After a nearly 10-week strike at the IOC iron ore mine, Iron Ore Co. of Canada Inc. and striking workers are three days into a fresh round of talks after two previous offers were rejected.
Iron Ore Co. of Canada, which is majority owned by Rio Tinto, confirmed talks were ongoing but declined to take specific questions about negotiations. United Steelworkers Local 5795, the main union representing miners at the operation near Wabush in Newfoundland and Labrador, said the company contacted it May 22 to begin discussions.
"They met Tuesday evening, met all day yesterday and talks are still ongoing today," said Brian Keough, Local 5795's treasurer.
The strike has halted production at the IOC mine, which sold about 19.2 million tonnes of iron ore concentrate, including pellets, in 2017.
It is unclear how much the strike will cut into 2018 production, but Labrador Iron Ore Royalty Corp. has warned it will likely "adversely affect" revenues it gets through a royalty on the mine.
Past strikes have contributed to deep cuts in yearly production at the mine. Iron Ore Co. of Canada's iron ore sales fell 23% in 2004, the year it was hit by a 10-week strike, and a seven-week strike in 2007 contributed to a 15% year-over-year decline in iron ore sales.
Labor flexibility, among other issues, is a key sticking point in the negotiations. An initial offer for a collective bargaining agreement had proposed that Iron Ore Co. of Canada be allowed to have some temporary workers. Union members shot the offer down.
A second offer from Iron Ore Co. of Canada nixed the request for temporary workers but boosted the probationary period of new hires from 45 days to 90 days. That offer was also voted down by members of Local 5795.
Keough said the issues remain the same, including labor flexibility and pension benefits.
"Our side hasn't changed a bit," he said. "We're hoping we can hammer out a deal, put this behind us and get back to doing what we do best, which is producing."
Heather Bruce-Veitch, a spokesperson for Iron Ore Co. of Canada, would not comment on questions about what was at stake in the negotiations or the timeline of discussions. "There is no other information available at this time," she said.
