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2011 Coal Cost Guide
Section LA
Labor - Canada
CONTENTS Compiled by Krista Noyes Salzer

Page Page
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Tables 3 - 4. Benchmark Hourly Wages . . . 8 - 9
Employment Taxes . . . . . . . . . . . . . . . . . . . . . . . 1 Table 5. Benefit Summary . . . . . . . . . . . . . . 9
Mine Wage and Benefit Survey . . . . . . . . . . . . . . 7
Table 1. Workers' Compensation Rates . . . . . . . 3 Mine Wage Scales and Benefit Plans for
Table 2. Provincial Health Plans - Funding . . . . 5 Individual Mines Grouped by Province . . . . 10-31
Section LA - Labor U.S. begins after LA Canada page 31

INTRODUCTION

This section contains the results of our eleventh Employment Insurance - Employer
annual survey of Canadian mining wages, benefit Annual Maximum Insurable Earnings $44,200.00
plans, and employment taxes. The survey was Annual Maximum Employer Contribution $1,101.46
designed to provide current information for Employer Contribution Rate
estimating labor costs for new projects, and to 1.41 times the employee rate 2.49%
provide comparative information for establishing
wages and benefit plans for new and existing Québec Employment Insurance - Employee
operations. Provincial, territorial, and federal Annual Maximum Insurable Earnings $44,200.00
employment tax rates are also summarized. The Annual Maximum Employee Contribution $623.20
survey was conducted between March and June Employee Contribution Rate 1.41%
2010. All currency is in Canadian dollars unless
otherwise noted. Québec Employment Insurance - Employer
Annual Maximum Insurable Earnings $44,200.00
EMPLOYMENT TAXES Annual Maximum Employer Contribution $872.51
Canada's employment taxes comprise federal and Employer Contribution Rate
1.41 times the employee rate 1.97%
provincial income tax withholding, Canada Pension
Plan/Québec Pension Plan payments, Employment Starting January 1, 2006, the province of Québec
Insurance (EI) premiums, Workers' Compensation, administers maternity, parental and adoption
and provincial health and medical insurance.
benefits which were previously covered under
Income Tax Withholding Employment Insurance. The program, the Québec
Income (withholding) taxes are deducted from Parental Insurance Plan (QPIP), reduces the
employees' wages and paid to federal and provincial Employment Insurance rates for Québec and
governments by the employer. They are fully paid by collects taxes from both the employee and
the employee, so need not be considered in cost employer. Following are the 2011 QPIP tax rates.
estimating.
Québec Parental Insurance Plan - Employee
Employment Insurance Annual Maximum Insurable Earnings $64,000.00
Employment Insurance (EI) provides funding for Annual Maximum Employee Contribution $343.68
unemployment programs in Canada. Premiums are Employee Contribution Rate 0.537%
collected from all employees and employers in
Canada under the Unemployment Insurance Act. A Québec Parental Insurance Plan - Employer
temporary premium refund program is available to Annual Maximum Insurable Earnings $64,000.00
small businesses. The rates for 2011 are shown Annual Maximum Employer Contribution $481.28
below. Employer Contribution Rate 0.752%

Outside Québec
Employment Insurance - Employee
Annual Maximum Insurable Earnings $44,200.00
Annual Maximum Employee Contribution $786.26
Employee Contribution Rate 1.78%

LA Canada
Copyright © 2011 InfoMine USA, Inc. COAL COST GUIDE 1
EMPLOYMENT TAXES (continued)

Employers have the option of reducing their Factors influencing the setting of assessment rates
premium by registering a wage-loss replacement plan include recent injuries, the cost experience in each
(WLR) with the Employment Insurance Commission. industry class, financial health of the workers'
These plans provide sickness benefits generally compensation fund and various economic and labour
equivalent to those under the Employment Insurance conditions. Rates are established for each industry
program. based on the claim record for that industry. Most
There are four categories of qualified WLR with experience rating programs adjust the individual
a distinct employment insurance premium reduction employer's assessments by comparing the firm's
rate. claims cost experience to the average experience for
the industry or class.
Category 1: WLR plans of the cumulative paid sick
leave variety, but allows for a minimum Tax rates (insurance premiums) are usually quoted
monthly accumulation of 1 day and for a as dollars per hundred dollars of wages paid.
maximum accumulation of at least 75 days. Table 1 on the following page lists the standard
Category 2: WLR plans also of the cumulative paid
rates applicable to mining-related rate groups.
sick leave variety, but allows for a Pension Plans
minimum monthly accumulation of 1 2/3
days and for a maximum accumulation of Most employees between the ages of 18 and 70 are
at least 125 days. covered by either the Canada Pension Plan (CPP) or
the Québec Pension Plan (QPP). Under both of these
Category 3: WLR plans with a maximum benefit
period of at least 15 weeks. plans, employers and employees contribute equal
amounts. Following are the 2011 contribution rates
Category 4: WLR plans with a maximum benefit for both the CPP and QPP programs.
period of at least 52 weeks, available only
to public and parapublic employers of a CPP QPP
provincial government. 2011 Maximum
Pensionable Earnings $48,300 $48,300
The Employment Insurance Commission has 2011 Basic Exemption $3,500 $3,500
established the following rates of premium
reduction for these plans. 2011 Maximum
Contributory Earnings $44,800 $44,800
Category 1: a reduction of 0.28% of insurable Employer Maximum $2,217.60 $2,217.60
earnings. Contribution (4.95%) (4.95%)
Category 2: a reduction of 0.41% of insurable Employee Maximum $2,217.60 $2,217.60
earnings. Contribution (4.95%) (4.95%)
Category 3: a reduction of 0.39% of insurable
earnings. The contribution and maximum pensionable
Category 4: a reduction of 0.42% of insurable earnings change from year to year based on inflation
earnings. and funding requirements.
For 2011, the employee's and employer's
Workers' Compensation Insurance
contribution are 4.95% for both CPP and QPP.
Provinces and territories require that employers
carry insurance to pay medical and other expenses for Provincial Health and Medical Insurance
employees injured on the job. Workers' Health care in Canada is covered under a universal
compensation is funded entirely by employers and health care system, administered by the provinces and
administered by the provinces and territories. territories. Employer and employee taxes for health
Industries are grouped according to hazard care vary from province to province. In Alberta and
potential, and industries such as mining typically British Columbia, the employee contributes to health
contribute higher rates to the workers' compensation and medical plans based on family size, however,
fund. Most workers' compensation boards and employers frequently pay all or part of the employee's
commissions (WCBs) have some form of experience premium. In other provinces, either employers
rating available to employers. Experience rating shoulder all of the health care cost or the programs
shifts a greater degree of responsibility for workers' are funded from general funds. Table 2 shows the
compensation costs from the industry group as a provincial funding methods for public health
whole to the particular employers actually incurring insurance plans.
injury costs.

