Employees represented by United Steelworkers (USW) Local 6500, representing production and maintenance employees in Sudbury, voted to reject the Vale’s offer of a new five-year collective bargaining agreement.

USW Local 6200, representing production and maintenance employees in Port Colborne, voted to ratify the agreement.

This will result in a labour disruption at our Sudbury operations.

Vale’s contingency plans have been implemented to preserve the integrity and safety of the plants and mines.

The Company will continue discussions with USW in the hopes that both sides can find a path towards a ratified agreement in the near-term.

This comes after it was announced yesterday that the two sides had reached an agreement and that  the United Steelworkers  bargaining committee “unanimously recommended” to its members to accept the new agreement with Vale Ltd. Canada.

The union said in a statement on its website negotiations were “extremely challenging.”

Details of the offer were also posted on the Steelworkers’ website. As part of the negotiated deal, union members will receive a four-per-cent increase in standard hourly rates over the term of the contract with 0.5 per cent in 2021 and 2022, and then one per cent in 2023, 2024 and 2025. Members will also receive a one-time payment of $2,500 in recognition of continued efforts during the last year. Furthermore, members are being offered a one-time signing bonus of $3,500.

Also included in the offer from Vale were:

• Defined Benefit Pension
o Increase the monthly Minimum Pre-Age 65 Benefit for employees with 30 or more Years of Employment with Pay (YEWP) from the current level of $3750 to $3800 per month as of June 1, 2022.
o Increase the monthly Basic Benefit from the current level of $61 to $62 per YEWP as of June 1, 2022.
o Increase the monthly Minimum Pre-Age 65 Benefit for employees with 30 or more Years of Employment with Pay (YEWP) from the current level of $3800 to $3850 per month as of June 1, 2025.
o Increase the monthly Basic Benefit from the current level of $62 to $63 per YEWP as of June 1, 2025.

• Defined Contribution Pension Plan Voluntary Contributions
o Effective January 1, 2022, provide the opportunity for an additional voluntary contribution (unmatched) of 1% to 19% of regular base wages into the Defined Contribution Pension Plan.
o Effective June 1, 2021, initiate auto enrollment for voluntary contributions at 6% of base wages for all new hires, which will attract the corresponding Company matching contributions.

• Health Care Benefits
The following changes will be made to the Health Care Benefits provided under the Collective Agreement.
o Effective September 1, 2021, the Group Plan for Prescription Drugs is amended as follows:
• Add a mandatory generic drug rider.
• Eliminate Over-the-Counter drug coverage from the drug plan, excluding life-sustaining drugs.
• Increase the employee deductible to $4.00 per prescription.
• Cap the employer-paid dispensing fee at $10 per prescription.
o Close retiree benefits eligibility for all Insurances, Health and Hospital Services under Article 24 for employees hired on or after June 1, 2021.
o Effective July 1, 2021 eye examinations will be an eligible expense within the current maximum vision care coverage of $325.00 every three years under the Group Optical Insurance Plan.
o Effective June 1, 2021, increase the Non-Occupational Sickness and Accident Insurance Plan to $700/week.

• Bereavement Leave
o Enhanced duration of bereavement leave entitlement to five (5) consecutive days by expanding the circumstances under with bereavement leave is applicable.

• Employee Bonus Plan
• The annual AIP changes below. EBC and NPB remain the same.
o The Company seeks to align bonus payments to business outcomes by designing new performance indicators into the bonus plan calculation.

• Long Term Disability Insurance Plan
the Company will pay the premiums for a Long-Term Disability Insurance Plan that will provide for a monthly benefit of $2000, which will be effective September 1, 2021.

• Peer Trainer and Central Training Centre (CTC) Trainer Compensation
o Consistent with the Letter of Agreement – Improving Training Outcomes reached in connection with peer training, upon the implementation of the Peer Training Model, the Company agrees to pay an hourly premium at 8% of the employee’s regular base wage, exclusive of any premiums, to employees who have been selected, trained, and explicitly assigned to peer training duties under that Peer Training model.
o CTC (114 Orebody will become a multi department plant ) training Instructors there will receive the premium applicable for Mines Training Instructors in accordance with the Mines Incentive Program as amended from time to time. For reference, this is currently 10% of regular base wages.

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