb  i t i s at t h i s either  one  surprisingly,  i n which the shutdown or c l o s u r e process takes  p l a c e r a t h e r than i t s a c t u a l occurrence that problems  and  a mining community to  prepare f o r mine c l o s u r e s and shutdown. C e r t a i n l y ,  the  studies  Ogilvie,  1981;  creates  Fleming,  C o n s u l t a t i v e S e r v i c e s , 1 9 8 2 ) . Much of the way  in  the  most  1978;  Manpower  which  shutdown  occurs depends on the a t t i t u d e of the mining company. Dependency by a mining community on the 'good w i l l ' the  underlying  precariousness  t r a d i t i o n a l ad hoc approach cases, which the or  the  company  of the company  and  to shutdown  unreliability and  closure.  e x h i b i t s a sense of s o c i a l  i s r e f l e c t e d by adequate  notification,  reflects of In  the some  responsibility,  consultation  with  union and governments over the a c t u a l d e c i s i o n to shut down m i t i g a t i v e measures, a p o l i c y of informing the  developments  i n the shutdown, and adequate  community  compensation  of  to those  75  affected  (Appendix  5  contains  an  example  s e n s i t i v e approach developed by Selco South Bay On not  operation  the other  exhibit  a  closure  concern f o r reducing  who  those  existing  in  Agreements.  As  a  adversarial  in  nature  limit  result,  a  to  labour  c l o s u r e and  2. O p p o r t u n i t i e s For  a  'frontier', created  'trauma' of a  process  becomes  the  to develop  a  possibility systematic  a  need  of a mine  'means'  for  consequences of both.  For Managing ' Di s a s t e r s '  dependent options  for  is  mining community l o c a t e d on the are  limited  for  avoiding  the  resource problems  by e i t h e r a mine shutdown or i t s c l o s u r e . However, from  community occurrence minimizing and  appropriate manage  to  l e g i s l a t i o n and C o l l e c t i v e  shutdown  the d i s c u s s i o n on d i s a s t e r planning,  roles  do  c h a r a c t e r i z e d by c o n f l i c t s between  prepare  managing the process and  4.4.2  its  (Fleming,1978).  community  shutdown and  of  their social responsibilities  the  and  the  Given these problems, i t i s obvious that there for  type of  hand, there are many mining communities who  shutdown/closure and  involved sectors  its  this  in Ontario).  similar  outlined  in  of  the  assessing  may  not  have  the  i t was  capac i t y  of a d i s a s t e r , i t has  learned  for  as  well  as  s t r a t e g i e s , the community has process and the  preventing  the p o t e n t i a l f o r managing  i t s consequences. Hence, through responsibilities  that while a  the  of  development  of  opportunities  to  consequences of a shutdown. F u r t h e r ,  circumstances  of  the  and  allocation  the the  the  community  as  well  by as  76  determining those impacts which are (a) t o t a l l y manageable (such as  temporary  unemployment  i n the case of mine shutdowns);  p a r t i a l l y .manageable or capable of being i n f l u e n c e d r e t e n t i o n of housing and over  extensions  guidelines,  and  (such as the  f o r r e s i d e n t s d u r i n g p e r i o d s of  (c) u n c o n t r o l l a b l e or unavoidable of  a  shutdown),  shutdown);  ( f o r example, u n c e r t a i n t y appropriate  agreements can be developed  management (Robb O g i l v i e ,  strategies,  f o r a c h i e v i n g such  1981).  The process through which these measures are developed e s s e n t i a l l y , p l a n n i n g , and  and  is,  i n v o l v e s the f o l l o w i n g s t e p s :  •goal or o b j e c t i v e formulation/problem •an  (b)  identification,  a n a l y s i s of the c u r r e n t s i t u a t i o n , along with o p p o r t u n i t i e s constraints,  •the development of a l t e r n a t i v e s , •an assessment of these a l t e r n a t i v e s fulfills  according  to  which  best  the e s t a b l i s h e d g o a l / o b j e c t i v e ,  • s e l e c t i o n and  implementation  of t h i s  alternative,  • e v a l u a t i o n of the e f f e c t i v e n e s s of t h i s a l t e r n a t i v e once i t has been implemented and This  process  feedback. i s d e p i c t e d i n F i g u r e 4.1.  t h i s p l a n n i n g process i s both continuous and i s meant that through adapting  changes  noted,  i t e r a t i v e . By  this  loops, the process i s c o n t i n o u s l y  in  local  p r e v e n t a t i v e measures and  so on.  4.4.3  to  feedback  As w i l l be  c o n d i t i o n s , development of  new  ^ The Need For A Comprehensive Approach From the d i s c u s s i o n on d i s a s t e r p l a n n i n g as  well  as  from  FIGURE 4.1 - THE PLANNING PROCESS  PROBLEM IDENTIFICATION  GOAL SETTING  A  SITUATION ANALYSIS -  present/future  - internal/external -  opportunities/ constraints  GENERATION  OF ALTERNATIVES  ASSESSMENT OF ALTERNATIVES  SELECTION &  •EVALUATION  IMPLEMENTATION  78  the  a n a l y s i s of the two case s t u d i e s , i t appears that a general  lack of c o - o r d i n a t i o n e x i s t s among and w i t h i n v a r i o u s l e v e l s organization that  a  i n t h e i r e f f o r t s to manage ' d i s a s t e r s ' . I t i s c l e a r  fragmented  approach  is  both  i n e f f i c i e n t . What i s needed t h e r e f o r e , approach  which  community , 1  of  integrates  regional  and  is a  policies  national  counterproductive more  and  comprehensive  and  planning  at  the  levels.  However,  it  is  important that the p l a n n i n g undertaken at the community l e v e l  be  supported  or  regional  by  institutional  structures  at  the  (e.g., t e r r i t o r i a l ) l e v e l s . For example,  regulatory  measures  at  these  c o n j u n c t i o n with ' d i s a s t e r ' community l e v e l  levels  should  national policies  and  be developed i n  response measures e s t a b l i s h e d at the  i n order to achieve  greater  effectiveness  and  ef f i c iency.  4.5 2. h. Conceptual Framework Of Preparedness P l a n n i n g Drawing from these three l e s s o n s as well as the d e f i n i t i o n s of  preventative  and  preparedness p l a n n i n g o f f e r e d above, t h i s  t h e s i s proposes a 'preparedness p l a n n i n g ' approach mine  shutdowns.  the development at  the l o c a l ,  1  loss  of  managing  T h i s concept of preparedness p l a n n i n g i n v o l v e s of both preparedness and  preventative  measures  r e g i o n a l , and n a t i o n a l l e v e l s to reduce the l e v e l  of d i s l o c a t i o n o f , as well as the degree the  to  a  resource  of  community's  vulnerability economic  to,  mainstay.  The community l e v e l i n c l u d e s a l l i n v o l v e d a c t o r s i n a p a r t i c u l a r community (e.g., mining company, union, workers, governments) as o u t l i n e d i n Chapter One.  79  A c c o r d i n g l y , there are three l e v e l s of o r g a n i z a t i o n i n v o l v e d in  actual  preparedness  ('regional') making,  p l a n n i n g : the n a t i o n a l and t e r r i t o r i a l  l e v e l s which are concerned  and  the  in  community  level  primarily  at  which  with  a  policy  preparedness  framework and a c t u a l shutdown responses are developed. The  following  section  outlines  the  overall  conceptual  framework of preparedness p l a n n i n g . I t begins with a d e s c r i p t i o n of  what  is  involved  at  the  community l e v e l ,  overview of the a c t i v i t i e s at the broader  4.5.1  2 Community It  Preparedness Planning  i s at t h i s l e v e l that p l a n n i n g  community  f o r the  possibility  of  policy  and  levels.  Level i s undertaken  a  mine  e v e n t u a l i t y of i t s c l o s u r e . Such p l a n n i n g occurs  f o l l o w e d by an  shutdown  government(s),  community  residents,  (e.g.,  and  mining  each  and the  i s done before  i s most e f f e c t i v e when done by those most  with the p a r t i c u l a r  in  either  familiar  company,  union,  p r i v a t e s e r v i c e s e c t o r ) . Due to  the u n c e r t a i n t y as to the type and t i m i n g of shutdown as w e l l as the general economic c o n d i t i o n s at the time  of  shutdown,  such  planning must remain g e n e r a l , f o c u s s i n g on d e v e l o p i n g s t r a t e g i e s for  managing  shutdown  and  on  allocating  r e s p o n s i b i l i t i e s f o r when i t o c c u r s . S p e c i f i c a l l y , planning needs to focus on three •strategies (that  f o r responding  i s , detrmining  to  roles  and  preparedness  areas: an  a c t u a l shutdown or c l o s u r e  who i s r e s p o n s i b l e  f o r what  when  either  occurs; •strategies  to offset  the r e s u l t i n g d i s l o c a t i o n when a shutdown  80  occurs  (that  shutdown  is,  what  to  reduce  shutdowns  or  economic  mainstay  community  ^  loss  Shutdown  shutdown  a  management  closure  has  framework planning  of  vulnerability  and  who at  Even  the  Planning  planning  at  framework  during  the  permanent)  strategies if  the  community  readiness the  It  is  should the  do  level  focusses  based  the  emphasis given  on  shutdown,  level a  involves  shutdown  or  the  pre-determined  community  preparedness  on  determining  the  particular  what  should  needs  and  time.  