LA Canada
2 COAL COST GUIDE Copyright © 2011 InfoMine USA, Inc.
TABLE 1. Workers' Compensation Insurance Rates - 2011 (Canadian Dollars per $100 payroll)

Maximum
Province Assessable Earnings Rate Mine Type

Alberta $82,800 $2.02 Mining - underground


$2.02 Mining - open pit
$2.02 Overburden removal, open pit
$2.02 Refine - Sand/Coal
$0.41 Oilsands operations
$3.46 Seismic survey
$4.02 Drilling - shot hole/deep core
$0.21 Geophysical surveys

British Columbia $71,700 $1.34 Open pit coal mining


$8.18 Underground coal mining
$2.96 Seismic exploration
$2.61 Geological, geochemical or geophysical field
work
$2.61 Geological, geophysical, or geochemical
fieldwork
$2.73 Oil or gas drilling

Manitoba $96,000 $1.82 Mining


$4.48 Contract mine development
$1.28 Exploration, prospecting
$3.74 Diamond drilling

New Brunswick $56,700 $2.10 Bituminous coal


$3.63 Contract drilling/mine services
$2.10 Other support

Newfoundland $51,595 $4.72 Contract drilling (except oil & gas)


$2.33 Coal mines
$2.33 Geological surveying and exploration;
crushing, and other services incidental to
mining

Northwest Territories $82,720 $2.14 Underground mining


& Nunavut $2.14 Open pit mining
$2.42 Caretaking of non-operational mines

Nova Scotia $52,000 $2.54 Lignite mines


$0.95 Contract drilling industry (except oil and gas)
$0.95 Service industries incidental to mining - other
$3.25 Bituminous coal mine (strip)
$3.25 Subbituminous coal mines (strip)
$8.35 Coal mining - underground

LA Canada
Copyright © 2011 InfoMine USA, Inc. COAL COST GUIDE 3
TABLE 1. Workers' Compensation Insurance Rates - 2011 (Canadian Dollars per $100 payroll)
(continued)

Maximum
Province Assessable Earnings Rate Mine Type
Ontario $79,600 $6.40 Coal mines

Prince Edward Island $47,800 No listing for mining, including quarry and
sand pits. (no active employees at this time)

Québec $64,000 $11.09 Coal mining


$7.72 Sinking mine shafts, digging ramps or raises

Saskatchewan $55,000 $0.78 Coal, open pit


$3.12 Oil and gas drilling
$3.12 Seismic drilling
$1.29 Underground, soft rock mining

Yukon $77,920 $10.68 Diamond drilling


(No other listing for coal mining)

LA Canada
4 COAL COST GUIDE Copyright © 2011 InfoMine USA, Inc.
TABLE 2: Provincial Health Plans - Funding Methods

British Columbia*
Employee: Single: $60.50 per month
Couple: $109.00 per month
Family (3 or more) $121.00 per month

* Note: In British Columbia, employers frequently pay all or part of the employee's premium as an
optional benefit.
Manitoba
Employer: Payroll tax - Levy for Health and Post-Secondary Education:

Total Payroll
$0 - $1,250,000 0% of gross annual payroll-exempt
$1,250,000 to $2,500,000 4.3% of payroll over $1.25 million
$2,500,000 or more 2.15% of all payroll (The $1.25 million is not a deduction)

Newfoundland
Employer: Post Secondary Health and Education Tax (HAPSET)

Payroll Exemption Tax


Tax Rate Tax Savings
Amount Amount Payable
$625,000 $1,000,000 $1,000 -- $1,000
650,000 1,000,000 2,000 2% 2,000
675,000 1,000,000 3,000 2% 3,000
700,000 1,000,000 4,000 2% 4,000
800,000 1,000,000 6,000 2% 6,000
900,000 1,000,000 8,000 2% 8,000
1,000,000 1,000,000 10,000 2% 10,000
over 1,000,000 10,000 or more 2% 10,000
1,000,000

Northwest Territories & Nunavut


Employer: 1.0% of gross annual wages.

LA Canada
Copyright © 2011 InfoMine USA, Inc. COAL COST GUIDE 5
TABLE 2: Provincial Health Plans - Funding Methods (continued)

Ontario
Employer: Employer Health Tax (payroll tax):

Annual Payroll Dollars


Exceeding Not Exceeding As of March 15, 2007
$400,000 + 1.950%
$380,000 $400,000 1.829%
$350,000 $380,000 1.708%
$320,000 $350,000 1.586%
$290,000 $320,000 1.465%
$260,000 $290,000 1.344%
$230,000 $260,000 1.223%
$200,000 $230,000 1.101%
$0.00 $200,000 0.980%

Québec
Employer: Health Services Fund Taxes (payroll tax):
2.7% - 4.26% of gross annual payroll*

*Note: In Québec, for businesses with payrolls of $1 million or less, the rate is 2.7%. For
businesses with payrolls of more than $1 million and less than $5 million, the rate varies
between 2.7% and 4.26%. For businesses with payrolls exceeding $5 million, the rate is
4.26%.

New employers: total payroll for the first two consecutive calendar years
corresponds to the salaries or wages paid from the beginning of the calendar year to
the end of the period covered by the remittance of the contribution to the health
services fund. The rate must therefore be adjusted for each remittance period on the
basis of the cumulative total payroll for the preceding periods.

The following provinces and territories have no employer or employee premiums or payroll taxes for health
care at this time. Health insurance costs are funded out of general funds.

Alberta Prince Edward Island


New Brunswick Saskatchewan
Nova Scotia Yukon Territory

LA Canada
6 COAL COST GUIDE Copyright © 2011 InfoMine USA, Inc.
OTHER BENEFITS

Voluntary Benefits
Many companies in Canada provide additional hospitalization and dental. Other benefits include
benefits including supplemental pension plans; subsidized housing, meals, subsidized daycare,
employee assistance programs (EAP); group life company stock purchase plans, stock options,
insurance; supplemental health benefits that pay an transportation, profit sharing and employee training
employee's portion of premiums, hospital and and education. Many of these benefits are an
doctor's expenses; and extended health insurance outgrowth of mining in remote areas, particularly
that provides additional coverage for prescriptions, meals, housing and travel benefits.

MINE WAGE AND BENEFIT SURVEY

This year's wage and benefit survey included 12 coal aggregate mines are available in a report from
and oil sands mines in Alberta and British Columbia. InfoMine entitled Canadian Mine Salaries Wages &
The individual mine information summarized in the Benefits, 2010 Survey Report. The report also
appendices was provided by company personnel. contains salary scales for managerial, technical and
Listed on pages LA Canada 10-30 are actual wage support personnel at 34 mines.
and benefit plan summaries for these mines. All of The information is presented essentially as
the mines are identified by a code number only. provided to us by the mining companies, with
Benefit plan summaries for an additional 30 precious minimal analysis or manipulation on our part.
metal, base and ferrous metal, industrial mineral and

DEFINITIONS

Brief descriptions of some of the items detailed on pages LA Canada 10-30 are described below.

Benefits partially or fully paid by company. For Vacation. Vacation periods listed as beginning at
each of the benefits listed, we asked that companies threshold times different from the fixed times listed
provide the percentage of the benefit the company here are included with the next longer threshold
pays. time. For mines reporting vacation times in weeks,
five days was assumed to be one week.
Incentive bonus plans. Bonus plans reported
include plans based on productivity, cost savings, Total cost of benefits. Each employer was asked
ore grade, safety record, mill recovery, profit, and to calculate the amount his total benefit package
various combinations, along with commodity price. costs as a percentage of base wages paid, including
Descriptions of the plans were provided by the voluntary and mandated benefits.
company and are summarized in the appendices. Total cost of benefits includes all company
provided benefits such as vacation, provincial
health plans, pension plans, life insurance, sick
Paid life insurance coverage. Listed here are the leave, etc., plus workers' compensation and
range and average amount of life insurance unemployment insurance.
coverage provided at company expense. For those The information is reported here without
mines reporting life insurance coverage as a adjustment or verification.
multiple of the employee's annual wage, $60,000
was used as a typical annual wage. "K" means Shift differential paid. Included here are only
thousand. those mines working multiple shifts.

LA Canada
Copyright © 2011 InfoMine USA, Inc. COAL COST GUIDE 7
TRENDS

Of the 15 mines responding, 10 were union and 5 availability, attendance, and environmental
were non-union. Eleven mines increased wages by stewardship. Some mines pay an attendance bonus.
an average of 2.8%, ranging from 2% to 5%, in the In addition to standard benefit items, some
12 months preceding the survey. Four mines showed companies offer employee assistance programs,
no change in wages and none of the mines in this group registered assistance, transportation to the
survey decreased wages. Nine mines reported using mine, paid or subsidized daycare facilities, travel
some form of incentive bonus plan. Safety, profit, expenses, supplemental retirement plans, accident
production, and cost savings are the most commonly and life insurance, stock purchase plans, safety
cited criteria. Others include coal quality, recovery, equipment, tool allowance, scholarships for
energy efficiency, maintenance, equipment and plant dependent children, education and training.

