“I Have Never Seen a More Arrogant and Insensitive Move”

- Steve Ashton, MLA for Thompson.

THE THOMPSON CITIZEN, 17 November, 2010
By John Barker

Brazillian mining giant Vale says it plans to phase out its smelting and refinery operations at Manitoba Operations by 2015, eliminating 500 jobs or 40 per cent of its local workforce, and focus on “developing new sources of ore as it transitions its operations to mining and milling…”

Manitoba NDP Premier Greg Selinger, Steve Ashton, Thompson NDP MLA and minister of infrastructure and transportation and Innovation, Energy and Mining Minister Dave Chomiak are all meeting Wednesday night with hundreds of angry USW Local 6166 unionized surface and underground mining workers packed in the Centennial Hall of Royal Canadian Legion Branch 244 on Elizabeth Drive. The meeting was still in progress at 9 p.m.

In response to a question from a USW member, Mayor Tim Johnston said while he has good relations with local Vale management, when it comes to senior Vale management in Brazil, “I don’t trust them and I don’t like them.”

Johnston said if the refining and smelting jobs leave Vale here as planned he doesn’t believe they’re ever coming back in any other form at Manitoba Operations.

A number of miners challenged Selinger in their questions on the NDP provincial government’s long-standing refusal to bring in anti-scab legislation.

“Are you willing to take your balls in your hands and put your job on the line?” for anti-scab legislation another miner asked Selinger to thunderous applause from other miners.

The premier replied that he is concerned anti-scab legislation doesn’t enjoy sufficient support provincewide and another government of the day would simply repeal it. Selinger said he believes the NDP’s “expedited arbitration” model accomplishes many of the same ends.

Vale dropped Inco from its name May 27 and its global nickel business is simply known now as Vale. It had operated around the world as Vale Inco since Companhia Vale do Rio Doce (CVRD) re-branded itself less than three years ago on Nov. 29, 2007. “Vale” is pronounced (vah-lay) and literally means “valley” in Portuguese.

In a blistering “MLA Report” weekly column filed Wednesday that appears in today’s Nickel Belt News, Ashton, who is also the minister responsible for emergency measures and the minister charged with the administration of the Manitoba Lotteries Corporation Act, says “Vale’s announcement that they are eliminating the surface operation here in Thompson is unacceptable.”

Ashton is the longest serving MLA in the Manitoba legislature, first elected in the Nov. 17, 1981 provincial election. He is second in order of cabinet precedence to Selinger.

“Since the 1950’s Thompson has had a fully integrated mining operation. The development of the refinery and smelter were integral parts of the 1956 agreement that established Thompson …Vale’s announced shut down of the surface operations in Thompson came without any discussion about solutions with key stakeholders or the provincial government. I have never seen a more arrogant and insensitive move.”

Ashton goes on to say, “A lot of blood sweat and tears have gone into building Thompson. We owe it to those that built this community and to future generations to fight to keep all aspects of the Thompson operation open.”

In a Nov. 17 statement, Murray Nychyporuk, president of USW Local 6166 at Vale’s Manitoba Operations here in Thompson said, “Regrettably, Vale has announced the refinery and smelter operations will be closing as of 2015. As of right now, the union has been told there will be no layoffs.

“This announcement is not about wage or benefit concessions,” Nychyporuk said. “The company has stated it is about S02 federal emissions. It is also about the Voisey’s Bay feed, which will no longer be processed in Thompson in 2013, the planned start up of Long Harbour. The company wants to achieve this reduction in the workforce by attrition.

“We are extremely disappointed to be receiving zero capital money to avoid being able to bring our emissions down to federal 2015 limits. We are also equally disappointed in the federal government’s announcement of lending Vale $1 billion, none of which is earmarked for the Manitoba Operation to avoid surface closure. USW Local 6166 and the provincial government are extremely frustrated with the systematic corporate machine that is Vale. They have removed the human element from this decision.”

Selinger also blasted Vale in a news release, calling on the owners of Vale’s Thompson operations to work with the Province of Manitoba, the City of Thompson and the United Steelworkers union to immediately seek alternative solutions to closing the smelter and refinery in Thompson by 2015.

“This decision comes without due notice or proper consultation with our government and the City of Thompson,” said Selinger.

“Vale’s intended course of action is unacceptable and our government stands firmly with the people of Thompson in saying this job loss will have a significant impact on the community and the province.”

The proposed shutdown of the Thompson smelter and refinery would result in a loss of about 500 jobs or 40 per cent of the current Vale Thompson workforce.

“We have a long and very successful history of supporting the mining industry through initiatives such as training, taxes and geoscience,” said Innovation, Energy and Mining Minister Dave Chomiak. “I know the company, the province, the workers and the city can find a solution to this if all the players agree to come to the table.”

“The City of Thompson is disappointed in the direction that Vale has taken,” Johnston said in a press release issued Wednesday – remarks he repeated in person at the noon-hour Thompson Chamber of Commerce lunch meeting after making an emergency flight back from Winnipeg where he was ironically getting ready for the annual Manitoba Mining and Minerals Convention, which opened yesterday and runs through Saturday.

“As a city we are focused on finding solutions for our community and the region. We understand the concerns of families and businesses, and we will continue to build a strong and sustainable future for Thompson,” Johnston said.

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