National  federal  development  i t  its  reducing  a  community  announced.  with  of  for  for  i n i t i a t e d once  but  future  viable).  is  through  to  Level  of  at  or  and  2. T e r r i t o r i a l A n d  resource  undertaken  temporary  planning  established process,  level  one. e m p l o y e r ,  planning  been  circumstances  4.5.3  on  general  resource  done  be  example,  Management  specific  be  (for  preparedness  developing  the  (either  dependency  While on  could  period);  •strategies  4.5.2  projects  Policy  government's in  lands  north  Planning  direct of  Levels  responsibility 60 , 1  along  with  for the  ' S p e c i f i c a l l y , w i t h i n DIAND, t h e r e i s a Northern Resources and Economic Planning Branch with a Mining Management and Infrastructure Directorate. This Directorate is responsible for formulating policies, drafting legislation and r e g u l a t i o n to ' p r o m o t e o r d e r l y management and d e v e l o p m e n t of m i n e r a l resources i n the Yukon and NWT'. In a d d i t i o n , i t i s a l s o responsible for a s s e s s i n g the t e c h n i c a l , economic, f i n a n c i a l , and s o c i a l e f f e c t s of m i n e r a l p r o j e c t s (DIAND,1983b,p.126).  81  territorial economic  government's d i r e c t  concerns ,  responsibility  for  social  there i s c o n s i d e r a b l e o p p o r t u n i t y  1  and  f o r both  to develop  appropiate p o l i c i e s  f o r the problems c r e a t e d by  shutdowns  and  c o n s i d e r a t i o n of t h e i r r e s p e c t i v e  closures.  On  jurisdictional  authorities  administra'tive  organizations,  focus  on  developing  as  well  as  their  activities  policies  which  respective  at each l e v e l  directly  mine  or  should  indirectly  r e q u i r e community preparedness p l a n n i n g . Such p o l i c i e s should general for  i n nature  each  community  particular provided  4.6  while, at the same time, p r o v i d i n g to  circumstances.  develop  plans  Examples  of  Preparedness  4.1  process  are  planning  integrates  all  three  in  levels  of  4.1.  The  Table  - whether p o l i c y or preparedness - undertaken  each i n v o l v e s a s e r i e s of steps which were o u t l i n e d i n F i g u r e above. T h i s process  so that d i f f e r e n t could  use  consistent;  f  policies  its  Efforts  p l a n n i n g as can be seen from i t s d e p i c t i o n  at  to  i n the f o l l o w i n g c h a p t e r .  2. I n t e g r a t i o n Of  planning  flexibility  appropriate these  be  should be both  government agencies  i t : systematic, flexible,  in  systematic  and  flexible  and a l l mining communities  that  in that i t needs to  it  is  structured  address  and  and  reflect  The Department of Economic Development and Intergovernmental R e l a t i o n s , and i n p a r t i c u l a r , the Economic Research and Planning Branch, i s r e s p o n s i b l e f o r f o r m u l a t i n g p o l i c y a l t e r n a t i v e s for s o c i a l and economic i s s u e s a f f e c t i n g economic development i n the T e r r i t o r y (DIAND,1983b,p.188).  PURPOSE  LEVEL POLICY PLANNING  F E E D B  A  n K  -national/ territorial .level , (universal application) - uncertainty PREPAREDNESS PLANNING -  community level  - to establish a p o l i c y context f o r community preparedness planning  -  community planning f o r eventuality of p a r t i c u l a r mine closures & possib i l i t y o f mine shutdowns;  (specific application, though genera L in nature), less uncertainty but future orient ation.  SHUTDOWN - community plannina MANAGEMENT IMPLEMENTATION s p e c i f i c r e s p o n s e s PLANNING to p a r t i c u l a r shutdown o r - community c l o s u r e once i t level a c t u a l l y has -very s p e c i f i c been announced immediate, certainty  COMPONENTS - stages o u t l i n e d i n planning process i n F i g u r e 4.1 - establishes the requirement that actors develop preparedness plans  'ACTION-FORMING MECHANISMS  - stages i n F i g u r e 4.1 - must i n c o r p o r a t e : l ) l o n g term o p t i o n s for avoiding l o s s o f economic m a i n stay 2) shutdown management s t r a t e g i e s f o r avoiding or reducing dislocation & f o r managing shutdown process - who s h o u l d do what s p e c i f i c a l l y when shutdown/closure o occurs - same s t a g e s a s i n F i g u r e 4.1 f o r g e n e r a t i n g 'emergency response' a c t i o n s  -  legislation  -  regulations  -  incentives  - agreements  -  contracts  - agreements - persuasion -  plans  - networks -  flow  charts  actions  83  the  particular  circumstances, needs, and o p p o r t u n i t i e s of each  community and at each l e v e l of government. Its overall structure nature  where  'feed-out'  c r e a t e s an on-going result  is  characterized  and  'feed-back'  a  its  among  l e a r n i n g process which,  i n a more comprehensive approach  example,  by  these  As  should  to mine shutdowns. As an  community c o u l d provide policy-makers with  i n the management of shutdown a  levels  ultimately,  information r e g a r d i n g the e f f e c t i v e n e s s of c e r t a i n assisting  iterative  specific  policies  in  impacts.  r e s u l t , u n c e r t a i n t y i s reduced as one moves from the  p o l i c y l e v e l where ' p o s s i b i l i t i e s ' which c o n t a i n a good d e a l uncertainty  as  to  place  and  time  must be addressed,  shutdown l e v e l where s p e c i f i c plans must  be  of  to the  formulated  for  a  known p l a c e and time. The  f u t u r e h o r i z o n addressed at each  level  is  one moves from the most general  (i.e.,  brought  policy)  forward  planning  implementation)  as  level  planning  to  the  most  specific  (response  level.  4.7 Summary This  chapter  preparedness  has  developed  a  conceptual  p l a n n i n g f o r mine shutdowns i n an attempt  a more systematic approach  to t h e i r management than  by the ad hoc and r e a c t i v e  one.  While important  the to  framework  the  policy  and  overall  management effectiveness  of  to c r e a t e  is  offered  p l a n n i n g l e v e l s are as of  the  preparedness  84  planning  approach  the l a t t e r hence, chapter.  it  as i s community preparedness  that the t h e s i s is  that  level  is  primarily  planning, i t i s  concerned  with,  and  which i s the focus of the following,  85  CHAPTER FIVE PREPAREDNESS PLANNING AT THE COMMUNITY LEVEL Dependent communities faced  with  uncertainty  mainstay, and little  such as over  consequently,  planning  to  deal  Elsa  the their  and  Faro,  which  l i f e - s p a n of t h e i r own  life-span,  e f f e c t i v e l y with i t .  than  a r e c o g n i t i o n of the need  plans  in  response  to  to  notification),  this plan'  f o r a p a r t i c u l a r type of a  dearth  a c t u a l shutdown (e.g., who and what  should be i n v o l v e d i n a d d r e s s i n g the community shutdown  done  Typically,  planning p r o c e s s . T h i s has been r e f l e c t e d not only by of  economic  have  u n c e r t a i n t y has tended to evoke a response of 'unable rather  are  but  additionally,  needs by  preparedness p l a n n i n g f o r the p o s s i b i l i t y of  following  an  absence of  shutdown  and the  i n e v i t a b i l i t y of c l o s u r e . It  i s highly  probable that E l s a and Faro w i l l once again  experience the l o s s of t h e i r economic mainstay. community  develop  a  readiness  for this  Should  l o s s , i t would seem  l i k e l y that they w i l l experience a r e c u r r e n c e of those recently and  encountered: c o n f l i c t  neither  problems  over r o l e s and r e s p o n s i b i l i t i e s ,  inadequate a s s i s t a n c e measures. However, by  approach  to  the  undertaking possibility  would be a b l e to reduce, to economic  dislocation  which  v u l n e r a b i l i t y to f u r t h e r t h e i r economic  a  base.  more  systematic  and  of such a l o s s , both  a  large  degree,  i t creates  losses  as  (temporary  the  planned  communities social  and  w e l l as c o n t i n u e d or  permanent)  of  86  The  preparedness  planning  framework  outlined  in  this  chapter p r o v i d e s communities such as E l s a and Faro with a for understanding developing  not only of who  community  readiness  and what should be  involved in  f o r the occurrence  of shutdown  and c l o s u r e , but a l s o what the requirements greater s e l f - s u f f i c i e n c y Expanding  on  i n the long  each  step  the preparedness  in  d i s c u s s i o n of who The  the  actual  implementing t h i s  with an overview  with  recognition  p o s s i b i l i t y of i n d e f i n i t e and addition,  goals  existing  municipal  how.  of v a r i o u s mechanisms for  Identification  once  preparedness  such  should  the  temporary shutdowns.  