BENCHMARK HOURLY WAGES

Average wages for selected job classifications are can have different titles from mine to mine. The
listed in tables 3 and 4 for comparison purposes. jobs were categorized on the basis of job title only.
The job categories listed were selected because Wage and benefit summaries for selected individual
they are readily recognized and are common to mines are provided on pages LA Canada 10-32.
many mines. Responsibilities included under the Table 5 summarizes benefits offered at union and
same title can vary considerably, and similar jobs non-union mines.

TABLE 3. Average Benchmark Hourly Wages for Selected Job Titles: Canadian Coal and Oil
Sands Mines (Canadian $ per hour)
Coal and Oils Sands Mines
Number of Mines (13 surface and 2 underground) 15
Job Title Range Average
Electrician $29.99 - 50.21 33.60

Mechanic 30.34 - 50.21 34.03


Heavy Equipment Operator-Surface 23.06 - 50.21 32.68
Surface Driller 29.44 - 32.40 31.14
Truck Driver 29.38 - 31.43 29.63
UG Equipment Operator 23.06 - 33.46 29.94
Plant Equipment Operator 25.54 - 50.21 30.85
UG Labourer 21.96 - 26.11 24.04
Surface Labourer 21.05 - 31.56 25.77

LA Canada
8 COAL COST GUIDE Copyright © 2011 InfoMine USA, Inc.
TABLE 4. Benchmark Hourly Wages for Selected Job Titles: Union versus Non-union Mines
Union Non-union
Number of mines 10 5
Job Title Range Average Range Average
(Canadian $ per hour) (Canadian $ per hour)
Electrician $29.99 - 34.39 $32.41 $31.15 - 50.21 $26.91
Mechanic 30.34 - 34.39 32.83 31.15 - 50.21 26.91
Dragline/shovel operation 30.44 - 38.57 33.37 32.40 - 50.21 38.64
Surface heavy equipment operator 29.44 - 35.57 31.68 23.06 - 50.21 36.18
Production truck driver 28.38 - 31.43 29.63 --- ---
Surface Labourer 21.05 - 28.90 25.55 21.96 - 31.56 26.76
Underground miner 29.72 - 33.46 31.59 23.06 - 29.90 26.48
Underground equipment operator limited data 33.46 23.06 - 33.31 28.19
Underground labourer limited data 26.11 limited data 21.96

Plant Operations (All mines)


Plant equipment operator 26.99 - 32.64 29.91 24.54 - 50.21 33.20
Plant labourer 21.05 - 30.19 25.04 21.96 - 25.54 23.75
# of mines average change # of mines average change
Wages increased in last 12 months 6 +3.3% 5 +2.2%
Wages decreased in last 12 months 0 --- 0 ---
No change in wages in last 12 months 4 0% 0 ---

TABLE 5. Benefit Summary: Union versus Non-union Coal and Oil Sands Mines

Union Non-union
Benefits # of mines # of mines
Partially or fully paid by company
Life insurance 10 5
Supplemental retirement benefits 9 5
Sick leave 9 2
Disability Income Insurance 10 5

Mines with incentive bonus plans 7 2


range average range average
Number of paid holidays per year 10 - 13 12 all same 11
Paid life insurance coverage 50 - 120K 84K 100 - 120K 110K
Total cost of benefits as a % of wages paid 24 - 45% 41% 32 - 37% 34%
Shift differential paid (C$/hour) Evening $0.20 - 0.80 $0.56 $0.50 - 2.01 $1.25
Night 0.25 - 1.33 0.88 1.00 - 3.50 2.26

LA Canada
Copyright © 2011 InfoMine USA, Inc. COAL COST GUIDE 9
ALBERTA

Mine Code: CA107, Alberta.


Oil Sands, Surface.
Non-union.
Mine 1: 293,000,000 total tonnes per year (115,000,000 oil sands tonnes).
651 employees: 77 managerial/administrative and 574 hourly employees.
Mine 2: 256,000,000 total tonnes per year (112,000,000 oil sands tonnes).
577 employees: 77 managerial/administrative and 500 hourly employees.
**work force headcount is inclusive of production employees only, maintenance and technical
employees have been centralized and are not included here.

Hourly Hourly
Job Classification Wage Base Job Classification Wage Base
Millwright $50.21 Training Progression Rates:
Machinist 50.21 Operator 4 $50.21
Welder 50.21 Operator 3 45.20
Crane Operator 50.21 Operator 2 41.01
Shovel Operator 50.21 Operator 1 38.12
New hire Operator 31.56

Wages increased 2.5% in the last 12 months, effective March 28, 2010.

Benefits % paid Vacation:


Life Insurance yes 100 2 x salary
AD&D yes 100 Years Days
Medical Insurance* yes 80 Service Vacation
Dental Insurance* yes 80 $3,000/yr max. 1 15
Vision Insurance* yes 80 $150 per 2yr. max. 3 15
Retirement Benefits 5 15
Defined benefit: Company pays approximately 9.24% of 10 20
wages per month. 15 20
Defined contribution: Company pays 1.5% of wages. 20 20
25/plus 30
Sick Leave yes 100
up to 260 days, 130 at full pay Managerial and administrative employees
(10 years), 130 at 2/3 pay. working 5 x 8 hours per week receive 16
additional days off.
Disability Income Ins. yes 100
Starts after 260 days of STD 2/3 of pre-disability earnings. All employees are eligible to purchase up to
48 hours of additional time off.
11 days paid holidays per year.

* Flexible benefits program - coverage will vary.

Shift differential: Evening - 4% of wages; night - 7% of wages.

Cost of benefits: Hourly and salaried - 31.7% of wages.

Other benefits: Employees can contribute up to 7.5% of salary to savings plan which is matched by the
company; EAP - Employee Assistance Plan; tuition reimbursement; health care reimbursement
account, personal leave and parental leave.

Transportation: Mine 2 employees receive $33.00 per working day for extra travel time
(Inconvenience pay).

LA Canada
10 COAL COST GUIDE Copyright © 2011 InfoMine USA, Inc.
ALBERTA

Mine Code: CA107, Alberta. (continued)

Incentive bonus plan: Gainsharing Program

This company’s gainsharing program has five components. All payments are quarterly with a sliding scale from
entry point to 200% of target.

$ Reliability is measured based on Unplanned Capacity Loss (actual product shipped compared to average
5 week shippers forecast.), paid quarterly
$ Net production costs, payout is based on gains made by reducing the cost of production (difference between
target unit cost and actual), paid quarterly.
$ An energy intensity target based on MBTU/BBL (targets set based on quarterly budget) payout is quarterly.
$ A safety component as measured by Total Recordable Injury Rate (Medical Aids, Restricted Work and Lost
Time Injuries) for both the company and contractor employees, paid quarterly.
$ Production, actual product shipped versus target, paid quarterly.

2009 Program Targets

Component 2009 Program Potential Payout

Reliability $1,000 ($250/Quarter) paid quarterly

Net Production Costs $2,000 ($500/Quarter) paid quarterly

Energy Intensity $1,000 ($250/Quarter) paid quarterly

Safety $2,000 ($500/Quarter) paid quarterly

Production $3,000 ($750/Quarter) paid quarterly

**All payments for gainsharing are now quarterly.

LA Canada
Copyright © 2011 InfoMine USA, Inc. COAL COST GUIDE 11
ALBERTA

Mine Code: CA124, Alberta.


