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Steelworkers Set up Picket Lines
at Iron Ore Company of Canada

July 20, 2004 — Representing over 1400 hourly employees at the Iron Ore Co. of Canada (IOCC) and Quebec North Shore and Labrador Railway at Labrador City, NL, and Sept Iles, PQ, United Steelworkers' Locals 9344, 5795 and 6731 have set up picket lines following the breakdown of negotiations over major concessions demanded by the company, which is owned by international mining giant Rio Tinto.

Steelworkers' Atlantic/Ontario Director Wayne Fraser and Yvon Clément, Assistant to the Steelworkers' Quebec Director Michel Arsenault, said IOCC did not move on its demand for concessionary language on several issues, along with monetary concessions. The final offer was rejected by close to 100% in votes held Sunday night and Monday morning.

"No one wants a strike," said Fraser. "We negotiate toward agreements, not disputes. But if a company like Rio Tinto wants to refuse our members a decent settlement, the company leaves us no choice. We are absolutely prepared to resume talks, but not at any cost."

"The membership has spoken and the company has to understand what its actions are doing to these communities," said Clément. "Rio Tinto wants to strip health care, pensions, freeze wages and introduce a form of psychological profiling of workers on which to base discipline. Who in their right mind would accept a deal like that?"

"As part of the transnational Rio Tinto Limited, IOCC is following a pattern of anti-union behavior that is totally counterproductive," said Fraser. "With peak demand and market for iron ore, there is no excuse for pushing negotiations over the edge with unwarranted concessions that strip away rights workers have negotiated over many years. Over those years, we have negotiated with many previous owners who have respected our members and their contribution to the success of the company and to the community."

"Our members deserve more respect than they have been shown," added Clément. "What the company wants is truly an indecent proposal."

Fraser and Clément said the union is urging the company to get back to the bargaining table as soon as possible to avert the damage a prolonged dispute will have on all the communities affected.

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