Dear Members,
Following extremely challenging negotiations, the Bargaining Committee for USW Locals 6500 and 6200 has reached a tentative agreement with Vale Canada Ltd.
Members of the USW Bargaining Committee are unanimously recommending this tentative agreement to the union membership for ratification.
Membership meetings to review terms of the tentative agreement will be held via Zoom sessions today, Monday, May 31, 2021, at 1:00 p.m., 4:30 p.m. and 8:00 p.m.
See Links Below:
1:00 Meeting -
https://us02web.zoom.us/j/88634317274?pwd=dUZuSlAzUHozSnJkM05MRjF3cFIrUT09
Passcode: 969545
4:30 Meeting -
https://us02web.zoom.us/j/83427556863?pwd=OFR1NThzYjhVdHhJbmM2ZlZ1Q0Nidz09
Passcode: 682575
8:00 Meeting -
https://us02web.zoom.us/j/85270999823?pwd=QnlLU0RHb1hsUno2dHg5OUZ3T1lodz09
Passcode: 705203
Members will be able to vote on the tentative agreement, online or by telephone, today between 2:00 p.m. and 11:00
Details of the tentative agreement are provided below.
In solidarity,
USW Local 6500 and Local 6200 Bargaining Committee
MEMORANDUM OF SETTLEMENT
BETWEEN:
UNITED STEELWORKERS LOCALS 6500 & 6200
AND
VALE CANADA LIMITED
May 31, 2021
• Term of the Collective Agreement
o 5-Year Agreement – Expires May 31, 2026
• 2020 Recognition Payment
o One-time payment of $2,500 in recognition of continued efforts during the last year to all employees employed on June 1, 2021. This payment will be made within 30 days of June 1, 2021, and is conditional on ratification of the new collective bargaining agreement.
• Signing Bonus
o One-time payment of $3,500 to all employees employed on June 1, 2021. This payment will be made within 30 days of June 1, 2021, and is conditional on ratification of the new collective bargaining agreement.
• Standard Hourly Rates
o Increase the standard hourly rates on June 1, 2021 by 0.5%.
o Increase the standard hourly rates on June 1, 2022 by 0.5%.
o Increase the standard hourly rates on June 1, 2023 by 1.0%.
o Increase the standard hourly rates on June 1, 2024 by 1.0%
o Increase the standard hourly rates on June 1, 2025 by 1.0%.
o Maintain COLA
• Defined Benefit Pension
o Increase the monthly Minimum Pre-Age 65 Benefit for employees with 30 or more Years of Employment with Pay (YEWP) from the current level of $3750 to $3800 per month as of June 1, 2022.
o Increase the monthly Basic Benefit from the current level of $61 to $62 per YEWP as of June 1, 2022.
o Increase the monthly Minimum Pre-Age 65 Benefit for employees with 30 or more Years of Employment with Pay (YEWP) from the current level of $3800 to $3850 per month as of June 1, 2025.
o Increase the monthly Basic Benefit from the current level of $62 to $63 per YEWP as of June 1, 2025.
• Defined Contribution Pension Plan Voluntary Contributions
o Effective January 1, 2022, provide the opportunity for an additional voluntary contribution (unmatched) of 1% to 19% of regular base wages into the Defined Contribution Pension Plan.
o Effective June 1, 2021, initiate auto enrollment for voluntary contributions at 6% of base wages for all new hires, which will attract the corresponding Company matching contributions.
• Health Care Benefits
The following changes will be made to the Health Care Benefits provided under the Collective Agreement.
o Effective September 1, 2021, the Group Plan for Prescription Drugs is amended as follows:
• Add a mandatory generic drug rider.
• Eliminate Over-the-Counter drug coverage from the drug plan, excluding life-sustaining drugs.
• Increase the employee deductible to $4.00 per prescription.
• Cap the employer-paid dispensing fee at $10 per prescription.
o Close retiree benefits eligibility for all Insurances, Health and Hospital Services under Article 24 for employees hired on or after June 1, 2021.
o Effective July 1, 2021 eye examinations will be an eligible expense within the current maximum vision care coverage of $325.00 every three years under the Group Optical Insurance Plan.
o Effective June 1, 2021, increase the Non-Occupational Sickness and Accident Insurance Plan to $700/week.
• Bereavement Leave
o Enhanced duration of bereavement leave entitlement to five (5) consecutive days by expanding the circumstances under with bereavement leave is applicable.
• Employee Bonus Plan
• The annual AIP changes below. EBC and NPB remain the same.
o The Company seeks to align bonus payments to business outcomes by designing new performance indicators into the bonus plan calculation.
• Long Term Disability Insurance Plan
the Company will pay the premiums for a Long-Term Disability Insurance Plan that will provide for a monthly benefit of $2000, which will be effective September 1, 2021.
• Peer Trainer and Central Training Centre (CTC) Trainer Compensation
o Consistent with the Letter of Agreement – Improving Training Outcomes reached in connection with peer training, upon the implementation of the Peer Training Model, the Company agrees to pay an hourly premium at 8% of the employee’s regular base wage, exclusive of any premiums, to employees who have been selected, trained, and explicitly assigned to peer training duties under that Peer Training model.
o CTC (114 Orebody will become a multi department plant ) training Instructors there will receive the premium applicable for Mines Training Instructors in accordance with the Mines Incentive Program as amended from time to time. For reference, this is currently 10% of regular base wages.