NL

Vale, union trade blame after talks collapse

Brazilian mining giant Vale and the United Steelworkers union are blaming each other for failing to halt a long-running strike at the Voisey's Bay nickel mine in northern Labrador.
About 200 workers at the Voisey's Bay nickel mine in northern Labrador have been on strike on strike since August 2009. ((CBC) )

Brazilian mining giant Vale and the United Steelworkers union are blaming each other for failing to halt a long-running strike at the Voisey's Bay nickel mine in northern Labrador.

Talks collapsed within an hour Wednesday in St. John's, with Vale and the USW headed for an almost-certain industrial inquiry into why about 200 workers have been on picket lines since August 2009.

A commission of three lawyers is poised to start work on Friday in the industrial inquiry, which Premier Danny Williams said would start if the two sides could not meet a provincial deadline for a resolution.

The industrial inquiry cannot compel the two sides to reach a deal, but Williams has acknowledged that such inquiries can make public details that could be embarrassing for both sides.

Bad faith alleged

Vale said the inquiry — whose report may prompt action at the provincial legislature — is inevitable.

Union local president Darren Cove said his members welcome an industrial inquiry. (CBC)

"USW continues to bargain in bad faith," Tom Paddon, Vale's manager of Newfoundland and Labrador operations, said in a statement.

"For more than a year, USW sat on the sidelines and refused to engage in meaningful negotiations on behalf of our employees in Labrador until the Ontario strike was settled," Paddon said, referring to this summer's settlement to a similarly long-running strike in Sudbury and Port Colborne.

"Now that the Ontario strike has been settled, we have seen USW bring forward one new demand after another that appear consciously aimed at frustrating negotiations."

Vale said the union wants the industrial inquiry so that changes in provincial legislation will be enacted.

Despite the strike, Vale has been able to keep Voisey's Bay, one of the world's richest nickel discoveries, in operation. The union has accused Vale of relying on replacement workers.  

The Steelworkers have also accused Vale of refusing to negotiate in earnest, and said the company did not even send in a full bargaining team to Wednesday's meetings.

"We hadn't expected fully that the company was interested in this round of negotiations," Steelworkers local president Darren Cove told CBC News.

"We would prefer that this would have been settled through the collective bargaining process, but we haven't been able to do that, so we do welcome the inquiry," Cove said.

Human Resources Minister Susan Sullivan said she would still prefer to see a negotiated settlement before Friday evening's deadline, although it is highly unlikely that the two sides would be able to achieve that.

"Government is extremely disappointed that meetings between the United Steelworkers and Vale broke off so quickly. Indeed, after 15 months of negotiation and bargaining, the fact that an agreement cannot be concluded is regrettable," Sullivan said in a statement.