Vale Inco to resume Voisey's Bay mine despite strike

Less than 24 hours aftertalks to end a dispute between striking Labrador nickel mine workers and Vale Inco broke off, the company has announced that it will resume production.

In a release late Monday afternoon, the company saidit will start training on-site employees who are not on strike, and will resume operations once that training is complete.

The striking workers, represented by the United Steelworkers Union,have been off the job for almost six months in a dispute where the contentious issue appears to about the company's proposal to freeze wages and roll back an employee bonus plan.

"Although we would prefer to be operating normally," said Bob Carter, spokesperson for Vale Inco in Newfoundland and Labrador, in the release,"the local USW negotiating team remains unable to bargain with authority in Newfoundland and Labrador.

"As such, the resumption of production is the most responsible course of action for the business. It enables us to provide meaningful employment for the more than 250 employees who are not on strike and it helps meet the needs of our customers who rely on us," he said.

Carter told CBC News that the on-site employees the company plans to use to restart the mine are non-unionized.

The release said that during three days of negotiations, the union's negotiating team "refused to engage in any meaningful discussions on monetary issues."

Still seeking concessions: union

The union representing workers told CBC News earlier that negotiations to reopen the Voisey's Bay mine in northern Labrador broke off after 11 p.m. NT on Sunday.

Steelworkers union representative Boyd Bussey told CBC News that Vale Inco is still seeking concessions from the striking workers.

The company has been looking for a three-year wage freeze and wants to roll back an employee bonus tied to the price of nickel.

Bussey said the company wants to be able to contract work out to non-union members.

He said that after three days of negotiations, the two sides are still a long way from reaching a deal.

"I see us further apart, actually very, very disappointing," said Steelworkers representative Boyd Bussey

'We're at an impasse'

Bussey says the company stonewalled on everything from money, to contract length, to the suddenly-thorny issue of contracting out work to non-union companies.

"This issue has really, really become very important for the union," said Bussey. "It's pointless for us to even get increases in wages if we're not going to have jobs, if they're going to contract our jobs out."

Before the decision to restart the mine was made public,Vale Inco officials said it was the union that stalled the talks.

"There's no tentative agreement, unfortunately, we're at an impasse. From our perspective, it was very apparent that the Steelworkers were not prepared to conclude a deal with us," said company spokesman Bob Carter.

Both sides said they're prepared to sit down to talk again, but nobody's saying when that might happen.