News Release
Office of the Official Opposition
 

Parsons says government's labour approach has hurt province:

IOC and Wabush Mines strikes will remove $4.0 million per month
August 6th, 2004

Kelvin Parsons, MHA for the District of Burgeo-Lapoile, says the current negative labour situation in the province is hurting the economy, a trend that has continued since the Premier implemented his heavy handed approach during the public sector strike last spring.

"There are currently four ongoing labour disputes in the province," said Mr. Parsons. "The Aliant strike, the VON strike, the IOC strike and the Wabush Mines strike are having a negative impact on our province. These four strikes, combined with the 27 day public sector strike, have taken millions of dollars out of the economy and placed labour relations in our province at an all time low. Would these strikes still be ongoing if the Premier hadn’t set the precedent with his concessionary bargaining tactics and back to work legislation that had no regard or respect for workers?

"We have received information that shows just how much of a negative impact these strikes are having on the economy of our province. The figures we have been given indicate that the IOC and Wabush Mines strikes in Labrador West will take approximately $2.5 million in provincial income and consumption tax revenue out of the provincial economy every month. Also, the impact on iron ore shipments could reduce provincial royalties by $1.5 million per month. It is obvious that any prolonged strike could result in a very negative circumstance for many businesses and the entire provincial economy.

"This province has been in the midst of a strike everyday since the end of March. As a matter of fact, I cannot recall any circumstance in this province where more work days have been lost to strikes than what we have witnessed so far this year. With the largest public sector strike in the province’s history and four private sector strikes continuing, I fear we may see the fallout of this labour unrest for years.

"Now is the time for the Premier to start repairing the damage he has already done to the labour climate in our province. Government created this discord with the workers of our province and it is now imperative they do everything possible to get these labour disputes resolved. As demonstrated by the figures I’ve stated above, the province cannot afford to have these strikes continue. Any prolonged strike will certainly have a negative long-term impact on families, businesses and the overall economy of our province."

Media Contact:
Darrell Mercer
Director of Communications
Office of the Official Opposition
709-729-6151 or 709-687-0477