Union says potash merger 'surprisingly a good thing' for workers

A United Steelworkersspokesperson says the merger of PotashCorp and Agrium is a good news for more than 2,000 unionized workers in Saskatchewan.

"Usually when we hear of a merger or an acquisition it usually shocks us and we get worried," said Mike Pulak, a USW Saskatoon representative.

"But this one is quite surprisingly a good thing."

PotashCorp andAgrium announced on Monday thatthey are coming together as one company.The new business doesn't have a name yet, but will have its head office in Saskatoon.

It will have 20,000 employees and be worth some $36 billion US.

• Farmers fear market power of Agrium-PotashCorp merger

• PotashCorp., Agrium agree to merger that would create $36B agriculture giant

There's no word yet on how the merger will affect staffing at either company butPulak saidthe workers he representsmaintenance and minersshouldn't be adversely affected by the merger.

"We think most of the overlap is in management positions,"said Pulak. "We can definitely see the savings there. The new company still needs to pull the potash out of theground and if the market is there, the merger shouldn't affect us."

Pulak saidthe sagging potash market is of greater concern to workers right now.Recently it hasled to mine production layoffs andPulaksaidmore could be coming.

"If the sales aren't there I can definitely see continued short-term layoffs," said Pulak. "That's normal when the market is low. So there could be some revolving layoffs."

• Premier Brad Wall believes Sask. will benefit from PotashCorp/Agrium merger

Still, Pulak says he's optimistic the potash demand will rebound in the next couple of years.

"China and India are tighter with their revenue than they were in the past, but ultimately the world'sgotta eat and potash helps that," said Pulak. "So long term I think the potashindustry is going to grow."

Workers should feel good that projected growth will be managed by a new global player that's keeping deep roots in Saskatchewan, according to Pulak.

"It solidifies the market for us. We're always worried about foreign companies that could change the landscape for all our workers," said Pulak. "We're confident that's not goingto happen with this new company. Rather then trying to speak to some faceless person in another country, there's definitely a comfort level having the head office in Saskatoon."

The PotashCorp-Agrium deal is expected to close by the middle of next year.