Coal, Surface and Underground, 1,800,000 tonnes per year.
Union.
663 employees: 129 managerial/administrative, 409 hourly and 125 contractor employees.
Hourly Hourly
Job Classification Wage Base Job Classification Wage Base
Certified Electrician $36.03 Miner 3 $29.90
Certified Crane Operator 36.03 Plant Operator 1 29.90
Certified Gasfitter 36.03 Plant Operator 2 28.65
Certified Heavy Duty mechanic 36.03 Year 2 Apprentice 27.70
Certified Machinist 36.03 Heavy Equipment Operator 4 (certified on
Certified Millwright 36.03 2 pieces of equipment) 27.40
Certified Welder 36.03 Service/Lube 3 27.40
Heavy Equipment Operator 1 Plant Operator 3 27.40
(qualified shovel/drill) 33.31 Heavy Equipment Operator 5 (fully
Miner 1 33.31 certified Truck Operator) 26.16
Senior Mill Operator 33.31 Transport/Water Truck Operator 26.16
Heavy Equipment Operator 2 (certified on Miner 4 26.16
4 pieces of equipment, entry shovel/drill) 32.40 Plant Operator 4 26.16
Miner 2 32.40 Miner 5 25.54
Control Room Operator 32.40 Co-op 3 (4th year Post Secondary Studies) 25.54
Plant Operator 5 25.54
Electrician 31.15 Year 1 Apprentice 24.92
Crane Operator 31.15 Co-op 2 (3rd year Post Secondary Studies) 23.06
Gasfitter 31.15 Heavy Equipment Operator 6
Heavy Duty Mechanic 31.15 (Entry level truck/familiarization) 23.06
Machinist 31.15 Miner 6 23.06
Millwright 31.15 Plant Operator 6 23.06
Welder 31.15 Co-op 1 (1st and 2nd year Post
Year 4 Apprentice (Year 3 Welder) 33.27 Secondary Studies) 21.96
Year 3 Apprentice (except Welder) 30.49 Fire Watch 21.96
Heavy Equipment Operator 3 (certified on Labourer 21.96
3 pieces of equipment) 29.90 Summer Student 21.96

Wages increased 2% in the last 12 months, effective July 2009.


Benefits % paid Vacation:
Life Insurance yes 100 Hourly - $100,000
Salaried- 2 X annual Years Days
Medical Insurance yes 100 Service Vacation
Dental Insurance yes 80 1 15
Vision Insurance yes $200 every 2 years 3 15
5 20
Supplemental Retirement yes 100 10 20
Company contributes 6% of wages 15 20
20 20
Sick Leave no 25/plus 20
Disability Income Ins. yes pays 60% of income

11 days paid holidays/year.

Shift differential: Evening - $0.50/hour; night - $1.00/hour.

LA Canada
12 COAL COST GUIDE Copyright © 2011 InfoMine USA, Inc.
ALBERTA

Mine Code: CA124, Alberta. (continued)

Cost of benefits (as a % of wages): Mandated Voluntary


Hourly 17% 20%
Salaried 17% 17%
Incentive bonus plan: None.

Other benefits: Employee Assistance Program (EAP), relocation assistance, housing assistance, recreational
center membership.

Employee Retention Program: Temporary trades retention Incentive - All certified trades receive an additional
$5.00/hour for all hours worked if they are still employed in their trade on March
31 of the following year.

LA Canada
Copyright © 2011 InfoMine USA, Inc. COAL COST GUIDE 13
ALBERTA

Mine Code: CA189, Alberta.


Coal, Surface, 13,000,000 tonnes per year.
Union: United Steelworkers of America
494 employees: 77 managerial/administrative and 417 hourly employees.

Hourly Hourly
Job Classification Wage Base Job Classification Wage Base
Certified Carpenter $34.39 Tire Serviceman $31.87
Certified Electrician 34.39 Trac-Truck Serviceman 31.87
Certified Field Maintenance Mechanic 34.39 Coal Handling Plant Oiler 31.43
Certified Light Duty Mechanic 34.39 Drill Operator 31.43
Certified Machinist 34.39 Field Maintenance Oiler 31.43
Certified Millwright 34.39 Road Maintenance Operator 31.43
Certified Mobile Maintenance Mechanic 34.39 Services Road Maintenance Operator 31.43
Certified Tipple Welder 34.39 Shovel & Dragline Oiler 31.43
Certified Welder 34.39 Trac-Truck Ash Driver 31.43
Certified Blaster 33.64 Trac-Truck Driver 31.43
Crane Operator 33.64 Trac-Truck Equipment Hauler Driver 31.43
Dragline Operator 33.64 Pit Pumpman 31.18
Front-End Loader Operator 33.64 Tradesman's Helper 31.18
Shovel Operator 33.64 Blaster's Helper 28.01
Coal Handling Plant Operator 32.37 Shipper/Receiver 28.01
Crawler Tractor Operator 31.87 Warehouseman 28.01
Light Duty Trac-Truck Serviceman 31.87 Labourer 26.81
Power Scraper Operator 31.87 Watchman-Janitor 26.81
Production Department Backhoe Operator 31.87 Labourer (hired after Sept. 21/87) 20.86
Site and Drainage Backhoe Operator 31.87 Watchman-Janitor (hired after Sept. 21/87) 20.86
Wages increased 3% in the last 12 months, effective April 1, 2010.
Benefits % paid
Life Insurance yes 100 Hourly: $50,000
Salaried: 2 x annual
AD&D yes 100 $60,000
Medical Insurance yes 100
Dental Insurance yes 100 100% basic, 90% major and restorative, 50% orthodontics
Vision Insurance yes 100 $200 every two years

Supplemental Retirement yes


Defined contribution: Salaried - 75%
Defined benefit: Hourly - 1.1% of highest 5 years

Sick Leave yes 100


Disability Income Ins. yes Hourly: 60%
Salaried: 6 months at 70%

Hourly: 11 days paid holidays per year.


Staff: 12 days paid holidays per year.

LA Canada
14 COAL COST GUIDE Copyright © 2011 InfoMine USA, Inc.
ALBERTA

Mine Code: CA189, Alberta. (continued)

Vacation:

Years Days
Service Vacation
1 10
3 15
5 15
10 20
15 20
25 25
25 26
30/plus 30

Shift differential: Evening - $0.50/hour; night - $1.05/hour.

Cost of benefits (as a % of wages): Voluntary


Mandated
Hourly 10% 25%
Salaried 10% 25%
.
Incentive bonus plan: Company pays an incentive to upper management only based on safety, environmental
performance and productivity.
Other benefits: Employee assistance program.

LA Canada
Copyright © 2011 InfoMine USA, Inc. COAL COST GUIDE 15
ALBERTA

Mine Code: CA207, Alberta.


Coal, Surface, 2,500,000 tonnes coal per year.
Union: United Steelworkers of America.
368 employees: 76 administrative/managerial and 292 hourly employees.
Hourly Hourly
Job Classification Wage Base Job Classification Wage Base
Journey Tradesperson A $34.04 Washbay Attendant $28.93
Journey Tradesperson B 31.92 Tool Crib Attendant 28.93
Shovel Operator 31.92 Shovel Utility Trainee 28.93
Control Room Operator 31.92 Process Operator I 28.93
Senior Process Operator 31.05 Maintenance Utility 28.26
Equipment Operator IV 31.05 Drill Utility Trainee 28.26
Driller 31.05 Labourer 26.89
Blaster 31.05
Crane Operator 31.05 Apprentice Rates
Equipment Operator III 30.78 Four Year Program:
Plant Utility 30.78 4th year $31.19
Equipment Operator II 30.52 3rd year 29.92
Process Operator III 30.52 2nd year 29.29
Serviceperson 30.52 1st Year 27.94
Pit Backhoe Operator 30.52
Equipment Operator I 30.24 Three Year Program:
Shovel Utility I 30.24 3rd year $31.19
Refuse Truck 30.24 2nd Year 29.41
Pumpperson 29.72 1st Year 27.94
Drill Utility I 29.72
Shovel Utility II 29.72 Partsman Program:
Blaster’s Helper 29.72 3rd Year $30.11
Process Operator II 29.72 2nd Year 28.42
Drill Utility II 29.20 1st Year 27.47
Wages increased 5.0% in the last 12 months, effective July 1, 2009.

