Wow what a change in direction and attitude. When the layoffs were announced Clement defended Vale and actually took credit for getting certain tradeoffs and consessions from Vale. Now he is threatening legal action. This is politics I quess.

I suspect that this announcement by the gov't is in reaction to requests by United Steelworkers who are likely claiming that this is simply Vale's attempt to prolong contract negotiations and make it harder for the Union to strike a deal (pardon the pun). The contract ends May 31. There is a 3 month shutdown starting May1 till August (approx).

Leo Gerard, the international President of USWA is from Sudbury and worked at Vale Inco. He is well connected. He likely has been puting pressure on the gov't claiming this is Vale's way of taking away the only real bargaining strength the union has...the right to strike. What affect can a strike have when the plant is shut down? In fact, if they declare a strike on June 1 it may adversly affect the employees' ability to collect employment insurance.

Most people are surprised that Vale waited this long to take this action. They are stockpiling and world wide reserves of nickel are swelling. This was the responsible thing to do. One of the options was to lay off even more employees. This way the employees get 3 months off and can apply for employment ins benefits, and they know they have a job in the fall.

Even the mayor of Sudbury when interviewed said that this is likely good news for Sudbury and Vale employees over the long run. Sudbury has weathered many of these storms and will survive this one again and emerge even stronger.

This is great news for nickel prices. Supply will be allowed to decline. I suspect the announcement of the shutdown had an effect on last weeks rise in nickel prices.

Don't pay any attention to Clement's statement. It is just politics.

SN