is,  does  the  community  want  to  the mine has c l o s e d . For company towns  company. However, other  status,  planning  of mine c l o s u r e as w e l l as  such as E l s a , continued e x i s t e n c e may by the mining  and  r e g a r d i n g the f u t u r e of the community  should be e s t a b l i s h e d ; that continue  followed by a  of the strong p o s s i b i l i t y of f u t u r e  d e c l i n e , given the i n e v i t a b i l i t y  In  description  Process  community undertaking a  begins with a  process.  2 Goal Establishment/Problem  begin  developing  planning framework o u t l i n e d  planning p r o c e s s ,  5 . 1 - Preparedness P l a n n i n g : The  A mining  for  should be i n v o l v e d i n the p l a n n i n g ,  chapter concludes  5.1.1  are  run.  in the p r e v i o u s chapter, t h i s chapter of  basis  as  Faro,  not be an o p t i o n permitted mining should  communities determine  c o n t i n u a t i o n should be a g o a l . As w e l l , the goal  of  with  whether  minimizing  the trauma which has t y p i c a l l y accompanied shutdowns i n the past  87  should  5.1.2  a l s o be a r t i c u l a t e d .  - Situation Analysis Once  a  is desired, this  community has  that  i t needs to determine the  goal.  An a n a l y s i s should  c o n s t r a i n t s for a c h i e v i n g social  decided  and  economic  i t s continued  feasibility  of  such g o a l s .  variables  A  number  of  company  programs,  policies,  communities.  and  In  general  economic, s h o r t - and  used  possible  such  inventory  of  analysis  information  problem  areas  periods  of  when  cyclical  by  social  and  types of shutdown  available  strategies  with  an  resources  for  of the  community  and  offsetting  is  in  possible  improbable.  important, however, that these a l t e r n a t i v e s r e f l e c t situation  r a t h e r than w i s h f u l t h i n k i n g . For diversification  consultants  -  mining  shutdown, the a n a l y s i s i s a l s o c r i t i c a l  the a c t u a l c o n d i t i o n s and  economic  other  community  once the mine c l o s e s or whether i t i s h i g h l y is  availability notification,  impacts  the  concerning  establishing  economic  determined.  provides  determining whether c o n t i n u a t i o n  It  on  long-term - f o r a l l three  (and p o s s i b l e extensions) need to be While  political,  opportunities,  policies  strategies  addition,  and  need to be assessed, i n c l u d i n g  d i v e r s i f i c a t i o n a l t e r n a t i v e s , housing a v a i l a b i l i t y , assistance  achieving  be made of the o p p o r t u n i t i e s  l o c a t i o n , community s t a t u s , employment  of  existence  of  of  p.92):  mining  community,  example, o p p o r t u n i t i e s  Uranium  commissioned by a l o c a l task  reasons (Wolfe, 1982,  the  City force  were for  for  dismissed five  the by  major  88  •the time  l a g i n g e t t i n g a p r o j e c t going;  •the l i m i t e d market o p p o r t u n i t y ; •social  unacceptability  of some of the p r o p o s a l s ( f o r  example, a d e t e n t i o n c e n t e r , a nuclear waste • l o c a t i o n a l disadvantages  in  terms  site);  of t r a n s p o r t a t i o n  c o s t s ; and, •few  jobs  would be c r e a t e d , or e l s e jobs would not be  c r e a t e d f o r a p o p u l a t i o n not a p p r o p r i a t e l y t r a i n e d .  5.1.3 2. Generating A l t e r n a t i v e s In the p r e v i o u s chapter, should prepare  i t was  noted  that  a. community  f o r a shutdown i n three ways:  •strategies  for avoiding  the  loss  of  an  economic  mainstay, i f p o s s i b l e ; •strategies  for offsetting  periods  of  indefinite  shutdown; and •a response  framework f o r when shutdown does occur.  Within each area, a l t e r n a t i v e s should be developed, The  purpose  preparedness responding minimize  of  i f possible.  g e n e r a t i n g a l t e r n a t i v e s f o r the three areas of  i s to determine ahead of time the requirements  e f f e c t i v e l y to the p o s s i b i l i t y of a shutdown, and to i t s community  consequences.  Four  basic  components  should be r e f l e c t e d w i t h i n each a l t e r n a t i v e : •purpose, o b j e c t i v e s , and p r i o r i t i e s ; • l e g a l a u t h o r i t y and a l l o c a t e d  responsibility;  • o r g a n i z a t i o n and c o - o r d i n a t i o n of i n v o l v e d s e c t o r s and their  for  r e s p o n s i b i l i t i e s ; and  • a v a i l a b l e f i n a n c i a l and a d m i n i s t r a t i v e r e s o u r c e s .  89  Inherent in t h e i r development i s the determination and  responsibilities.  response' may  This  temporary  incorporated  a d d i t i o n , r e c o g n i t i o n that a  be needed must a l s o  alternatives. within  In  staged  and  be  response  indefinite  'staged  incorporated  into  r e f e r s to the  uncertainty  shutdowns,  in each a l t e r n a t i v e i n order  to shutdown extensions  of r o l e s  which  these  should  to respond  be  immediately  or s i t u a t i o n s where a shutdown  eventually  becomes a c l o s u r e .  •Dependency-Reduction A l t e r n a t i v e s These dependency analyses  in  are e s s e n t i a l l y p r e v e n t a t i v e  s t r a t e g i e s for avoiding  on  should  one Step  economic 2  mainstay  indicate  development r e q u i r e s , f i r s t  of  the  situation  such o p p o r t u n i t i e s e x i s t . T h e i r a l l , consensus  involved  parties  as to the continued  mine has  c l o s e d permanently. T h i s demands that thought be  not  to f u t u r e economic o p p o r t u n i t i e s , but more  only  existence  among  of the community once the given  importantly,  to the degree of f u t u r e commitment to the community. While i t i s unrealistic  to  expect r e s i d e n t s to commit themselves to  i n a mining community for ever, i t i s necessary to future  government and  r e a l i s t i c . By t h i s level  of  financial  living  ensure  r e s i d e n t commitments to the community  that are  i s meant that a government r e q u i r e s a c e r t a i n  population support;  to  warrant  likewise,  the  provision  of  services  and  r e s i d e n t s need to know that  such p r o v i s i o n s would be made. Should there  be a lack of  i n t e r e s t in  long-term  residency  90  by  the m a j o r i t y of the r e s i d e n t s , and, more d e c i s i v e l y ,  by  the  government,  attention  developing a well-thought-out appears  to  be  sufficient  should  be  support  directed  toward  c l o s u r e p r o c e s s . However, i f there  support  f o r developing the  v i a b i l i t y of the community, then p l a n n i n g should  be  long-term undertaken  to develop an a l t e r n a t e economic base. While  it  d e t a i l the  conditions  important economic  i s beyond the scope of t h i s t h e s i s to d i s c u s s i n for  economic  v a r i a b l e s which determine diversification  experiences  of  have  diversification, the p o t e n t i a l  been  identified  Atikokan, a former mining  several  for e f f e c t i v e through  the  community i n O n t a r i o .  These v a r i a b l e s a r e : • l e a d time three  (from Atikokan's e x p e r i e n c e , i t  to  five  years  to implement new  between e i g h t and ten years to l o c a t e  for  of  economic  a  p a r t y with e x p l i c i t  diversification  development o f f i c e r or •role  of  senior  programs, and  an  (that  Economists A  list  in  of  and  leadership)  L t d . , 1982,  responsibility an  economic  terms of a t t i t u d e s , would  assistance  be  and,  resources and a t t i t u d e s  commitment  jobs);  (e.g.,  is,  p r o v i d e d f o r such attempts?); •community  alternative  committee);  governments  support  from  i n d u s t r y , and  economic base capable of s u s t a i n i n g 1,000 •designation  takes  (e.g., demonstrated  (Intergroup  Consulting  p.s-2).  diversification  o p p o r t u n i t i e s proposed  mining communities of Uranium C i t y , Atikokan, and  by the  Thompson,  is  91  c o n t a i n e d i n Appendix  6.  • C y c l i c a l Shutdown Preparat ion A l t e r n a t i v e s There  is  also  a  p e r i o d s of shutdown.  need  For  to develop a l t e r n a t i v e s to o f f s e t  example,  a  stockpile  of  make-work  p r o j e c t s c o u l d be c r e a t e d i n advance which r e f l e c t s the needs of the  community  One  such  and  area  rehabilitate  which c o u l d be implemented on short n o t i c e .  involves  some  of  environmental  the  area  clean-up  destroyed  (Bradbury  and Wolfe, 1983). A  initiated  i n Sudbury as a means of c r e a t i n g  (R.  MacDonald,  1983).  similar  Such  a  u s e f u l f o r Faro during the p e r i o d possibility  by  programs mine  'greening'  to  tailings  program  jobs d u r i n g  was  lay-offs  s t o c k p i l e would have been very of  its  e x i s t s that an i n s u f f i c i e n t  mine  shutdown.  