A veteran union official in western Labrador said that he has no idea when slumping iron ore sales will bottom out and is worried about whether workers will move away to cope with a worsening recession.

Recently, the Iron Ore Company of Canada said that a five week shutdown scheduled for July at its Labrador City mine and related operations may be extended to 13 weeks, because of deteriorating markets for steel.

Mr Kean said that he has never seen anything like the current downturn in his 35 year career. He said that "Iron ore mining has always been cyclical but this is much different because in every other downturn in the past and I've been here for every one of them just in the iron ore and steel industry."

He added that "This time it's every industry. It's a global thing. So this is much more severe. This is much bigger than anything we've ever seen before and we don't have any control what happens."

IOC made the move after learning that a key steel manufacturer will not need more iron ore until at least next fall.

Mr Kean said that some of the union's members, who number more than 1,100, may look for work outside Labrador West in order to ride out the downturn. However he believes most will remain in the region for the long term.

The sudden drop in demand for steel ended a boom period in Labrador City and neighboring Wabush where Wabush Mines operates a separate iron ore mine. IOC last fall shelved an ambitious expansion project that would have meant hundreds of new jobs.

(Sourced from CBC News)