Office, clerical, technical and professional employees at Vale’s Sudbury operations have accepted a new four-year contract.
In doing so, they went against a recommendation from their union leadership to reject the offer.
In a release, Local 2020 said the deal includes wage increases, a signing bonus, an increase to the minimum defined benefit pension, and contract language improvements.
“The new contract also includes reductions to current employee benefits, revisions to retiree benefits, and elimination of post-retirement benefits for employees hired after April 1, 2017,” the union said.
The bargaining committee recommended the union members reject the offer “due to the benefit concessions,” the statement noted.
The collective agreement between Local 2020 and Vale was set to expire at midnight on Friday.
Stuart Harshaw, vice-president of Vale’s Ontario operations, sent a letter to Local 2020 members this week, asking them to accept the company’s final offer of settlement.
Vale spokesperson Angie Robson said the company was pleased with the outcome of the vote.
“The negotiations were productive and respectful, and we are encouraged that we have been able to reach a new collective agreement that we believe appropriately meets the needs of both the company and our employees,” she said.
In his letter to workers, Harshaw said Vale was confident its offer “appropriately balances the needs of both the company and our employees.”
A final offer of settlement typically means the union’s leadership is not recommending its members accept a company’s offer. That occurs only when the two sides reach a tentative agreement.
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