Nickel price bonus traded for profit sharing
The president of Local 6166 of the United Steelworkers, Murray Nychyporuk, is quoted as terming his union’s recent agreement with Vale in Thompson, Man. as “bittersweet.”
The company has announced that it will be closing the smelter and refinery, meaning layoffs of 500 employees out of the current total of close to 1,200.
Two of the considerations that led to the decision are the high sulphur dioxide output of the plant and the imminent opening of nickel processing facilities in Newfoundland and Labrador. The mine and mill will remain open.
The collective agreement, which ends the year before the closure in 2015, provides for $10,000 in “transition and retention” payments in four installments.
In addition, those who will lose jobs in Thompson will have priority for jobs in other Vale operations.
There was strong support for the contract, which was ratified by 88 per cent of union members.
It provides a 2.5 per cent wage increase in each of three years and continues the COLA clause. The Nickel Price Bonus is being replaced by a profit-sharing plan with a cap of 25 per cent of salary.
New employees will be enrolled in a defined-contribution plan with an eight per cent company contribution.
Meanwhile, the three-week strike by 157 members of Canadian Auto Workers, Local 2228 against Sandvik Materials Technology in Arnprior, Ont. (the first in 35 years) ended on Aug. 8 with 81 per cent support.
The strike was not over wage increases. Rather, the issues were a roll-back of the COLA and reductions in pensions.
