The announcement of this shutdown coincides with the expiration of the CBA with United Steelworkers. CVRD Vale Inco is a Brazilial company and they play hardball.

Clearly this shudown is designed to prepare for a strike.The contract ends on May 31.

With the economy in the state it is, CVRD is in the drivers seat. However Nickel prices are on the rise.

The prediction is that the mining industry will be short of labour in the near future. The work force is aging and many will take their pension soon.

Normally I would see a long strike and takebacks. However with the shortage of labour that is predicted, CVRD may be happy to get a "status quo" contract.

In North America we have a problem. Our labour rates are too high. The Auto industry is just the tip of the ice berg. Manufacturing is in BIG trouble in Canada. We will never compete with China & India. We have priced ourselves out of the market.

However Canada's ace in the hole is Natural Resources and Mining.

So CVRD is between a rock and a hard place. If they play hard ball, they may face a very long strike. If this was manufacturing, no problem. But this is mining and nickel will soon recover. Copper is on the rise and nickel will be close behind.

Conclusion...CVRD will negotiate hard but cave in and give a status quo contract.

Just my opinion....been there done that.

SN