News Releases
Government Home Search Sitemap Contact Us  


January 15, 1999
(Mines and Energy)


IOCC agrees to comfort letter for Labrador West

Roger Grimes, Minister of Mines and Energy, and Perry Canning, MHA - Labrador West, announced today that the Iron Ore Company of Canada has agreed to provide a comfort letter for the workers at the Carol Project in Labrador City. "I'm very pleased," stated Mr. Grimes, "that the company has given a commitment to save the work force of Labrador City harmless in the event of any future economic downturn."

The minister received the commitment from the President of IOCC, John LeBoutillier as the result of follow-up to meetings held between Premier Tobin, Mr. Canning, and the company president prior to Christmas. "Mr. LeBoutillier confirmed yesterday that the protection letter will be forthcoming," said Mr. Canning.

"It was agreed by Mr. LeBoutillier and me that the wording of the actual letter will be worked out at the bargaining table since the issue has also been raised in that forum," the minster said. "The company was prepared to provide the letter to me, but the union preferred that they actually work out the detailed wording and I concurred with their wishes."

Ever since the announcement by the company of their plans to re-open a pellet operation in Sept-Isles along with their re-investment in Labrador City, fears had been expressed that the Quebec-based operation might continue unaffected in the event of some future economic downturn while reductions occurred in Labrador City. "Any fear of this future negative outcome has now been removed, and rightfully so," said Mr. Canning.

Media contact: Carl Cooper, (709) 729-4890.

1999 01 15 1:35 p.m.


SearchHomeBack to GovernmentContact Us


All material copyright the Government of Newfoundland and Labrador. No unauthorized copying or redeployment permitted. The Government assumes no responsibility for the accuracy of any material deployed on an unauthorized server.
Disclaimer/Copyright/Privacy Statement