Blacks Harbour residents worried cuts coming at Connors Bros.

People who live in the small coastal community of Blacks Harbour, N.B., are worried about the future of the Connors Bros. sardine plant.

Nearly everyone in the tiny town is connected to the plant in some way.

Sources tell CBC News that the 850 non-unionized workers at Connors Bros. are under pressure to accept a new contract that includes a pay cut of between one and eight per cent as well as reductions to the pension plan.

Residents are fearful the plant will close if workers refuse the deal.

The then-Liberal government loaned Connors Bros. $3 million in 2010 on the condition that the company not cut jobs, but in February the company laid off 30 workers.

Opposition Liberal MLA Rick Doucet said he is keeping an eye on the situation.

"There was a control period that they have to maintain a payroll level," Doucet said. "They've only utilized half the money but if there's a situation that they're below that, there's going to be some penalties involved."

In an e-mail Connors Bros. executive vice president, Ron Schindler, said in order for the plant to stay open significant changes are necessary. He said the company is under pressure to stay competitive in the global market and layoffs and cuts to pensions are one way to do that.

Doucet said cuts to the sardine plant could devastate the community.

"People have been eating, sleeping and driving Connors Bros. for a good many years. They've been a mainstay for our economy, they've been a tremendous economic engine and it's been a backbone for us," said Doucet. "I'll tell you, any movement in that I think people are really concerned with."

Connors Bros. invested $12 million into technological improvements to the plant in 2010. $3 million was paid by the province in the form of a forgiveable loan.