Mayor Rex Barnes: 'There's a lot of stress on these families as we speak, and as the days have gone by.' (CBC)

Residents of a central Newfoundland town are waiting to see what newsprint giant AbitibiBowater will do with its paper mill, after a stunning union rejection to a cost-cutting plan.

Locals in the Communications, Energy and Paperworkers union voted 88 per cent against what AbitibiBowater called its final offer on the Grand Falls-Windsor mill, which the money-losing Montreal-based company says has the highest labour costs of any of its mills.

Junior Downey, a 35-year veteran at the mill, said even though he and most others rejected a restructuring offer, he remains optimistic a solution can still be found.

"Reality is sinking in down there, and it sank in when they voted," Downey said during a weekend interview with CBC News, following the vote announced Friday night.

"Because we actually thought the doors could have been locked today."

The CEP said the vote showed that an overwhelming number of workers at the mill would rather risk their careers than be pressured into accepting the controversial restructuring plan.

Most workers with the Grand Falls-Windsor newsprint mill have rejected AbitibiBowater's last offer. (CBC)

Grand Falls-Windsor Mayor Rex Barnes took some heat last month for remarks that underscored the risks of rejecting the company offer.

Barnes said he is concerned about what senior managers will do next.

"The problem is that, is there going to be a willingness on the management team — we'll say in Montreal — with the outcome of this vote, to say, 'They've had enough of this, we're going to move on, they know the consequences and we're going to shut the mill ' " Barnes said.

Barnes said he is not taking sides in a dispute that has dragged on since this summer, when AbitibiBowater said it would need to lay off scores of workers to keep the mill and its related forest operations running.

Barnes said, though, he is not about to butt out when the region's economy is on the line.

"There's a lot of stress on these families as we speak, and as the days have gone by," Barnes said.

"There's two choices — either let's give up the foolishness and keep making paper, or if that can't be done, close the mill and get it over with so people can get on with their lives."

'We're going to accept the consequences,' worker says

AbitibiBowater said last week its last offer dramatically cut down on the number of layoffs in favour of an emphasis on early retirements.

Downey said unionized workers felt they had been put in an impossible situation, and that workers still need community support.

"We're going to accept the consequences. We voted for it," he said.

"Abitibi can do what they want to do, and we'll cross our fingers that somebody can have some sense here."

Built almost a century ago, the mill and its forest operations have about 450 full-time workers, but an overall workforce of about 1,100, including seasonal and part-time workers.