POTASH SEES SOME UPSIDE IF WORKERS STRIKE

When things are really clicking for an industry, even prospectively problematic news can be turned into a constructive development. There’s just such a pony under this pile for fertilizer maker Potash (POT), which is locked in a contentious labor battle with unions representing workers at some of its mining operations. Union representatives at three of its mines have asked the company to share the wealth from its recent prosperity, asking for what’s effectively a windfall profits bonus for employees. The company insisted that, based on its accounting of the union’s requests, that it would cost $157,000 per employee to accede to the request. Presuming workers at all five mines in Canada received the same largesse, the company figured it could cost $185 million this year to share the wealth with its workers. The union, which has struck at three mines, has disputed the accounting, describing the $157,000 figure as ”just ridiculous,” and insisting it wouldn’t consider asking for such a payout. Nevertheless, Potash has warned that the strikes could hit its industrial shipments, perhaps trimming 5% of those, though it hasn’t calculated the impact that the strikes have on its fertilizer or agricultural shipments. Potash shares have climbed 3% Tuesday.