Things may be about to go from bad to worse in Labrador West as the Iron Ore Company of Canada has given notice the planned one month shutdown this summer may be extended to 13 weeks. On Friday, the company sent an internal memo to the provincial government, the union, its employees and the town indicating that unless conditions improve greatly within the market place, the shutdown will have to be extended to 13 weeks. Labrador City Mayor Graham Letto says the notification must be made at this time as part of the Labour Act so that workers can prepare for the worst. Letto says the company is required by law to give a minimum 16 weeks notice of any plans to extend a shutdown that would require any potential layoffs because vacation time cannot cover the amount of time the workers will be off.
Letto says while the extension of the shutdown has not been confirmed, the situation is a carbon copy of the events in 1982 when the shutdown of that year had to be extended and well over 500 people were laid off during that summer. Letto says he is a firm believer that where there's smoke there is fire and these events are just like those of 1982 - when the Iron Ore Company of Canada had its longest shutdown and largest amount of layoffs.
Source: VOCM, St John's, Newfoundland
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