Vale announces ratification of collective agreements with production and
maintenance employees in Sudbury and Port Colborne

TORONTO, July 8 /CNW/ - Vale is pleased to announce that new five-year collective bargaining agreements have been ratified with United Steelworkers (USW) Locals 6500 and 6200 representing production and maintenance employees in Sudbury and Port Colborne. The settlements mark the end of a strike that began on July 13, 2009.

Highlights of the new agreements include improvements to employee wages and the Defined Benefit pension plan, a Defined Contribution pension plan for new employees, a cost-of-living allowance roll-in and changes to the employee bonus system. The agreements also include a special '$2,000 Return to Work payment' and a special '$2,000 Return to Production Bonus' for meeting pre-determined production targets within the first six months of returning to work.

"We are very pleased that our production and maintenance employees have ratified these new Collective Agreements and we look forward to their return to work and a resumption of normal operations," said John Pollesel, Vice-President, Production Services and Support (Canada/UK) and General Manager, Ontario Operations. "It's been a long, hard year for everyone involved, and it's now time to come together and focus on building the strong and sustainable operations that Sudbury and Port Colborne require."

The agreements were reached with the assistance of mediator Kevin Burkett and Ministry of Labour Conciliation and Mediation Director Reg Pearson.

"The Company extends its appreciation to Ontario Labour Minister Peter Fonseca as well as to Mr. Pearson and Mr. Burkett for their perseverance in helping us to arrive at a settlement," added Pollesel.

For further information: Cory McPhee, Vice-President, Corporate Affairs, Vale, [phone] (office), [phone] (cell), [email protected]