25 January, 2010
Negotiations between United Steelworkers (USW) Local 9508 and Brazilian mining company Vale broke off late last night, 24 January, in St. John, Newfoundland, in failed efforts to end the 25-week strike by 250 union members at Goose Bay and Voiseys Bay, Labrador. Three days of steady talks over the weekend, guided by a provincial mediator from Newfoundland/Labrador, failed to bring the two sides any closer to terms.
Meanwhile, 3,100 striking Steelworkers marked six months on picket lines opposite Vale in Sudbury and Port Colborne, Ontario, a fortnight ago. The company, on 19 January, upheld its promise to re-start the Copper Cliff nickel smelter using managers and replacement workers to fire one of two furnaces.
In eastern Canada, an announcement a week ago that the first full round of negotiations since February 2009 would begin on 22 January brought hope that copper, nickel, and cobalt mining in Goose Bay, as well as operations at a slurry facility in Voiseys Bay would resume. Vale had submitted the framework of an agreement ten days ago, but this past weekend’s bargaining proved Vale is seeking the same set of concessions.
Hong Kong flagged ship operators receive Voiseys Bay Petition, 9 October 2009
“The company here still insists on removing the nickel bonus and they didn’t deal at all with our issues,” lead negotiator and USW District 6 Representative Boyd Bussey told the ICEM Sunday evening. “If Vale thought they were picking off a weak link in this strike, they were wrong. We’ll be on picket lines until we get a good deal.”
The key item that separated the two sides in talks remains Vale’s insistence on removing the nickel bonus, a wage supplement that is tied to the rise and fall of the market price of nickel. Contract language, monetary issues, and a company demand to give it more latitude on use of temporary workers also separates the two sides. Local 9508 is an amalgamated USW branch union with five units, three – miners, catering staff, and security – that have been on strike against Vale since 1 August 2009. Another unit, a Vale sub-contracted group of port workers employed by an Aboriginal-owned company called TSI, has a separate labour agreement expiring early in 2010.
The focus will now be on whether or not Vale will restart copper and nickel mining in Goose Bay using replacement workers. The speculation is that Vale needs nickel concentrates to feed its smelting operations in Thompson, Manitoba, as well as nickel for the re-start of Copper Cliff, where USW Local 6500 is on strike. The company might also be expected to capitalize on high copper prices, with the high-grade red metal mined and processed in the maritime province moved to market. In 2008, the company produced 77,500 tonnes of contained nickel and 55,400 tonnes of high-grade copper concentrates from its Vale-Inco Newfoundland and Labrador operations.
The start-up of the Copper Cliff smelter was long advertised by the company. Operation of one of two furnaces at Copper Cliff, however, is not expected to give Vale anywhere near 50% of smelting capacity from the Sudbury-area facility. Vale is getting minimal production from two of six mines in northern Ontario, as well as token output from its Claribelle refining operation.
On 13 January, the six-month mark of the strike in Sudbury and Port Colborne, the USW filed a bad-faith bargaining complaint with the Ontario Labour Relations Board in Toronto on Vale-Inco’s entrenched negotiations stand. Included in that complaint is an internal June 2009 Vale document that the company intends to pare mining jobs in northern Ontario, as well as strategically mine only high-grade ore from the region, thus reducing life expectancy of nickel reserves. The USW believes this indicates Vale is not managing the province’s reserves in the long-term best interests of workers and rural communities.
On the six-month anniversary of the Ontario mining strike, over 1,000 miners and their families marched and manifested in Sudbury. The event included an environmentally-friendly balloon release, with each balloon set aloft representing C$4 million of Vale’s profits that has fled from Canada.
The ICEM, together with the International Metalworkers’ Federation (IMF), will continue ratcheting up pressure on the Brazilian company so that Vale returns to bargaining tables both in Labrador/Newfoundland and Ontario with fair contract offers. The USW Local 6500 strike website can be found here www.fairdealnow.ca.