Province concerned about Grand Falls-Windsor restructuring plan
Newfoundland and Labrador's natural resources minister said Thursday the government has very significant concerns about AbitibiBowater's plan to restructure the paper mill in Grand Falls-Windsor.
There were unconfirmed reports Thursday that AbitibiBowater wants to cut up to 150 jobs, consolidate all of the bargaining units and close the mill's wood room. Company and union officials won't discuss how many jobs may be lost, but the company met Wednesday with union representatives and mayors from the region.
Natural Resources Minister Kathy Dunderdale said Thursday she wasn't going to reveal the number of layoffs except to say it was very significant.
"We have a great deal of concern with the plan that's been put forward to us by Abitibi, very significant concerns and there's an awful lot of questions we need answers to," she said.
Dunderdale pointed out the province has spent more than $12 million in the past two years helping the mill stay competitive. She said the company also has access to very cheap energy power through a number of developments on the Exploits River.
Dunderdale said the province has always been committed to AbitibiBowater succeeding in Grand Falls-Windsor, which is why it stepped up to the plate with subsidies.
Minister to tour area
"However when you have access to our natural resources, when you have access to the cheapest energy in North America, then there's an expectation from the government and from the people that you're going to employ Newfoundlanders and Labradorians in that plant," she said.
"It has to work to your benefit as a company, but it also has to work to the benefit of the people in the region, and we're not sure we have that balance."
Dunderdale said she would be travelling out to the area in the next few days to meet informally, not only with the union representatives, but also the company, about the province's concerns.
In the meantime, union officials said they were thrilled with the province's involvement.
"These people in the government are the only people who can take on these paper giants when they want to move in to your province, destroy everything, and give nothing back." said George McDonald, president of Local 63 of the Communications, Energy and Paperworkers union.
However, AbitibiBowater's spokesperson Jean-Philippe Cote said it's not about destruction, it's about saving the mill.
"It's not to play a game what I'm saying here. It's really to press the point that taken alone, those investments that we talk about sometimes in different ranges would not address the fundamental issue that we need to deal with first," he said.