The  number of p r o j e c t s c o u l d  be c r e a t e d by repeated extensions of a shutdown, as was  the case  with Faro; however, t h i s c o u l d be r e c t i f i e d by c r e a t i n g p r o j e c t s which are s h o r t - , medium-, and  long-term  i n nature.  •Closure Preparat ion A l t e r n a t i v e s These types of a l t e r n a t i v e s address ways of reducing and  economic  dislocation,  permanent c l o s u r e occur. For concerned  with  generating  should e i t h e r p e r i o d i c the  most  shutdown or a  they  should  agreement c o u l d be undertaken  trauma. As an  between the mining  example,  company and  the community, o u t l i n i n g steps to be taken by the mining in the event of a shutdown.  be  f a i r and e q u i t a b l e agreements among  i n v o l v e d a c t o r s , to minimize, unnecessary an  part,  social  company  92  5.1.4  ^ Assessment  And  Selection  Once i d e n t i f i e d , the o p t i o n s f o r each of the three areas of preparedness need to be assessed a g a i n s t  (a) community goals and  (b) o p p o r t u n i t i e s and c o n s t r a i n t s . Those for  preventing  the  loss  of  an  o f f s e t t i n g p e r i o d s of temporary be  implemented  actually  economic  or i n d e f i n i t e  alternatives occurs,  to  and  must  determine  which  and f o r  shutdown, need from  implementation  obviously  selected  mainstay,  as soon as p o s s i b l e , to b e n e f i t  lead time. However, s e l e c t i o n management  alternatives  to  sufficient  of  shutdown  wait u n t i l a shutdown  alternative  is  most  a p p r o p r i a t e f o r the p a r t i c u l a r circumstances at the time.  5.1.5  - Evaluation To  determine  the  e f f e c t i v e n e s s of a s e l e c t e d  alternative  for each of the three areas of preparedness p l a n s , an e v a l u a t i o n of i t should be undertaken occurred  and  the  after  preparedness  a  shutdown  plan  or  closure  has been put i n t o a c t i o n  through the shutdown management p l a n . Such e v a l u a t i o n for  useful  effective.  2. Feedback Of a b s o l u t e importance  preparedness  planning  between  within  continual and  is  the community as w e l l as others i n a s c e r t a i n i n g whether the  s t r a t e g i e s are v i a b l e and  5.1.6  has  and  examination  to  the  process each  step.  long-term  is  the need  Basically,  success  of  the  f o r feedback,  both  this  of the p l a n n i n g process and  requires  a  i t s results,  i n v o l v e s d e v e l o p i n g an i t e r a t i v e process whereby that  which  93  is  learned  i s i n c o r p o r a t e d i n t o f u t u r e preparedness  and  into adjusting,  strategies  i f necessary, the p l a n n i n g p r o c e s s .  5.2 ^ Roles And R e s p o n s i b i l i t i e s Each of the i n v o l v e d a c t o r s i n a role  to  play  (or,  in  the  mining  community  i n p r e p a r i n g f o r mine shutdowns, both case  of  the  residents,  has  a  sectorally  individually)  and  c o l l e c t i v e l y , as i n v o l v e d p a r t i c i p a n t s i n a mining community. To develop  this  established respect  ' c o l l e c t i v e r e s p o n s i b i l i t y , ' a s t r u c t u r e should be for allocating  and  responsibilities  to the community needs and f o r undertaking  p l a n n i n g . F i r s t , however,it of  roles  with  preparedness what  some  those r e s p o n s i b i l i t i e s might be f o r each s e c t o r , given  their  respective  resources  responsibilities  of  and  i s necessary to determine  jurisdictions.  parties  suggests  some  the  should be determined  the p a r t i c u l a r circumstances of each section  While  community,  responsibilities  of  actual  according to  the  following  these s e c t o r s f o r  p r e p a r i n g f o r shutdown.  5.2.1 2 The Governments As mentioned e a r l i e r territorial the  federal  i n the t h e s i s , both  the  federal  governments a r e i n v o l v e d i n a mining community; with government  promoting  development p r o j e c t s i n T e r r i t o r i a l government i s i n v o l v e d i n t h e i r  and  facilitating  f o r these  resource  lands, while the t e r r i t o r i a l  s o c i a l and economic development.  E s s e n t i a l l y , both governments formulate p o l i c i e s and programs  and  communities.  For  example,  in  administer Faro, YTG  94  provides educational  services;  while  the  federal  government  p r o v i d e s such h e a l t h s e r v i c e s as a nursing s t a t i o n . The through  governments provision  formulation, primarily  are  of  involved  these  however,  directly  i n the community  administrative  occurs  at  a  services.  geographic  i n Whitehorse and Ottawa - and at a  primarily  at  a  regional  and  national  community  and  policy-makers  policy  isolated  Hence,  While of  this isolation  government  preparation place  to  both  preparedness  Not  between  the  in  the  provision  of  be more  needs of t h i s type of community. reduces the a b i l i t y of the two  provide  in  level.  i n both governments may  substantive  f o r mine shutdowns, t h e i r  them  positions  to  input  into  respective ensure  that  levels  community  jurisdictions a  community  p l a n n i n g process i s implemented. The support of the  n a t i o n a l and t e r r i t o r i a l importance  involved  policy-makers  from the s p e c i f i c  level  as there i s between the community  and l o c a l government personnel services.  distance  general  s u r p r i s i n g l y , there i s not the same d i r e c t c o n t a c t  Policy  levels  of  government  to the success of the community  is  of  preparedness  utmost planning  e f f o r t . V a r i o u s o p t i o n s f o r p r o v i d i n g such support are d i s c u s s e d below i n s e c t i o n  5.2.2  5.3.  2 The Mining Company Traditionally,  been r e s p o n s i b l e f o r involvement  by  it a  has  been  mining  governments  in  the mining company which has  community. the  However,  creation,  f i n a n c i n g of these communities has changed  the  increased  o p e r a t i o n , and nature  of  the  95  role  and  r e s p o n s i b i l i t i e s of a mining company for i t s dependent  commun i t y . While i n t e r v i e w s revealed its  various  mining  company  and  workforce, and  governments, i t has  secondly, to  situation,  the  trends  i n the  planning, i n the  be  intentions  operations. period other try  to  either has  notification  formal  shut  both  already  been  recommended  until  required  give  to  mining  may  shutdown  company  not  However, while i t i s not  sufficient the  the  the Board  know  or  situation  known what a should  possibilities  that  disclosure  be  However,  it  is  contended  of  competitors;  that t h e i r workers might leave p r i o r to the closure.  the  time f o r the community to prepare.  t h e i r plans might give an u n f a i r advantage to t h e i r finally,  of  that many companies  community  i t a c t s , once decided,  Other problems i n c l u d e  and  the  be e s t a b l i s h e d through l e g i s l a t i o n  i t s parent company (as was  studies).  Board decides  of  that  l a s t moment, since the d e c i s i o n i s o f t e n made by  case  the  in doing so f o r s e v e r a l reasons. In the case  Board of D i r e c t o r s of in  that  down or permanently c l o s e i t s  of a shutdown, a l o c a l l y based mining the  and  i n a s s i s t i n g community preparedness  measures, i t i s forwarded that the  be c o n s t r a i n e d  until  markets,  proposed  to give even more time. It i s recognized  may  financial  give as much advance warning as p o s s i b l e  While i t  for  that a  f o l l o w i n g ways:  •the company should its  involved  is  to  community  its  i n t e r n a t i o n a l mineral  the l i f e expectancy of the ore body, i t company  the  first  c e r t a i n o b l i g a t i o n s f o r ensuring  i s prepared f o r shutdown. Given i t s knowledge of  mining  officials  that r e s p o n s i b i l i t i e s of a mining company are  shareholders  and  with  that  actual such  96  notification  is  essential  to developing  specific  responses to  the a c t u a l occurrence of e i t h e r . •that the mining company, i n a d d i t i o n to the terms contained its  Collective  Agreement,  contribute  to the c o s t s of  s t a b i l i t y programs or economic d i v e r s i f i c a t i o n planning administrative  and/or  p r e d i c a t e d on the created  to  fact  serve  company 'pay  the  i t s way  future,  this  would be  incorporated  •the mining Agreement  periods  since  the  interim through  T h i s proposal  is  community  was  mining  i n t e r e s t s of company, i t f o l l o w s that out'  by  means  of  such  the  assistance.  