Layoffs and cutbacks at Labrador City businesses as strike realities begin to hit hard

Businesses are beginning to sufferthe financialfallout of the strike at the Iron Ore Company of Canada's mine in Labrador City.

Some companies are resortingto layoffs to make ends meet, while others are finding other ways to keep their doors open.

"My job,it 100 per centdepends on the mine and how the mine runs," taxi driver Nick Blake told CBC.

I am 100 per cent pro-unionit does hurt me seeing a lot of my friends suffer.- Nick Blake

"No matter who you are, if you live in Lab City and the mine goes through a downturn, you're going to be affected by it."

IOC is one of the largest employers in the province and the largest in Labrador West.The company has been unable to reach an agreement with its workers since they began a strike after contract negotiations hit a stalemate in late Marchover terms for new workers, as well as a cap on medical benefits.

"I am 100 per cent pro-union it does hurt me seeing a lot of my friends suffer," said Blake.

He said he's seen his income go from about $300 per shift down to $150.

"If that mine's not running, people got no money, they can't go out. So my paycheque's been cut exactly in half," he said, adding it might not just be money he'llbe losing.

"If it lasts throughout the summer, I could see a lot of my friends having to leave. I could see this getting a lot worse."

Business chopped in half

While picket signs are synonymous with strikes, Premium Business Solutions, which provides printing services and makes signage, isn't making anything extra during this work stoppage. In fact, it's the opposite.

"We felt the effects immediatelypercentage-wiseI would say50 per cent less [business]," owner Ramona Atkins said.

"Normally, we are flat out and we can't keep up with the orders. Now we've dropped to a level where everyone is busy but not enough to pay the bills for the long term."

Atkins says the company hasnot had to lay off any of their workers, but they have had to make some changes.

"We watch our expenditures and we keep ourworking hours down or lower or close to normal as we can," Atkins said. "We would rather keep the hours down first [and] keep everyone onboard, rather than let it affect their family lives and personal lives economically."

The Labrador West Chamber of Commerceheld a meeting this week that several local businesses attended to speak about how they are coping with the strike.

"Everyone has been impacted," chamber president Toby Leon said.

"One business, in particular, hasn't had a layoff, but it has had a 50 per cent decrease in volume, and another contractor who does a lot of work at IOC is down to 10 per cent of his workforce."

The chamber sent a letter this week calling on the steelworkers' union and IOCto get back to the table and work things out before the two sides get more entrenched in their positions.

[A]contractor who does a lot of work atIOCis down to 10 per cent of his workforce.- Toby Leon

"Our message is if you're not talking, then you're not going to solve it," Leon said."It would be great if both sides could get back to the table."