IOC workers overwhelmingly vote against wage freeze
Unionized workers at the Iron Ore Company of Canada mine in Labrador City turned out by the hundreds Thursday night to vote against a proposed wage freeze.
Nearly 1,200 members of the United Steelworkers cast ballots, with 91 per cent rejecting a request by the company for the workers to give up a four per cent wage increase due to kick in on March 1.
The company was looking to eliminate the increase to offset slumping iron ore prices.
Ron Thomas, president of union local 5795, said workers believe the company can find other ways to save money.
He specifically referenced the presence of contract workers at the mine, which he says is costing the company four times more than a full-time unionized worker.
"They were asking for us to give up our wage increase of four per cent and we're still having a supplementary workforce come in and do our work," said Thomas.
"For us to agree with a wage cut right now of four per cent is totally insignificant on where we can save the money in different areas."
Profits soaring at Rio Tinto
The union vote came on the same day that Rio Tinto, the majority owner of the IOC mine in Labrador City, announced that profits were up 78 per cent in 2014.
The company attributed its strong results to an increase in production at its worldwide operations, and cost-cutting measures.
Iron ore prices fell by half last year as major producers such as Rio Tinto dramatically upped production, leading to an oversupply.
It was part of a strategy to drive out higher costs miners, and is being blamed for the closure of the nearby Wabush Mines, resulting in the loss of nearly 500 jobs.
Thomas said workers in Labrador City are well aware of Rio Tinto's strong financial situation, but he doesn't believe it was a major factor in the way people voted.
He said the company offered no protection against future layoffs, temporary shutdowns or an increase in the number of contract workers at the site.
Thomas added he's not sure how the company will respond to the union vote, but he's ready to discuss possible savings with the company.
"We want to help this company save money, and we want to produce and produce safely, but the biggest thing for us is I can't see it coming off the backs of us; reducing our wages when we can see them wasting it in other areas of the project."