US embassy cable - 04HALIFAX130

UNCLAS HALIFAX 000130 
 
SIPDIS 
 
FOR WHA/CAN 
 
E.O. 12958: N/A 
TAGS: ELAB, PGOV, CA, Danny Williams 
SUBJECT: NEWFOUNDLAND - LABRADOR LABOR VOWS TO MAKE PREMIER "ONE-TERM 
DANNY" 
 
REF: HALIFAX 127 AND PREVIOUS 
 
 
1.  Organized labor groups in Newfoundland-Labrador are 
threatening to get even with Conservative Premier Danny Williams 
for his government's passage of controversial labor legislation. 
 The Williams government used its overwhelming majority in the 
House of Assembly on May 4 to pass Bill 18 which imposes a new 
contract on 20,000 public sector workers who were on strike for 
four weeks in April (reftel).  The legislation imposes a 
four-year contract that cuts sick leave benefits for new public 
sector employees and freezes wages for the next two years. 
Workers will get a five percent raise in the final two years of 
the deal. 
 
2.  Officials of the two unions which represent the workers and 
other provincial labor officials condemned the legislation, 
accusing the Premier of setting labor relations back 20 years. 
Some have even gone as far as ordering specialized car license 
plates with the inscription "One Term Danny" to reflect their 
vow to defeat the Williams government come the next provincial 
election.  Since Williams just won election last October, his 
detractors could be waiting a long time to show their 
disapproval at the ballot box.  In the meantime, it appears 
certain that Williams has lost any chance of a cooperative 
relationship with the province's labor groups if he was looking 
to them for help in stabilizing the province's fiscal situation. 
 
HILL