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PHOTO & SLIDESHOW GALLERIES
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| Last updated at 8:38 AM on 03/12/08 |
Wabush Mines to axe 160 jobs 
Resources
JAMES MCLEOD
The Telegram
About 160 people will be out of work in Labrador as the company that operates Wabush Mines announced it will be scaling back iron ore production.
Cliffs Natural Res-ources announced it will notify the United Steelworkers of the cutbacks which will likely take place in February.
Wabush Mines cut its target ore production nearly in half for 2009, to 2.3 million tonnes from 4.3 million tonnes in 2008.
Another 120 jobs will be eliminated at the company's pelletizing facility in Quebec.
Natural Resources Minister Kathy Dunderdale said there wasn't anything the government could have done to prevent the layoffs, but instead pointed to the federal government.
"One understands that they might need some time to just see how this is playing out, but the country, particularly the people who are impacted here in Newfoundland and Labrador, would have appreciated a very strong signal that the (federal) government would be responding in a significant way to the situation," Dunderdale said, adding the prime minister should have announced a stimulus package sooner rather than later.
However, Lloyd Hunter, president of the United Steelworkers union local said neither the provincial government nor the company had explored all of its options.
"It seems like when it comes to a downturn, the first way a company looks to save money is to slash jobs," Hunter said.
"They should be keeping our people, get rid of the contractors on site and use our people to do the work they contracted out."
For the government's part, Hunter said there was money committed for a manganese processing plant - ore coming from the mine is high in maganese and the plant would have made it so they could process more ore.
However, Hunter said the provincial government never pushed Wabush Mines to actually build the plant.
"I understand there was money the government was willing (to provide) to help Wabush mines to get this manganese plant up and running which they never availed of," he said. "We have been the last 25 years trying to get this maganese plant in here."
Both Dunderdale and Hunter said the natural resource business tends to be cyclical and the jobs would likely be back.
Hunter said the company should be using this slow period to catch up on a backlog of work.
"We're asking the company, can they not lay off? Is there work we can do that's been put aside because of the big boom and you're pushing to get ore out?" Hunter asked.
"We were behind the 8-ball when the market took off last time, let's see if we can remedy that and get ready to play pool when the time comes."
jmcleod@thetelegram.com
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03/12/08
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A Little Worried Now from St. Johns, NL writes: I wonder how many of the sub-contrator trades and support people were not included in this number. 160 full-time positions might just turn out to be a much higher number when the dust settles.
We have seen the subs in Fort McMurray drop like flies in the winter due to the scale back in expansion plans. As well as the money pot provided to those from this province known as LOA is a thing of the past come January.
I wonder where these people are going to be looking now for employment? If the planned work goes ahead here in this province this spring, the employers will play the money card for sure. No work in other parts of the country, so if you want a job you will be working for a lot less money here now.
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| Posted 03/12/2008 at 10:46 AM | Alert an Editor | Link to comment |
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Glenn Allen from NL writes: One understands that they might need some time to just see how this is playing out, but the country, particularly the people who are impacted here in Newfoundland and Labrador, would have appreciated a very strong signal that the (federal) government would be responding in a significant way to the situation, Dunderdale said, adding the prime minister should have announced a stimulus package sooner rather than later.
Why should he? So Wabush mines can make more steel that no one wants to buy. Is she for real? Really? Surprised she didn't fling some at George Bush before it's too late. Also, seems the government of NL supports the coalition which would shut down the tar sands. Don't they use steel? Don't they buy vehicles and other manufactured goods for the patch that are made from steel products? Don't they employ NL'ers @ a much higher rate of pay than employers in NL? Yes a little worried from St John's, you are right to be worried when this is the people out in front leading the way.
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| Posted 03/12/2008 at 11:55 AM | Alert an Editor | Link to comment |
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George from Fort Mac, Alberta writes: You need to start another ABC campaign. Anything But Coalition, because when Taliban Jack and Dion get their hooks in you, your tax dollars owed are going to go through the roof. The Bloc wants an extra 1 Billion on top of the 8 billion they already get. Propping up the auto industry will not help unless the U.S. does the same.
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| Posted 03/12/2008 at 12:10 PM | Alert an Editor | Link to comment |
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Funky Monkey from NL writes: The coalition will not shut down the oil sands industry. No one has ever said they will shut down the oil sands industry. During the election, Jack Layton said he would push for a moritorium on new developments until there was sufficient research done on the environmental and health effects of the oil sands development. They would not seek to shut down sites currently in operation or those being constructed.
The downturn in the Alberta oil sands industry is not a permanent thing. It is being used to help bring down the insane salaries of the tradesworkers here.
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| Posted 03/12/2008 at 12:47 PM | Alert an Editor | Link to comment |
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Bernard from Sville, nl writes: How about a new name for our Minister.
Minister Blunderdale sounds about right.
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| Posted 03/12/2008 at 3:55 PM | Alert an Editor | Link to comment |
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Henry from NL writes: Very witty Bernard! Were you able to come up with that all by yourself or did the rest of the Grade 5's help out?
Exactly what is the blunder that was made by the Newfoundland government in this case? Many industries across the country are suffering and have been for some time, and since oil has kept the revenues up and kept us from looking like we were entering into a recession, the Feds have put off doing anything to right the ship. Maybe you could suggest a solution as opposed to childish digs!
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| Posted 03/12/2008 at 4:08 PM | Alert an Editor | Link to comment |
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Bernard from Sville, nl writes: Touchy! Touchy! Henery.
Eye ave grade sex relly. AND I do not try to blame the Federal Government.
Do you really think it looks like we are heading for a recession.
My dear man the time is here.
Early retirement will not solve anything.
This is also the great advice for mill workers in Grand Falls-Windsor.
Now, scrub the blue paint of yourself.
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| Posted 03/12/2008 at 10:06 PM | Alert an Editor | Link to comment |
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