Abitibi workers 'dodged a bullet' in deal: union

A deal aimed at saving $10 million this year at the Abitibi-Consolidated paper mill in Grand Falls-Windsor will see overtime reduced, more students hired andno job losses, the union said Wednesday night.

The company had said the mill could face closure if it did not save millions and become more profitable.

Ron Smith, spokesperson for the Canadian Energy and Paperworkers union that represents workers at the mill, said the union and company came up with a plan that gives the mill more flexibility in assigning personnel and no jobs losses.

However, Smith is cautious about the future.

"We dodged a bullet, that's all we did," Smith said. "China is going to put 1.2 million metric tonnes into our traditional marketplaces this year. That's a big worry for us."

For now, work at the Grand Falls-Windsor mill will become more efficient by reducing overtime hours for permanent employees and reducing hours for temporary employees. Smith said adjusting traditional scheduling will make all the difference.

"If they weren't needed, they still showed up … somebody found something for them to do, and they got paid for it. Those people will now be on call," Smith said.

"They will be guaranteed a minimum of 36 hours a week, but they'll be on call and they'll come in only when it's necessary, as opposed to coming in whether they are needed or not."

Other personnel cost-cutting includes hiring students in peak times, a measure the union suggested.

"During June, July, August, the company will bring in university students to avoid overtime," Smith said. "The mill hasn't hired students in 20 years, and it's good to see the mill back into that. It will help a lot of families and a lot of kids."

Meanwhile, Grand Falls-Windsor town council has agreed to the company's request to reduce its annual grant in lieu of taxes by 40 per cent for the next three years.

The arrangementwill see the grant cut from $805,000 annually to $480,000.

Council said with the paper industry in trouble, it wants to support the Abitibi mill and its workforce.