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Chapters 8

Managing Human Resources And Labour Relations. Chapters 8. Vale strike Voisey’s Bay Newfoundland & Labrador. Who is Vale?. Brazilian owed mining company World’s largest mining company Made 1.6million dollars in the last quarter Made $4.2 billion in profits over the last 2 ½ years

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Chapters 8

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  1. Managing Human Resources And Labour Relations Chapters 8

  2. Vale strike Voisey’s Bay Newfoundland & Labrador

  3. Who is Vale? • Brazilian owed mining company • World’s largest mining company • Made 1.6million dollars in the last quarter • Made $4.2 billion in profits over the last 2 ½ years • Employs 12,000 workers across the globe • 500,000 share holders • Bought the “Inco” mine in Voisey’s Bay for $19 billion in 2006

  4. VALE

  5. Who are the United Steel Workers – local 9508? • 130 miners • Work at Vale’s nickel mine in Voisey’s Bay • President of Local 9508 – Darren Cove • Currently on strike against Vale • Currently ½ of its members working elsewhere & donating their pay back to the strike fund • Receive $200 per week strike pay

  6. United Steel Workers

  7. Main Strike Issues • Nickel bonus 5% less than Ontario also change from price of nickel to performance-based • Pension plan – defined benefit vs defined contribution • Contracting Out

  8. Strike – brief history • August 1, 2009 members of USW local 9508 went on strike over • Proposed changes in their Nickel bonus, pension plan and other items in their contract • Note: This act was very similar to the strike occurring in another Vale mining operation in Sudbury, Ontario who settled their strike July 2010 • No Resolve through: • Numerous meetings • Court battles • Conciliation support from the province’s Labour Relations Agency and assistance of an independent mediator

  9. Strike – brief history • “Scab” labour hired – January 2010 • October 22, 2010 the government of NL called for an “Industrial Inquiry” in an attempt to resolve the issue

  10. Current Situation • Industrial Inquiry • Purpose – to look at: • Final positions of Vale and Union • Factors that led to the labour-management relations climate at Voisey’s Bay & provide options for improvement • Whether the dispute is affected by outside factors • Cost of the dispute to the province and parties • Provide options to resolve the strike

  11. Current Situation INDUSTRIAL INQUIRY NOTE: • It Is not designed to force Vale and the workers to settle • However…. • After the process the premier could enact legislation

  12. Ontario deal 5 year deal Improved wages- $2.50 per hour Improved pension agreement- current employees Compromised on pension agreement for new employees Life-time health care benefits Compromised on nickel bonus program $2000 return to work & production bonus payments

  13. Who is looking for greater/unreasonable Satisfaction? • VALE? • Employees of USW 9508?

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