Posted by Sudbury Northern Life Reporter Bill Bradley 

Local 6500 union members are angry with current negotiation offers, according to Wayne Fraser, a negotiator with the Local 6500 bargaining committee.

He was addressing 130 union members Tuesday at an information session at the Garson Arena. This was the last of three sessions to brief members on the progress of negotiating a contract with Vale Inco.

Many members wanted the union to strike immediately, he said.

“We said to members we're shut down anyways. The purpose of a strike is to stop production. We are not producing right now,” he said.

“The value system of this company does not sit well with us considering they have not lived up to their agreements when they bought Inco in 2006.”

Former union vice-president Patrick Veinot confirmed members expressed a lot of anger at the earlier sessions. On Monday, 900 members attended an afternoon session and another 400 came out for an evening session at the arena.

Veinot said members were angry there had been a two-month production shutdown initiated by Vale Inco and were upset with concessions the company was bringing forth in negotiating sessions.

“I like what I heard today,” said union member Mike Mirabella during Tuesday's session. “I like it that they (the union) are not stepping backwards. (We) are looking to maintain what (we) have and go forward a bit. We will be OK with that.”

Steelworkers Local 6500 president John Fera said there were three issues in contention during the negotiations. The first is the company's proposal for a two-tier pension plan. New employees would contribute to pensions along with the company.

“The defined pension that we have in place now, and have had since the inception of our contracts, has proven to work well for our members and for their families and for the community. There is a sense of stability that, when you work your 30 years, you get your guaranteed pension. You live in the community and you are able to afford to take your pension,” he said.

“With a defined contribution, the company now loses all the risk. Our members assume all the risk because they now have to have a financial fund manager for their own (pension) fund. If the market is not in exceptionally good shape, then our members start to lose that pension. Unless you have $500,000 to $600,000 in your account, the equivalent of a $3,300 per month pension, you will outlive your pension.”

The second issue is the company's proposal to find efficiencies.

“What they call efficiencies is the reduction of movement (between plants) for the employees. Now employees can transfer from plant to plant and mine to mine. Our maintenance people are multi-plant people and are able to bid to all of the different parts of the operation. Vale would like to cut that out. They have not shown us anything that is good for both sides yet.”

The members' nickel bonus is the third issue, but Fera was not willing to give any details about it.

“They are talking about changing it in a way that is not as effective as it is now. When times are good we get it. When times are bad we don't get it. We have always made sure our wages have been competitive in the mining market. Instead of getting high wages and possible layoffs in poor times, we have taken bonus programs and kept our wages very competitive.”

He said it was crucial that a good contract be negotiated with the new owners. He said this contract, being the first, would set the stage for future contracts. He did not rule out the possibility of a strike if negotiations broke down.

The pension proposal by the company for new employees is “awful,” said Julien Dionne, president of Steelworkers Organization of Active Retirees (SOAR).

“We can't have that. How can you have two people working the same job and not get the same pension?”

Dionne noted that when the Brazilian company took over Inco in 2006, the union leadership knew the Sudbury operations were now only one part of its expansive global operations.

“They are so big, they can make money in another part of the world. To close down Inco is not a very big thing for them. We have become more insignificant.”

But Fera said the Sudbury operations have always been jewel.

“This ore body has always made money for the owners here, regardless of what they are saying.”

One spouse of a union member, and who didn't want to be named, said she thought what the company was offering was not so bad.

“Many companies have these non-defined pensions. If the member invests in very low risk investment vehicles like bonds or Guaranteed Investment Certificates, risk can be minimized. As for the nickel bonus being changed, it was only in the last four-to-five years that it has really helped us financially. The union had to give up wage increases for it. I think in these economic circumstances, we all have to give a bit,” she said.