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Vale Inco shutdown rumours persist

Posted by Sudbury Northern Life Reporter Bill Bradley  Rumours persist of an announcement by Vale Inco concerning an early shutdown of its operations in Sudbury, as soon as March 1.

Posted by Sudbury Northern Life Reporter Bill Bradley 

Rumours persist of an announcement by Vale Inco concerning an early shutdown of its operations in Sudbury, as soon as March 1.

Gary Holman and Angie Robson, both spokespeople for Vale Inco, said there is nothing further to report on any shutdown of operations now though they have been hearing rumours too.

"These rumours are persisting, but I have nothing to add at this time," said Holman.

Robson said there will be a planned shutdown May 1 for a month for the smelter complex, including matt processing and the nickel refinery.

"We let the community know about this in December 2007."

Robson noted the May shutdown is the result of a decision by the company to have annual shutdowns move from an annual basis to every 18 months.

"Our last summer shutdown in 2007 was so successful we were able to extend the period between shutdowns from 12 to 18 months."

Local 6500 president John Fera said he has heard nothing about any imminent shutdown of operations.

"There will be a shutdown for maintenance May 1. We have known that. But I have heard nothing about a major shutdown of operations at this time," said Fera.

"I have heard of an announcement concerning staff restructuring coming very soon but that has nothing to do with our membership. As for shutting down equipment, they do that every day for maintenance," said Fera.

Robson denied there was any announcement forthcoming about restructuring for staff.

Northern Life has heard from many sources in the company that the shutdown may be for maintenance work that was not not done last summer.

Because the work needs to be done, and because of the continued low price of nickel, it is rumoured the company may move up its maintenance schedule instead of waiting for May 1.

Some sources have said the company may want to put pressure on the union to give in to the company when the next contract negotiations are underway. As it stands the union can call a strike as early as June 1, 2009.

Fera did say that his union will begin negotiations with the company on April 1.
"First though, our bargaining committee will be meeting to develop our positions on Feb. 1."

Fera had no comment on any bargaining positions at this time.

He did say in the December Searcher, Local 6500 Steelworkers newsletter that, "there is no doubt in my mind that our industry will be affected by the global markets and will have to re-think their capital budgets, but we all have to remember that we didn't cause this problem. And when the whole world starts to progress again, we have to be prepared to also get up to speed very quickly."

Fera said the problem lies with a loss of sales and not the cost to the company of its workers.

"The present situation in our industry very clearly proves our theory that bonus packages like our Nickel Price Bonus and our Earnings Based Compensation work well for both the company and our members-in good times and bad."


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