Second Placentia Bay refinery closer to reality

The company planning to build a second oil refinery in Placentia Bay on Newfoundland's south coast has negotiated a tentative deal for thousands of skilled construction workers.

The Newfoundland and Labrador Refining Corp. will need about 3,000 people to build the $5-billion Southern Head Refinery.

CBC News has learned there is a tentativeagreement between 16 unions and the company. The deal hasn't been ratified, but union leaders are strongly recommending that members accept it.

Union leaders won't do an interview, but they said they're confident that the offer will attract people back to the province from Alberta.

The tentative agreement offers skilled workers greater benefits than they get in the province now. There would be higher wages, including a $5 per hour top up for signing on.

Skilled workers will still make less than they would in Alberta — but if the deal's accepted, it will close the gap significantly.

Company officials said they won't comment on labour negotiations until a deal's been finalized.

Last spring, the provincial government approved an Environmental Impact Statement for the project.

Before the refinery goes ahead, federal environmental, transportation and fisheries officials must also approve the project

The company wants to begin breaking ground next year. The refinery will take several years to complete.

The proposed refinery will produce 300,000 barrels a day when it's completed.