Paycheques may have stopped flowing from Vale Inco to the 3,100 members of United Steelworkers Local 6500 on strike, but the workers will still get some financial compensation from a number of sources.
Local 6500 members went on strike on July 13 after their union failed to reach a new collective agreement with Vale Inco.
Members will receive $200 a week in strike pay starting at the end of the first week of August, said Local 6500 president John Fera.
The money for strike pay comes from the United Steelworkers of America's strike and defense fund. Members pay into the fund with their union dues.
The union is paying Vale Inco to have its payroll department automatically deposit the money into the strikers' accounts.
“We have to pay them (Vale Inco) to do that (distribute strike pay). The old Inco used to do it for free. The new Vale doesn't do anything for free,” said Fera.
“We don't really have a choice. For us to put together 12,000 cheques per month - we're just not equipped to do that. The cost to do it through the local banks was very, very high - a lot more than we are paying through Vale.”
About 2,200 of the union members were already receiving employment insurance when they went on strike because Vale Inco was in the midst of a production shutdown in its Sudbury operations.
These employees will continue to receive employment insurance until July 27, when the production shutdown was scheduled to end, said Fera.
Those who had been working during the shutdown will not receive employment insurance, he said.
The strikers have been cut off from their benefits for the duration of the strike. But if or when the strike enters week four, a fund set up by United Steelworkers District 6 will begin providing some insurance for union members. Each family will be eligible for coverage up to $1,000 per year (of the strike).
“That's better than what we had before (the benefits fund was set up). Before we had nothing,” he said.
Fera said some workers may decide to take other jobs during the strike to pay their bills and that's fine with him as long as they show up for their turn on the picket line.
The strikers are expected to put in 12-hour shifts on the picket line once every week and a half or two weeks.
“People need to maintain what they have. All we ask them to do is show up to do their strike duty and support the other members on the picket line. It's like a big family now. In order to win the fight, everyone has to stay together.”
Fera said he has no idea if his members have put away money to sustain themselves during the strike, saying “it's not my business.” But he said he hopes they have.
“One of the things we've told our guys to do over the years is to put that bonus money away and consider that your strike fund. In 2006, fortunately, we didn't need it because we didn't have a strike. But this one is going to be a tough fight, and hopefully people have put a nest egg away.”
The strike is going to have a bad impact on local businesses because the strikers won't be able to spend the same kind of money in the community, said Fera.
The union president would not speculate on how long he thinks the strike will last. The last Local 6500 strike, which took place in 2003, lasted three months.
There have been no talks between Vale Inco and the union since talks broke off last week, although Fera said he's willing to talk any time the company wants to.
“I don't like making any predictions (on how long the strike will last). I just know that however long it takes is how long it takes, and we'll be there one day longer,” he said.
