Marystown out of running for contract: union

The owner of a shipyard in southern Newfoundland has dropped out of the running for a competition to build navy and coast guard ships for the Canadian government, a union representative said Monday.

Kiewit Offshore Services had been shortlisted for unspecified work as part of a $35-billion overhaul of Canadian maritime infrastructure.

Wayne Butler, president of the Canadian Auto Workers local that represents workers at Kiewit's yard in Marystown, said the company told him on Friday that it was no longer seeking the work in the 30-year program.

"Complete disappointment and frustration, because we had spent so much money and time in meetings in Ottawa and trips to Ottawa," Butler told CBC News.

Butler said the company has not yet offered an explanation for its decision. He said officials told him they will visit Marystown later this week to explain their decision.

The revelation comes as a blow for Marystown, a shipbuilding town that has had a rocky time in recent years.

"It's a test of wills, I guess, and we're right back where we started," Butler said. "Hopefully, we will change things around and make it work."

Butler said Kiewit's facilities in Marystown and Cow Head can continue to bid on work for industrial projects and new ferries that the Newfoundland and Labrador government is planning.