Benefits % paid
Life Insurance yes 100 $50,000
AD&D yes 100
$100,000 for death, $20,000 for loss of multiple limb or sight in
both eyes, $10,000 for loss of one limb, sight in one eye or hearing
in one ear.
Medical Insurance yes 100
Dental Insurance yes 100
Orthodontics benefit - 50% coverage to a lifetime maximum of $2,000
per individual.
Vision Insurance yes 100
$350/24 months.

Supplemental Retirement yes 100


Employer deposits $270.83/month on an employee’s behalf into
Pension Plan.
Employer deposits $100/month on an employee’s behalf to a Group
RRSP. Employees may direct employer to make additional
deductions to Group RRSP.

LA Canada
16 COAL COST GUIDE Copyright © 2011 InfoMine USA, Inc.
ALBERTA

Mine Code: CA207, Alberta. (Continued)

Benefits (continued)
Vacation:
Sick Leave/Accident Leave yes 100
$700/week indemnity benefit beginning of the 4th day of Years Days
illness, 1st day of accident up to 52 weeks. Service Vacation
1 15
Long-term Disability Income Ins. yes 100 3 15
Beginning after 52 weeks until age 65. Benefit is 5 15
$1,850/month reduced by amount received by Workers’ 10 20
Compensation. 15 25
20 25
12 days paid holidays per year. 25/plus 25
Shift differential: 8 hour shifts: evening/night - $.20/hour; 12 hour shifts; evening/night $0.45/hour.

Other benefits: Personal Protective Equipment available for use, $15.00 per month Safety Equipment Allowance.
Transportation to mine site is provided. Three days bereavement leave, and jury duty pay.
Tool Allowance:
8 hour shift 12 hour shift
Group I $2.25 $3.00
Heavy Duty Mechanic
Millwright
Instrument Mechanic
Motor Mechanic
Mine Electrician
Apprentices (Group I)
Group II $1.50 $1.90
Welder
Machinist
Serviceman
Apprentices (Group II)
Servicemen Trainees

Incentive bonus plan: Christmas bonus of $125.

LA Canada
Copyright © 2011 InfoMine USA, Inc. COAL COST GUIDE 17
ALBERTA

Mine Code: CA218, Alberta.


Oilsands, Surface, 93,000,000 tonnes per year.
Union.
685 employees: 78 managerial/administrative and 607 hourly employees.

Hourly
Job Classification Wage Base
Operations Senior Supervisor $46.29
Maintenance Senior Supervisor 45.12
Maintenance Foreman 42.33
Heavy Duty Mechanic 40.83
Welder 40.83
Operations Foreman 40.07
Shovel Operator 38.57
Tire Technician 38.57
Service Technician 37.57
Operators 35.74
Warehouse Technician 3 34.74
Warehouse Technician 4 31.02
Mobile Steam Cleaner 31.02
Warehouse Technician 5 25.24
Labourer 25.24

No change in wages in the last 12 months.

Benefits % paid Vacation:


Life Insurance yes 100 1x salary
$100,000 hourly Years Days
AD&D yes 100 Service Vacation
Medical Insurance yes 90 1 10
Dental Insurance yes 90 3 10
Vision Insurance yes 100 $200/year 5 15
10 20
Retirement Benefits yes 100 15 25
Defined contribution: Company matches 5% of salaried employees 20 25
contribution, and 10% of hourly employee contribution. 25/plus 25
Sick Leave yes 1½ days/month
Disability Income Ins. yes

10 days paid holidays per year.

Cost of benefits: Mandated Voluntary


Hourly: 5.2% 19.2%
Salaried: 5.5% 13.7%

Incentive bonus plan: Based on company achieving targets on safety, production, and cost.

Employee retention plan: Supervisors, staff, and tradesmen are paid a residence allowance for maintaining a
residence in at the mine location.

LA Canada
18 COAL COST GUIDE Copyright © 2011 InfoMine USA, Inc.
BRITISH COLUMBIA

Mine Code: CA171, British Columbia.


Coal, Surface, 8,250,000 tonnes coal per year.
Union: United Steelworkers of America.
1073 employees: 187 administrative/managerial and 886 hourly employees.

Hourly Hourly
Job Classification Wage Base Job Classification Wage Base
Mine Processing
Dragline Operator $34.73 Process Operator IV $31.55
Dragline Trainee II 34.20 Senior Analyst 31.06
Dragline Trainee I 33.69 Process Operator III 29.99
Shovel Operator 32.64 Analyst Trainee 28.91
Shovel Operator Trainee II 32.10 Process Operator II 28.91
Senior Equipment Operator 32.10 Oiler 28.38
Senior Loader Operator 32.10 Bucker 27.87
Rotary Drill Operator 31.55 Process Operator I 27.87
Senior Driver 31.55 Oiler II 27.35
Loader Operator 31.55 Bucker Trainee 26.28
Shovel Operator Trainee I 31.55 Oiler I 26.28
Equipment Operator 31.06 Labourer 24.18
Loader Trainee 31.06
Tireman 31.06 Maintenance
Bucket Maintenance Man 30.53 Journeyman Tradesman $34.20
Monitorman 30.53 Link Belt Operator 32.64
Blaster 30.53 Cert. Industrial Warehouseman 32.64
Rotary Drill Trainee II 30.53 Senior Service Operator 32.10
Equipment Operator Trainee 30.53 Service Operator IV 31.06
Haul Truck Driver 30.53 Certified Welder 31.06
Tireman III 29.99 Service Operator III 31.06
Blaster Trainee II 29.46 Serviceman - Electrical III 31.06
Rotary Drill Trainee I 29.46 Serviceman - HE/LE III 31.06
Dragline Oiler 29.46 Service Operator II 28.91
Tireman II 28.91 Serviceman - Electrical II 28.91
Blaster Trainee I 28.38 Serviceman - HE/LE II 28.91
Pumpman 28.38 Boom Truck Operator 28.38
Boom Truck Operator 28.38 Steam Cleaner/Truck Operator 28.38
Haul Truck Driver Trainee 28.38 Service Operator I 28.38
Tireman I 27.87 Serviceman - Electrical I 28.38
Dragline Oiler Trainee 27.87 Serviceman - HE/LE I 28.38
Pumpman Trainee 27.35 Boom Truck Operator Trainee 27.35
Boom Truck Operator Trainee 27.35 Steam Bay Attendant 26.28
Pit Utility 24.70 Labourer 23.64
Dryman/Janitor 24.70
Premiums
Processing Lead Hand (weekend) $1.85
Journeyman Instrument Mechanic $34.73 Lead Hand (graveyard) 0.90
Journeyman Tradesman 34.20 Lead Hand (day) 0.70
Control Room Operator 34.20
Senior Process Operator 32.64 Emergency Rescue Team $55/month

Wages increased 3.0% in the last 12 months, effective May 1, 2010.

LA Canada
Copyright © 2011 InfoMine USA, Inc. COAL COST GUIDE 19
BRITISH COLUMBIA

Mine Code: CA171, British Columbia. (continued)

Benefits % paid Vacation:


Life Insurance yes 100 1.5 x annual wage
AD&D yes 100 1.5 x annual wage Years Days
Medical Insurance yes 100 Service Vacation
Dental Insurance yes 100 1 12
Vision Insurance yes 100 3 15
$150 per year or $300 every 2 years. Benefit may be may be 5 17
applied toward laser eye surgery. 10 21
Supplemental Retirement yes 100 15 23
Union Pension Plan: $59.25 per month per year of service for 20 26
30 years of service and 55 years of age. An 25/plus 28
early retirement benefit of $21.00 per
month per credited year of service.

Sick Leave/Accident Leave yes 100


Long-term Disability Income Ins. yes 100
13 days paid holidays per year.

Shift differential: Evening - $.70/hour; night - $.90/hour.

Shift schedule: 12 hour shifts, average 42 hours per week, 4 days on and 4 days off.

