Feds give mining layoffs stamp of approval (comment on this story)

Posted By DENIS ST. PIERRE, THE SUDBURY STAR

Posted 11 hours ago

Federal Industry Minister Tony Clement should resign in "disgrace" for refusing to intervene in mining job losses in Sudbury, says an official with the United Steelworkers union.

"I think (Clement) should step down," said Wayne Fraser, director of Steelworkers District 6, which represents thousands of union members in Ontario and Atlantic Canada.

"I think he is a disgrace to the government and to the people of Canada," Fraser said.

If there was a violation of the investment act or the government's agreement with Vale, Clement had the power to order the company to cease or remedy the violation, the minister's office said at the time.

"When he came out and said that, people had some hope," Fraser said Tuesday. "Lo and behold, he walks away from the situation and from the people in Sudbury."

Clement is continuing a disturbing trend that sends a strong signal to foreign corporations looking to take over Canadian companies, Fraser said.

"The next foreign owners who want to come in an buy more of our national resources now know -- they can make any commitments they like and they won't have to keep them," he said.

Clement said Tuesday he will not take action against Vale because the company is cutting its operations elsewhere in the world as well as in Canada.

"One of the things I look for is, is there an equality of pain around the world in these international enterprises," Clement told reporters in Ottawa.

"And judging from the shutdowns, in Brazil for instance, and other parts of the world, it seems that they haven't targeted Canada or targeted Sudbury for their shutdowns. So that's obviously something in their favour, so at this point we're not going to be proceeding with any actions with respect to Vale Inco."

Vale Inco has maintained it has not violated the commitments it made to the Canadian government to secure approval of its $19-billion takeover of Inco in 2006.

But the Steelworkers and other critics decry the secrecy surrounding the agreement, which they believe precluded layoffs at least until later this year, Fraser said. He also blasted Clement for failing to respond to the Steelworkers' request for a meeting with the minister.

"I think that's disgusting and appalling and a disservice to the employees and to the public. The least he can do is meet with the union and discuss what the issues and commitments are."

It is unacceptable for the government to keep secret the commitments made by foreign corporations that take over Canadian resource companies, Fraser said.

"Taxpayers and workers have a right, when our government allows the sale of our natural resources to foreign interests, to know what the terms and conditions of that sale are and what commitments have been made and have to be respected."

The Investment Canada Act stipulates foreign buyers must convince the federal government their acquisitions will be of net benefit to Canada.

"I want to know what the test is for a 'net benefit,' when our government can sell out our natural resources and jobs," Fraser said. "I think if you ask the people who have lost their jobs, they'll say that test has not been met. It's a disgrace."

Similar concerns also persist regarding the purchase agreement between Xstrata and the federal government in 2006 when the Swiss-based corporation acquired Falconbridge Ltd. Xstrata pledged to avert layoffs at Canadian operations for three years, but in February of this year, the company announced 686 job cuts in Sudbury.

While details of the government's agreements with Vale and Xstrata remain secret, there is speculation the deals could include provisions that allow the companies to renege on certain commitments due to significant economic problems or other factors outside their control.

He was reacting to Clement's statement Tuesday that the Conservative government will not take any action against Vale Inco over cutbacks at its Sudbury mining operations.

In mid-April, Fraser said, Clement attempted to portray himself as "a white knight" defending the interests of miners and the community against a foreign corporation laying off thousands of workers.

Clement said in April he was investigating Vale Inco's decision to implement an eight-week production shutdown in Sudbury that would put more than 4,000 workers on temporary layoff.

Vale also permanently laid off 261 staff in March and in May announced plans to cut or move an unspecified number of office jobs from Sudbury.

Vale's summer shutdown decision "is certainly not welcome news to the government of Canada or the people of Sudbury," Clement said in April. "I am very concerned that Vale Inco intends to proceed with this shutdown."

The minister said he was demanding answers from Vale Inco to justify the shutdown in light of the Brazilian-based company's commitment to purchase terms when it bought Inco Ltd. in 2006.

"Vale made legally binding commitments under the Investment Canada Act at that time that I expect to be fully respected on behalf of the workers," Clement said.

The government would be "exploring all available options, including legal options, to address this situation," he said