Vale Inco strategy documents `misrepresented’
Written on January 23, 2010
Vale Inco has taken exception to reports that it is seeking workforce cuts of up to 50 per cent at its strikebound Sudbury operations during the next five years.
A Vale official said Thursday the United Steelworkers union and the Star misinterpreted internal company documents from a "strategy workshop" that discussed goals for job reductions.
"Misunderstanding and misrepresentation are unfortunate by-products of a labour dispute," said Cory McPhee, Vale’s vice-president of corporate affairs. "That appears to be what happened here."
About 3,100 workers have been on strike at the mining giant’s Sudbury operations for more than six months in a bitter contract dispute.
The documents, which are in the form of a presentation and a summary of discussions with mine managers last June before the strike, includes references to Vale’s objective of reducing the workforce to 1,800 employees by the end of 2009 and to 1,500 within the next few years fast cash loans.
However, McPhee said the reductions relate to the mines, which employed about 2,000 at the end of 2008, and not all local operations. Vale employs 3,100 workers at its local mine, mill, smelter and refinery operations. He noted Vale reached the 1,800-job level at its mines by the end of 2009 through a workforce reduction and attrition.
The documents also provide information on how mine managers can boost cash flow, improve productivity, justify capital spending and engage workers in its efforts.
The union submitted the documents in exhibits to support a recent complaint to the Ontario Labour Relations Board that the company has bargained in bad faith. Vale has said the allegations are "baseless."
Filed in: economics.