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CEP says it can save Abitibi-Consolidated $10 million

March 22, 2007 - The union that represents mill workers in Central Newfoundland said yesterday it had reached a deal with Abitibi-Consolidated to save the company $10 million, according to CBC Canada.

Abitibi-Consolidated announced earlier in 2007 it needed to reduce its operating budget by $10 million in order to make a profit during the year, and avoid drastic measures, such as closing the mill in Grand Falls-Windsor.

The union's plan was expected to be revealed last night.

Abitibi has also cut grants it pays in lieu of taxes to three communities in Central Newfoundland where it owns property.

The town councils of Botwood, Bishop's Falls and Grand Falls learned recently that Abitibi intended to cut their grants by 40 per cent, in order to make the savings.

In 2006, Abitibi-Consolidated turned over $805,000 to the town council of Grand Falls-Windsor, CBC reported.

In 2007, the town has been told it will receive $480,000, the CBC story said

SOURCE: CBC Canada




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