More Abitibi layoffs feared for Grand Falls: minister

Newfoundland and Labrador's minister of natural resources says she believes more pink slips are coming for workers at a troubled newsprint mill.

AbitibiBowater said Tuesday afternoon that 13 of its managers in Grand Falls-Windsor are being let go.

Kathy Dunderdale said she expects the company will have more bad news for its workforce next month.

"I think it may involve unionized workers on the next round," said Dunderdale, who complained she was given only an hour's notice of the 13 layoffs on Tuesday.

"I reiterated to [a manager] that we really needed to know what the long-term plan for the mill was. Whatever action is being contemplated by mid-May, I would appreciate a heads-up before an hour before the layoffs are to take place."

AbitibiBowater is expected to announce the next steps in a restructuring program in May. The company has already closed mills across North America, in an attempt to cope with shrinking newsprint demand.

"At this point we had no choice but to take those measures to make sure that we can improve the productivity of the mill in reducing the cost," said Jean-Philippe Cote, the company's director of public affairs.

Cote, though, will not comment on whether any further cuts are pending.

"We don't want to speculate on any scenarios until we're ready to make the announcement of what Phase 2 will be about," he told CBC News.

The Grand Falls-Windsor mill, like other company properties, has been trying to shave expenses to meet AbitibiBowater's targets. In early 2007, the mill was instructed to find $10 million in operating savings.

Before merging with one-time competitor Bowater, Abitibi-Consolidated closed its mill in Stephenville in western Newfoundland in 2005.