Vale talks break off in Labrador
Contract talks between Vale and about 130 striking mine and mill employees represented by the United Steelworkers at the company's operations in Voisey's Bay, N.L., have broken off without a deal.
The union said a bonus system was a key sticking point.
"The company has also refused to discuss other outstanding issues on the table until the union agrees to the new bonus system," Steelworkers representative Boyd Bussey said in a statement.
"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." Bussey added that the contract ratified on July 8 by Steelworkers at Vale in Sudbury, Ont., includes a bonus linked to nickel prices and worldwide company profitability.
The company accused the Labrador union bargaining committee of not being fully committed to finding a pathway to a new collective agreement.
"From the outset, we have been fully prepared to engage in collective bargaining; however, it takes the commitment and willingness of both parties to discuss all issues and work towards finding common ground," said Tom Paddon, general manager of Vale's operations in Newfoundland and Labrador.
Ontario deal forged
Two weeks ago, Vale workers in Ontario voted to approve a new labour agreement, ending a year-long strike. That agreement sees more than 3,000 workers get a raise and a sizable signing bonus. However, it will also put new employees on a defined-contribution pension plan, instead of the existing defined-benefit plan.
Existing workers under the current defined-benefit plan will get a boost in their post-retirement income, and the long-term disability plan will also be improved.
Workers will get raises totalling an estimated $2.46 an hour by 2014, and will receive a back-to-work bonus of $2,000, plus another $2,000 if production reaches 95 per cent of its maximum for 42 days within six months of ratification.
The new Ontario contract raises the price at which the nickel bonus kicks in to $3.75 US a pound from the previous $2.25 a pound, and it caps the nickel bonus at 25 per cent of workers' wages.
Vale's Canadian operations include six nickel mines, a mill, a smelter and a refinery in Sudbury; a nickel-cobalt-copper mine in Voisey's Bay; three nickel mines, a mill, a smelter and a refinery in Thompson, Man.; and a refinery in Port Colborne, Ont.
Vale has more than 100,000 employees around the world and is a global leader in the production of iron ore pellets, aluminum, coal, nickel, copper, steel and other resources.