Sudbury Local News - Talks break down between Vale Inco and USW

UPDATED - March 8, 9:04 a.m.

Despite the efforts of a mediator, talks between representatives of Vale Inco and the United Steelworkers (USW) broke down on Sunday, March 7.

Both sides agreed that some progress had been made on key issues, but in the end, neither side could agree on everything.

“Over 11 consecutive days, our bargaining committee presented several new proposals and made genuine, significant compromises on the key issues,” Wayne Fraser, USW District 6 Director, said in a press release issued by the USW.

The third-party mediator, Kevin Burkett, called off the talks when compromises could not be met on some of the issues.

“I am disappointed to report that agreement is not possible at this time,” Burkett said in a statement to the parties. “I have therefore broken off discussions.”

The Vale Inco operations in Sudbury and Port Colborne, Ont., have been on strike since July 13. Voisey's Bay operations went on strike a short time later.

"We are extremely disappointed and frustrated," John Pollesel, vice president and general manager for Vale Inco's Ontario operations said in Vale Inco's press release.

According to the press release, a new five-year offer was put forward by the company and rejected by the union. The offer contained a defined contribution (DC) pension plan for new hires, a revised nickel bonus and nickel bonus trigger point, and cost of living allowance (COLA).

The company also added an incentive of $3,000 for employees when they returned to work, as part of the offer.

"We tried hard to find common ground. We demonstrated significant flexibility to reach a new agreement to end the strike," Pollesel said. "We want our people back working. We want our employees and our communities to be able to leave the hardship of this strike behind. We all want to return to our normal lives."

Rather than continue to bargain, representatives from the USW requested Burkett act as an arbitrator, and make binding decisions to resolve the issue.

“Our commitment to a fair resolution to this dispute is irrefutable,” Fraser said. “It is incumbent on Vale to agree to binding arbitration, to finally demonstrate they also want to reach a fair settlement with their employees and the communities in which they do business.”

Representatives from the company rejected the suggestion.

"We are not interested in having a third party make fundamental business decisions affecting the future viability of the business," Pollesel stated.

The union has scheduled meetings on Thursday in Sudbury and Friday in Port Colborne to give its membership a detailed report of both its and the company's positions.

Members will be able to vote on the offer presented by the Union. The union bargaining committee is recommending rejection.

The Sudbury meeting and vote is scheduled for Thurs., March 11, at 11 a.m. and 6 p.m. at the Caruso Club on Haig Street.

The offer can be viewed here.

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49 Comments

Phillip Morris 3/10/2010 6:52:25 PM - Report Abuse

And how do you stand for your NDP leader wanting to chum up with the Taliban?
Convenient indeed.
bigriver 3/9/2010 10:52:16 AM - Report Abuse

So is anyone who does business in China a communist? It is quite convenient for you to bash the NDP but I think you so called capitalists should look in the mirror first.
camoman 3/8/2010 10:57:41 PM - Report Abuse

Canada is going to get schooled here... in the selling of our resources...
.
One might think that past scars might direct us down the right path...
northside 3/8/2010 7:13:48 PM - Report Abuse

"We are not interested in having a third party make fundamental business decisions affecting the future viability of the business," Pollesel stated------Makes a lot of sense, why can't 6500 leadership see this..This is for the future of Vale and in turn the future of Sudbury..How much clearer can it be said!!!!
Top Gun 3/8/2010 5:58:30 PM - Report Abuse

All ndps are socialists. socialists are commies.
NativeSun 3/8/2010 5:34:03 PM - Report Abuse

Wow. Are we being injected with another illegal dose from the "HYPE-O-DIRT-mic Needling" of the Kevorkian Club?
They amuse us with their blogs of Doom and Gloom tag team wrestling style.(lol) They attempt to pin you down but then offer suggestions on how to cry "uncle" to save face.Uh-huh.
Be very cautious, for once their (serum) sermon takes effect, their manipulative trance will not allow you to think for yourselves. They overpower your subconscious and they will stop at nothing to suggest that you sign on the dotted line and save face. Yeah,right!
P.M.S. I hear things aren't that "rosy" at the smelter and the new owners may have got caught with their plants down!
noofie 3/8/2010 5:05:49 PM - Report Abuse

