IOC mine workers to vote tonight on proposed wage freeze

Hundreds of unionized workers at the Iron OreCompany of Canada mine in Labrador City will vote tonight on whether to give up a four per cent wage increase due to kick in on March 1.

The company is asking the workers to approve the wage freeze as part of ongoing cost-cutting measures in the face of record low prices for iron ore.

• IOC offering early retirement to mine workers
• IOC seeking wage freeze from Labrador workers

Workers turned out in large numbers for two information meetings held this week.

Ron Thomas, presidentof Local 5795 of the United Steelworkers, said roughly 1,000 workers gathered at the local arena on Tuesdaywhile 500 people attended Wednesday's meeting.

He said workers were very quiet during both meetings, with only two people asking questions following a presentation from the union executive.

Thomas said the union has made a recommendation on how workers should vote, but asked that it not be disclosed until after the results are known later tonight.

"Workers are showing a lot of support for the executive," said Thomas.

Low uptake for early retirement

IOCis majority owned by Rio Tinto, the world's second largest iron ore miner.

The company is cutting costs in order to remain competitive with measures such as hiring freezes and service contract reviews.

At the same time, Rio Tinto has announced that it will increase iron ore output over the next couple of years.

Earlier this month, IOCofferedearly retirement incentives to 145 eligible workers in Labrador City and Sept-Ilse, Que.

Thomas said only 20 workers accepted the offer, which included a cash incentive of $25,000.

The union leader said he has not received a response from the company to the low uptake for early retirement.

The plummeting prices for iron ore has taken a toll on smaller producers, and led to the closure of nearby Wabush Mines in early 2014.