'We're not there yet': Abitibi

Despite co-operation from the union at its paper mill in Grand Falls-Windsor, Abitibi Consolidated says it still hasn't reached its money-saving target of $10 million for the central Newfoundland mill.

But the union says that's news to them.

In early 2007, the company announced it would have to find ways to save $10 million or face the possibility of closing the mill.

The Communication Energy and Paperworkers union, which representsthe mill workers, announced Wednesday that a plan negotiated with the company would reach that target.

The plan included reduced overtime and call-in for staff, and a condition to hire student workers in the peak months to save money.

But Abitibi spokesperson Seth Kursman said that's not enough save $10 million.

"We're not there yet … and so we've got a ways to go," Kursman said. "I think everyone recognizes the need to improve the competitiveness of the (Grand Falls-Windsor) mill."

CEP union spokesperson Ron Smith said he is surprised by Kursman's remarks, noting that as far as he's concerned, all of the cost savings have already been worked out.

"I was in Grand Falls when the presentation by the company was made to people from Montreal head office and to all of the executives of all of the local unions in Grand Falls and in Botwood, so I have no idea where Mr. Kursman comes from with that statement," Smith said. "At the end of the day when you add up the bag, they got their $10 million."

Smith said the plans he's seen from the company include upgrading equipment, changing the chemicals used to make paper and cutting down on air travel.

Kursman wouldn't confirm to CBC News how far the company is from the $10 million goal.