United Steelworkers (USW) Local 6166 members accepted a final contract offer from Vale in voting Sept. 13-14, despite a recommendation from the bargaining committee to reject it.
The final tally of the voting was not released by the union Sept. 14.
“We understand the pressures that you have been under and accept your voice as our own,” said an update on USW Local 6166’s website. “Your bargaining committee and local union executive dedicate ourselves to standing with you 100 per cent going forward and representing your best interests in the future.”
USW Local 6166’s bargaining committee said Sept. 13 that requiring members to co-pay 20 per cent of their drug costs per prescription and not providing post-retirement benefits for future employees were the most contentious of the concessions that Vale demanded at the bargaining table. Vale said these concessions were necessary because its Manitoba Operations have a $163 million retiree benefit liability that continues to grow and reducing that liability is critical to building a healthy and sustainable business over the long term.
“The future we are creating requires significant capital investments over the coming years and providing retiree benefits for future employees is simply not sustainable,” said Vale in an Q&A sent to hourly employees. The company says possible projects to extend the life of Thompson’s mining and milling operations for decades could cost more than $1 billion, if approved.
The union did not accept this part of the offer.
“It many not affect you now, but after time we will be sitting at the table bargaining and find more members that don’t have post-retirement benefits than those who do have them,” said a Sept. 13 USW Local 6166 bargaining update. “Do you think they will fight for something that they don’t have? That we let the company take from them?”
The collective bargaining agreement runs for five years.
The previous five-year agreement was approved by union members by an 80 per cent to 20 per cent margin in September 2014.
The 2019 contract talks mark the sixth time Inco or Vale and the Steelworkers have reached an agreement without a labour disruption since 1999.
Following Birchtree Mine being placed on care and maintenance status in 2017 and Vale’s smelter and refinery in Thompson permanently shutting down about a year ago, about 600 Steelworkers are employed by Vale.
