TORONTO (miningweekly.com) - The United Steelworkers union (USW) warned on Thursday that any attempt by Brazilian-owned nickel-miner Vale Inco to run operations in Sudbury, in Canada, while some 3 100 of the union's members are on strike, would be a "huge mistake".

Given that the striking workers make up the bulk of the 4 700 or so Vale Inco employees in Sudbury, it seems unlikely that anything worth mentioning would resume until an agreement is reached between the miner and the union.

Still, the rumour mill has been working over-time this week, after local press reported that the company was holding skills training for non-unionised staff at its Sudbury nickel refinery.

Vale Inco spokesperson Cory McPhee confirmed on Thursday afternoon that a single 'train-the-trainer' workshop is being held in Sudbury this week, as part of the company's "contingency planning".

"As the name implies, this is simply ensuring we have people in place to provide training if necessary," McPhee said.

There are about a dozen employees involved in the training and there has been no decision to restart production at this point, but "we are keeping all options open", McPhee said.

The company has not ruled out the possibility of restarting operations.

But, speaking to reporters on Thursday, USW international president Leo Gerard warned that any moves by the company to have nonunionised workers do strikers' jobs would be a "huge mistake".

"It's more than unacceptable, it is literally putting lives at risk."

"We know the dangers of working in the mines, the smelters, the mills, the refineries," Gerard said.

"And if they think they can bring in a couple of guys that they can train in a week, we are going to go after the federal government, the provincial government because you need a licence to do that," he said.

"These are dangerous places, they are not candy stores."

NO TALKS SCHEDULED

The USW workers in Sudbury downed tools on July 13 after rejecting the company's three-year contract offer and neither side appears inclined to return to the bargaining table any time soon.

At the company's Port Colborne, Ontario, precious-metals refinery, 125 workers are on strike, and a work stoppage is also under way at Vale's nickel mine at Voisey's Bay, in the province of Newfoundland and Labrador.

McPhee confirmed that there were no new talks scheduled with the union.

"We are always willing to negotiate but we can't negotiate by ourselves," he said.

The main sticking points are understood to be pension structures and bonuses.

Vale maintains that it needs to implement changes to cut costs, in order to ensure the operations are economically viable "in all price cycles and all economic environments".

"Until the union accepts that change is necessary there is little for us to talk about," McPhee said.

Following scheduled maintenance in May this year, Vale Inco had implemented an eight-week shutdown at its Sudbury mining and processing operations, starting June 1, in response to weak demand and prices for for the metal, which is used to make stainless steel.

Workers subsequently voted to strike before operations were scheduled to resume.

Local 6500 vice-president Rick Bertrand said on Thursday the union was prepared to go to the bargaining table at any time, but added that he doesn't "see that happening any time soon".

The company has taken the stance that "there's no use bargaining until we accept the changes, and that's not bargaining. That's demanding."

Vale, the world's biggest iron-ore producer, bought Canadian nickel-miner Inco in 2007.

However, while nickel traded above $24/lb in 2007, it has since fallen sharply, as slowing global economic activity dampened demand.

The price fell to around $4/lb in the fourth quarter of last year, but has since recovered to around $8,60/lb.

In an effort to cut costs and improve margins, Vale Inco said in March it would cut 900 jobs around the world, including 423 in Canada.

It has also indefinitely closed the Copper Cliff South mine, in Sudbury, and deferred a $814-million capital project, to replace the shafts in the mine and the neighbouring Copper Cliff North operation with a single shaft.

Vale CEO Roger Agnelli was quoted as saying in July that the Sudbury operations were "not sustainable".

However, the union maintains that the operations are profitable.