USW Imposes Worker, Community Principles on Brazilian Firm in Canadian Mining Purchase

In the latest turn of the contentious Canadian mining company consolidation, ICEM affiliate United Steelworkers (USW) has called on the newest player in the takeover frenzy of copper and nickel company Inco to engage in open and direct dialogue with the union.

Brazil’s Companhia Vale do Rio Doce (CVRD), the world’s largest iron ore miner, entered the bidding for Inco recently with an all-cash offer of C$20 billion. The USW said it expects CVRD to adhere to a set of principles it adopted late last year when the high-stakes take-over battle began with Inco’s proposed bid for rival Canadian company Falconbridge.

ICEM Vice-president Ken Neumann

“We look forward to having an open dialogue with CVRD to ensure there is a clear understanding of the union’s position with respect to whoever or whatever ends up owning Inco,” stated USW Canadian National Director Ken Neumann. Inco had been pursued by Canadian nickel and zinc producer Teck Cominco and US-based copper giant Phelps Dodge. Teck Cominco last week dropped out of the bidding. Also last week, Swiss-based Xstrata closed on the purchase of Falconbridge, a company employing many Canadian USW members.

Neumann said the bottom line for the union is absolute protection of union members, their families, retirees, and the communities in which Inco operates. “Beyond that, we expect the government of Canada to exercise its responsibility to Canadians and examine every potential purchaser of our resources, and do what is best for Canada,” said Neumann.

The eight principles set forth by the USW last year in this intense consolidation of the rich mining and metals industry includes:

• respect for USW members, the union itself, and it’s collective agreements;
• an honouring of pension and benefits obligations for active and retired workers;
• a commitment to full training and development of existing staff, rather than use of contractors;
• no erosion in the union’s involvement and significant workplace role in health, safety, and the environment;
• a commitment to continued operation of all facilities and to substantial reinvestment in all operations;
• full and immediate disclosure of corporate plans and of potential community, employment, and environmental impacts of any corporate transaction;
• respect for the voice of workers and commitment to union-management dialogue, including a forum that incorporates local union leadership;
• and union involvement in any sale of the company.