Talks continue to end week-old strike at Vale in Sudbury

The strike by 2,400 mine, mill and smelter workers at Vale in Sudbury has stretched past the one-week mark.

Neither side is saying much, other than they are still talking to each other.

Those negotiations resumed immediately after the members of United Steelworkers Local 6500 voted down a proposed contract that would have seen any new workers stripped of health benefits once they retire.

Larry Savage, a Brock University labour studies professor, says this kind of "two-tier" contract—with different pension, benefit and salary systems based on an employee's start date— is becoming common in Canadian industrial workplaces.

"Two-tier contracts are really a recipe for resentment and disunity within the union," he says.

"The union overtime will ultimately be put in a position of having to defend that unfairness to unhappy members, typically the newer employees."

Savage said private companies are always looking for ways to increase profits, and union negotiating teams are often made up of older workers who won't be personally affected by weakening the pension and benefits for members who have yet to be hired.

"Even though the inequality is the product of the employer and the employer's demand, many workers will blame the union for accepting it," he said.

Savage isn't surprised to see what's happening at Vale, considering the year-long strike in 2009-10 ended with the union giving in on some of its original demands. 

"When unions accept the logic of a major concession like a two-tier wage, benefit or pension scheme, they're really only emboldening the employer to demand even greater concessions in the next round," he said. 

"They've now softened up the target and they will continue to come back demanding concessions."