Vale video describes financial status, hints at layoffs: USW

Vale is hinting at future layoffs at their Sudbury operations, according to a United Steel Workers representative.

Myles Sullivan, area coordinator for northeastern Ontario, told CBC News that he and representatives from Local 6500 and Local 2020 met with Vale to watch a video describing the company's current situation.

Sullivan says Vale management wanted union reps to see the video before showing it to workers.

"There's a lot of pressure on the business locally," says Sullivan.

"They're reviewing their operations, looking at where they can save and contain costs, and they're very clear in the video that this could mean layoffs."

Mine needs to be self sustaining

Sullivan says the company's bottom line has been affected by low nickel prices. Meanwhile, management is looking to make Sudbury operations self sustaining.

"They have to make enough money not just toprofit from their mines, but enough to re-invest and develop new mines and new ore bodies," says Sullivan.

"They're trying to save and reduce costs to improve profits where they can, so they can keep Sudbury sustainable."

No confirmed layoffs, says Vale

A spokesperson for the mining giant toldCBC News that the video is an internal tool they create after quarterly financial results. The video is used to speak to employees about the current state of the business.

"While the current market continues to be challenging, there have been no announcements made regarding workforce reductions," the email reads.

Vale has declined an interview since the focus on communicationsis "very much internal to our workforce," the spokesperson writes.

Video leaves 'a dark cloud'

While there are plenty of rumours going around, Sullivan says he believes layoffs are possible but for how many people or when is still unknown.

"So that leaves a dark cloud over the city and the employees," he says.

Stobie Mine closure shifts jobs, contractors

• Vale shutting down Stobie Mine
• End of 130-year era for Sudbury mine

No layoffs have occurred recently, Sullivan says, but the decision to close Stobie Mine earlier this year caused major shifts. He says close to 300 people moved from that mine and were absorbed into other operations by displacing contractors.

"In the event that there are going to be layoffs, our priority will be working to protect the rights of our members so that there are no contractors, and our people continue to work," says Sullivan.

Video leaves viewers feel 'uncertain'

While he believes the company has been transparent, Sullivan says he's unsettled by the message the video sends.

"The video left me feeling uncertain," he says.

"Hopefully the price goes up with the efficiencies they're looking at. Hopefullywe can turn things around and there will be as few layoffs as possible, but I believe there will be layoffs."