In  closure  i n t o the o v e r a l l p r o j e c t c o s t s ,  company  should  incorporate  into  its Collective  o u t l i n e of i t s r e s p o n s i b i l i t i e s regarding  rental of  that  assistance.  would mean that the c o s t s of shutdown and  an  housing,  financial  in  subsidies,  temporary  might have reduced the  and  and  employment  company  programs  during  i n d e f i n i t e shutdown. Such p r o v i s i o n s  level  of  conflict  which  was  created  f o l l o w i n g the shutdown at E l s a . While  several  mining  some elements of planning f o r c e , any resented to  5.2.3  Agreement  i n t o t h e i r agreements with t h e i r  by the company. However, such requirements are a  mininum standard  a mining company's p r i v a t e  ^ The The  incorporated work  e x t e r n a l i m p o s i t i o n of such r e s p o n s i b i l i t i e s c o u l d  establish  supplant  companies have a l r e a d y  be  intended  of r e s p o n s i b i l i t y rather  than  initiatives.  Union  union, with  through the  negotiations  company,  should  over attempt  its to  C o l l e c t ive develop  a  97  readiness  f o r p o s s i b l e shutdown and  closure  in  the  following  ways: •it  should  initiate  discussions  with  i s s u e s as the above-mentioned housing during •it  periods  should  be  Private Service  T n e  Since  this  operations, informed  sector  a  a readiness  business,  officials,  the  availability of  a  s e c t o r and abreast  of  i s not  of shutdown.  i n v o l v e d with the a c t u a l mining  shutdown  private  usually and/or  sector,  responsible mining  expected  of company and  shutdown.  the  last  to  be  c l o s u r e . Hence, in  Further,  company  prior  for and  to  establishing  ascertaining involved  through  government  l i f e - s p a n of the mine, as w e l l as government a s s i s t a n c e a liaison  the mining company  should  in  the  the  event  between the p r i v a t e s e r v i c e be  established  developments i n the mining o p e r a t i o n s ,  government to encourage the development of programs.  make-work  f o r the p o s s i b l e occurrence of e i t h e r , i t  be  d i s c u s s i o n s with the  of  two  Sector  mining  i s suggested that the their  arrangements  a stock-pile  periods  i t f o l l o w s that they are  about  developing  rental  r e s p o n s i b l e , with support by the company and  p r o j e c t s to be undertaken during  2  and  company over such  of shutdown.  l e v e l s of government, f o r developing  5.2.4  the  possible  to  and  with  keep the  assistance  98  5.2.5  ^ The Residents It  has  been noted that  "the i n e v i t a b i l i t y of mine c l o s u r e  and shutdown i s o f t e n t r e a t e d with complacency and  its  residents  1982,p.2). The  unemployment,  prime  and  for  of  possible  insurance  initiate  local tourist  5.2.6  eventual  home  purchases  i s feasible, residents  development  projects,  such  closed  who  could  as d e v e l o p i n g  facilities.  2 O r g a n i z a t i o n Of Roles; The I n t e r s e c t o r a l Committee Who  should do the a c t u a l preparedness planning?  be a s i n g l e person or agency? It all  second  i n the community once the mine has  community  just  f o r r e s i d e n t s a g a i n s t the e f f e c t s of a  shutdown. I f economic d i v e r s i f i c a t i o n wish to remain  and  of  the e v e n t u a l l o s s of community housing.  Personal s t r a t e g i e s such as savings and some  responsibility  i n p r e p a r i n g f o r p o s s i b l e shutdown i s to do  that - prepare both f o r the p e r i o d s  provide  community  r e s i d e n t s i f t h i n g s seem to be going w e l l " (InterGroup  C o n s u l t i n g Economists, the  by the  Should  Or should a l l p a r t i e s be i n v o l v e d ?  i s proposed that preparedness p l a n n i n g be undertaken  p a r t i e s i n v o l v e d i n the community through  committee  comprised  it  an  by  intersectoral  of r e p r e s e n t a t i v e s of each s e c t o r , and not  merely the  mining  Such  a  suggestion  i s based on the r a t i o n a l e that an e x t e r n a l agency  or  person may parties  company,  not be capable of  in  developing  a  union,  and  addressing  governments.  the  concerns  of a l l  r e a d i n e s s . F u r t h e r , and perhaps most  importantly, by i n v o l v i n g a l l p a r t i e s  in  such  planning,  f u l f i l l m e n t of t h e i r s e c t o r a l r e s p o n s i b i l t i e s i s more l i k e l y .  the  99  Since  one  of i t s f u n c t i o n s i s to serve as a c o - o r d i n a t i n g  committee, emphasis must suitable  strategies  be  for  on  the  community.  d i s p u t e s such as union/company with  i n other  a  consensus  Successful  Traditional sectoral  disagreements  should  Preparedness Planning  implementation  of  depends upon the support,  the  co-operation,  p a r t i e s . The  key  role  in implementation - o b v i o u s l y , a p o l i c y by  preparedness  f e d e r a l and  government  territorial  to  create  planning  involvement  governments play a  the  decision  must  requirements  for  planning.  I t i s h i g h l y u n l i k e y that voluntary  dealt  Process  and  all  made  be  preparedness  of  be  over  arenas.  5.3 ^ Implementation Of The  process  developing  basis  shutdown. F i r s t  will  leaving  result  of a l l ,  in  a  it  to  be  community  i t i s d o u b t f u l that  done  on  readiness  all  parties  a for  would  f e e l r e s p o n s i b l e or concerned enough to undertake such p l a n n i n g ; and  second,  even  if  there  were  a  strong  interest  assuming the r e s p o n s i b i l i t y on a v o l u n t a r y b a s i s , i t improbable period. disaster interest What  that  This  such i n t e r e s t c o u l d s u s t a i n i t s e l f  has  been  situations, in planning is  implementation,  demonstrated where,  once  repeatedly 'normalcy'  is  shown in highly  over a long in  natural  returns,  the  approach  to  for possible d i s a s t e r s d i e s .  needed  is  a  including,  formal measures such as  more for  structured  example,  legislation,  the  development  regulations,  or  of  binding  100  agreements.  Examples  of l e g i s l a t i o n might  d e s i g n a t i o n of mining communities districts  which  require  as  R e g u l a t i o n s could  project,  communities  or  of preparedness plans  base.  i n c l u d e the establishment of p l a n n i n g and  m o n i t o r i n g requirements f o r mining  'special'  the development  for the p o s s i b l e l o s s of an economic  i n c l u d e the o f f i c i a l  social  (community)  aspects  of  a  s i m i l a r to requirements a l r e a d y e s t a b l i s h e d t o  deal with environmental concerns. T h i s c o u l d be accomplished f o r new mining p r o j e c t s by e s t a b l i s h i n g preparedness p l a n n i n g condition  in  required  licences,  as  a  permits and a p p r o v a l s ; these  requirements c o u l d be extended t o e x i s t i n g p r o j e c t s  as  permits  and a p p r o v a l s a r e renewed. Agreements  similar  mining communities  to  c o u l d be  planning  i s undertaken  economic  mainstay.  province  of  used i n the c r e a t i o n of new  developed  to  ensure  preparedness  f o r the p o s s i b l e l o s s of the community's  For  Manitoba  those  example,  and  the  agreement  between  S h e r r i t t - G o r d o n f o r the c r e a t i o n of  Leaf Rapids a l l o c a t e d r e s p o n s i b i l i t i e s f o r the s o c i a l , and  physical  components  the  economic  of the community; however, i t d i d not  address r e s p o n s i b i l i t i e s a s s o c i a t e d with shutdown. While  formal  preparedness  measures  planning  great d e a l of resentment parties  and,  in  are  essential  in  ensuring  be undertaken, they may be viewed with a and o p p o s i t i o n by some of the  particular,  the mining companies.  very need  'right  involved  Certainly,  these measures would be viewed as an unwelcome i n t r u s i o n companies'  that  i n the  to manage'. At the same time, given that the  f o r preparedness p l a n n i n g stems  from  the  fact  that  101  many mining companies have not been as r e s p o n s i b l e as they might have in reducing the s o c i a l and economic  dislocation,  that  i s r e q u i r e d to ensure a  a  certain  amount  minimum l e v e l of The  only  responsbility.  success  developing  a  of l e g i s l a t i o n  i t remains  of  the  community  preparedness  planning  process  r e a d i n e s s f o r shutdown w i l l be ensured  i f there i s a w i l l i n g n e s s on the part of a l l p a r t i e s  than a resentment With  this  in  rather  over being f o r c e d to do so. in  mind,  another  alternative,  essentially  p e r s u a s i v e i n nature, i s the use of i n c e n t i v e s or d i s i n c e n t i v e s , usually  financial,  responsibilities 'carrot'  in  approach  t a x a t i o n gains or inducement  to  encourage  developing  might  increases,  approach  i t may  could  be  Such  and  grants  -  a  more  positive  be  more  effective  this  i n encouraging  to undertake preparedness  planning.  