WINNIPEG, Manitoba (Reuters) - Mediated talks between
Potash Corp of Saskatchewan
The talks, which were only in their first day, failed when the company refused to change an offer that had already been rejected by the 500 workers at the three mines in Saskatchewan, the union said in a statement.
The union had warned that it would strike if the talks with the world's largest fertilizer maker did not reach an agreement.
Potash Corp is reaping record profits from the world's insatiable demand for fertilizer to boost yields of pricey crops, leaving the company and its competitors essentially sold out of potash at a time of sky-high prices.
Union members have said they want a bigger share of the profits, and the market conditions give them a strong bargaining position.
"The company has to realize it's not dealing with the same set of circumstances they have in the last four or five sets of bargaining" talks, said Roger Falconer, a union official.
A spokesman for the company contacted before the union issued its statement declined comment on Thursday's meeting.
The union staged a one-day strike last week at one of the mines, but members have since worked all but overtime hours after their union and the company resumed talks. Mediator Vic Pathe has met with both sides separately since Monday.
The company has said the offer rejected by workers would be the richest in the potash industry. Neither side has commented on specifics of the offer, but media reports have said it would boost pay by 27 percent to 35.6 percent over three years at one mine.
Potash stock closed down 31 Canadian cents at C$188.99 on the Toronto Stock Exchange on Thursday before the talks failed.
The stock plunged earlier this week to four-month lows following a broad sell-off in commodity markets. But it is still more than double what it was last year.
($1=$1.05 Canadian)
(Reporting by Allan Dowd, Roberta Rampton; editing by Phil Berlowitz)
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