As job cuts loom, Wabush mine tries to improve worker relations

Senior management at Wabush Mines, near Labrador City, held a surprise meeting with unionized workers on Wednesday morning, and outlined plans to improve the working environment.

The local president of the United Steelworkers, Jason Penny, said poor labour relations in the past have resulted in poor productivity at the iron-ore mine.

He said Wednesday meeting is another sign that things are changing.

He outlined changes that have already taken place:

• "We've had [a] pension offer.
• "We've had an offer to increase some benefits, which are going to help with the guys getting laid off.
• "We've had a less-restrictive shift-change policy put in place.
• "We've had open lines of communication — we are able to get hold of top-level management whenever we need to, something which has never been there before in the past.

"If we don't do something and change to work together, we may not survive," Penny said.

The mine is laying off 160 workers at the end of this month, about a third of its employees, and cutting production to 2.5 million tonnes.

The cuts were announced last December.

In January, the mine offered an early-retirement deal that could rescue up to 45 union jobs.

The deal means that for each person who voluntarily agrees to retire — taking a guaranteed minimum income as well as a $10,000 lump-sum payment — the company will keep a job that otherwise would be eliminated.

The workers have until April 1 to accept the offer.