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IOC cuts medical benefits for workers as strike drags on

Labrador City workers, who have been on strike March 26, received notice by mail that their medical benefits were cut off on April 24.

Community funding also affected by labour dispute

Chris Hill shows the letter from IOC informing him that his medical benefits have been cut off as of April 24. (Jacob Barker/CBC)

With the exception of a $75,000life insurance policy, medical benefits for more than 1,000 Iron Ore Company of Canada employees in western Labrador havebeen cut off as a strike continues.

Workers were informed by mail on April 24.

"It was a little bit of a shock," said IOC worker Chris Hill.

"Everybody in our family is covered under the IOCfamily plan and as of right now, we can't avail of any of the services that it provided to us."

Hill knew medical benefits would eventually be cut.

"We've planned for this for a while, and there was talkamongall our membership to go and see your doctor or your medical providers and just make sure that your prescription drugs were up to date," he said.

"I know there's members out there that probably didn't do that and some are suffering for some serious medical issues. It would affect them a lot more than it would affect me."

The union does have emergency dental coverage and a family drug plan in place for workers during the strike, but it's not as comprehensive as the company-provided plan.

Community funding cut

IOCalso sent a memo announcing the suspension of its community investment program.

They made over $500 million last year and to take it out on the community is disappointing.- Ron Thomas

"The current work stoppage not only impacts IOC. It has already started to have significant economic and social impacts for employees and the community," reads a memo from IOC'svice presidentof human resources, communications and external relations Maxime Savignac.

The suspended IOC programinvests in many community programs and organizations such asMothers Against Drunk Driving and Cain's Quest.

"They're still making huge money, they made over 500 million last year and to take it out on the community is disappointing," said Ron Thomas, president of Local 5795 of the United Steelworkers Union.

The strike is in its sixth week.

Workers voted over 90 per cent in favour of striking inlate Marchciting, amongother issues,the company's use of a temporary work force and thecap on prescription drug reimbursements.

More than three quarters of the workforce rejected a second offer from the company in mid-April, and there has been little contact between the two sides since then.

Layoffs at Quebec operation

Meanwhile, more than100 IOCworkers inSept-les,Quebec, where workers also voted in favour of a strike, have been given lay off notices.

"I guess it's related to the fact that we've got [no iron ore] coming out of here. So they're not going to pay workers down there if they've got nothing for them to do," Thomas said.

IOChas not responded to repeated CBCrequests for comment on the strike.