Vale employees asked to pay back $1 million in wages

Payroll mistake occurred when employees returned to work after a nearly year-long strike
|Canadian Payroll Reporter|Last Updated: 01/24/2011

Nickel producer Vale Ltd. overpaid employees by $1 million after a nearly year-long strike. About 2,450 production and maintenance workers at the Sudbury, Ont. site are now being asked to pay the money back.

The workers are members of United Steelworkers Local 6500 and there were some glitches in the payroll system when the workers returned to work in July, according to media reports. Some workers were underpaid — which Vale has corrected — while others were overpaid and the overpaid employees are being notified this week through letters.

About 70 per cent of the 2,450 workers will have to repay as much as $550, 27 per cent will repay from $550 to $950 and three employees have to pay back about $2,000.

Employees can pay the money back in a lump sum or have a percentage automatically deducted from their paycheques until the amount is repaid.

Several employees have asked Vale to provide evidence of overpayment and the company is expected to send out another letter with supporting documentation.

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