out  and  revenues  foregone,  it  may  effectiveness  of  shutdown  management  at  the  level.  While  it  approach  preferable,  is to  beyond  the scope of t h i s t h e s i s to a s c e r t a i n  preparedness  planning  implementation  as the best a l t e r n a t i v e v a r i e s with l o c a l  formal  measures,  appears  to  be  the  more  is  community  c o n d i t i o n s , the i n c e n t i v e s approach, based on p e r s u a s i o n than  a  argued that such c o s t s are o f f s e t by the i n c r e a s e d  e f f i c i e n c y and  which  readiness.  their  be argued that such an approach i s c o s t l y , both i n  terms of i n c e n t i v e s paid  community  community  fulfill  i n v o l v e such i n c e n t i v e s as s u b s i d i e s ,  e x i s t i n g mining communities  likewise  to  than the i m p o s i t i o n of formal measures. F u r t h e r ,  persuasive  While  sectors  rather  viable  in  1 02  encouraging  the undertaking of preparedness  communities. Although  the i n c e n t i v e s - b a s e d approach i n c o r p o r a t e s  an element of c h o i c e , i t nonetheless participation.  This  planning in e x i s t i n g  provides  encourages  the  r e q u i r e d f o r e f f e c t i v e preparedness  broad  planning.  community-wide  community  support  1 03  CHAPTER SIX AN APPRAISAL OF THE PREPAREDNESS PLANNING APPROACH T h i s t h e s i s has o u t l i n e d a preparedness p l a n n i n g which  can  be used by a dependent  r e a d i n e s s f o r the p o s s i b i l i t y  mining community to develop a  of an i n d e f i n i t e or temporary mine  shutdown and the i n e v i t a b i l i t y of a permanent one. has  Its  purpose  been to p r o v i d e the community with a 'means' f o r a d d r e s s i n g  and managing the s o c i a l and economic by  framework  the  loss  does  not  its  necessarily  c l o s u r e from o c c u r r i n g , their  are  (temporary or permanent) of i t s economic  and which c o u l d culminate i n planning  impacts which  decline. prevent  While either  created mainstay  preparedness a shutdown or  i t o f f e r s a more systematic approach  occurrence than that which  ad hoc approach. As a way  to  i s p r o v i d e d by the t r a d i t i o n a l  of summarizing  the o v e r - a l l  of preparedness p l a n n i n g , an a p p r a i s a l of  its  discussion  limitations  and  value i s o f f e r e d .  6 . 1 2. L i m i t a t ions While  it  is  argued  throughout  preparedness p l a n n i n g approach w i l l by  the  First,  i t i s without i t s own the preparedness  consideration  communities reluctant  thesis  reduce the problems  that  the  created  ad hoc approach to shutdown, i t would be u n r e a l i s t i c  imagine that  special  the  be  limitations.  planning given  to  approach the  such as mining towns. However, to  give  to  requires  needs  of  governments  that  resource may  be  such p r e f e r e n t i a l treatment to t h i s type of  community p a r t i c u l a r l y when other non-resource  communities  may  1 04  be  simultaneously  and  adversely  a f f e c t e d . For example, Yukon  government r e p r e s e n t a t i v e s questioned the e q u i t y of g i v i n g special  treatment  which was  at  the  same time while i g n o r i n g  s i m i l a r l y a f f e c t e d . In response, i t may  such c o n s i d e r a t i o n  i s necessary to o f f s e t  Whitehorse  be argued  that  unnecessary s o c i a l  economic c o s t s and that perhaps Whitehorse preparedness p l a n n i n g . T h i s i s  Faro  should a l s o  particularly  and  undertake  important  when  a  mine i s the economic mainstay of the surrounding r e g i o n . Secondly,  there  intersectoral  is  committee  preparedness  planning  a  very  which may  real  has  of  may  responsibility  the for  In  many  instances,  several  pass before e i t h e r one might happen, c r e a t i n g a sense  complacency.  foreseeable  Further,  for  those  long-term v i a b i l i t y ,  p l a n n i n g might appear these  the  that  l o s e i n t e r e s t and momentum before a  shutdown or c l o s u r e has o c c u r r e d . years  possibility  'lulls'  communities  with  no  the r a t i o n a l e f o r preparedness  n o n - e x i s t e n t . However, i t i s p r e c i s e l y  at  that preparedness p l a n i n g can be undertaken, f o r  with s u f f i c i e n t  time, a p p r o p r i a t e short and long-term  strategies  should be developed. -Thirdly, planning  while  process  the  could  implementation be  legally  mining p r o j e c t s f o r which a new similar  requirements  for  is  possible  existing  required  that some communities  undermine  the  may  preparedness  i n cases of be  communities  incentives  while i n other s i t u a t i o n s , c o n f l i c t seriously  the  community must  p r o b l e m a t i c , even with s u f f i c i e n t It  of  or  constructed, may  prove more  disincentives.  not want to prepare,  between i n v o l v e d p a r t i e s  effectiveness  of  new  the  process.  may For  1 05  example,  i t i s p o s s i b l e that the mining companies may  o b j e c t to the i m p o s i t i o n of consultation this be  between  a  itself  responsibility, and  i n mind, i t i s suggested that developed  the community 'inducement'  i n such a way and  the  within  subnational  that  i t s union i s s u f f i c i e n t . i n c e n t i v e s and  With  disincentives  as to address the s p e c i f i c needs of  residents,  development  thereby,  a  void  of  (territorial)  of  preparedness  a  clearly  policies  r e g i o n a l , and resource development whether  believing  offering  greater  to prepare.  Finally, approach  its  seriously  planning  preparedness defined  national  and  i n the areas of community,  raises is  planning  the  merely  question  another  s o l u t i o n to the more complex and o v e r - r i d i n g problems  as  to  'band-aid' c r e a t e d by  c u r r e n t resource investment p o l i c i e s and economic dependency. Further, departments and  the  lack  of  clear  policies  in  government  such as DIAND which have a dual mandate of promoting  encouraging  resource  development  on  the one hand, while  m i t i g a t i n g the s o c i a l and economic c o s t s on the other, may to c o n s t r a i n those communities  serve  attempting to develop a r e a d i n e s s  f o r the t e r m i n a t i o n of such p r o j e c t s . What a s s i s t a n c e they might p r o v i d e to these communities to  the  victims  of  results in f i r s t  a i d being  offered  an economic d i s a s t e r , while p e r m i t t i n g the  ' d i s a s t e r ' to continue to c r e a t e v i c t i m s .  6.2  - Value The value of the preparedness p l a n n i n g  primarily  i n p r o c e d u r a l terms: that  approach  is  found  i s , preparedness p l a n n i n g as  106  a  'means' f o r a d d r e s s i n g the many community problems  with a shutdown and/or First, which  so  readiness  for  systematic  closure.  i t h e l p s to reduce the ' c r i s i s ' type often  associated  of  atmosphere  surrounds shutdown. I t does t h i s by promoting a i t through  a  more  rational,  organized,  p r o c e s s . At the same time, i t p r o v i d e s an avenue f o r  c r e a t i v e measures to be dependent  community,  community  developed this  by  those  involved.  a  reliance.  before-hand,  identified,  as  well  problem as  the  areas type  and  assistance  inadequacies  are  of a s s i s t a n c e and programs  needed i n both the short and long-terms. T h i s c o u l d more  For  serves as an o p p o r t u n i t y t o develop  Secondly, by a s s e s s i n g the e f f i c a c y of a v a i l a b l e programs  and  e f f i c i e n t use of a d m i n i s t r a t i v e and f i n a n c i a l  lead  to  a  resources, a  v i t a l concern d u r i n g the c u r r e n t p e r i o d of r e s t r a i n t . Third, defining  preparedness  planning  responsibilities  provides  f o r a)  a  process  the c o s t s of shutdown which  have t r a d i t i o n a l l y been assumed by the mining community and public  at  large,  dependent  community  mainstay.  By  and  b)  faced  involving  the with  needs  and  not  just  planning the  a l l sectors  readiness can be developed which  for  for  loss  the  of  its  the  needs of a economic  of a mining community, a  reflects  a  wide  spectrum  of  those d i r e c t l y a f f i l i a t e d with the mining  operation. Further,  preparedness  planning  provides  the  necessary  framework i n which the true c o s t s of a shutdown can be addressed  107  and  from which informed t r a d e - o f f s can  p a r t i e s . By shutdown,  i n v o l v i n g a l l those p a r t i e s who the  process encourages the  spectrum of needs, c o s t s , and Finally, resource  be made between  preparedness  community  for  managing  may  as w e l l as reducing  an  systematic  and  government, regarding the  future  changes,  policy an  as w e l l as g r e a t e r  economic  i n t e g r a l component of the resource that planning  maturation a l r e a d y i s .  