Vale cuts another 12 jobs

Posted By DENIS ST. PIERRE, THE SUDBURY STAR

Posted 1 hour ago

The job cuts continue at Vale Inco's Sudbury operations, with another dozen employees laid off this week as part of the company's ongoing downsizing program.

The layoffs, implemented Thursday, were part of the elimination of 50 positions throughout Vale Inco's global operations, the company confirmed Friday.

"There were more people let go across the global operations," company spokesman Steve Ball said. "In Sudbury, that translated into 12 people."

The Sudbury layoffs are attributed in part to Vale's announcement in May of pending cuts to local human resources, finance and procurement jobs.

The company said in May it planned to reduce and consolidate those services it considered to be too "decentralized."

The consolidation at Vale Inco would be patterned on the centralized approach to such functions already in place at Brazil-based parent corporation Vale, the company said at the time.

Some jobs would move to Toronto and others to Vale's offices in Rio de Janeiro, it said.

This week's layoffs include a relatively small number of job cuts at Vale Inco's operations in Thompson, Man., at at its corporate offices in Toronto, Ball said Friday. More job losses from restructuring are expected in coming months, he added.

"We are looking at ways to make our business more efficient and sustainable for the long term and this restructuring will continue."

In addition to the restructuring plan announced in May, Vale Inco permanently laid off 261 staff in March. The company also has shut down in Sudbury operations for eight weeks, putting more than 4,000 workers on temporary layoff.

The company's job cuts, particularly the eight-week shutdown, prompted federal Industry Minister Tony Clement to declare in April he was investigating the company's actions. Clement said he would demand answers from Vale to justify the shutdown in light of certain commitments the company made when it bought Inco Ltd. in 2006.

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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.

But Vale maintained it did not violate any commitments made to the Canadian government and earlier this month Clement said he would not take action against the company. No action was warranted because Vale also is cutting its operations elsewhere in the world as well as in Canada, the minister said.

Clement's decision prompted the United Steelworkers union to call for the minister's resignation.

Meanwhile, Vale Inco's corporate office in Toronto had no comment Friday about recurring rumours the company is in partnership or takeover discussions with Xstrata Nickel. Such speculation has surfaced routinely since Vale's takeover of Inco and Xstrata's purchase of Falconbridge Ltd., both in 2006.

Some industry analysts have predicted it is inevitable that Vale and Xstrata negotiate some form of partnership or asset sale or swap in Sudbury to maximize efficiencies and profits.