The end of the strike that lasted nearly a year at Vale’s operations in Ontario, Canada, is very significant for our company, as we have overcome yet another challenge. Besides making our Canadian employees’ pension and variable pay regime more similar to the successful system already in place in other countries, the deal removes restrictions and interference in managing the company, thereby aligning our operational efficiency in Canada with our practices elsewhere.
“We are talking about returning management power to supervisors, for example, enabling them to do their work at the operational level in a more appropriate manner in order to achieve their objectives and ensure the safety of their team members, assuming responsibility for management and pursuing innovation,” said Vale’s CEO, Roger Agnelli, in an exclusive interview with Vale News (July 16, 2010). Read the full interview below.
“Canada is important for Vale and Vale is important for Canada. Our partnership is for the long term.” – Roger Agnelli
1) What are the main changes resulting from the approved collective agreement in Ontario?
The most important points that we agreed to are a defined contribution pension plan for new employees, variable pay based on performance and the removal of restrictions and interference in managing the company. In these three areas, we have simply aligned Sudbury and Port Colborne with the successful system that exists in other countries where we operate.
This issue about interference in management is very important, not only for me, as CEO, or for the executive director. We are talking about returning management power to supervisors, for example, enabling them to do their work at the operational level in a more appropriate manner in order to achieve their objectives and ensure the safety and efficiency of their team members. And we are also talking about further developing a meritocratic system. With this new variable pay plan, employees will be rewarded for the results they produce rather than just changes in the nickel price.