Vale may face tough labor talks at Canada nickel mine -USW
Dow Jones quoted Mr. Wayne Rae United Steelworkers’ Union official as saying that Brazilian miner Vale SA may face difficult negotiations on renewing a collective labor contract at the Thompson, Manitoba, nickel mine and smelter in Canada when it expires in August or September 2011.
Mr. Rae said that negotiations may be tricky as Vale, the world’s second-biggest nickel producer, has already signaled losses of 500 jobs at the Thompson site where it will need to shut a smelter due to environmental restrictions. This will cut the workforce to 700 from the current 1,200.
Mr. Rae president of the USW local 6200 said that the forthcoming negotiations follow the recent settling of a year long strike at Vale’s Sudbury and Port Colborne nickel units, and a strike that stretched on for one and a half years at Voisey’s Bay in Newfoundland, resulting in an uneasy peace between labor and management, particularly due to the increase in the percentage of contracted out labor used at Vale’s nickel operations in the recent past.
He added that “Every grievance now goes to independent arbitration. Management and workers are unable to settle the disputes themselves.”
According to Mr. Rae, the current three year collective contract at Thompson was signed in 2008 and negotiations should be starting shortly. The company will need to shut down a smelter there, meaning that it won’t be able to operate its furnace at full capacity.
He said that mining will still continue at Thompson and ore will be shipped to Sudbury for processing. There is the possibility that a processing factory will be built in Voisey’s Bay.
Mr. Rae said that Vale officers in Canada were not immediately available for comment on the prospects for negotiations at Thompson. After a breakdown during collective contract negotiations at Sudbury and Voisey’s Bay, which led to the recent strikes, Vale’s Port Colborne workers accepted a new labor contract valid until 2015 while those at Voisey’s Bay agreed a contract lasting till 2016.
