Labour deal closes gap with Alberta: refinery proponent

A new labour agreement involving a refinery planned for southern Newfoundland is the best seen in two decades, a labour leader says.

The Newfoundland and Labrador Refining Corp., which plans to start construction at Southern Head, Placentia Bay, this spring, signed agreements Friday with representatives of 16 unions.

Under the deal, workers will receive a top-up of $5 per hour above provincial rates, putting their salaries in the same league as market rates in Alberta.

"This is an agreement that is focused on good labour relations between the parties, as well as good wages and benefits for the workers," said Gus Doyle, local president of United Brotherhood of Carpenters and Joiners.

"We won't have any problems attracting the workers back to the province with this agreement."

Recruiting workers will be a challenge for Newfoundland and Labrador Refining, which plans on daily production of 300,000 barrels. Employers in the province like many across the country are already finding it hard to hire skilled trades workers.

"This is a very competitive agreement," said Brian Dalton, a director with the company.

"When you look at things on a cost-of-living and adjusted basis, and every other type of measure we've reached a good agreement here for all concerned."

Construction of the refinery, which is currently awaiting environmental approval, will take about four years to complete. At its peak, about 3,000 workers will be needed at the site.

Newfoundland and Labrador Refining, though, expects to be in construction at about the same time as the Voisey's Bay nickel processing facility in Long Harbour, also on Placentia Bay.

Last week, Premier Danny Williams said the provincial government is planning an advertising campaign once agreements for the projects are nailed down to lure workers in other provincesback home.

TheNewfoundland and Labrador Refining Corp.deal comes just as the only refinery in the province negotiated a new wage package with its unionized workers.

North Atlantic Refining which operates the refinery in Come By Chance has reached a new deal that will see significant wage increases for its employees.

Wages for more than 800 workers will increase 15 per cent over the next three years.

The United Steelworkers, one of the unions involved in the negotiations, said the new contract was ratified by about 60 per cent of its members. Union officials said the deal also includes improvements to the employee pension plan.