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Description: | Layoffs likely at Labrador iron ore mine An iron ore mine in western Labrador will be cutting production in reaction to the global economic slump, a union official said Monday. In a letter to employees obtained by CBC News, the company's vicepresident and general manager Gino Levesque said the company will have difficult decisions to make as a result of the current economic downturn. "We are now going through the most difficult time in the history of Wabush Mines, with, from what I perceive to be, an unfavourable work climate at the plants, the worst cost structure in North America and a plant that is aged," he said. According to the letter, layoffs are guaranteed, temporary workers will be let go, overtime will be eliminated, and contractual work will be cancelled. Wabush Mines officials told union leaders last week that it expects to cut production by as much as 40 per cent from this year's levels, said Lloyd Hunter, president of the United Steelworkers local. Hunt |