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Mineworkers accept Iron Ore Co. of Canada offer, ending 9-week strike

A nine-week-long strike at Iron Ore Co. of Canada Inc.'s IOC mining operations in Labrador is coming to an end as unionized workers voted 79% in favor of a third offer.

United Steelworkers representative Euclide Hache, reached by phone, confirmed that USW Local 5795 and Local 6731 voted in favor of the offer. On its Facebook page, Local 5795 posted a picture of what appeared to be the vote tally, without explanation.

Rio Tinto, which is the majority owner of Iron Ore Co. of Canada, confirmed an end to the strike. In a statement provided by an IOC spokesperson, Rio Tinto said the deal was "competitive" with better pension and medical benefits and that it would give a boost to local hiring. At the same time, Rio Tinto said there was "flexibility to be a sustainable and competitive business."

It is not clear what kind of flexibility the agreement allows for, but it was a contentious issue during the strike. In rejecting the first offer, union representatives cited the inclusion of temporary workers as a hurdle. Then, in voting down a second offer, they pointed to an increase in the probationary period for new hires.

In the run-up to the vote, Local 5795 union representatives were tight-lipped about what is in the offer especially regarding labor flexibility. Ahead of the vote May 28, Brian Keough, Local 5795's treasurer, declined to comment on specifics other than to say there were better benefits.

Meanwhile, a union at Iron Ore Co. of Canada's port facilities in Sept Iles is still voting on an offer May 28 and 29, Rio Tinto said in its statement. That union will be needed back at work to get iron ore moving back on to ships.

It is also not clear how deep an impact on IOC production the strike has had, but if past strikes are a guide, it could be significant. Labrador Iron Ore Royalty Corp., which depends on the mine for revenue through a royalty, has said to expect an adverse impact.

Labrador City Mayor Wayne Button said people in Labrador City are relieved the strike is over and that workers would be headed back to their jobs in the morning. In its statement, Rio Tinto said it was preparing a return to work plan with employees.