[LINK] "IOC cites low iron ore prices as it lays off 150 in Labrador City"

[rfmcdonald]

The Globe and Mail carried a Canadian Press report describing how falling ore prices have led to catastrophe in Labrador.

The Iron Ore Co. of Canada is laying off 150 workers indefinitely from its mine in Labrador City effective June 14.

It’s the latest blow in Labrador West, a region hit by closures last year at Wabush Mines and the nearby Bloom Lake mine in Quebec.

About 2,000 people work at the IOC mine in Labrador City.

The company says the price of iron ore hit a low this week of $47.50 per tonne and it must cut costs to make production in Labrador viable.

About 1,200 members of the local United Steelworkers union in February voted against IOC’s request that they give up a 4-per-cent wage increase.

The union said the company is making big profits despite slumping prices and could save cash by cutting contract workers.