United Steelworkers union members in western Labrador have ratified a five-year collective agreement that includes increases to medical benefits, pensions and wages.
More than 1,300 union members who work for the Iron Ore Co. of Canada will return to work after a nine-week strike. “Our members are the people who work hard every day and who make the greatest contribution to the success of the company,” said Marty Warren, the United Steelworkers’ director for Atlantic Canada and Ontario. ”They have earned this collective agreement that will benefit their families, their community and the company.”
Read: Prescription drug cap, pensions at heart of Labrador strike
A cap on prescription drugs was the No. 1 reason for the strike, Ron Thomas, president of the United Steelworkers Local 5795, told Benefits Canada earlier this month. While the full details aren’t available, the collective agreements include the first increase on the health benefits cap since the 1990s, according to the union. As well, any member or dependent who exhausts the cap will be covered for the duration of the five-year agreement.
The contracts also provide for increases in benefits under the hybrid pension plan. In addition, wage increases over the five-year term will amount to an average of 2.4 per cent annually, including cost-of-living allowances.
Read: Quebec smelter employees reject proposal for two-tiered pension plan
“We are pleased with the outcome of this new agreement and it highlights what we can accomplish when we work together on solutions,” said Clayton Walker, president and chief executive officer at the Iron Ore Co. of Canada. “As we look ahead to safely returning to work, we will focus on listening to each other more and finding solutions together so that we can continue to build a stronger business for the future.”
More than 300 union members of Local 9344 in Sept-Îles, Que., will vote on a similar contract offer on Tuesday.