Mayor Brian Bigger issued a statement this week congratulating Vale and members of Steelworkers Local 6500 on the new collective agreement achieved this week.
On Aug. 3, Steelworkers Local 6500 members voted 85 per cent in favour of a new deal with Vale, ending a strike that began June 1.
“I would like to congratulate Vale and the members of Steelworkers Local 6500 on their new five-year collective agreement,” Bigger’s statement reads. “Vale is a critical part of our community, and its Sudbury operation is one of the largest integrated mining operations in the world. The people who work there are our friends, our family members, our neighbours.
“The past two months have been challenging for many people, and it is a great relief that both sides were able to come together, engage in constructive dialogue and reach a mutually beneficial agreement. I wish them continued success moving forward.”
The new agreement took effect immediately. Employees will be returning to work the week of Aug. 9, with production ramping up in the weeks ahead.
The agreement ensures wage increases of six per cent over five years and maintains post-retirement benefits for new hires, one of the key sticking points that led to the strike.
The new five-year tentative agreement comes with a $2,500 recognition payment in recognition for efforts during the pandemic, to be paid this month.
It also comes with a $3,500 signing bonus, to be paid in September.
Wages will increase by a minimum of six per cent over the five year contract, with 1.5 per cent in the first year, plus an 82-cent cost-of-living allowance. Wages will increase by one per cent plus a 41-cent cost-of-living allowance in the second year, another one per cent plus a 41-cent cost-of-living allowance in the third year, another one per cent plus a 41-cent cost-of-living allowance in the fourth year, and another 1.5 per cent plus a 41-cent cost-of-living allowance in the fifth year.
Throughout the duration of the strike, many members said they were fighting for the future, as the Vale wanted to ax post-retirement benefits for all future hires. The union and the company have agreed to keep those benefits in place. Furthermore, over-the-counter drug coverage is being maintained.
The nearly 2,500 Local 6500 members hit the picket line June 1 after rejecting the first contract offer, which the union’s bargaining committee recommended workers accept. On June 14, members rejected a second contract offer.
In mid-July, a third-party facilitator was brought in to help with negotiations.
At the time, Local 6500 vice-president Kevin Boyd said the mood among the 2,500 members on the picket line is one of optimism on news negotiators had returned to the table.
“We could not have reached this settlement without your incredible support and principled stand you took throughout this difficult process,” said the bargaining committee in a message to members. We believe this tentative agreement is worthy of your USW Local 6500 solidarity and values, and we are unanimously recommending ratification.”
