Details of new collective agreement ratified between Vale, USW Local 6500

Vale & USW Local 6500 ratify a 5-year deal covering Greater Sudbury and Port Colborne. The contract includes a $4K signing bonus and roughly 14% in wage hikes.

Workers represented by United Steelworkers (USW) Local 6500 voted Friday to accept a new five-year deal with Vale Canada Limited, a contract that both sides describe as a major step forward for labour stability and worker compensation in northern Ontario’s mining sector.

The agreement, ratified May 29 and effective June 1, covers employees at Vale’s Ontario operations.

The contact includes a $4,000 ratification bonus and guaranteed wage increases ranging from 20.5 per cent to 25.7 per cent over the life of the contract – combining negotiated raises with annual cost-of-living adjustments.

Historic gains for workers, union says

The union called the outcome one of the most significant bargaining achievements in Local 6500’s history.

“I have been involved with Local 6500 for 25 years, and I have never seen gains like these,” said Pascal Boucher, a USW District 6 area co-ordinator, in a news release Monday.

“Wage increases of more than 20 per cent are unprecedented for this local. We raised the bar by introducing paid sick days and achieved these gains without a single concession.”

USW said members also secured paid sick days, a new health-care spending account, and improvements to pensions, vision care, orthodontic coverage and short-term disability benefits. The union added that skilled trades workers won wage progression improvements, while new contract language addresses contracting out, technological change and shift scheduling.

Local 6500 President Ray Hammond said the membership’s strike mandate helped push the employer to address workers’ priorities.

“This agreement delivers historic gains for our members, including significant wage increases, improvements to benefits and important language changes addressing issues such as contracting out, technological change and shift scheduling,” said Hammond.

“(Members’) strong support throughout bargaining, their participation in surveys and their overwhelming strike mandate helped ensure the priorities of membership were reflected in this agreement,” he added.

Company cites collaboration, long-term stability

Vale emphasizing the collaborative nature of talks and the agreement’s role in securing the company’s competitiveness.

“This agreement is an important and positive step forward as we continue to build a globally competitive business for the future,” said Gord Gilpin, director of Vale Base Metals’ Ontario Operations, in a news release Friday evening.

“By working together, we are laying the foundation for a stronger company – one that is grounded in respect, powered by our people, and focused on delivering long-term value for our employees, our communities, and our stakeholders.”

Gilpin said both bargaining teams showed professionalism and a constructive approach that supports a stronger workplace and reinforces a respectful working environment.

Agreement brings stability during economic uncertainty

The new contract provides certainty for workers and the company during a period of economic upheaval, according to both sides.

Kevon Stewart, USW District 6’s director, cast the deal as a broader win for organized labour.

“This agreement demonstrates what workers can achieve when they stand together and bargain collectively,” said Stewart.

“These improvements will make a real difference in the lives of workers and their families while helping to support strong union jobs and communities across northern Ontario.”

Vale said the agreement helps position its Ontario operations for long-term success while supporting employees.

The deal runs until 2031.