Other benefits: Jury duty/witness pay, and bereavement leave - up to 3 days. Steel toe footwear rebate - 65%,
prescription safety glasses rebate - 100%, $125/year clothing allowance. Tools, text, and
manual rebate for approved courses - 60%.

Special Vacation: Each employee is entitled to an extra 3 weeks vacation in addition to their normal vacation
after completing 5 years of service. During each subsequent 5 year qualifying period,
employees receive an additional 3 weeks of special vacation. The special vacation must be
taken within a 5-year period.

Incentive plan: None.

LA Canada
20 COAL COST GUIDE Copyright © 2011 InfoMine USA, Inc.
BRITISH COLUMBIA

Mine Code: CA184, British Columbia.


Coal, Underground, 800,000 tonnes per year.
Union: United Steelworkers of America.
90 employees: 20 managerial/administrative and 70 hourly employees.

Hourly Hourly
Job Classification Wage Base Job Classification Wage Base
Mine Prep Plant
Certified Journeyman $34.17 Lead Hand $28.87
Continuous Miner Operator 33.46 Plant Operator 1 26.99
Face Miner 31.32 Plant Operator 2 27.75
General Miner 29.72 Serviceman 25.08
Underground Trainee 26.11 Labourer 22.05

Maintenance Administration
Certified Journeyman $31.47 First Aid, Security, Warehouse - 2 $28.89
Repairman 1st Class 28.63 First Aid, Security, Warehouse - 1 27.96
Serviceman 26.60

Wages increased 3% in the last 12 months, effective May 1, 2010.

Benefits % paid Vacation:


Life Insurance yes 100 3 x wages
Medical Insurance yes 100 Years Days
Dental Insurance yes 100 Service Vacation
Vision Insurance yes 100 1 14
3 18
Supplemental Retirement no 5 19.5
10 22
Sick Leave no 15 25
Disability Income Ins. yes 100 20 25
25/plus 25
10 days paid holidays per year.

Shift differential: Evening - $0.80/hour; night - $0.80/hour.

Cost of benefits: (as a % of wages)


Mandated Voluntary
Hourly employees 6% 35%
Salaried employees 6% 35%

Incentive bonus plan: None.

Other benefits: Employee assistance program and paid transportation to mine from specific locations.

LA Canada
Copyright © 2011 InfoMine USA, Inc. COAL COST GUIDE 21
BRITISH COLUMBIA

Mine Code: CA208, British Columbia


Coal, Surface, 2,500,000 tonnes coal per year.
Union: United Steelworkers of America.
374 employees: 87 administrative/managerial and 287 hourly employees.

Hourly Hourly
Job Classification Wage Base Job Classification Wage Base
Warehouse Coarse Coal Operator $27.90
Warehouseman $31.48 Haulage Truck Operator 27.90
Apprentice 6 (31 - 36 months) 28.21 Dryer Operator 27.44
Apprentice 5 (25 - 30 months) 27.79 Cable Belt Repairman 1 (0 - 720 hours) 26.91
Apprentice 4 (19 - 24 months) 27.38 Breaker Operator 26.63
Apprentice 3 (13 - 18 months) 26.97 Janitor 25.43
Apprentice 2 (7 - 12 months) 26.58 Mine Operations Department
Apprentice 1 (0 - 6 months) 26.16 Blaster $31.48
Maintenance Department Exploration Drill Operator 31.48
Carpenter - Certified $31.82 Rotary Drill Operator 31.48
Electrician - Certified 31.82 Shovel Operator 31.48
Industrial Instrumentation - Certified 31.82 Blaster (Entry Level) 30.80
Pipefitter - Certified 31.82 Exploration Drill Operator (Entry Level) 30.80
Vibration Analyst - Certified 31.82 Rotary Drill Operator (Entry Level) 30.80
Welder - Certified 31.82 Shovel Operator (Entry Level) 30.80
Cable Belt Repairman 3 (after 1,080 hours) 30.24 Crusher Operator 30.11
Carpenter - Uncertified 30.24 Dozer Operator 30.11
Electrician - Uncertified 30.24 Grader Operator 30.11
Industrial Instrumentation - Uncertified 30.24 Heavy Duty Loader Operator 30.11
Pipefitter - Uncertified 30.24 Hoe Operator 30.11
Welder - Uncertified 30.24 Crusher Operator (Entry Level) 29.44
Vibration Analyst - Uncertified 30.24 Dozer Operator (Entry Level) 29.44
Apprentice 10 (55 - 60months) 30.17 Grader Operator (Entry Level) 29.44
Apprentice 9 (49 - 54 months) 29.69 Heavy Duty Loader Operator (Entry Level) 29.44
Apprentice 8 (43 - 48 months) 29.31 Hoe Operator (Entry Level) 29.44
Apprentice 7 (37 - 42 months) 28.90 Haulage Truck Driver 28.79
Serviceman 28.90 Mine Helper 28.79
Cable Belt Repairman 2 (721 - 1,080 hours) 28.56 Wheel Dozer Operator 28.79
Lubeman 28.52 Haulage Truck Driver (Entry Level) 28.79
Apprentice 6 (31 - 36 months) 28.50 Mine Helper (Entry Level) 28.79
Apprentice 5 (25 - 30 months) 28.07 Wheel Dozer Operator (Entry Level) 28.79
Apprentice 4 (19 - 24 months) 28.76 Lineman
Apprentice 3 (13 - 18 months) 27.26 Certified Tradesman $31.82
Cable Belt Repairman 1 (0 - 720 hours) 26.91 Uncertified Tradesman 30.29
Apprentice 2 (7 - 12 months) 26.87 Apprentice 10 (55 - 60 months) 30.24
Apprentice 1 (0 - 6 months) 26.45 Apprentice 9 (49 - 54 months) 29.75
Helper 25.43 Apprentice 8 (43 - 48 months) 29.38
Plant Operations Apprentice 7 (37 - 42 months) 28.96
Journeyman Plant Operator $31.48 Apprentice 6 (31 - 36 months) 28.55
Cable Belt Repairman 3 (after 1,080 hours) 30.24 Apprentice 5 (25 - 30 months) 28.13
Control Room Operator 30.14 Apprentice 4 (19 - 24 months) 27.73
Dozer Operator 29.48 Apprentice 3 (13 - 18 months) 27.32
Fine Coal Operator 29.48 Apprentice 2 (7 - 12 months) 26.92
Cable Belt Repairman 2 (721 - 1,080 hours) 28.56 Apprentice 1 (0 - 6 months) 26.50
L.D. Operator 28.38
Load Out Operator 28.38 (Continued next page)

LA Canada
22 COAL COST GUIDE Copyright © 2011 InfoMine USA, Inc.
BRITISH COLUMBIA

Mine Code: CA208, British Columbia. (continued)

Hourly Hourly
Job Classification Wage Base Job Classification Wage Base
Mechanic Department Apprentice 7 (37 - 42 months) $29.02
Heavy Duty Mechanic - Certified $31.89 Apprentice 6 (31 - 36 months) 28.61
Light Duty Mechanic - Certified 31.89 Apprentice 5 (25 - 30 months) 28.19
Machinist - Certified 31.89 Apprentice 4 (19 - 34 months) 27.79
Millwright - Certified 31.89 Apprentice 3 (13 - 18 months) 27.37
Heavy Duty Mechanic - Uncertified 30.34 Apprentice 2 (7 - 12 months) 26.98
Light Duty Mechanic - Uncertified 30.34 Apprentice 1 (0 - 6 months) 26.56
Machinist - Uncertified 30.34 Tireman
Millwright - Uncertified 30.34 Tireman 3 (after 2,064 hours) $28.84
Apprentice 10 (55 - 60 months) 30.29 Tireman 2 (1032 - 2,064 hours) 27.55
Apprentice 9 (49 - 54 months) 29.81 Tireman 1 (0 - 1,032 hours) 26.54
Apprentice 8 (43 - 48 months) 29.43

No change in wages in the last 12 months.

