It's part of the old Factory District, which is, oddly, a
National Historic Site of Canada.
The town was founded by the Fishermen's Protective Union as a sort of mildly socialist workers' paradise (prior to Confederation, we never had overt slavery, but there was limited indentured servitude and the small merchant class in St. John's always kept the fishermen in debt. They had to borrow money each year to pay for their supplies, then they were never given enough for their catch to completely pay off the debt. We had third world-level wealth inequality, hence the election of the People's Party, and initiatives such as Port Union). These particular homes were for the laborers (in this case, fishermen). The officers and others had the nicer red ones that are still relatively maintained, at least outside.
There's a bunch of them there in various states of disrepair:
Port Union and Port Rexton by
R C, on Flickr
Port Union and Port Rexton by
R C, on Flickr
The major collapses have started within the past couple of years. The site will probably be cleared eventually.
They did get some GREAT news just today, though, so things may yet turn around a little there:
http://vocm.com/news/transfer-agreement-reached-for-port-union-oci-plant/