Local 793 Business Manager Mike Gallagher has told CBC News that he believes the laying off of 10% of the workforce by Baffinland Iron Mines in Nunavut “could’ve been avoided if the regulatory process through the Nunavut Impact Review Board (NIRB) wasn’t so long”.
Local 793 and the members working at the mine fully supported Baffinland’s application at the NIRB to renew its shipping permit from 4.2 to 6 million tonnes of ore annually.
Baffinland’s decision to suspend its application will result in further layoffs due to operating at the reduced tonnage of 4.2 million tonnes in 2025.
The large drop in the price of iron ore since the start of the year forced the company to reduce its costs and started layoffs in early October.
The Union’s collective agreement with Baffinland contains a fair process for determining layoffs and puts a priority on Baffinland to recognize members’ seniority. There’s also protective language that gives laid-off members recall rights for 12 months.
The company has announced that in scaling back current operations it will concentrate resources on building the multi-billion-dollar Steensby railway line south from the mine to Steensby Inlet. Baffinland expects to have its financing in place next year and to start construction shortly thereafter.
The Steensby railway will allow Baffinland to ship 18 million tonnes of ore annually and will provide long-term stability and jobs at the mine.
Over 900 Local 793 members are employed at the mine.
Catch Brother Gallagher’s comments on CBC Northbeat here (jump to 17:23 on the video). Read the full CBC story here.