WABUSH, NL, June 7, 2017 /CNW/ - The United Steelworkers (USW) has reached a new collective agreement with Tacora Resources Inc. as part of Tacora's bid to reopen the Scully Mine and bring back much-needed jobs to the community of Wabush.
"It has been three long years since the Scully Mine was closed and many people were concerned that it would be permanently abandoned," said Marty Warren, USW Director for Ontario and Atlantic Canada.
"We have been working tirelessly since 2014 to find a buyer for the Scully Mine assets and to bring back jobs to Wabush and Labrador West. We are cautiously optimistic about the potential community benefits of Tacora's plan to reopen the mine," Warren said.
The Scully Mine was part of the Wabush Mines operations closed in early 2014 by Cliffs Natural Resources. The operations subsequently filed for and received creditor protection pursuant to a court order under the Companies' Creditors Arrangement Act (CCAA).
As part of the CCAA proceedings, Tacora Resources, of Grand Rapids, Minnesota, will need court approval for its proposal to purchase and reopen the Scully Mine. The USW understands that if the mine reopens it will create up to 300 jobs when full production is reached.
The proposal to reopen the mine also required negotiating a new collective agreement with the USW to represent employees of Tacora when it resumes operations, said Tony DePaulo, Assistant to the USW District 6 Director, who led the union's negotiations with Tacora.
"We are pleased to announce that we have reached a five-year collective agreement with Tacora Resources Inc. to ensure that the new employees will be United Steelworkers members when the mine reopens," DePaulo said.
"The plan put forward by Tacora promises new jobs for Wabush families and an economic boost for the community. We are anxious to see the reopening of the Scully Mine proceed as quickly as possible, for the benefit of Wabush families and the entire region."
SOURCE United Steelworkers (USW)
For further information: Marty Warren, USW District 6 Director, 416-243-8792; Tony DePaulo, Assistant to USW District 6 Director, 905-869-0760, [email protected]; Bob Gallagher, USW Communications, 416-544-5966, 416-434-2221, [email protected]