Give me a break bigriver. All for one and one for all is not socialism?
bigriver 3/8/2010 3:42:03 PM - Report Abuse

That's a typical company propaganda reponse: that anyone who stands up against exploitation by the fat cats must be a socialist. The big lie perpetuated by you people is that workers are essentially powerless to change unfair practices of big business. Your strategy of repeating the lie so often seems to have you believing it.
noofie 3/8/2010 3:12:13 PM - Report Abuse

@bigriver
Thats nothing but socialism as spoken by the Three Musketeers.
Explain to me how that built the middle class?
Lloyd 3/8/2010 3:05:57 PM - Report Abuse

Isn't the "incentive of $3000" as noted in the news article, a signing bonus?
bigriver 3/8/2010 2:41:49 PM - Report Abuse

One for all and all for one, that is the mantra that built a middle class in this country despite all your protestations to the contrary. I gotta give Vale some due I guess, your bloggers sure did spread a lot of bull and intimidation. The question is can they handle defeat? The overlords will not be pleased when your tactics prove fruitless.
Seamus 3/8/2010 2:08:29 PM - Report Abuse

VALE shareholders (and I include myself) are really hurting over this latest development.

http://www.reuters.com/finance/stocks/chart?symbol=VALE5.SA

Note today's high and the 52 week high.
Actually VALE is trading at its highest since June of 2008.
myownmind 3/8/2010 1:37:50 PM - Report Abuse

bigriver, i hope you are not holding out for a new offer with a signing bonus. after the way some of the members behaved over the last 8 months there is no chance of a signing bonus ever
myownmind 3/8/2010 1:26:30 PM - Report Abuse

Exactly nobody, Only those who can work without the union protecting their job will vote for this contract, it will be interesting to see the results of the vote, as long as it doesn't take weeks to count the votes..lol
bigriver 3/8/2010 1:25:01 PM - Report Abuse

I guess a radical to you nobodyspecial, is anyone who stands up for their rights. This offer makes it easier for the company to terminate people and therefore more easily intimidate. I don't know about you lackies, but I like to work in a place where if you do your job, you have little to worry about, not whether or not you make your boss look good by never complaining or bringing up health and safety concerns. It is a fact 079's lower a a foreman's bonus.
Nobody Special 3/8/2010 1:14:12 PM - Report Abuse

The radicals don't like this offer for the same reason they didn't like the offer last July. The writing is on the wall for them. They see this as the union losing power to protect them. The honest men and women don't need protection. The radicals will eventually all be kicking stones down the road.
noofie 3/8/2010 12:49:52 PM - Report Abuse

Youse guys are so stooooooopid.

We know what items the company moved on. What movement was there on Leo's platform?
Nickel capital 3/8/2010 12:18:26 PM - Report Abuse

Stock market on the rise, commodities on the rise, Canada economy rose 5% in one month, USA rose 6% biggest gains in a decade, and steel production rose 26% in a month. 5 year contract to cover the boom cycle. Wouldn't be to smart to sign this contract!
bigriver 3/8/2010 12:08:54 PM - Report Abuse

Beware Brazilians bearing gifts. It is in the best interests of all union members to have a strong union. It is clear to me Vale's new offer is designed to weaken the union and have them work under constant fear. That is neither good for the workers or the company in the long run. It is time for workers to stand up for Canada. Just because our politicians jumped off the cliff, doesn't mean we have to follow them.
RobertHood 3/8/2010 11:58:18 AM - Report Abuse

Lloyd...Your funny. Do you have a manual for that stuff? LOL.

