Vale delays Long Harbour smelter… again #nlpoli

Earlier this year,  mining giant Vale was saying they’d start production at the new Long Harbour smelter in 2013, but after a meeting with Premier Kathy Dunderdale in Brazil,  the company won’t be ramping up until 2015.

That’s the news from VOCM on the weekend, although they didn’t report the actual news about the delay at Long Harbour.  VO just reported that Dunderdale met with Vale officials and that the start-up date was 2015, as if it had always been two years away.

The premier says she went down a few days early to meet specifically with Vale officials to get an update on the Long Harbour development and the Voisey's Bay mine site.

She says Vale officials indicated that Long Harbour will start to ramp up in 2015, while they're looking to go underground at Voisey's Bay.

According to VOCM, the company officials are concerned about power supplies “in the area”. But the story isn’t clear if the power supply problems are in Labrador or at Long Harbour.

Tentative deal in Voisey’s strike

As reported by CBC.

As reported by the Telegram.

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Will Danny expropriate?

Talks between Vale and its Voisey’s Bay union broke down again on Saturday.

This is after Premier Danny Williams tried to be “the voice of reason” on Friday.

Will Danny expropriate? 

Well, he’s undoubtedly desperate to find a foreign demon to distract attention coming into an election year. It wouldn’t be too hard for Williams to cast Vale as another foreign multi-national attempting to use local resources without properly compensating the resource owners. He could even posture as a great defender of unions.

The mine has a huge market value and – unlike Grand Falls-Windsor – the provincial government would have an easy time unloading the mill or operating it profitably as a Crown corporation.  Heck, revenue from the mine could pay for the Lower Churchill.

And, also unlike the old AbitibiBowater properties, there are no stinking environmental messes to expropriate by accident.  There may be environmental problems but nothing that should hold up the expropriation or even cause the province’s New Democrats to lose a wink of sleep.

Much would depend on whether or not Vale had a legal angle under NAFTA.  If the company can’t find a way to sue, then stripping the company of its mine and the smelter project at Long Harbour is a pretty simple affair for a government with such a commanding presence in the House.

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Williams tries inadvertent humour to help end Voisey’s Bay strike

When the threat of an industrial inquiry didn’t send the two sides scurrying back to the negotiating table, Danny Williams called the union and Vale Inco to his office on Friday in another effort to settle the 15 month old strike.

Industrial inquiries typically don’t work in labour disputes of this type that must be settled ultimately by an agreement.

Williams – who has been known to storm out of negotiations and engage in petty, vicious, personal attacks during negotiations or other disputes – claimed straight-facedly that he wanted “to try to be the voice of reason” with the two sides.

The provincial government has seen its mineral royalties plummet during the strike.

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Information expropriation: Premier threatens industrial inquiry over Voisey’s strike

Premier Danny Williams is warning both parties in the 14 month old strike at Voisey’s Bay that his administration will appoint and industrial inquiry commission under the province’s labour laws to settle the dispute if the parties can’t find agreement within 14 days.

Under the Labour Relations Act, the province’s labour minister may appoint a commission of as few as one person to inquire into a dispute under terms of reference set by the minister.

Some news reports refer to the purpose of the inquiry to "maintain and secure industrial peace." 

That’s not really the strength of the inquiry approach in this case.

The commission will operates with the powers of a conciliation board under the same act.  That’s an important step in the collective bargaining process the provincial government skipped in its sudden desire to intervene in the lengthy strike.

The real value of an inquiry for the provincial government  - as opposed to a simple conciliation board – is that the government alone controls not only the outcome but when and how the results of the inquiry investigations will go to the public.

Think of it as information expropriation and the threat is clear enough in the Premier’s comments:

“Why aren't they settling? Does the company have some reason it doesn't want to settle? Why did it settle in Sudbury and not settle in Newfoundland and Labrador?…

"If the union is getting some of the wage demands that it wants but not getting everything that it wants, is there some reason why the union is not settling? Is it personalities?"

With a conciliation board, the parties would settle the strike with the help of a government panel.  With an inquiry, there is the threat that one side or the other or maybe both will have their private information tossed into the public bear-pit. The government may not make the information public, though. They may just sit on it and use what they learn about the profitability of the company operation for their own purposes.

It’s not like they haven’t tried that sort of thing before with other companies. Anyone ever hear of the data room application?

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Prov Gov appoints mediator in Vale strike

The provincial government today announced the appointment of Bill Wells as a mediator in the ongoing labour dispute at Voisey’s Bay.

The best they’d been willing to do before is strongly encourage both sides to get back to the table.  The most recent example of that was in June, 2010.

So what happened recently for government to change its approach?

Money might be getting tighter as we come up on the half-way point in the fiscal year.

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Tentative deal at Vale in Ontario

From the Globe and Mail:

The end to a long-running and bitter strike in Ontario is in sight as mining giant Vale announced it reached a tentative agreement with production and maintenance workers on Sunday.

The metals miner says the agreement involves a new five-year contract with United Steel Workers Locals 6500 and 6200, which represent production and maintenance employees in Sudbury and Port Colborne.

No word on Sunday about a possible settlement of the year-long strike at Vale Inco’s Voisey’s bay operation.

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