Mine, mill and smelter workers vote 85% for Vale contract, ending 2-month strike

Members of United Steelworkers Local 6500 have ratified a five-year deal with mining giant Vale, ending a two-month strike — the first in a decade.

Mine, mill and smelter workers in Sudbury, Ont., hit the picket lines on June 1. They'll start back to work beginning Monday.

During Tuesday's ratification vote, union members voted 85 per cent in favour of the deal, which takes effect immediately, the company said.

"The past two months have been challenging for everyone," said Dino Otranto, chief operating officer of North Atlantic Operations.

"We are pleased that the company and the union were able to find common ground and a path forward. We look forward to welcoming everyone back."

The company said employees will return to work the week of Aug. 9, with production ramping up in the weeks ahead.

'Divisive issue' addressed, professor says

The two-month strike was the first at Vale since a year-long one that ended in July 2010.

In the latest dispute, the union had voted down previous offers, saying they denied benefits to new hires. This new offer includes provision of post-retirement health benefits to new recruits.

Larry Savage, a Brock University labour studies professor, said it appears the union made progress on that issue, which could benefit the company as well.

"When a company has better pay and benefit provisions, it's a better position to recruit workers," he said.

"I don't know if that was Vale's primary concern here. I think Vale's primary concern was the bottom line and increasing profit."

Savage said he understands why that issue was a sticking point.

"The tiering of any kind of employment benefit, whether it is a wage or benefit or a pension, is a very divisive issue in the workplace," he said.

"[It] seems to really bring forward feelings of resentment and disunity because you'll have two people doing the exact same job, but were hired at different points. And one worker will have access to the full benefit entitlement and the other won't. That, I think, really breeds this sense that there's some unfairness in the workplace."

Working to thrive for 'generations to come'

Otranto said that with employees returning to work, the focus will turn to putting the company in a position "to thrive today and for generations to come."

"We have many opportunities ahead of us, with the growing electric vehicle market."The nickel, copper and cobalt we produce are critical metals to achieving a low carbon future. What we produce, and how we produce it, matters and our collective success going forward will require collaboration to make this business successful for all of us."

Members of USW Local 6500 will hold media availability later Wednesday. In a statement on its website on Tuesday, the bargaining committee unanimously recommended that workers ratify the new agreement.