Stephanie McDonald
Northern News Services
Monday, August 6, 2007

POND INLET - A new contract between the Toonoonik-Sahoonik Co-op in Pond Inlet and Baffinland Iron Mines will mean a boost for the store's bottom line, but may also mean fewer hours for workers.

A diamond drill prepares to bore into the rock at Baffinland Iron Mines' Mary River property southwest of Pond Inlet. - photo courtesy of Roland Landry

The food service provider contract between the two parties was signed in July after months of talks. Details on how much the contract is worth could not be disclosed due to a confidentiality clause.

Baffinland will now provide the Pond Inlet Co-op with a list of food and cleaning supplies it needs for the mine, and Co-op management will send the list to their wholesalers in Quebec. From there the shipment will be sent north to Iqaluit where Baffinland will load it onto their chartered aircraft for delivery to their Mary River Iron Mine.

The deal involves a shipment of nine pallets of goods a week with two shipments arriving in Iqaluit each week.

Previously the order had been shipped to the Pond Inlet Co-op where it was repacked and palleted for shipment to Mary River.

The Toonoonik-Sahoonik Co-op had always provided goods for the mine, but this contract will reduce labour costs and free up more shelf space in the Co-op for products that community members can buy, Jeff Provost, manager, member and public relations with Arctic Co-operative Ltd. said. As a result, there will be a higher return generated for members.

Baffinland will benefit from a fresher product that will arrive in better shape than in the past. There will be no delays as the second step of delivery will be cut out.

The contract is effective immediately and is good until Dec. 31, 2008 with a renewable clause written into the contract.

"We look at it as a win-win for both sides," Provost said. "There will be no noticeable difference other than the product not landing at the Co-op.

"There won't be jobs created from the Co-op side," he said. "There may be a cut in hours for some individuals."

There are 15 to 18 grocery staff working at Toonoonik-Sahoonik. It is too early to tell how staff will be effected and a cut in hours will be dependent on how duties are shifted, Provost said.

Mayor of Pond Inlet David Qamaniq said he's encouraged by the new deal.

"It will probably mean that the Co-op will do better sales wise," Qamaniq said, but he wasn't aware of the affects on local labour.

Representatives from Baffinland were unavailable for comment.