Wabush Mines extends early retirement offer

A union and a mining company in western Labrador have reached a deal that could keep a few dozen younger workers on the job.

The United Steelworkers has made an agreement with Wabush Mines to extend an early retirement offer that, if fully subscribed, could retain jobs for as many as 45 people.

Wabush Mines announced last fall it would have to lay off 130 workers, or a third of its permanent workforce, to cope with the global financial crisis. The company operates an iron ore mine in Wabush, near Labrador City.

"[It] seems like we're moving in a much more positive direction," said Steelworkers local president Jason Penny.

Penny said the company, operated by U.S.-based mining giant Cliffs Mining Co., has agreed to extend a one-to-one retirement offer.

"We've also had a commitment from the company now that anybody who avails on this option means a direct impact on somebody keeping their job," said Penny.

The deal means that for each person who voluntarily agrees to retire, taking a guaranteed minimum income as well as a $10,000 lump-sum payment, the company will keep a job that otherwise would be eliminated.

Penny said with the global steel market in a deep slump, some union members may be tempted to make a move.

"Last time the window closed, on Dec. 31, 2008, the steel markets weren't in the crisis that they are right now," he told CBC News.

"I mean the financial market had taken a hit, but since then the bottom has really fell out of the steel market."

Union members now have until April 1 to make a decision.