VALE WELCOMES PREMIER'S CALL FOR POSSIBLE INDUSTRIAL ENQUIRY

TORONTO, Oct. 8 /CNW/ - Vale welcomes today's announcement by Newfoundland and Labrador Premier Danny Williams that an industrial enquiry could be called into the 14-month strike by the United Steelworkers (USW) at the company's Voisey's Bay operations.

The company is hopeful this may provide the required incentive for the USW to commit to constructive bargaining - something that has not been evident to date.

"The Premier's comments are a clear indication that he is tired of the strike," said Tom Paddon, General Manager of Vale's operations in Newfoundland and Labrador. "We are tired of it also. In every set of negotiations to date our intention has been to reach a settlement to end the strike - unfortunately we find ourselves dealing with a union that hasn't committed itself to meaningful negotiations."

Paddon said Vale has put forward five very good settlement proposals over the course of negotiations, including one earlier this week offering improvements to wages, improvements to pensions and bonus opportunities for employees. The union has rejected them all.

"The USW's demands remain a moving target that changes day to day," said Paddon. "Until the union commits to discussing things constructively it will be very difficult to find resolution."

There are no talks scheduled at this time.

For further information: Cory McPhee, Vice-President, Corporate Affairs, Vale, 416.361.7669, [email protected]; Bob Carter, Manager, Corporate Affairs, Vale, Newfoundland and Labrador, 709.758.8895, [email protected]