mainstay over  and  at  closures  senior community  could  levels  of  built  in  support f o r e x i s t i n g communities base.  changes to take p l a c e , planning  in the same way and  initiated  the  development of a more  the type of resource  wishing to d i v e r s i f y t h e i r  a  improved  economic  planned approach to shutdowns and  policy  in  the u n c e r t a i n t y  l i f e - s p a n of the community. 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Situation  114  LIST OF APPENDICES APPENDIX 1 - LIST OF INTERVIEWS APPENDIX 2 - PROVISIONS IN COLLECTIVE AGREEMENTS FOR MINE SHUTDOWNS AND CLOSURES APPENDIX 3 - UKH LAY-OFF NOTIFICATION APPENDIX 4 - NOTIFICATION OF THIRD SHUTDOWN EXTENSION: CAMC APPENDIX 5 - PLANNING A MINE CLOSURE: SELCO APPENDIX 6 - EXAMPLES OF ECONOMIC DIVERSIFICATION OPPORTUNITIES  115  APPENDIX 1 - LIST OF INTERVIEWS WHITEHORSE B a r r i e Brickman - Senior A d v i s o r , DIAND (Northern Development) Maurice Byblow - MLA, Faro P e t e r Fairman - Planner, YTG  (Economic Review & P l a n n i n g Unit)  Dave Gairns - L o c a l Government A d v i s o r , YTG (Municipal A f f a i r s ) C o l i n H e a r t w e l l - D i r e c t o r , YTG (Economic Review & P l a n n i n g Unit) George Lerches - Regional Manager, DREE P i e r s MacDonald - MLA, E l s a and Mayo Cam O g i l v i e - A s s i s t a n t D i r e c t o r , DIAND (Non-renewable Resources) Judy  Pearson - Manager, CEIC (Employment Development Branch)  B a r r i e Robb - Manager, Yukon Housing C o r p o r a t i o n B i l l Rudychuk - Yukon R e p r e s e n t a t i v e , USWA David Waugh - Manager, Yukon Chamber o f Mines  ELSA AND MAYO Konnie Berg - Personnel Manager, UKH Dr. C l a r k - Doctor, Mayo Sue Davies - S o c i a l Worker, Mayo and E l s a Tom Dickson - Mine Manager, UKH Heiko Franke - P r e s i d e n t , USWA L o c a l #924 Nelson I r e l a n d - P r i n c i p a l , Mayo Graham MacDonald - A c t i n g P r e s i d e n t , USWA L o c a l #924 Ralph Mease - Miner, UKH  FARO Eleanor C a r r i n g t o n - Housewife John C a r r i n g t o n - Mine Manager, CAMC June Hampton - Businesswoman Rennie M i t c h e l l - Mayor Dave Power - P r e s i d e n t , USWA #1051 Mike Rawlings - Former employee, CAMC  116  (FARO cont'd) Jeanne Wilson - Teacher George Wight - C h i e f Accountant, CAMC  OTTAWA Robert Keyes - D i r e c t o r , Energy, Mines and Resources (Human A f f a i r s D i v i s i o n ) Joseph L a z a r o v i c h  - A c t i n g D i r e c t o r , DIAND ( Mining  Management & I n f r a s t r u c t u r e D i r e c t o r a t e ) Robert Shanks - D i r e c t o r , E,M &R (Resources & Development Division) Roger Simard - P r o j e c t Manager, DIAND (Northern Program Planning)  VANCOUVER O.W Fox - I n d u s t r i a l R e l a t i o n s Superintendent, AMAX o f Canada  Limited  A.J. P e t r i n a - Senior V i c e - P r e s i d e n t , P l a c e r Development (Operations) Peter Womersley - Manager, P l a c e r Development Development and Compensation)  (Employee  117  APPENDIX 2 - PROVISIONS IN COLLECTIVE AGREEMENTS FOR MINE SHUTDOWNS AND CLOSURES 1. UKH 6.09  Lay-offs a) Whenever a reduction of the work force is necessary the Company shall give the employees concerned two weeks notice or 80 hours pay at their applicable basic rate in lieu of such notice except in the case of temporary reductions due to breakdown, accident or other emergencies making the giving of such notice impossible. b) Where, as a result of a temporary reduction as referred to in 6.09 (a) an employee is unable to work for a minimum of five (5) days in a fourteen (14) day period, he shall receive the sum of Five Hundred Dollars ($500.00). If. following receipt of the above sum, the employee is or elects to be laid off, he shall not then be entitled to the notice and pay-in-Lieu provisions of 6.09 (a). This shall be the only situation in which an employee can elect to be laid off. An employee not laid off, but unable to work, shall receive room and board or housing at the regular rates. 6.11  Permanent Shut-down a) The Company shall give to the employees concerned, with a copy to the Union, at least three (3) months written notice of a planned permanent shutdown of all Company operations in the Elsa-Keno area. Yukon Territory, that will result in termination of employees by the Company. b) An employee who remains working at his assigned position until terminated by the Company will qualify for payment of severance pay of One Hundred Dollars ($100.00) for each completed three-month period of employment, calculated from his most recent date of employment if: (i) h e has remained continuously on the payroll of the Company since the date the notice referred to in (a) above was given until his release by the Company, (ii) h e has been continuously in the employ of the Company for six (6) calendar months prior to his release by the Company.  c) Relocation assistance will also be provided to an employee who remains working at his assigned position until terminated by the Company, providing he actually moves out of the Keno, Elsa, Mayo area. An employee who terminated his employment or who is discharged for just cause following notice of the planned permanent shut-down referred to in (a) above, but prior to completion of his assignment will not qualify for any location assistance. Where husband and wife are both employed by the Company, only one employee is entitled to receive relocation assistance. If relocation assistance is provided in whole or in part by any Governmental Agency and/or another employer, the Company will only be obliged to make up any shortfalls to the maximum stipulated in the relocation assistance programs. d) Relocation assistance will apply to the destination chosen, but not beyond Vancouver or Edmonton, as follows: (i) One way economy air fare for the employee and for the- spouse and children if resident in the Mayo-Keno-Elsa area. (ii) After written quotations have received Company approval, the Company will provide the cost for the services listed below: 1. Packing and transporting of household goods. 2. Transporting of boats and snowmobiles within reason. 3. In-transit insurance. 4. Bunkhouse items. (iii) An employee who does not otherwise qualify for incoming transportation refund pursuant to Article 17.01 or 17.02 but who qualifies for relocation assistance will be deemed to qualify for refund pursuant to Article 17.01. e) The Company and the Union agree to establish a Manpower Consultative Services Committee under the auspices of Canada Manpower. The Committee will be established and become functional upon notice from the Company to the Union that shut-down of operations would take place. Such notice to the Union would be given and the Committee would become functional no later than the issuance of the Company's notice to employees referred to in (a) above. The prime function of this tripartite Committee will be to assist employees in securing alternate employment at the time their employment is terminated in Elsa.  8.11  Permanent Shutdown 1) In the c a s e of a p e r m a n e n t layoff o r s h u t d o w n of the C o m p a n y ' s o p e r a t i o n s r e s u l t i n g in the t e r m i n a t i o n of a n e m p l o y e e ' s e m p l o y m e n t , the C o m p a n y will g i v e : (a) T w o (2) w e e k s n o t i c e In writing to t h e e m p l o y e e if h i s p e r i o d of e m p l o y m e n t is l e s s t h a n o n e ( 1 ) y e a r , (b) O n e (1) m o n t h ' s n o t i c e in w r i t i n g to the e m p l o y e e if h i s p e r i o d of e m p l o y m e n t i s o n e (1) y e a r o r m o r e but less than t w o (2) y e a r s ; (c) T w o (2) m o n t h s n o t i c e In w r i t i n g to the e m p l o y e e If his p e r i o d of e m p l o y m e n t is t w o (2) y e a r s or m o r e but l e s s than five (5) y e a r s : (d) F o u r (4) m o n t h s n o t i c e in writing to the e m p l o y e e if his p e r i o d of e m p l o y m e n t i s five (5) y e a r s or m o r e , but l e s s t h a n ten (10) y e a r s ; a n d (e) S i x (6) m o n t h s n o t i c e i n writing to t h e e m p l o y e e if his p e r i o d of e m p l o y m e n t is ten (10) y e a r s o r m o r e . 2) W h e r e the n o t i c e r e f e r r e d to in S u b s e c t i o n (1) h a s been given: (a) n o e m p l o y e r s h a l l alter t h e rates o r w a g e s or any o t h e r term o r c o n d i t i o n of e m p l o y m e n t of a n y e m p l o y e e to whom notice has been given; and (b) u p o n e x p i r y of the n o t i c e , the e m p l o y e r s h a l l p a y to the p e r s o n , the w a g e s a n d any u n p a i d h o l i d a y p a y to w h i c h h e is entitled. 