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ICEM’s African Trade Unions Tell Vale: Improve Labour Practices or Stay Off Continent

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16 September, 2009

African trade unions affiliated with the International Federation of Chemical, Energy, Mine, and General Workers’ Unions (ICEM), meeting yesterday, 15 September, in Lagos, Nigeria, passed a unanimous resolution criticizing Brazilian-based global mining giant, Vale, for its “anti-worker, anti-union practices” in Canada, and called on African governments to stop Vale from developing mines and exporting such practices to the continent.

Rayford Mbulu, Chairman of ICEM’s Sub-Sahara African Regional Organization (SSARO), and President of the Mineworkers' Union of Zambia (MUZ), said, “The time has come to challenge these global mining giants, and Vale will be a test case for us.” African trade unions will be contacting their respective governments about not granting permits to Vale and its partners for exploration and mine development.

Vale forced a strike in mid-July by 3,500 miners and smelter workers in Canada, members of the United Steelworkers (USW), by demanding unnecessary cuts in pensions and other areas. The company, which earned vast profits from its Canadian operations since its purchase of Inco Mining in 2006, has recently announced it will use replacement workers to break the strike.

The African unions are also protesting Vale’s practices in Brazil where the company routinely terminates staff without cause, denies workers the right to union representation, and forces workers to sign individual contracts to circumvent collective bargaining agreements.

“We don’t want Vale to come here and export its anti-union practices to our countries,” said Mbulu. “So either Vale improves its labour practices or stays out of Africa.”

“Vale’s strategy is to gut its best collective bargaining agreements and to set a precedent for deep cuts in wages, pensions, and worker rights worldwide,” said Ken Neumann, Canadian National Director for the USW, and an ICEM Vice President for the North American Region. “Vale will use the savings extracted from workers to finance the company’s ambitious plans for expansion and further its campaign to weaken trade unions throughout the world.”

Vale has opened offices in South Africa and the Democratic Republic of Congo, and recently signed an agreement with South African-based African Rainbow Minerals Ltd. to conduct exploration and participate in joint ventures. It is targeting numerous Africa countries for expansion.

Vale earned US$13.2 billion in net profit in 2008 and paid its six top executives US$33 million in 2008 compensation.

The USW is working with trade unions in Europe, Asia, and South America, as well as with the ICEM and the International Metalworkers’ Federation (IMF), which together represent over 45 million workers, in a widening campaign.

The ICEM is a Geneva, Switzerland-based Global Union Federation consisting of 467 affiliated trade unions in 132 countries.

For further information, contact, Joe Drexler, ICEM, at +41 22 304 1845, or [email protected], or Bob Gallagher, USW-Canada, at +1 416 487 1571, or [email protected].