FACTS ABOUT VALE:

CASH ON HAND:

Vale has $22 Billion US (cash assets as of 31 March 2009).

PROFITS:

• Vale had $13.2 Billion US PROFIT last year (2008 after-tax profit).
• Vale has made twice as much profit in 2 years, as Inco made in past 10 years.
  • Vale Inco collected $4.1 Billion US profit from Ontario two years (2006-2008).
  • Inco collected $2.2 Billion US in Ontario profits in 10 years (1996-2006).
• Vale has collected big profits every year, even during economic recessions.

NICKEL BONUS:

• Vale trying to eliminate bonus that pays nothing in hard times (currently $0).
• Nickel bonus only applies in conditions of profitability. It’s a way of sharing in good times and protecting company in bad times.

EXECUTIVE PAY:

• Six executive officers paid $33 Million US (2008).
• Vale executive officers pay increased 121% in last two years.

Payment to Vale Executive Officers (in Millions)

WORKERS’ PAY:

• Vale Inco workers make $29 per hour (current average wage).
• Vale Inco workers make $0.00 bonus (current hourly bonus).
• Vale Inco workers previously made $4.86 bonus (average for past decade).
• Labour accounts for less than 1/10th Vale’s costs.
• Workers already took cut in income in last six months, because bonus is zero ($0).
• Salary for those working thousands of feet below ground that Vale wants to cut: $29 per/hr.
• This is very hard, dangerous work that deserves middle-class compensation.
• Because of bonus structure, workers currently get zero in bonuses ($0), but Vale wants much further claw-backs, including two-tiered pensions and challenged seniority.

GIANT FOREIGN MULTINATIONAL:

Vale is second largest mining company in the world.
Vale-Inco is second largest private company in Canada.

VALE’S BRAZILIAN OPERATION:

The Brazilian company Vale afford their workers in Brazil significantly weaker rights and protections at work, and paves the way for lower standards of employment at its operations everywhere around the world.

In Vale’s Brazilian operation:

• Workers are not “laid off”, they are terminated. (No right to recall.)
• Workers have no rights to seniority.
• Can immediately terminate “without cause”.
• Workers have no right to union representation in the workplace.
• Workers have no access to a grievance procedure in a collective agreement.
• Workers have no system of arbitration in collective agreements.
• Vast majority of workers are not permanent and only on a contract.
• The health and safety standards are low.
• There is no long term commitment to their workers. A majority of are terminated for one reason or another after 3 to 5 years (if not before).

TAKING ADVANTAGE:

Vale is trying to take advantage of temporary situation to bring in permanent, structural slashing.

“It’s important to realize the recession is a cyclical phenomenon. Recovery will follow the contraction cycle and the long-term outlook for miners and metal remains very promising,” said Vale-Inco CEO.

But his bargaining team acted otherwise.