Workers at Sherritt’s Ambatovy Considering Strike Action

Reuters reported that workers at Sherritt International Corp.’s (TSX:S) Ambatovy nickel project are looking at strike action. They are not pleased about possible job cuts, according to a trade union official.

As quoted in the market news:

The crisis at one of Madagascar’s biggest foreign investment projects comes as the poor but mineral-rich Indian Ocean state faces a political crisis after its parliament moved to sack President Hery Rajaonarimampianina late last month.

Rajaonarimampianina’s peaceful election victory in late 2013, the first vote since a 2009 military coup, was seen as a chance for stability after years of post-coup isolation.

Representatives at Ambatovy and Sherritt, which is headquartered in Toronto and holds a 40% interest in the Ambatovy venture, had no immediate comment.

Richard Rakotovao, head of the union’s legal department, commented:

We could go up on strike, but we have to be careful before deciding to move in this direction. We fear that Ambatovy could decide to leave Madagascar, saying that there have been too many strikes here.

Click here to read the full Reuters report.