NNSL (JAN 06/97) - Labor and business typically approach issues from opposite end of the scale. So, when they agree something, others tend to take note.

For 1997, the presidents of the NWT Chamber of Commerce and NWT Federation of Labor agree on one thing: it is going to be a tough year for Northerners.

"We're going to see more of the survival instinct," said labor leader Jim Evoy. "People will be spending less and there'll be continued uncertainty."

Yamkowy said: "In '97 we'll see more adjustment by the territorial government and more by business. And more uncertainty because the status quo isn't there any more.

"You don't have the job security. That will reduce the confidence in the buying consumer."

Their comments are based on a number of significant happenings in 1996.

Those issues include: significant changes to the territorial government's Public Service Act; the approval of the BHP diamond mine project; government reductions in spending and staff; and the transfer of Occupational Health and Safety from the NWT government to the jurisdiction of the Workers' Compensation Board.

"There was a real readjustment in 1996 that will continue in '97," Yamkowy said. "We're following the trends of business and government in the south and we're not done yet."

Of last year's events, Evoy believes some of the changes to the Public Service Act will filter over to the private sector and onto quasi-government organizations such as the NWT Power Corporation.

He believes employers will continue to ask for concessions but will be met by unions not willing to accept any.

"(The outcome) can have a significant impact on the private sector," Evoy said.

As for Canada's first diamond mine, while both are pleased about the opportunities that could arise from the billion-dollar project, neither said it would make up for the losses from government cuts.

"The BHP project will be beneficial, but will not replace all (the cuts)," Yamkowy said. "There will be a boost in the businesses that can service the growth in the mining sector."

Evoy said: "Public sector workers are more stable than a construction workforce. It's not going to match.

"Workers are going to have to learn to get by on less."

As for the government cutbacks, Yamkowy believes the holes created can translate into opportunities for new and existing businesses.

"New businesses are being created to do what government used to do," he said. "It's a whole new industry.

"It's a real good opportunity for small or local businesses."

Evoy said the transfer of the government department to WCB is important because of the alliance it created between labor and business.

In 1996, the groups were united in their demands to have input on the transfer and to try and better understand why the move was being made.

"There's a story that's not going to go away," Evoy said, indicating all questions have yet to be answered.

So with 1997 under way, Yamkowy said business must continue to form new alliances to create new jobs and new opportunities.

"We have to start creating some of our own jobs and reasons for being," he said. "There should be a government and business (committee) to look at an economic development plan."

Evoy's plans are more to the point.

"Labor will continue organizing," he said. "We don't think this will be the best year for labor, but we're not dying."

"I'll spend a lot of time talking to other unions about organizing in the NWT."