USW Canada: Over 85% of Vale Inco Workers Reject Final Offer and Prepare for Possibly Long Strike

Members of United Steelworkers Local 6500 will almost certainly set up picket lines at 12:01 a.m. Monday after 85 per cent of 2,600 members who cast ballots in ratification votes rejected Vale Inco's final contract offer.

Steelworkers accepted the advice of their union negotiating team, which recommended Vale Inco's settlement proposal be rejected in balloting held Friday and Saturday.
The union's collective agreement expires Sunday at midnight, putting it in a legal strike position.

Contract talks that began April 7 broke off Monday between the Brazilian-based mining giant and negotiators for USW Local 6500 and Local 6200 (Port Colborne). The union says the proposal contains concessions it cannot live with such as a revamped pension plan, a reduced nickel bonus and limits on seniority-based transfer rights.

USW Local 6500 president John Fera said he is extremely pleased at the overwhelming support for the union's bargaining committee. But he said he is disappointed his members have to take this action.

Fera and the rest of the negotiating team received an 85 per cent strike mandate in May.

Leo Gerard, president of International Steelworkers, said in a written statement: "This is a fight about the dignity of workers and about the dignity of our community, and I can assure all of our members that the international executive of the Steelworkers is unanimously in support of your decision." Gerard is promising to visit picket lines Friday, July 17.

"We have spoken to all the unions that work in the global operations of Vale and we have their unanimous support as well," said Gerard. "This is a global fight and we are a global union, and we will use our global power to fight these concessions."

Wayne Fraser, director of District 6 of the USW, congratulated Local 6500 members on their resolve to get a fair contract. "We knew that when our Conservative federal government began giving away our natural resources to foreign-owned companies that our struggle for decent contracts would increase. Our members have negotiated forward-looking and long-term contracts that have been positive for our members, the community and the company. It's just wrong that Vale is now trying to eliminate all that," he said.

Fraser urged Vale Inco to get back to the bargaining table to negotiate what he called a Canadian solution. That isn't likely to happen any time soon. Vale Inco spokesman Steve Ball said Saturday that no talks are planned for next week.

"And until the union accepts the fact that changes are required for our business to be competitive and self-sustaining in all price cycles, there will be little to talk about," said Ball.

The former manager of Vale Inco's South Mine, Vall said "a significant number of changes" were made by the company since contract talks began April 7. But the company's overall business objective, "to be cash-flow positive sustaining in all business cycles, never changed," Ball said.

"What these negotiations are about are our future," said Ball, "not about the past. They're about being able to generate profits year after year, quarter after quarter, in all price cycles, in order to be able to sustain the operations here and reinvest in the Sudbury operations."

Ball said Vale Inco still has "significant investments" to make in opening mines, "deepening the ones we have" and maintaining infrastructure. It also has to spend "millions and millions" to meet stricter environmental regulations.

For more information, go to www. local6500usw.ca. Steelworkers are also launching a new website to coincide with the start of the strike Sunday at midnight. Visit www.FAIRdealNOW.ca.

Vale Inco is operating a website www.valeinconegotiations.com.