New deal means fewer layoffs, Abitibi workers told

Unionized workers at a troubled AbitibiBowater plant in central Newfoundland are expected to finish voting Friday on a concessionary package that the company says is needed to keep the mill competitive.

Montreal-based AbitibiBowater, which set Friday as a deadline for its Grand Falls-Windsor workers to accept a restructuring offer, says the new deal could prevent dozens of layoffs.

Although some union representatives have played down the seriousness of the company-set deadline, official Jean-Philippe Cote said the company is not bluffing.

"If we leave things as they are now, this mill is way too expensive to operate," Cote told CBC News.

A letter was sent to the home of each employee over the last week.

On Thursday, workers attending a Communications, Energy and Paperworkers union meeting gathered for nearly 2½ hours, as union officials briefed them on the company's latest offer.

The atmosphere seemed almost lighthearted as the meeting broke up. One man described the latest restructuring plan as "the same old garbage."

The CEP was outraged this summer when AbitibiBowater said it would need to lay off more than 170 workers and contract out some services, including forestry operations, to keep the Grand Falls-Windsor mill open.

Cote told CBC News that the company's new offer would mean far fewer layoffs, as long as workers opt for early retirement.

"Provided that every employee, who is 55 and up — and again, that is a decision that is for each employee to take — were to again benefit from this right, it means that in terms of necessary layoff, this number would be reduced down to about 25 or 30 people," Cote said.

Voting is expected to continue through Friday night.

Union officials said they expect to make a public statement on Saturday.

The workers are voting amid the latest gloomy financial news from AbitibiBowater. The newsprint giant on Thursday said it lost $302 million US during the third quarter.

Declining demand for newspapers and unfavourable market conditions have combined to batter to the newsprint industry in recent years. Like other producers, AbitibiBowater has been closing mills and slashing production in an attempt to maintain an even keel.