Contract talks between Vale and USW at Voisey's Bay end after two days with no deal

Company 'extremely disappointed,' but union says nickel bonus system offer less than Sudbury
Photo courtesy of the Atlantic Pilotage Authority

Voisey's Bay
Vale strike nears one year mark.

Contract talks between Vale and United Steelworkers Local 9508, representing about 130 workers at Voisey's Bay fly-in nickel mine in northern Labrador, ended after two days July 20 with no deal. The almost year-long strike began last Aug. 1.

Earlier this month, also after almost a year on the picket line, striking Steelworkers at Local 6500 in Sudbury and Local 6200 in Port Colborne voted about 75 per cent July 9 to ratify a five-year deal with Brazilian mining giant Vale, four days short of a year of going on strike at those two Ontario sites.

It was the longest strike in Sudbury's history and the longest strike in Vale's 68-year-history. There have been nine strikes at the former Inco operations in Sudbury since 1958, including an 8 ½-month one from Sept. 15, 1978 until June 7, 1979. It remains the biggest strike in Canadian history in terms of lost workdays.

Vale said in a statement there has been "little progress towards a new collective agreement" in Voisey's Bay."

"We are very frustrated and extremely disappointed," said Tom Paddon, general manager of Vale's operations in Newfoundland and Labrador.

"To date, the USW has rejected three full settlement proposals tabled by the company over the past 12 months of negotiation," Paddon said. "At the prompting of the conciliation officers, the USW tabled a new counter-proposal that contained no compromise on substantive issues and included financial demands translating into an 8 per cent increase in compensation over their prior proposal. The current USW economic demands would increase labour costs at Vale's operations in Labrador by about 45 per cent over the previous collective agreement.

"We entered this round of talks with the objective of reaching a deal that meets the needs of our employees and our operations in Labrador. Unfortunately, the lack of flexibility being shown by USW at the negotiating table diminishes that possibility," said Paddon.

"This company appears not to be serious about striking a deal," said Boyd Bussey, United Steelworkers staff representative. "Vale is offering a lesser bonus system than the one given to Sudbury Local 6500 just two weeks ago.

"The proposed bonus system is unacceptable. It's based entirely on incentives rather than the present one based solely on the average realized price of nickel or the profitability of the company. The Sudbury bonus has a nickel component and a world wide company profitability components," said Bussey.

"The company has also refused to discuss other outstanding issues on the table until the union agrees to the new bonus system," emphasized Bussey.

"We need to see a serious effort on Vale's part, if negotiations are to succeed."

"We will continue to move forward with our operations at Voisey's Bay," Paddon said.

No further talks are scheduled.


[Get Copyright Permissions] Click here for reuse options!
Copyright 2012 Glacier Media Inc.

Comments


NOTE: To post a comment in the new commenting system you must have an account with at least one of the following services: Disqus, Facebook, Twitter, Yahoo, OpenID. You may then login using your account credentials for that service. If you do not already have an account you may register a new profile with Disqus by first clicking the "Post as" button and then the link: "Don't have one? Register a new profile".

The Thompson Citizen welcomes your opinions and comments. We do not allow personal attacks, offensive language or unsubstantiated allegations. We reserve the right to edit comments for length, style, legality and taste and reproduce them in print, electronic or otherwise. For further information, please contact the editor or publisher, or see our Terms and Conditions.

blog comments powered by Disqus

LOG IN



Lost your password?