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MACKENZIE, BC– USW Local 1-424 is concerned that Canfor’s announced indefinite closure of its 450-employee sawmill here is a signal that the company is planning to take more mills out of production. Two weeks ago Canfor said the mill would go down for an indefinite period of time.
The mill, certified to the Pulp and Paperworkers of Canada Local 18, is a mainstay in this forest-dependent northern community of under 5,000. Also affected are some 430 loggers and haulers working for contractors.
“This type of sudden announcement knocks the starch out of our community and creates more uncertainty about the future,” says Local 1-424 president Frank Everitt, whose local represents over 400 workers at two Abitibi Consolidated sawmill and planer sites in town.
“The mills in Mackenzie need capital investment. They have been generating large profits for shareholders over the years and more capital needs to be ploughed into them,” adds the local union president.
Everitt adds that, although the Canfor mill in Mackenzie needs upgrading, the announcement comes as a surprise as the region’s timber supply is not nearly as affected by the mountain pine beetle epidemic and is stable over the long-term.
He also believes the Canfor announcement is “shareholder driven.” Following the recent departure of Canfor CEO Jim Sheppard, it is reported that a group of three shareholders, headed by BC billionaire Jimmy Pattison, is in the drivers’ seat. Canfor has recently replaced a director, merger and acquisition specialist Ben Duster, who discovered he had a potential conflict of interest. Duster is a board member of rival company Catalyst Paper.
“I would think that Canfor is in a big shake-up and in the process of re-evaluating each of its operations and those that are not earning what they deem an adequate return, could suffer down time,” adds Everitt. Currently the local is re-evaluating its shift configuration at the Canfor Plateau mill in Vanderhoof, following a three-week shutdown.
In addition to the USW operations, there is a Pope and Talbot pulp mill in town and an Abitibi newsprint mill.
NDP Forestry Critic Bob Simpson has slammed the provincial government over the Mackenzie closure, pointing out that forest companies used to be bound to consult with the government in the event of a shut down.
Policies introduced by the Gordon Campbell government allow licensees to close down mills virtually at will, with no public accountability.
Simpson also criticized the province for supporting the Harper-Bush softwood lumber deal which is punishing Canfor and all others with a 15 per cent border tax, which could be increased to 22.5 per cent if regional quotas are exceeded.
He also said the BC government must help forest-based communities get access to those lumber export taxes to assist them.
Liberal MP Pat Bell, whose riding Prince George North and is the Minister for Agriculture and Lands, has pleaded with Canfor to keep the mill open, suggesting the company could be given a larger annual cut.
“It’s ironic that a Liberal cabinet minister which has supported the Harper-Bush deal that is a huge factor behind kicking the hell out of industry now wants to appear that he’s going to bat for the community and for workers,” said Everitt. “The Liberals have done absolutely nothing to stop the closure of 39 wood conversion operations, across the province and the interior regions, over the last six years since they took power.”
“We support the PPWC in their efforts to work with community leaders to keep the plant open and operating,” said Everitt who that “it is the rightful job of governments to intervene to assist workers and communities in need.”
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WOOD COUNCIL
