N.L. papermill to cut 171 jobs, minister says

A struggling paper mill in central Newfoundland wants to cut 171 jobs, more than one-third of its unionized workforce, according to the province's natural resources minister.

Kathy Dunderdale confirmed Wednesday that AbitibiBowater has proposed cutting 171 unionized jobs under a restructuring plan to save the papermill in Grand Falls-Windsor.

Dunderdale told CBC News she worries the job losses are just the tip of the iceberg for the region.

"The implications of this plan are well beyond the 171 that are affected directly by AbitibiBowater in the operations in the mill," Dunderdale said. "The repercussions go well beyond it."

The papermill is one of the largest employers in central Newfoundland and has long been plagued by financial problems and a weak market.

Out of the 171 jobs to be cut, more than 100 will be positions from among 207 workers forming Local 63 of the Communications, Energy and Paperworkers union.

George McDonald, Local 63 president, said the labourers, carpenters and finishers he represents are in disbelief.

"The only way you can run that mill, by cutting that local in half, is by bringing in a private contractor to do it," McDonald said. "These people deserve these jobs, they gave their life to this company."

Members of the CEP spent last week examining the company's restructuring plan with their union locals.

On Wednesday, the union announced its membership had voted overwhelmingly to reject the plan.

Representatives from the CEP spent an hour Wednesday afternoon in the central Newfoundland community giving company managers the results of the vote by 90 per cent of the mill's unionized workers, who voted 99 per cent to reject the plan.

The union leaders are heading to St. John's on Thursday to meet with Dunderdale.