Iqaluit (May 05/03) - The largest private sector employer in Nunavut says it may be forced rethink the way it does business in the territory.

The North West Company was dropped from the government's Northern-preference list at the end of March.

The publicly traded company does not meet the GN's 51 per cent Inuit-ownership requirements under the Nunavummi Nangminiqaqtunik Ikajuuti (NNI) policy.

That means it no longer has a bidding advantage on government contracts.

"We are disappointed and we are concerned," said NWC spokesman Len Flett in Winnipeg.

"We and the Hudson Bay Company before us have done business in Nunavut for more than 100 years. Now we no longer meet the GN's criteria for a Northern firm."

NWC is the largest food and general goods supplier in the territory. The company has stores in 23 communities and employs 743 full- and part-time workers.

"More than 74 per cent of our employees in the territory are Inuit," said Flett. "That compares very favourably with Nunavut's public service, which has a 42 per cent Inuit workforce."

NWC last year bid on about 50 government supply contracts.

They ranged from supplying a dozen fur hats for field workers to $1 million in furniture for government offices, said North Mart manager Glenn Cousins in Iqaluit.

The company's bidding advantage was 17 per cent on the first $100,000.

"A $17,000 advantage on the furniture contract wouldn't even have paid our shipping costs," said Cousins.

"This isn't about the money. It is about the principle of being able to compete on a level playing field."

Cousins said bidding on government contracts this year means the firm must compete against Southern-based "catalogue" firms, including retailing giants like Sears and Wal-Mart.

"We are now forced to bid against companies that have no investment in Nunavut whatsoever and don't face the high cost of doing business here that we do."

North West wants the NNI policy to address its investment in the territory and commitment to Inuit employment.

"Definitely, we feel it should and are disappointed that it does not," said Cousins.

NWC has $37 million in store and capital assets in Nunavut and $32.4 million in working capital.

Its payroll tops $11 million a year and it pays about $5 million in property and business taxes, utilities, and telephone.

The company buys services and supplies from more than 100 Nunavut firms.

NWC last fall proposed a "company-specific" agreement within the NNI that would enable it to retain its Northern-preference status.

The agreement would have covered Inuit management training programs, Inuit workforce benchmarks, and local procurement.

About 20 per cent of the firm's 141 managers in Nunavut are Inuit. "We feel we could do better," said Flett.

"Working with the government in a formalized program, we feel that could be 100 per cent."

Other than a letter acknowledging receipt, Flett said the company has yet to hear back from the GN.

Barry Cornthwaite, the GN's NNI policy advisor, was not available for comment.