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SUDBURY, ON - The United Steelworkers has restated its opposition to Xstrata PLC trying to swallow Falconbridge Ltd.

Merrill Lynch & Co. analysts based in London said this week that they believe Xstrata will bid for full control of Falconbridge after May 14.

"A merger with Inco is better than getting taken over by Xstrata, or indeed by any other company," said Myles Sullivan, President of Steelworkers’ Local 2020 at Falconbridge, representing 220 office, clerical and technical employees. "Falconbridge management often says that Nickel Rim is the only real future the company has in Sudbury.

"Inco has three new mines waiting to be developed. Inco’s larger ore reserves offer increased job security that leads to more secure retirements for our members. And Inco’s larger infrastructure can also offer a chance for the members to bid, transfer or post to operations closer to their homes. Inco is just a better option for our younger members and our senior members too."

Steelworkers also oppose Xstrata due to its history.

"Xstrata and its largest shareholder Glencore International share a history of union-busting and disregard for the damage they do to communities," said Steelworkers’ Ontario/Atlantic Director Wayne Fraser, a Sudbury native. "Some years ago in the US we had to fight Glencore when it forced an ugly 20-month lockout of our members at an aluminum refinery in Ravenswood, West Virginia. We don’t think Xstrata would be good for Falconbridge workers or for Sudbury."

The Steelworkers won the Ravenswood lockout after a global campaign to discredit the owners' lawlessness. The fight was a celebrated labour victory and became the subject of a book.

Glencore and Xstrata were also major shareholders in a company called Metaleurop SA that, through a subsidiary, operated a polluting lead smelter in France. French President Jacques Chirac condemned the company for its violations of workers' rights and the environmental damage left in its wake.

"Some have said that there’s little difference between Inco buying Falconbridge and another company from outside Canada buying it. We think that’s willful blindness," said Fraser. "When you compare a unified Inco-Falconbridge against Falconbridge getting bought up by Xstrata, or even some other company based outside Canada, this is a no-brainer. Inco buying Falconbridge means greater Steelworker bargaining power and it means a more solid future here in Sudbury. That is good for workers and good for our communities.

"Steelworkers know that everything is not going to be rosy - we’ve had to fight Inco in the past and we’re ready to do so again," Fraser added. "But we are not afraid to take a position on who should own Falconbridge. Our union knows where we are going to deal with the future - at the collective bargaining table."

The Steelworkers now represents close to 8,500 workers in 15 Inco and Falconbridge bargaining units across Canada, as well as 20,000 retirees. As part of the union’s preparations for the possible merger, Local 6500 hosted the first meeting of the Steelworkers Inco/Falconbridge Council in December in Sudbury. The Council is comprised of Steelworkers' leaders from Inco and Falconbridge locals across Canada.

After a review of the proposed merger and possible alternatives, the Council endorsed the proposed friendly acquisition of Falconbridge by Inco, while at the same time establishing a firm set of principles to be respected in upcoming negotiations. Bargaining for a new contract for USW Local 6500 at Inco opens in mid April with a May 31 deadline.