Report finds both company and union failed to ‘put the ingredients in place’ to end strike
A report into a strike that lasted almost 18 months at the Vale nickel mine in Labrador has made several recommendations to avoid such lengthy disputes in future.
The Voisey’s Bay Industrial Inquiry Commission was struck last fall to help break the impasse between the Brazilian mining giant and 130 workers represented by the United Steelworkers.
The inquiry released its first report in January, not long before the two sides reached a five-year agreement. The second report was made public last week, and contains more broad-reaching recommendations aimed at improving labour relations in the province.
“Strikes of such length are indicative of a failure in the collective bargaining process,” said the report. “It’s the commission’s view that both parties have failed to put the ingredients in place to ensure a good working environment in Voisey’s Bay.”
The commission said the mine’s remote location made picketing ineffective and made it easier for the company to use replacement workers.
Meanwhile, with high demand for skilled workers in the province, many workers were able to find alternate employment. Since those working away weren’t entitled to strike pay, remaining workers earned more. The commission said these factors lessened the union’s inclination to settle.
The report makes six recommendations. The most controversial is a change to provincial labour law that would impose binding arbitration under certain conditions. The Newfoundland and Labrador Employer’s Council calls the recommendation “radical” and harmful to future investment in the province.
“They would be allowed to go into a private workplace and dictate to private enterprise what benefits they have to offer and how much,” said executive director Richard Alexander. “Business is not willing to have a third party come in.”
Manitoba is the only province with similar legislation. Alexander questions why one dispute is being used as a catalyst for such a “profound” change in Newfoundland and Labrador.
“The Voisey’s Bay situation was eventually resolved by the workplace parties through collective bargaining,” he said. “We need to stop thinking that because it was a long strike something was wrong with the labour relations process. There are probably good reasons it went on for so long.”
Alexander said employers will fight the recommendation.
“When you have the government dictating an agreement, you don’t resolve the disagreement. The symptoms still exist,” he said. “Then you can end up with low productivity, work to rule, the refusal to do overtime and so on. It can be just as disruptive.”
Wayne Fraser, USW District 6 director, argues binding arbitration is long overdue in the province.
“They’re crying wolf. Manitoba still attracts all kinds of interest,” he said. “Most parties don’t want arbitration. When you put negotiations in the hands of an arbitrator, both sides lose some say in the outcome. But it’s a strong tool we can use when we need to.”
The report also suggests the province consider restructuring its collective bargaining process to ensure multinational corporations “respond to Canadian labour relations values” and to find ways to deal with situations in which the “relative economic weight” is not equal.
“In our view, these recommendations reflect Vale’s management style and its insistence on reducing the rights of workers in Canada to match its labour relations standards elsewhere in the world,” said Fraser.
He calls the recommendations a “vindication” for workers involved in the year-and-a-half-long strike. However, he said the union is disappointed the commission did not call for a ban on the use of replacement workers.
