Nfld. & Labrador

145 workers laid off from Muskrat Falls project in Labrador

Pennecon has laid off 145 workers who were working on the Muskrat Falls project in Labrador, following negotiations with a main contractor.

Pennecon says workers were building an electric converter station

More than a hundred workers have been laid off at the Muskrat Falls project in Labrador.

Pennecon confirmed on Thursday that 145 of their employees were laid off following a negotiation between the company and a main contractor on the hydroelectric project.

About 225 workers were sent home last week, and only 80 are set to return. The employees were building an electric converter station near the Muskrat Falls powerhouse.

In a statement, Pennecon said Labrador's extreme winter weather impacted the decision to reduce its workforce at this time. 

"New priorities seek to maximize productivity and deliver best value by reducing work during the harsh winter months, and resuming a full workload when conditions improve in the spring/summer of 2017," wrote spokesperson Sarah Constantine in an email.

The company told CBC News last week that their client, GE Grid Solutions, had asked Pennecon to adjust their work contract.