IOC has defunded Labrador City's family day. So the union will provide the bouncy castles

IOC has defunded Labrador City's family day. So the union will provide the bouncy castles

Steelworkers' union to spend about fifty grand as a morale booster as IOC struggles

A union local at the Iron Ore Company of Canada in Labrador City is digging deep into its own coffers to save the annual family day celebration after the mining company defunded the long-running and popular event.

“We see this as an opportunity for us to be good stewards within the business and within the community," Mike Furlong, president of United Steelworkers' Local 5795, told CBC News on Thursday.

The union local represents more than 1,600 well paid and highly skilled IOC workers.

Rinto Tinto-owned IOC is on a cost-cutting campaign in Labrador City, and has slashed capital projects, idled some equipment, eliminated all but essential hiring, reduced overtime and is squeezing contractors in order to pinch every possible penny.

Several dozen non-unionized staff positions have also been terminated at the company's operations in Labrador City and Sept-Îles, on Quebec's Lower North Shore.

"Work that does not directly support safe production, asset reliability, or disciplined cost performance will stop. Our focus is clear and non-negotiable: operate safely, run reliable assets and infrastructure, and deliver stable, consistent ore feed at the right cost," IOC managers wrote in a company memo last month.

IOC will not meet production and fiscal targets in 2026 because raw material is getting harder to access, infrastructure is aging, and costs have spiked.

The company says belt-tightening is necessary "to stabilize performance and position the business to remain competitive and sustainable for the next 70 years."

IOC says the "transformation is ongoing, and further changes can be expected."

Many feel that is code for layoffs.

“Right now, unfortunately, the mood is getting a lot darker," said Furlong.

One of the casualties this year is the annual IOC family day, which attracts hundreds of workers, their children, community members and retirees.

The company memo says every dollar spent must contribute to safety, asset reliability, consistent ore supply and legal or regulatory compliance, and it's clear that funding a family day falls outside that criteria.

"I'm not going to be judgmental at this time, but obviously it’s a very big disappointment and we’re going to try to rectify that for people," said Furlong.

So in a bid to keep morale from plummeting, the union plans to spend more than $50,000 on the family day event, which will take place on Aug. 22.

Even though the event will be sponsored by the union, Furlong said managers and their families will be invited.

“Show up and let’s make this one of the best family days we’ve ever had," he said.

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