(The following article is from the October 1-15, 2008, issue of People's Voice, Canada's leading communist newspaper. Articles can be reprinted free if the source is credited. Subscription rates in Canada: $25/year, or $12 low income rate; for U.S. readers - $25 US per year; other overseas readers - $25 US or $35 CDN per year. Send to: People's Voice, c/o PV Business Manager, 133 Herkimer St., Unit 502, Hamilton, ON, L8P 2H3.)

By Sean Burton

Newsprint company AbitibiBowater is preparing to close its large mill in the central Newfoundland town of Grand Falls-Windsor. In 2005, prior to its merger with Bowater, Abitibi Consolidated had shut down its mill in the west coast town of Stephenville, at the cost of hundreds of jobs. Early in September, AbitibiBowater announced a "restructuring plan" for the mill in Grand Falls-Windsor to restore its profitability. This plan would cut 171 jobs, about a third of the mill's unionized workers.

     Members of Local 63 of the Communications, Energy and Paperworkers Union were shocked by the news. On September 3, the union membership voted overwhelmingly against the company's plans, 99% in favour of rejection. Union representatives stated that the workers were simply in disbelief that the employer would make such demands of them, and say they would rather the mill close than work under the new conditions, which would also see the mill's woodlands division contracted out.

     The potential closure of the mill would be another major economic setback for Newfoundland and Labrador. Though experiencing a windfall from offshore oil extraction, the province's secondary industries have been constantly slipping behind. The government of Danny Williams has been credited with Newfoundland's present economic success with oil, but it has yet to do anything substantial to diversify the economy and provide secure livelihoods for the people. In particular, the government failed to stop the mill in Stephenville from closing, nor did it save the gypsum plant in Corner Brook when its owner, Lafarge, suddenly announced its closure last year.

     Williams seems to be taking a tougher position over these latest developments. On September 12, Williams accused the company of planning to shut down regardless of the union's protests, and claimed that AbitibiBowater would blame the government and the union for the closure. The premier pointed out that the company owns a number of hydro power generating stations in Newfoundland from which the province purchases electricity. The government has stated that the company will not get away with closing the mill and still hold onto a lucrative power deal, which could involve legal proceedings against AbitibiBowater. Williams has also stated that he may direct Newfoundland Hydro not to purchase power from the company.

     Whether that happens or not, the government is unlikely to take direct action to save the mill by taking over its operation. The company may get hurt if it goes ahead with the closure, but that will not bring back the hundreds of jobs and the potential destruction of a major provincial town.