"Over 11 consecutive days, our bargaining committee presented several new proposals and made genuine, significant compromises on the key issues," said USW District 6 Director Wayne Fraser.
"This was an all-out effort by our committee to reach a settlement, with the best interests of our members, our community and the company in mind," Fraser said.
"Our committee is frustrated and angry that Vale Inco was not prepared to bring the same spirit of compromise to the table to resolve this labor dispute. Vale did not come close to reciprocating on the many and substantial changes made by the Union."
The mediated talks were called off Sunday afternoon by veteran mediator Kevin Burkett.
"I am disappointed to report that agreement is not possible at this time," Burkett said in a statement to the parties. "I have therefore broken off discussions."
Due to the breakdown in mediated talks, the USW made the unprecedented request to refer all outstanding issues to a binding arbitration panel. The USW proposed that Burkett be appointed as the arbitration panel's chair, with the Union and company each having a representative on the panel.
Vale Inco has adamantly rejected the Union's proposal for an immediate return to work and an arbitrated resolution.
"Our commitment to a fair resolution to this dispute is irrefutable," Fraser said. "It is incumbent on Vale to agree to binding arbitration, to finally demonstrate they also want to reach a fair settlement with their employees and the communities in which they do business."