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Vale’s Arrogance to Eastern Canadian Miners, Communities, Government Continues

17 January, 2011

Union members of United Steelworkers (USW) Local 9508 in the Canadian province of Labrador / Newfoundland last week voted by 80% to accept the recommendations of a government Industrial Inquiry Commission to end an 18-month strike and return to work. But the conciliatory move won’t get the 124 copper and nickel miners any closer to their jobs.

Their employer, Brazilian-based Vale rejects the report’s recommendations out of hand, findings that were drawn up by a neutral commission the company actually embraced three months ago.

The independent commission presented the two sides with its first report – recommendations to settle the dispute – at the end of 2010. The report’s findings caused Vale to initiate a call to Local 9508 for resumption of bargaining, which occurred in remote Goose Bay, Labrador, on 5-6 January. But the company walked away from talks on the second day after disagreeing with the term length of a renewal agreement.

In talks last October, just days before former provincial Premier Danny Willams established the commission, Vale sought a three-year term, while the USW wanted five years from the August 2009 expiry of the last agreement. In its report, the Industrial Inquiry Commission recommended four years. But in this month’s Goose Bay talks, Vale changed its position, seeking a five-year term from the date of ratification, proposing a 31 January 2016 expiry.

The commission’s report on collective bargaining issues does stand as a workable compromise. While it is critical of both sides for prolonging the strike, it cites the Steelworkers with already making “significant” compromises to end the dispute. The report recommends wage adjustments, a bonus plan based on Vale’s Labrador operations, a back-to-work protocol, and sub-contracting rules. The commission does not have the power to impose a settlement, but it has urged both sides to accept the compromise or submit unresolved issues to binding arbitration.

Most tellingly, however, the report states that Vale’s use of scab workers during the strike is reason for the company’s intransigence. “It is apparent to the Commission that the Employer has an approach that does not contemplate compromise on any basis that might be acceptable to the Union.”

Vale “maintains that it has a desire to conclude a collective agreement, buts its actions and reactions send the opposite message.” The report also cites the company with circumventing “a union’s right to bargain on behalf of its membership.”

Vale is operating its eastern Canadian operations now at full production with the use of replacement workers. But nearly all of those scabs are working in excess of 60 hours per week, creating the obvious safety risks. The Industrial Inquiry Commission’s second report will be issued in late February and it will address the integrity of Vale’s Labrador operations, the strike’s impact on rural communities, the reasons behind the strike, and Vale’s international strategies to re-shape Canadian work-life.

USW Local 9508 President Darren Cove

The strike by USW Local 9508 began on 1 August 2009, and now has eclipsed by six months a parallel strike by 3,500 steelworkers in Ontario. That strike against Vale, in Sudbury and Port Colborne, went on for 50 weeks and ended on 7 July 2010.

In total, Vale has forced 420 Local 9508 members into strike action in Voiseys Bay and other remote worksites of Labrador. Workers at three of Vale’s contractors, including First Nation electrical and pipefitting firm Ushitou Maintenance and security and catering companies, are on strike due to the mining giant’s recalcitrant positions. In addition, workers of a logistical transport company, Torngat, also represented by Local 9508, will see a collective agreement expire early in 2011.

Local 9508 this week will call on new Labrador/Newfoundland Premier Kathy Dunderdale and Human Resources, Labour, and Employment Minister Darin King to intervene more assertively to resolve the strike. On Saturday, 15 January, the USW purchased a full-page advertisement in a province-wide newspaper the urgent need for further government action.

“It is now clear that Vale is the impediment to a fair settlement,” said USW District Six Representative Boyd Bussey. “It is also clear that, unless our government takes action to bring about a settlement, Vale will continue to use its scab workforce and prolong the hardship for our working families and communities.”