Benefits % paid Vacation:


Life Insurance yes 100 1.5 x annual wage
AD&D yes 100 1.5 x annual wage Years Hours
Medical Insurance yes 100 Service Vacation
Dental Insurance yes 100 1 120
Basic and Major Service - 100% 3 120
Orthodontic Service - 50%, $2,500 max per lifetime. 5 168
Vision Insurance yes 100 10 180
$100/ year per family member. 15 204
Supplemental Retirement yes 100 20 240
Union Pension Plan: $0.55 per hour is deducted from employee’s 25/plus 240
wage and paid to the fund.
Employee Savings Plan: Optional Benefit. Employee may
contribute 4% of earnings to plan. Investment options include
savings, equity and/or income fund, and guaranteed income
certificates.

Sick Leave/Accident Leave yes 100


STD: up to 26 weeks.
Long-term Disability Income Ins. yes 100
LTD: After 26 weeks: 2/3 basic earnings to a maximum of $5000 per month.

10 days paid holidays per year plus 2 floating holidays.

Shift differential: 8 hour shift: afternoon - $.60/hour; night - $.85/hour; weekend - $2.00/hour.
12 hour shift: night - $0.97/hour; weekend - $2.00/ hour.

Other benefits: Personal protective equipment, jury duty/witness pay, bereavement leave - up to 3 days,
compassionate leave - 2 days, Birth/Adoption leave, Employee Assistance Program.
Steel toe boot rebate up to $100 per year with a carry over of $300. Prescription safety glasses
provided with application.
Educational Assistance Plan: Company pays 75% of registration fees, tuition, exam fees, and
texts for Company approved courses.

LA Canada
Copyright © 2011 InfoMine USA, Inc. COAL COST GUIDE 23
BRITISH COLUMBIA

Mine Code: CA208, British Columbia. (continued)

Other benefits continued:

Physical Fitness Plan: Company contributes 50% of cost of employee’s membership in


approved physical fitness program. Maximum $125 per year.

Tool Allowance: Tool allowance is rolled into the applicable job function wage according to
the following table.

Classification Tool Allowance


Heavy Duty Mechanic & $0.35
Apprentice
Light Duty Mechanic & $0.35
Apprentice
Millwright & Apprentice $0.35
Machinist & Apprentice $0.35
Lineman & Apprentice $0.30
Electrician & Apprentice $0.25
Industrial Instrumentation & $0.25
Apprentice
Welder & Apprentice $0.25
Carpenter & Apprentice $0.25
Pipefitter & Apprentice $0.25
Vibration Analyst $0.25
Serviceman $0.25
Lubeman $0.25
Cablebelt Repairman $0.25
Tireman $0.25

Incentive Bonus Plan: None.

LA Canada
24 COAL COST GUIDE Copyright © 2011 InfoMine USA, Inc.
BRITISH COLUMBIA

Mine Code: CA209, British Columbia.


Coal, Surface, 2,500,000 tonnes coal per year.
Union: United Steelworkers of America.
242 employees: 78 administrative/managerial and 164 hourly employees.

Hourly Hourly
Job Classification Wage Base Job Classification Wage Base
Journeyman - Tradesman $32.16 Serviceman $28.64
Control Room Operator 31.88 Equipment Operator I 27.70
Shovel Operator 30.44 Apprentice III 27.41
Senior Process Operator 30.44 Process Operator II 26.88
Equipment Operator IV 29.92 Apprentice II 25.39
Equipment Operator III 29.44 Process Operator I 23.87
Driller 29.44 Apprentice I 23.87
Shovel Support 29.44 Labourer 21.05
Equipment Operator II 28.64
Process Operator III 28.64 On call premium: $12.00 for an 8 hour shift.
Apprentice IV 28.64 $18.00 for a 12 hour shift.
Blaster 28.64

No change in wages in the last 12 months.

Benefits % paid Vacation:


Life Insurance yes 100 $65,000
AD&D yes 100 $65,000 Years Hours
Medical Insurance yes 100 Service Vacation
Dental Insurance yes 100 1 96
Vision Insurance yes 100 $200/2 year period. 3 120
5 120
Supplemental Retirement yes 100 10 156
Defined Contribution: employer account - company will contribute the 15 180
equivalent of 5% of basic earnings on behalf of each employee. 20 180
Employee account - employee contributions are dependent on years of 25/plus 220
service.
less than 1 year 1% contribution
greater than 1 year but less than 2 years 2% contribution
greater than 2 years but less than 3 years. 3% contribution
greater than 3 years 4% contribution.

Sick Leave/Accident Leave yes 100 STD - 60% of earnings, maximum $600/week.
Long-term Disability Income Ins. yes 100 LTD - after 52 weeks disability: $1,200/month.

12 days paid holidays per year.

Shift differential: 8 hour shift: afternoon - $.45/hour; night - $.90/hour; weekend - $1.75/hour.
12 hour shift: night - $0.90/hour; weekend - $1.75/hour.

Shift schedule: 8 hour shift - 5 days per week.


10 hour shift - 4 days per week.
12 hour shift - average 40 hours per week.

LA Canada
Copyright © 2011 InfoMine USA, Inc. COAL COST GUIDE 25
BRITISH COLUMBIA

Mine Code: CA209, British Columbia. (continued)

Benefits (continued)

Other benefits: Jury duty/witness pay, and bereavement leave - up to 3 days. Clothing allowance of $125 per year
to all employees, tradesmen receive $150 annually.
Safety equipment rebate: company will rebate employee for 65% of the purchase price of steel-
toe shoes. Company will rebate 100% of purchase price of prescription safety lenses and frames
with fixed side shields, maximum $200.

Tool Reimbursement: Company will provide 60% rebate for the repair and replacement of tools.
Journeymen or apprentices who purchase an approved new tool will be reimbursed 60% of the
actual cost.

Incentive plan: None.

LA Canada
26 COAL COST GUIDE Copyright © 2011 InfoMine USA, Inc.
BRITISH COLUMBIA

Mine Code: CA210, British Columbia.


Coal, Surface, 5,300,000 tonnes coal per year.
Union: United Steelworkers of America.
847 employees: 173 administrative/managerial and 674 hourly employees.

Hourly Hourly
Job Classification Wage Base Job Classification Wage Base
Tradesman - Certified $34.14 Road Crew Operator 2 $29.37
70 ton Crane Operator - Certified 34.14 Tailings Line Attendant 29.37
Warehouseman - Certified 33.35 3rd Year Apprentice 29.37
Excavator Operator 32.58 Tireman Trainee 1 29.37
Plant Control Room Operator 32.58 Lube/Fuel Truck Operator 28.50
Roatry Drill Operator 31.81 Plant Lubeman 28.50
Dryer Control Room Operator 31.81 Road Crew Operator 3 28.50
F.E. Loader 31.04 Pit Utilityman 2 28.50
Blaster 31.04 Breaker Patrolman 27.61
Road Crew Operator 31.04 Steam Truck Operator 27.61
Plant Operator 1 31.04 2nd Year Apprentice 27.61
Uncertified Tradesman 31.04 Warehouse Helper 27.61
4th Year Apprentice 31.04 Hydroseeder Operator 27.61
Tireman 31.04 Building Maintenance 27.61
Dozer Operator 30.19 Boom Truck Operator 27.61
Grader Operator 30.19 Tireman Trainee 2 27.61
Plant Utilityman 30.19 Load Out Operator 26.67
Pit Utilityman 1 30.19 Steam Bay Attendant 26.67
Plant Operator 2 30.19 Blaster Helper 25.78
Road Crew Operator 1 30.19 Pit Utilityman 3 25.78
Maintenance Support Operator 30.19 1st Year Apprentice 25.78
Haulage Truck Driver 29.37 Tireman Trainee 3 25.78
In-Pit Serviceman 29.37 Labourer 25.00
Blaster 1 29.37
Tank Drill 29.37 Lead Hand Premium $2.50

Wages increased 3.0% in the last 12 months, effective May 1, 2010.

