Inco Ltd. has announced that, as a result of the strike by its unionized production employees at the company?s Ontario operations, it will not be able to continue the supply to its regional marketing units of certain nickel, copper, cobalt and other products normally produced at those operations.
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United Steelworkersandapos; Local 6500, about 3,300 workers, walked off the job at 12:01 am Sunday.The issues are pensions and health care benefits for retirees. |
In a press release, Inco said the company?s regional marketing units around the world will, accordingly, be declaring force majeure under certain of their sales contracts, reflecting their inability to continue to supply such products under those contracts until production at the Ontario operations resumes.
The company will be working with its customers to assist them in their efforts to meet their requirements for certain nickel and other products during this strike at the Ontario operations.
The company said it cannot at this time predict when its Ontario operations will be back in production but it remains committed to reaching a settlement with the operations? unionized production employees that will meet the objectives of both the company and its employees.
United Steelworkersandapos; Local 6500, about 3,300 workers, walked of the job at 12:01 am Sunday.
An Inco spokesperson told reporters last week the company does not have plans to use replacement workers during the labour dispute.
Ninety-five per cent voted last Friday to reject the companyandapos;s contract offer. One hundred and seventy workers at Incoandapos;s Port Colborne refinery, west of Toronto are also on strike.
The issues are pensions and health care benefits for retirees. Many of the Steelworkers on strike are nearing eligible retirement age.
Sudburyandapos;s operation produces about nine per cent of the worldandapos;s nickel supply.
The company has been struggling with rising production and labour costs, particularly escalating energy and pension costs, and the strengthening Canadian dollar which impacts cash costs that are calculated in American dollars.
News of the strike hoisted London-traded base metal prices Monday, with nickel leading and copper in New York also rising on concerns about Incoandapos;s metal supplies to the American northeast.
