Vale Q3 Report Belies Need for Major Concessions from Canadian Workers

Report also shows Canadian strike is inflicting major costs

SUDBURY, ON, Oct. 29 /CNW/ - Third-quarter financial results released by Brazil-based Vale SA portray a company with a healthy bottom line and bright prospects, the United Steelworkers (USW) say.

Vale's own report confirms that the strike it provoked at its Canadian operations is costing shareholders millions of dollars a day in lost revenue. It also exposes as outrageous and false the company's supposed justification for demanding contract-gutting concessions from workers.

Third-quarter, after-tax profits were $1.7 billion, more than double - a 112% increase -profits from this year's second quarter. And things are only going to get better, the company predicts.

"Vale's report offers a very confident, optimistic economic outlook, which contradicts the company's rationale for major concessions," notes Ken Neumann, the USW's Canadian National Director.

Vale's third-quarter report also states that, "due to the strike in Sudbury and Voisey's Bay," the company lost $319 million of revenue from reduced sales of nickel ($222 million) and byproducts ($97 million).

The company says it incurred extra expenses of $209 million in the third quarter "due to the idling of Canadian nickel operations." However, during a conference call today with analysts, Vale refused to comment further when pressed for a deeper discussion on the Canadian losses.

Vale also reported it has decided to pay out $2.75 billion in dividends to shareholders this year, which is greater than its total personnel costs in its global operations.

"These results provide further, compelling evidence that contradicts Vale's position in this labour dispute. It validates what we have been arguing all along," says USW Local 6500 President John Fera.

"There is no justification for Vale's attack on working families and attempts to remove greater and greater amounts of wealth from Canadian communities."

Further information can be found at www.FairDealNow.ca.

SOURCE United Steelworkers (USW)

For further information: For further information: Ken Neumann, (416) 487-1571; John Fera, (705) 675-3381; Bob Gallagher, (416) 434-2221, (416) 544-5966, bgallagher@usw.ca


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