What future do you speak of? The one where Nickel will never go below $6.00/lb again? Did you know that $6.00/lb Nickel is more than 100% the normal high price of Nickel for the last 100 years?

Are you speaking of a future where China and India will grow at a rate never before seen and they will DEMAND resources. The future where just China's needs will require an entire Earth of resources to develop to full potential?

Well I guess I should accept less for all of the "more" demanded by developing countries. That "more" causing resource prices to sky rocket and never return to pre millennium levels.

Gotcha!
RobertHood 3/8/2010 11:51:53 AM - Report Abuse

Should our contract be displayed for all to see?

Well sort of and sort of not.

Our Canadian Charter of rights provides us with the Right of Association. That right allows us to organize a union and have that Union become our bargaining agent. LRA provides for sections that state the employer must only bargain with such agent and no one else including individual employees. Sooo, the company can't call me at home and say "Well Rob how about this or that?". Same should go for the company publishing it for all the community to read and provide for opinion on. Is that not bringing the bargaining to others?

After it is settled, bargaining stopped, then public freedoms may apply.

it's low, disrespectful and not considered as fair bargaining practice.
Lloyd 3/8/2010 11:46:20 AM - Report Abuse

Never underestimate the stupidity of unions - they will constantly surprise - just when you think they can't possibly be any dumber, then off they go and exceed all expectations. After losing your shirt for 10 months for the sole purpose of the egos of a few union "leaders" LOL and a handful of loudmouth militants (who likely could never hold a job without the protection of a union) you'd have to be completely clueless not to demand a vote on and accept the very fair offer from the company THAT PAYS YOUR SALARY. That latter fact may come as a surprise to some of the "brudders", but surely by now they understand that the company has a right to run the business so that it can be viable in the long run, which, incidently, is also good for da brudders.
RobertHood 3/8/2010 11:45:37 AM - Report Abuse

Unless your ready to retire the offer only gives you $0.80 raise over 5 years and a slashed nickel bonus.

It's a retirement offer, period.

Our bonus system was bargained for using wage restraints and worked fine for 20 years. What changed? Nickel price went way up! Ohhhh, the bonus is no good now, it actually pays us.

Want to restrict that system which worked so well before? Well provide for a reasonable base rate increase to off set the restricted bonus payments. is there one? Nope!
sean10 3/8/2010 11:19:10 AM - Report Abuse

Is time vale inco leaves Canada and more jobs will be lost... Sudbury is not the place that has nickels, why bother to stay here and focusing on new mines elsewhere?
noofie 3/8/2010 11:16:03 AM - Report Abuse

Why at the Caruso Club?
No doubt that has to be rented.
Why not at the hall on Brady?

Keep pixxing it away Fera. It's not yours.
sean10 3/8/2010 11:16:01 AM - Report Abuse

Roberthood, if u want to vote NO, sure, that is ur decision and continue to make 200/week. Other members have family to feed and the offers are not bad, well above average offer for 80% of canadians.

I am happy with this offer. I do not understand why some union morons are so greedy, maybe they should work somewhere else... These morons are very incapable, brainless, stupid and ego robbing their fellow brothers and sisters... If we do not take this offer, lots of ppl are waiting for it...

On second thought, does 6500 protecting our interests or some morons ego?
2323 3/8/2010 11:07:02 AM - Report Abuse

STOP Complaining only 0.80 BLA BLA BLA......at last you would be working WITH A STUDAY PAY ELLLo.....get A life Bunch of Moron
RobertHood 3/8/2010 10:48:25 AM - Report Abuse

Unless your ready to retire the offer only gives you $0.80 raise over 5 years and a slashed nickel bonus.
Phillip Morris 3/8/2010 10:35:00 AM - Report Abuse

The mediator "called off the talks when compromises could not be met on some of the issues".
Pretty clear. Neither side wanted to budge. The mediator didn't fault one over the other. There goes the union's constant nattering that Vale is totally at fault. OR bargaining in bad faith.
The company has the right to represent itself and control its fate. The Steelworkers have the same option, but are desperate enough to play binding arbitration.
Think about it. A union facing minor concessions being out on strike for 8 months. They've got nothing to lose. They've lost $50,000 in wages. Months in seniority. Public support and respect. Could an arbitrator be any worse?
The company could end up with a labour sympathetic hearing officer as well.

