Voisey's Bay talks resume under new pressure

Mining giant Vale and the United Steelworkers are poised to resume talks Wednesday aimed at ending a 17-month-long strike in northern Labrador, while a potentially embarrassing report is set to be released later this week.

Dozens of unionized workers at the Voisey's Bay nickel mine on Labrador's north coast walked off the job in August 2009, although Brazilian-based Vale has kept the mine running with replacement workers.

Both sides will meet in Happy Valley-Goose Bay, just two days before the Newfoundland and Labrador government is scheduled to release the initial findings of an industrial inquiry that was created last October after the last round of talks broke down.

The government has admitted that the industrial inquiry may produce evidence that could be embarrassing to both sides in the dispute, which initially had focused on wages and bonuses but has since focused on Vale's use of outside workers.

Vale officials are not commenting on the resumption of talks.

Boyd Bussey, a staff representative with the United Steelworkers, said the inquiry's report may be a factor in ending the strike.

"I'm hopeful the government will do the right thing and either impose the agreement that the commission has recommended or appoint a panel of binding arbitrators," Bussey said.

Still, Bussey said it is not clear whether the recommendations of the three-member inquiry will change Vale's strategy.

"I'm not sure what effect the pressure the Newfoundland government brings to bear on a corporate giant like Vale out of Brazil," he said.

The industrial inquiry's initial report was delivered to both sides before Christmas. Days later, Vale contacted the United Steelworkers union and asked for a meeting.