3) N o t w i t h s t a n d i n g S u b s e c t i o n ( 1 ) , the e m p l o y m e n t of a n e m p l o y e e m a y b e t e r m i n a t e d forthwith w h e r e the e m p l o y e r g i v e s to the p e r s o n n o t i c e i n w r i t i n g to that effect, and, (a) p a y s to the p e r s o n a n a m o u n t e q u a l to t h e w a g e s to w h i c h the e m p l o y e e w o u l d h a v e b e e n entitled f o r work that w o u l d h a v e b e e n p e r f o r m e d b y h i m at t h e r e g u l a r rate for a n o r m a l n o n - o v e r t i m e w o r k w e e k for t h e p e r i o d of n o t i c e a s a b o v e in S u b s e c t i o n ( 1 ) , a n d .  (b) p a y s to t h e e m p l o y e e a n y u n p a i d a n n u a l holiday p a y to w h i c h the e m p l o y e e i s entitled u n d e r this A g r e e ment. 4) T h e C o m p a n y a g r e e s to p r o v i d e t r a n s p o r t a t i o n for the e m p l o y e e a n d h i s family a n d a l l h o u s e h o l d g o o d s to a d e s t i n a t i o n of their c h o i c e but i n n o e v e n t b e y o n d E d m o n t o n o r V a n c o u v e r . In the e v e n t a n y g o v e r n m e n t a g e n c y p r o v i d e s the a b o v e a s s i s t a n c e , the g o v e r n m e n t will b e the first p a y e r w i t h the C o m p a n y p r o v i d i n g a n y r e m a i n i n g amount.  119  APPENDIX 3 ~ UKH  LAY-OFF NOTIFICATION  UNITED KENO HILL MINES LIMITED El»». Y u k o n YOB VJO  June 30  1932  United Steelworkers of America L o c a l 924 ELSA, Yukon T e r r i t o r y Attention: Dear Mr.  Mr.  H. Franke, President  Franke: Re:  Lay-Off - General  Conditions  1.  L a i d - o f f married s t a t u s employees occupying a Company r e s i d e n c e (not r e s i d i n g i n a bunkhouse) may continue to occupy t h e i r residences, r e n t f r e e , u n t i l August 31 1982 at which time they w i l l be required to vacate.  2.  L a i d - o f f employees r e s i d i n g i n a bunkhouse may occupy t h e i r accommodation up to and i n c l u d i n g J u l y 20 1982, f o l l o w i n g which they w i l l be required to vacate.  3.  L a i d - o f f employees e n t i t l e d to board and lodging may r e t a i n cookhouse p r i v i l e g e s J u l y 14, 15 and 16 1982. Purchase of meal t i c k e t s w i l l be necessary t h e r e a f t e r .  4.  L a i d - o f f employees may continue to use the f a c i l i t i e s of the E l s a Market to make reasonable purchases f o r themselves and t h e i r dependants o n l y .  5.  L a i d - o f f employees who were absent from the area on authorized h o l i d a y or leave during normal n o t i c e p e r i o d , w i l l r e c e i v e 80 hours pay i n l i e u of n o t i c e .  7.  The Company agrees to supply bus t r a n s p o r t a t i o n to l a i d - o f f employees to Whitehorse between J u l y 14 and J u l y 16 1982.  APPENDIX 4 - NOTIFICATION OF THIRD SHUTDOWN EXTENSION: CAMC  Text of Anvil Jvstatemeiit,. This is the text of the announcment from the Cyprus Anvil Mining Corpora. Hon extending the mine shutdown- in Faro:"' ^ r • 'r:.~: " - ' ^ ' ' •:--w--„,-.a^i..-.o;s;.yv;a^-a'ats.- yj^^i^s:::^.^. :  Cyprus Anvil" Mining Corporation announced today it will extend the- current mine shutdown period of the-company's zinc-lead-silver mine in Faro until spring, .1983. .:{^p^p[^^-Jr;~ ••:)-/• The decision comes after several months of efforts by, company- officials to achieve significant productivity gains and a reduction of power rates*., transportation and infrastructure costs in response to adverse economic conditions, i' - The company plans to continue consulting with the federal and Yukon governments and other parties to resolve these problems and facilitate the. mine-reopen.ing.y. ,->K !  —*«•»•'  v - • r»-:ti?--"c  -  Through the winter months a number of Cyprus Anvil employees will continue to be employed on various mine projects. - T h e s e employees, as well as laid-off employees.- * living - in- subsidized,- - selfcontained units in Faro, will be permitted to-remain in their company housing under the existing housing program. This progrant includes subsidies lor rental, home heating., electrical power- and major maintenance w o r | C ^ ' ^ % 2 j ^ ^ ^ - . . . . . . . i j ' ^  "The company will also keep the: town's recreation centre functioning. ~: S , These measures will result in a:cost to the company of approximately $1' million per month through the winter; '• ^ ' Discussions will; be h e l d with the federal and Yukon governments and the unions to establish new empJoyirtent projects, adult eduction programs and other social activities this winter, to help maintain the quality of life in the town:-r  SOURCE: The W h i t e h o r s e  Star,  September 8, 1982, p . 3 .  KVELCPrfNT /WD / f l M f L CF CLOSURE PUW  1978  1979  REVIEWED APPROVED  EXPLCHATORY  S.B. MWGEMENT S.B. fOUR.Y RATED S.B. FMILIES/RESIDENTS PROVINCIAL GOYEIWCNT FBXRA. GOVEPNMENT OTHER (QIET1C0 CENTRE)  1981  REVIEWEDL WRDYED  LCMYJN DOATO TOWTO, H.Q.  19U0  PRELIMINARY, DISCUSSION OF CLOSURE  PRELIMINARY CDMCEPTS  iT  DISCUSSIONS OF CLOSURE PLANNING OJMCEPTS  DWT_ PLAN  I  DETAILED CLOSURE PLAN  APPROVLD  PEVISED  FINAL  PLAN AS DATED DISTRUSTED REqUIRLTJ  II  DISCUSSIONS  IWUTON  PAR/METERS  H>Ut ON PARAMETERS  OUTPUT TO QUEBEC CEN11C ( The f o l l o w i n g p r o v i d e s an o u t l i n e o f the process developed by S e l c o f o r the c l o s u r e of i t s South Bay mine.)  mmm  124  APPENDIX 6 - EXAMPLES OF ECONOMIC DIVERSIFICATION OPPORTUNITIES ILLUSTRATIVE LIST OF THE TYPES OF "DIVERSIFICATION OPPORTUNITIES CONSIDERED IN THREE CASE STUDIES  Type o f O p p o r t u n i t y I.  Case y S t u d i e s where considered  Example  RESOURCE-BASED  Mining/Milling  m i n i n g new d e p o s i t s m i l l i n g f o r o t h e r nearby exploration  f o r new p r o s p e c t s  use o f mine waste  A  U  A  U  products  provincial or national o r landmark  T o u r i s m and Recreation  mines  U  T  U  A  U  A  program  A  d e v e l o p and expand campgrounds, p a r k s and r e c r e a t i o n f a c i l i t i e s and t o u r i s t a c c e s s t o t h e r e g i o n Agri cul ture  T  greenhouse p r o d u c t i o n  U  wild  rice  U  fur  farming  U  game f a r m i n g  U  cattle  U  production  peat production Hydro G e n e r a t i o n  generating  station  transmission  -'Legend:  U = Uranium C i t y ,  U  system  A = Atikokan,  A  park  f i s h i n g o r h u n t i n g promotion tourism promotional  T  U  T = Thompson.  SOURCE: InterGroup C o n s u l t i n g Economists Ltd.(1982).  T  A  125  Type o f  Opportunity  F i s h e r i e s and Fish Processing  Forestry  Case S t u d i e s where considered  Example  fishing  U  fish  processing  U  fish  farming  sawmill  operation  wood f o r energy secondary  II.  wood  T  A  T  A  products  A  GOVERNMENT AND REGIONAL BUSINESS  Federal  Government  mine c l e a n - u p regional  and  reclamation  native peoples'  mine t r a i n i n g  centre  centre  U U  northern t r a i n i n g school  U  military  U  activities  correctional  institution  U  expand l o c a l r a d i o and production c a p a b i l i t y community  television  college  correctional industrial  U  institution  park  T  U  weather s t a t i o n  Provincial/Local Government  U  U  development  mine t r a i n i n g s c h o o l s h o p p i n g m a l l and general b u i l d i n g development regional  high  purpose  school  special  h e a l t h care  nurses'  training  U facilities  facilities  e x p a n d i n g and u p g r a d i n g  roads  community improvement program ( l i b r a r y , arena, c u r l i n g r i n k , a i r p o r t , m u n i c i p a l campground) e s t a b l i s h i n g outreach posts e c o n d a r y e d u c a t i o n programs  U U T  A  T  A A  T  A  126 Case Type o f  Opportunity  Example l o c a l s u p p l y o f s e r v i c e s t o the r e g i o n , which are p r e s e n t l y s u p p l i e d by o f f i c e s i n a d i s t a n t metropolitan centre (post-secondary education, court services)  T  e s t a b l i s h i n g c h i l d care centre emotionally disturbed children  T  re-location offices Regional  III.  Business  of regional  A  for  government A  l o c a l businesses supply s e r v i c e s to the r e g i o n which are p r e s e n t l y s u p p l i e d by b u s i n e s s e s i n a d i s t a n t metropolitan centre ( c l o t h i n g , c a t a l o g u e s a l e s , food w h o l e s a l e r s , legal services)  T  regional business  T  expansion o f l o c a l s e r v i c e area  A  RESIDENTIAL CENTRE - commuter r o t a t i o n - senior citizens  IV.  Studies where considered  systems  home  T  A  T  A  FOOTLOOSE INDUSTRIES  Secondary Manufacturing  - cottage i n d u s t r i e s , handicrafts, a r t p r i n t s , j e w e l l e r y , ceramics  U  - t a n n i n g and p r o c e s s i n g  U  - textile  manufacturing  - f u r n i t u r e and secondary products - outfitters recreation  A  T wood A  and o u t d o o r supplies  Hazardous Waste and Materials Disposal  - r a d i o a c t i v e waste f a c i l i t y - i n d u s t r i a l waste f a c i l i t y  Power P l a n t  - thermal power p l a n t  A U U  A  A  

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