Vale (VALE.US), the Brazilian mining giant, has suspended operations at its nickel mine in Sudbury, Canada, for more than two weeks after local workers went on strike to protest the collapse of labor talks. However, the terms offered by Vale in the latest talks have not satisfied the workers and it is unclear when operations will resume at the mine.
Vale's 2, 500 workers at its nickel mine in Sudbury walked off the job on June 1 over the company's plans to cut the increase in the minimum wage and to reduce the benefits of retired workers.
The local union, the United Steelworkers union, which represented the striking workers, rejected Vale's latest offer by 87 percent of the vote, saying it was not much different from the last one, with only minor improvements, and that the Valley should negotiate in good faith. That's how the strike can be resolved.
The head of the local union, Nick Larochelle, said the nickel mine exposed workers to toxic and dangerous substances, and many of them suffered severe health damage after retirement. To compensate for the damage caused by their work, Vale should reward employees and ensure they receive the benefits they need to stay healthy.
Vale Canada said it was disappointed that union members rejected the second offer, insisting it had shown good faith.
Vale's second plan would still eliminate existing retiree health and medical benefits, but the company's new plan would offer retirees a $1,000 medical savings account.
Sudbury, Ontario, is the most important mining city in Canada. It is not only the largest producer of copper in Canada, but also the largest producer of nickel in the world. Vale's Sudbury mine produced 43,200 tonnes of nickel in 2020, accounting for nearly half of the company's total nickel production in Canada, the data show.
Interest in nickel has increased significantly since Tesla last year set a high nickel and low cobalt target for its future batteries. Talks between Tesla and Vale followed Musk's announcement of the nickel battery. Vale said Tesla and other automakers need enough nickel to make electric car batteries for the next five to eight years.
