Strike may be looming at Voisey's Bay, union warns

Last Updated: Monday, June 1, 2009 | 5:35 AM ET Comments0Recommend3

CBC News

A union negotiator said a strike could be looming at Vale Inco's nickel mine at Voisey's Bay. (CBC)

An impasse over a lucrative benefit paid to workers at northern Labrador's Voisey's Bay nickel mine is at the fore as negotiations resume Monday between Vale Inco and union representatives.

A bonus tied to the price of nickel is a key element in the bargaining, said Boyd Bussey, a negotiator with the United Steelworkers union.

"It's something that would be considered sacred now and would certainly cause a strike," said Bussey.

"I mean the workers are not prepared to give up any portion of that bonus."

The nickel bonus was the spark that ignited a strike that shut down production at Voisey's Bay for eight weeks in the summer of 2006.

Another summer strike may be looming. Talks were to resume Monday in Happy Valley-Goose Bay.

Bussey said while the company wants to seek concessions, the union is open to seeking a continuation of the status quo.

The Voisey's Bay nickel mine is located in northern Labrador. (CBC)

Workers have been without a collective agreement since March.

"If they're interested in extending the contract or something to get over the bad economic times, that's something that we could look at," said Bussey, who acknowledged that the current economic crisis is a significant factor at the bargaining table.

An oversupply of nickel on world markets has been keeping prices low, and analysts believe Vale Inco is in no rush to strike a deal.

Toronto-based metals market watcher Ray Goldie told CBC News that unionized miners in Sudbury have a mandate to strike on June 5, and he expects Labrador workers will soon follow.

"The company really does want to cut back the supply of nickel," Goldie said.

"It's an inelegant and not very humane way to do it, but a strike would be one way of reducing Vale Inco's production of nickel."

An official with Vale Inco declined an interview, and said the company will do its talking at the negotiating table.