26 September, 2011
United Steelworkers (USW) Local 6166 in Thompson, Manitoba, ratified a three-year labour agreement with the mining company Vale on 15 September, the same day that a prior three-year pact expired. Following a strike authorisation vote by the 1,100-strong unionised workforce a week earlier that passed by 95.3%, the USW bargaining team negotiated excellent gains in wage, pension, cost-of-living, and other payment schemes.
But most importantly the union diminished the harsh effects to workers in expected 2015 closures of a nickel refinery and smelter at Vale’s Manitoba Operations.
The new contract contains annual 2.5% wage increases, plus a C$.35-per-hour cost-of-living increase that will lift earnings C$2.72-an-hour over the life of the agreement. USW Local 6166’s defined-benefit pension plan also will increase, to C$3,450 monthly for full work service effective this year and to C$3,550 in September 2013.
The union won “preferential hiring” language for workers that will lose their jobs in 2015 when Vale pares the Thompson workforce by 45% with the refinery and smelter closures. Vale’s Thompson operations exceed new federal Canadian sulphur dioxide standards that will come in 2015. The Brazilian company is building a new C$2.8 billion refining complex in Long Harbour, Labrador/Newfoundland, near Vale’s Voiseys Bay and Goose Bay mine operations in eastern Canada.
The new contract language will mean workers likely to be furloughed will have preference in employment opportunities at Vale’s Canadian operations in Ontario and Labrador/Newfoundland. The company will continue mine and milling processing in Manitoba and also will continue development of new nickel deposits in the western Canadian province.
Other gains in the 2011 to 2014 collective agreement include a transition and retention payment to be paid over the three years. That will total C$10,000 and include a C$4,000 pay-out on 15 October 2011, and C$2,000 pay-outs in each of the next three years. The new agreement also contains an incentive scheme.
“Obviously, the gains we have made are bittersweet, given Vale’s plans to close our smelter and refinery in 2015, eliminating 500 jobs,” said USW Local 6166 President Murray Nychyporuk. The company and union came to terms on 12 September. A senior Vale manager called the negotiations “respectful throughout.” The agreement stands as the second labour accord between USW Local 6166 and Vale, the first coming in 2008 two years after Vale bought Inco Ltd. operations in Canada and elsewhere.