Bottom line is that the membership has sacrificed enough on the ambitions of Gerard, Fera, and Fraser's failed legacy project. The rank-and-file have this one last chance, LAST CHANCE, to take back their union. Every member must look in the mirror tonight and ask, "Was this worth it? Can I continue to blindly follow the path directed by our lost leaders? After Thursday, will I ever have my job again?"
Members, R-E-A-D the FULL contract offer. Think for yourself. And cast the secret ballot for YOU.
Come Friday morning, the labour landscape in Sudbury will forever change.
2323 3/8/2010 10:30:51 AM - Report Abuse

GO BACK TO WORK BUNCH OF ODIOTS...it's better to have a JOB then stay home and complain about it ALL THE TIME....You Guys are CRYING for NOTHING....WE work harder then you guys for LESS MONEY and we don't complain all like you guys do bunch of GREEDY people...SO SHOUT UP and sign for God S....
LoveFights_2 3/8/2010 10:07:53 AM - Report Abuse

It's time for Xtrata to purchase VILE INCO.
camoman 3/8/2010 9:56:28 AM - Report Abuse

These guy's are sneaky...Read the fine print...Read between the lines... This is one contemptible offer....Everyone should vote "NO" on this one....
whiteswan69_1 3/8/2010 9:28:00 AM - Report Abuse

I certainly hope that the strike will be over and that the guys will go back to work.If they vote against going back to work it shows that they are not too smart.I hope that they use their heads and go back to work.If not,I will not be sorry for them.Vale Inco have given them a great deal.
tigerclaw 3/8/2010 9:08:35 AM - Report Abuse

This is finally our chance to go back to work. The offer was FAIR. Not great but fair and most definately showed improvements over the last one. A signing bonus right away would have been nice tho, but ill vote yes anyhow. Anyone who votes no is a radical and should look for work elsewhere. We dont need them.
harryRsole_2 3/8/2010 8:47:36 AM - Report Abuse

Stand Strong Vale
You're fighting the good fight :)
If this offer gets a no vote, then you will see decertification in 4 months
Informed 3/8/2010 8:34:12 AM - Report Abuse

6500 is nuts if they vote "no" on this contract. Looks like Vale was willing to negotiate...and from the sounds of it, 6500 is not. The contract is different (better) from the first one they offered (which wasn't bad in the first place)...and it's for 5 years!!
RobertHood 3/7/2010 10:33:16 PM - Report Abuse

Corrected:
Unless your ready to retire the offer only gives you $0.80 raise over 5 years and a slashed nickel bonus.

Not a great improvement.The trigger wasn't "lowered" to $3.50 it was raised from $2.25.

Why is it they cried the pension cost so much they need a DC instead and then give huge pension increases for the DB and give big cost increases to the DC by guaranteeing LTD, sickness pay and contributions while sick or injured and retirement benefits?

Funny way to cut pension costs?

So vote yes and go back for $0.80 raise and a slashed bonus? Don't think so. I vote NO!!
RobertHood 3/7/2010 10:32:28 PM - Report Abuse

Unless your ready to retire the offer only gives you $0.80 raise over 5 years and a slashed nickel bonus.

Not a great improvement.The trigger wasn't "lowered" to $3.50 it was raised from $2.25.

Why is it they cried the pension cost so much they need a DC instead and then give huge pension increases for the DC and give big cost increases to the DC by guaranteeing LTD, sickness pay and contributions while sick or injured and retirement benefits?

Funny way to cut pension costs?

