Sudbury, Ont.

Vale Inco workers on strike in Sudbury

RTGAM



Sudbury, Ont. - Hundreds of union workers at Vale Inco's nickel operations in Sudbury, Ont., are on strike, with picket lines set up early Monday.

More than 2,600 Vale mining and processing workers represented by the United Steelworkers in Sudbury rejected the company's contract offer in voting on Friday and Saturday.

Wayne Fraser, Steelworkers director for Ontario and Atlantic Canada and a member of the union's bargaining committee, said 85 per cent of the members rejected the contract.

At issue was Vale's proposal to reduce a bonus tied to the price of nickel.

In addition, workers opposed a plan by the company to exempt new employees from its defined-benefit pension plan, which guarantees employees a reliable and steady income after retirement.

The company is proposing to provide them with a defined-contribution plan, which bases retirement benefits on investment returns.

Employees at the company's Voisey's Bay operations in Labrador voted 99 per cent against the same offer on Wednesday and are set to begin a strike on Aug. 1.

Analysts say Vale's Sudbury operations produce 10 per cent of the world's nickel supply, and a strike could squeeze global supplies and push up prices.

On Thursday, Vale announced it would cut 60 white-collar jobs in Sudbury. These came after the company cut more than 400 white-collar jobs in Canada in March as part of a restructuring of its operations.

Sudbury has been particularly hard hit by the slump in base metals prices as the region relies on its nickel and copper mines, among others, for a large chunk of its employment. Miner Xstrata laid off 686 salaried and unionized employees at its Sudbury nickel mine in February.