Jim Kmit, area coordinator with United Steelworkers Local 2020, will be filing a "direct difference" against Vale Inco after it rescinded its retirement program.
The company had drawn up an irrevocable document where 350 eligible workers worldwide could sign up for early retirement provided they had 29 or more years with the company, said Kmit. Most of those eligible are in the Sudbury operations. Submissions were to be in by Dec. 15., but now, Vale Inco is rescinding and revising its program.
"The company should not have the right to withdraw from the retirement program," said Kmit.
"They drew up the document. If it is irrevocable for members, then it should be irrevocable for the company."
According to Patrick Veinot, Local 6500 vice president, both Local 2020 and non-union Vale Inco workers are affected.
“Regardless of who they are, when these people signed an irrevocable pension offer in good faith, it should have been as good as gold, as we would say here in Canada,” said Veinot
Kmit says an estimated 30 workers signed up in the technical area and he has heard about 100 people submitted forms that will now be revoked.
As far as Kmit is concerned "there are two significant decisions people make in their life: one is marriage and the other is retirement."
Families have began retirement preparation only to have the rug pulled from underneath them, he said.
The grievance will be lodged and Kmit said he expects a mediator will come to some resolution somewhere down the line.
Vale Inco pulled back on the retirement program when officials realized after cutting contract and temporary workers, they would have gaps in key departments that will need to be filled by the people who could be eligible for retirement, according to one soon-to-be pensioner, who declined to give his name.
“They cannot afford to let people go,” he said.
According to Angie Robson, Vale Inco manager of external relations, says the company's offer was made conditionally “because we were not sure what the impact would be on our operations.”
“We have offered it to some employees, all staff positions. (However) we were able to reduce our workforce by replacing contractors and casual employees with full time staff. So we ended up offering it to fewer people than were eligible for the package,” said Robson.
She said she could not confirm the total number of employees who took the package or how many contractors were displaced.
With files from Bill Bradley, reporter with our sister publication Northern Life
