TORONTO (miningweekly.com) – There appeared to be hope on the picket lines this week that negotiations that restarted on Friday between Brazil's Vale and the union representing its Sudbury workers would be successful in getting miners back to the rockface.

One striker at the Copper Cliff refinery picket line told Mining Weekly Online that though there was a renewed optimism that this round of negotiations might see a deal being reached between the world’s second-biggest mining company and the United Steelworkers Local 6500 union (USW).

“But I’m not taking anything for granted at this stage,” said the mine development coordinator, who did not want to be named for fear of being targeted by Vale.

Striking Vale drilling coordinator Alan Crowther said that there was a new expectation that the two sides would see eye to eye now. “I certainly am hopeful. There are rumours that Vale is preparing for workers to start returning.”

Vale spokesperson Steve Ball said the company had been preparing for a return of the workforce, but this was ongoing. “Are we preparing for people to come back? Yes, but we’ve been preparing for some time now. It’s not anything out of the ordinary and we’ve been doing it for six months or so.”

The strike, involving over 3 000 workers, began on July 13 last year, with the dispute centring on a nickel bonus, which saw workers receiving extra cash when nickel prices are high, pension packages and contract language.

Numerous attempts at talks have since broken down.

Crowther has meanwhile got a job for a contractor at Xstrata’s Kidd Creek mine in Timmins, about 320 km away from his home and family in Sudbury. “There must be 300-plus striking Vale workers here, and more at Lakeshore Gold. The mines here are doing quite well.” TSX-listed Lakeshore Gold is building a gold mine at Timmins, with production expected by the end of the year.

“The talk in the cage [at Kidd Creek] is that both sides, the union and Vale, are saying they’re really going to try reach an agreement tomorrow. There are a lot of hopeful people,” Crowther told Mining Weekly Online on Thursday.

"We remain committed to working as hard as possible on securing a fair deal for the members," said USW spokesperson Myles Sullivan.

Ball on Friday said these, the third set of mediated talks, were taking place in Toronto through the mediation of Kevin Burkett. “Both ourselves and the steelworkers want to find a way to end the strike.”

“The pressure on the team to reach an agreement seems be increased with each set of talks,” said Ball.

“We need a settlement that will secure long-term future for our co in Sudbury. We have to find a settlement that meets those needs and the needs of our workers.”

The last round broke down in May after Burkett decided no pathway existed to a resolution.

INCO DROPPED

Since then, Vale Inco dropped the Inco from its name. The company restarted some production at its Sudbury operations in March, using replacement workers and office staff.

Removing the Inco name, which has over 100 years of history, had been planned since Vale bought the nickel miner for $19-billion in 2006, but “timing is everything”, Crowther said.

Vale said in a statement the move was “the natural next step in the company’s evolution”.

STABLE PRODUCTION BY YEAR-END

Ball said that should the latest round of talks be successful, it would take a few weeks to induce the strikers to get back to work.

“We want it to happen in expedient manner. Absolutely, it would be realistic [to reach full production] by the end of the year.”

Ball could not say what production level this would be, as bringing the workforce back would be complex. Some 500 workers had since retired, while others might not choose to return from outside jobs they had found.

Neither would he say how much production had been lost so far. “There is definitely a cost to every strike.  We’ve lost revenue, we know that.”

Nickel was this week trading at $20 500/t, up from around $16 000/t when the strike began.

What used to be known as Vale Inco is the second-biggest nickel producer globally. In 2008, the company produced 85 000 t of nickel at its Sudbury operations.

For workers to return, there would likely have to be a lot of safety retraining, owing to the duration of the strike. Crowther said: “We’ll probably have to sit in classrooms for a few days, there’s gonna be a lot of safety work. But I’d be very happy to return to work.”

LOST HOUSES

The striking workers, meanwhile, have also suffered from lost income.

The mine development coordinator said that his wife worked and he had paid off his house and his car, so he was not too badly affected by the strike, during which time union members received a C$200 check each week.

“But I hope to get back to work, I’ve learned how far C$200 a week goes. People in my street have lost their houses because of the strike.”

He said many of the strikers had been doing “odd jobs” to pay the bills, with others seeking employment at other mines.

The worker had been standing at the picket lines since the strike began. The picketers are allowed to stop a vehicle from entering the smelter complex for 15 minutes before 07:30 in the morning, and for 12 minutes thereafter, when they would ask the driver what business he or she had at the mine, and explain the strikers’ plight.

SCABS

There had been reports of violence and threats against temporary workers that Vale brought in to do the strikers jobs, who are dubbed “scabs”.

The USW said it does not condone violence, but posts pictures of the scabs on its website, along with their names. Crowther said violence was not the right answer, but that “feelings run very high about things like that”.

He puts it like this: “Being isolated from your neighbourhood and community can be a lot worse than a punch in the mouth.”