It is reported that an iron ore mine in western Labrador will be cutting production in reaction to the global economic slump.

Mr Gino Levesque VP & GM of Labrador address in a letter to employees that Labrador will have difficult decisions to make as a result of the current economic downturn. He said that "We are now going through the most difficult time in the history of Wabush Mines with from what I perceive to be an unfavorable work climate at the plants, the worst cost structure in North America and a plant that is aged."

According to the letter, layoffs are guaranteed, temporary workers will be let go, overtime will be eliminated, and contractual work will be cancelled.

Mr Lloyd Hunter, president of the United Steelworkers said that local Wabush Mines officials told union leaders earlier that it expects to cut production by as much as 40% from 2008 levels.

He added that the union executive has not yet been advised of any layoffs, although he expects to see job losses amid what he called rough times ahead for the mining town of Wabush.