Benefits % paid
Life Insurance yes 100 $100,000
AD&D yes 100 $50,000
Medical Insurance yes 100
Dental Insurance yes 100
Basic - 100%
Major (bridges and crowns) - 80%
Orthodontics - 50% with a $2,000 lifetime max.
Vision Insurance yes 100
$150/year or $300 every 2 years (may be applied to lasik)

Supplemental Retirement yes 100


The company will contribute 5% based on the employees eligible
earnings paid in the preceding year to an Employee Registered
Retirement Savings Plan (RRSP).

LA Canada
Copyright © 2011 InfoMine USA, Inc. COAL COST GUIDE 27
BRITISH COLUMBIA

Mine Code: CA210, British Columbia. (continued)

Sick Leave/Accident Leave yes 100 $530/week from 1st Vacation:


day of accident or 4th
day of illness up to Years Hours
52 weeks. Service Vacation
Long-term Disability Income Ins. yes 100 1 96
12 days paid holidays per year. 3 120
5 144
Shift differential: Evening - $.70/hour; night - $.90/hour. 10 192
15 216
20 228
25/plus 228

Other benefits: Safety equipment, jury duty/witness pay, and bereavement leave - up to 4 days.

Tool Allowance: The company will provide a tool allowance to each tradesman provided the tradesman continues
to maintain the required tools for his trade as follows:

January 1st July 1st


Machinist $250.00 $250.00
Millwright $250.00 $250.00
H.D. Mechanic $250.00 $250.00
Automotive Mechanic $250.00 $250.00
Electrician $200.00 $200.00
Pipe Fitter $200.00 $200.00
Gas Fitter $200.00 $200.00
Instrumentation $200.00 $200.00
Plant Lubeman $150.00 $150.00
Lineman $150.00 $150.00
Carpenter $100.00 $100.00
Welder $100.00 $100.00
Fuel/Lube Truck Operator $75.00 $75.00
Belt Serviceman $75.00 $75.00
Tireman $75.00 $75.00
Pit Utilityman $75.00 $75.00
Crane Operator $62.50 $62.50
Steam Truck Operator $62.50 $62.50
Maintenance Support Operator $62.50 $62.50
Steam Bay Attendant $50.00 $50.00

LA Canada
28 COAL COST GUIDE Copyright © 2011 InfoMine USA, Inc.
BRITISH COLUMBIA

Mine Code: CA210, British Columbia. (continued)

Safety Equipment: The company does not provide safety boots and gloves; however, employees will receive an
allowance according to the following:

Blasting Crew $250 per calendar year.


Pit Utilityman
Coal Plant Millwright
All Mine Maintenance employees (except
labourers)
All Coal Plant Employees (except
equipment operators)
Road Crew $200 per calendar year.
Excavator Operators
Drill Operators
Mine Maintenance Labourers
All Employees not otherwise listed $150 per calendar year.

Incentive plan: None.

LA Canada
Copyright © 2011 InfoMine USA, Inc. COAL COST GUIDE 29
BRITISH COLUMBIA

Mine Code: CA211, British Columbia.


Coal, Surface, 9,400,000 tonnes coal per year.
Union: United Steelworkers or America.
500 employees: 100 managerial/administrative and 400 hourly employees.

Hourly Hourly
Job Classification Wage Base Job Classification Wage Base
Mine Maintenance
Shovel Operator (60 yard) $32.64 Tradesman $32.64
Shovel Operator 32.10 Warehouseman 32.10
Equipment Operator III 31.55 Journeyman Crane Operator 32.10
Pit Logger/Sampler III 31.55 Certified Crane Operator 31.55
Blaster II 31.55 HD Apprentice 4th year 30.53
Shovel Support 31.55 Millwright Apprentice 4th Year 30.53
Driller 31.55 Electrician Apprentice 4th year 30.53
Equipment Operator II 31.06 Welder Apprentice 4th year 30.53
Pit Logger/Sampler II 31.06 Serviceman 29.46
Breaker Operator 31.06 Warehouse Apprentice - 3rd year 28.91
Blaster I 31.06 H.D. Apprentice - 3rd year 28.38
Equipment Operator I 29.99 Millwright Apprentice - 3rd year 28.38
Pit Logger/Sampler I 29.99 Electrician Apprentice 3rd year 28.38
Blaster Trainee 29.46 H.D. Apprentice - 2nd year 26.79
Pit Utility 24.70 Millwright Apprentice - 2nd year 26.79
Labourer 23.64 Electrician Apprentice - 2nd year 26.79
Welder Apprentice - 2nd year 26.79
Processing Steam Bay Attendant 26.28
Tradesman $32.64 Facility Utility 26.28
Control Room Operator 32.64 Warehouse Apprentice 2nd year 25.79
Senior Process Operator 32.10 H.D. Apprentice 1st year 25.21
Process Operator IV 31.55 Millwright Apprentice 1st year 25.21
Process Operator III 29.46 Electrician Apprentice - 1st year 25.21
Process Operator II 27.87 Welder Apprentice - 1st year 25.21
Process Operator I 27.35 Shop Utility 24.70
Bucker 27.35 Warehouse Apprentice - 1st year 24.18
Oiler 27.35 Labourer 23.64
Plant Utility 24.70
Labourer 23.64 Premiums
Leadhand $1.00/hour
Trainer 0.90/hour

Mine Rescue Team $50/month

Wages increased 3.0% in the last 12 months, effective May 1, 2010.

LA Canada
30 COAL COST GUIDE Copyright © 2011 InfoMine USA, Inc.
BRITISH COLUMBIA

Mine Code: CA211, British Columbia. (continued)

Benefits % paid Vacation:


Life Insurance yes 100 2 x annual wage
AD&D yes 100 $50,000 Years Hours
Medical Insurance yes 100 Service Vacation
Dental Insurance yes 80 Routine 1 120
50 Orthodontia 3 120
Vision Insurance yes 100 5 144
10 180
Supplemental Retirement yes 100 15 200
Pension plan: employee makes mandatory contributions (up to 4%). 20 200
Employer contributes the equivalent to 5% of employee’s basic 25/plus 200
earnings.

Sick Leave/Accident Leave yes 100


66 2/3% wages up to 17 weeks (maximum of $700.00/week)
Long-term Disability Income Ins. yes 100
60% of wages up to $3,000/month.

12 days paid holidays per year: 10 statutory and 2 floating holidays.

Shift differential: Evening - $.79/hour; night - $1.33/hour.

Shift schedule: 12 hour shifts - average 42 hours/week


8 hour shifts - 40 hours/week.

Incentive plan: Gainsharing program with target of 7%, max of 14%. Based on cost and quality for hourly
employees, and Return on Capital Employed (ROCE) - Net profit/Capital employed x 100 - for salary
employees.

Other benefits: Jury duty/witness pay, bereavement leave - up to 3 days. Pregnancy leave - up to 17 weeks, parental
leave - 35 consecutive weeks, unpaid, for birth mother and 37 weeks for birth father or adopting
parent, company newsletter - written by mine employees, education assistance - Company pays 100%
registration fee, books, and supplies.
Personal Protection Equipment provided. Boot allowance of $80.00 and 65% rebate for 2nd pair, if
purchased when 1st pair wears out.
Extra Vacation Pay (after 15 years): Employees can take up to 40 hours EVP as time off or be paid
out.
Tool rebate: 60% rebate on actual cost of approved tools.

Employee Retention Plan: Company provides $1,000 annually to employee health and wellness account, bonus
plans, and extended health benefits.
All regular full-time employees are eligible to participate in the Service Recognition
Program at five year intervals, beginning with the fifth year of service. Gifts will be
presented to employees by their Supervisor in recognition of their service and personal
contribution to the Company.

LA Canada
Copyright © 2011 InfoMine USA, Inc. COAL COST GUIDE 31

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