Deal between AbitibiBowater and union highly doubtful: Dunderdale

It is highly doubtful that AbitibiBowater can reach an agreement with its union to save the paper mill in the central Newfoundland community of Grand Falls-Windsor, the province's natural resources minister said Monday .

On Friday, locals belonging to the Communications, Energy and Paperworkers Union rejected the company's latest restructuring plan by a vote of 88 per cent against, putting the future of the mill in doubt. AbitibiBowater had warned that a rejection would mean the mill would not be competitive in the marketplace.

Natural Resources Minister Kathy Dunderdale, who has been talking to company and union officials, said she is losing hope a deal is possible.

"I don't really have confidence at this moment. We have a very serious standoff here," Dunderdale said.

"The company has been very firm in terms of the conditions and timelines that they have laid down. The union has certainly been very firm in terms of its reaction to the things that have been put on the table."

Dunderdale was in a similar situation in 2005 when the union at Abitibi's Stephenville paper mill couldn't reach an agreement with the company on workforce concessions. The mill was shut down and later demolished.

Dunderdale said she doesn't know what will happen with Grand Falls-Windsor, but things look gloomy.

"I'm troubled by the situation. This is very serious. I'd hoped there might be some movement. Apparently there certainly wasn't enough to satisfy the union, and thus the outcome of the vote on Friday."

Dunderdale's department and AbitibiBowater have reached agreement on several issues to help the mill's bottom line.

However, the deal breaker is still a workable labour agreement, which Dunderdale said is solely for the union and company to settle.