Vale settles with Sudbury miners

Brazilian mining giant Vale has reached a tentative agreement with the United Steelworkers to end an Ontariostrike that has lasted nearly a year.

Themetals miner, formerly known as Vale Inco Ltd.,said Sunday it settled ona new five-year contract with two union localsrepresenting 3,000 nickel production and maintenance employees in Sudbury and Port Colborne.

Comprehensive memorandums of agreement are to be signedMonday.

"It's been a long strike and I think that both sides worked hard," said Cory McPhee, vice-president of corporate affairs. "Both sides wanted a deal and that ultimately was the driving force to this outcome."

The announcement comes just days after Ontario Labour Minister Peter Fonsecasaid the two sides had agreed to resume bargaining.

Firings caused impasse

Before reaching an impasse, the two sides had agreed on all issues except one the firing ofnine workers during the strike and whether they were entitled to arbitration.

A statement from Fonseca had said the impassewas not acceptable to the communities involved, nor the government.

A statement from USW Local 6500 said an agreement had been reachedto have the firing issue heard by the Ontario Labour Relations Board, beginning Friday.

"This removes the remaining obstacle in the long struggle with Vale," the local said.

The unionsaid ratification votes have been scheduled forWednesday andThursday in Sudbury and Thursday in Port Colborne.

The tentative deal contains a return-to-work protocol, but Vale says it is still unclear when the employees will be back on the job.

"Once the vote process is sorted out, we'll begin bringing people back to work," McPhee said. "Suffice to say, we're very happy to have a deal done."

Key issues included abonus, job transfers, contracting out and pensions.

Vale's nickel business employs more than 11,000 people worldwide and hadsales of $3.26 billion US last year, accounting for 13.6 per cent ofthe company'soverall revenue. The company, which bought IncoLtd. in 2006,changed its name from Vale Inco in late May.

Theworkershave been on strike since July 13, 2009. Vale said the settlements were reached with the help of mediators Kevin Burkett and Reg Pearson.

Fonseca, whoalso thanked the mediators, said in a release that he was pleased both sides were able to reach a deal.

"This is positive news for the families and communities affected by this long strike," he said.

During the strike, the union accusedVale of bad-faith bargaining and the company accused the union of "unlawful thuggery" over a variety ofincidents on the picket lines.