So vote yes and go back for $0.80 raise and a slashed bonus? Don't think so. I vote NO!!
noofie 3/7/2010 9:49:03 PM - Report Abuse

So the talks broke down.
Who made the decision that there was no point in continuing?

The Thursday meeting will be something special I think.
myownmind 3/7/2010 9:40:30 PM - Report Abuse

It's funny how the diehards on the ss blogs are telling the members that this is a shitty offer and not to take it. These posts are coming from the men who are working at other mines while out on strike. I guess they are upset because they have been "standing strong" holding out for a signing bonus before they quit. The posts in both papers from these members are nothing but desperate, they have lost the battle and are afraid to admit defeat. 6500 is the laughing stock of this community now
SNS 3/7/2010 8:16:48 PM - Report Abuse

Well put oldman. I wish all the union members would read the contract themselves before the meeting thursday and make the best decision based on what is best for them. The talks probably broke down because the company didn't want to give jobs back to those they fired over the strike. Make the right choice for yourself and your family. The strikers asked for a 5yr deal. now they get offered that and an increase in wages the bonus kick off is at 3.50 for the whole contract. 20,000signing bonus for retirees bonus capped at 20%, and the cola gets rolled in immediately. And if you can show that you will be productive at work for the first 8 month you get a $3000 bonus. where are the issues?
Seamus 3/7/2010 7:58:44 PM - Report Abuse

Vote this down?
Vote what down?
The membership had one "vote" as I recall and that was to give your glorious leaders a strike mandate.
The one reason I probably had some empathy for the rank and file was they never had a chance to cast a democratic vote on a contract offer.
Obviously these dictators think you are too stupid to make any kind of decision for yourselves.
alliswell 3/7/2010 7:44:39 PM - Report Abuse

i dont care how many miles i put on my toys because they will never be for sale
alliswell 3/7/2010 7:42:41 PM - Report Abuse

after this gets voted down there will be better offers, they need us back now, but they will try to get us cheap. dont worry guys, lets vote this down so we can see how desperate they really are.
SirGalahad 3/7/2010 7:41:13 PM - Report Abuse

I guess with the nice weather, the strikers are looking forward to going fishing in their boats and camping in their travel trailers. Be careful you don't put too many miles on them, because they are worth more on Kijiji with less mileage. The olive branch was extended, and the union lit it on fire.
Big mistake.
I feel sorry for those workers who want to get back to work, who can't appear to oppose the union.
Seamus 3/7/2010 7:29:01 PM - Report Abuse

Nothing like the union sending down a couple bus loads of goons to disrupt the PDAC convention. They'll need more than some grease to ever get hired on at any other mine in Canada. They could always apply at some of Vale's "third world" operations. On second thought ....
Phillip Morris 3/7/2010 7:27:15 PM - Report Abuse

It's over.
This is the last chance for the rank and file to salvage their union and themselves.
Time to vote yes and end the madness and ego of the union.
If the fair deal is not taken, the union will collapse in a death spiral strike with no end.
Vale has continued to hold all the cards. They have the opening now to crank up production and put the final nail in the Steelworker coffin.
Only the members can save themselves from Gerard, Fera and Fraser now.
oldman 3/7/2010 7:22:25 PM - Report Abuse

PLEASE....all of you people that are resposible for ending this strike, go to the Vale site and read the offer for youself. DO NOT RELY ON WHAT YOUR UNION IS GOING TO TRY PRESENTING TO YOU AT THE MEETINGS.This is your future and that of your familys so make the most of the information available to you. THEN AND ONLY THEN VOTE.
bigriver 3/7/2010 6:39:10 PM - Report Abuse

So Mr. Pollesel says that they're extremely disappointed? Nothing like slapping the union with lawsuits on the day negotiations started. Yes, that should put a little grease on the wheel and make things go smoothly.

Talks break down between Vale Inco and USW

UPDATED - March 8, 9:04 a.m.

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