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7 May, 2007
Union members of the United Steelworkers (USW) in eastern Canada ended a seven-week strike at the Iron Ore Co. of Canada (IOC) two weeks ago. USW members, numbering some 1,300 at two Canadian locations, approved five-year labour agreements, on 25 April and 26 April.
IOC is 59% owned by Australian mining company Rio Tinto. It is Canada’s largest producer and exporter of iron ore.
The new accord gives workers wage increases over the five-year term, as well as a ratification bonus of C$4,000 per worker. It also gives workers increases in pension benefits, lifts the ceiling on medical benefits, and grants travel allowance increases.
More importantly, the strike blocked IOC’s attempt to gain unlimited right to contract out work, and miners and dockworkers preserved their seniority language.
The successful strike counted some 1,050 miners and iron ore processing plant workers in Labrador City, province Newfoundland. That strike began on 8 March. On 19 March, 250 port and dock workers at Sept-Iles, province Quebec, strengthened the strike by their walk-out.
IOC is a major exporter of iron ore pellets and concentrates to steelmakers in Europe and Asia. Besides Rio Tinto’s majority stake, publicly-traded Labrador Iron Ore Income Fund has an ownership stake. That holding, admitted in a 3 May posting, that the strike affected the timing of cargo shipments, which will affect IOC’s first quarter 2007 sales and earnings.