Daily Archives: May 31, 2019

Teal Jones announced that, effective immediately 2nd growth harvesting will be shutdown at its Honeymoon Bay – TFL46 operation due to excessive stumpage rates. Stumpage rates, derived from a history of log export premiums and speculative bidding, are well in excess of what would be an economic rate for a 2nd growth harvesting operation focused on providing logs for domestic saw mills. These high rates are incurring significant losses for the company, at a time of weak markets for lumber, shakes and shingles in Canada, the U.S. and abroad. The provincial government, as part of its Coastal Revitalization initiative, has recognized that while log exports will be addressed by changes to the fee-in-lieu rates, stumpage rates should be adjusted to be more in line with harvesting for domestic consumption. However, the changes to the stumpage system to reflect this reality will not come into place until 2020. In the interim, the mounting losses are requiring the company to curtail the 2nd growth harvesting operations.

Wayne Stetski

Wayne Stetski claims that the failure to remove tariffs on softwood lumber with the U.S. continues to be a burden on Canadian lumber mills. Stetski joined South Okanagan-West Kootenay MP Richard Cannings and Abitibi-Témiscamingue MP Christine Moore in writing to Foreign Affairs and the Minister for Natural Resources Amarjeet Sohi. Together, they are calling on the federal government to prioritize securing a fair deal on softwood lumber, while Stetski raised the issue in the House of Commons, specifically bringing to attention the importance the forestry sector has on rural communities like those in the Kootenays. …Until a new deal is reached with the U.S. on the imports and exports of Canadian lumber, the MP’s say that the industry’s financial sustainability will continue to be threatened.

Merritt, BC – Today, Aspen Planers Ltd. announces further production curtailments at their Merritt sawmill reducing operations from two shifts per day to only one shift. “Due to the ongoing lack of access to logs, increased log costs and weakening lumber markets, Aspen Planers will curtail production and reduce operations to one shift per day starting Monday, June 3,” said Aspen Planers’ executive vice president, Bruce Rose.“The decision to curtail production does not reflect the commitment or hard work demonstrated by our employees,” said Rose. “Our decision to reduce production is a result of the challenging industry conditions in BC.” “As the major employer in this area, we have a responsibility to our employees, our community and the hundreds more that depend upon Aspen Planers for their economic livelihood here in Merritt and other areas including Savona and Lillooet,” said Rose.

At least 50 employees will be laid off at the Aspen Planers sawmill in Merritt, after the company announced plans to move to a single shift per day schedule. “Due to the ongoing lack of access to logs, increased log costs and weakening lumber markets, Aspen Planers will curtail production and reduce operations to one shift per day starting Monday, June 3,” said Aspen Planers’ executive vice president, Bruce Rose in a news release on May 30. The curtailment is aimed at restoring a regular schedule at the mill, which has been plagued by week-long shutdowns since last November… Marty Gibbons, president of the Local 1-417 of the United Steelworkers Union said the current state of forestry in B.C. can be traced back to a lack of planning and foresight on the part of previous provincial governments. A lack of timber supply has driven up the price of logs, he said, while access issues specific to the Nicola Valley have compounded issues.

Tolko’s Athabasca OSB division in Slave Lake, Alberta has temporarily suspended operations as the province has issued an eight-hour evacuation alert for the town. “All employees, other than those who have been identified as essential to asset protection, have been evacuated and sent home. With the town on an eight-hour evacuation notice, we want people to be prepared in case a mandatory evacuation order is issued,” says VP, Strand-based Business, Jim Baskerville. …Tolko’s essential employees will now initiate fire suppression activities to protect the mill and will coordinate efforts with the town, the municipal district, and the province as the situation develops. Tolko will be communicating with employees through their direct supervisors and via its Facebook page (www.facebook.com/TolkoIndustries).

A tentative agreement on a new contract was reached with the BC Maritime Employers Association, the International Longshore and Warehouse Union Canada said in a statement. …Earlier in the day, shippers across the region were concerned.”We’ve got trucks sitting for hours now at the terminals waiting to get in,” said Joel Neuheimer, vice president of international trade and transportation at Forest Products Association of Canada, whose members include Canfor Corp and West Fraser Timber. “We even have vessels saying they won’t be stopping, they’ll be going to Seattle and other West Coast ports. If you’ve shipped cargo to Vancouver, it’s stranded now.” Canadian National Railway and Canadian Pacific haul cargo to the port. …The employers association, which represents 55 companies… issued a notice this week that it would lock out some 6,000 workers who load and unload ships due to a labor dispute.

WINNIPEG, Manitoba/OTTAWA — A lockout of longshore workers at Canada’s biggest port, the Port of Vancouver, ended in a deal on Thursday after a few hours, averting a potentially massive shipping disruption, the workers’ union and employers association said. The lockout was immediately lifted and the union also withdrew its strike notice. …Details of a tentative agreement… were not released. At issue was the employers association’s introduction of automation that could eliminate jobs, the union said. The port is a major gateway to Asia for Canadian goods, moving large volumes of coal, grain, potash and forest products. Despite its short duration, the lockout led to lineups of trucks outside terminals and vessels being rerouted to other West Coast ports, said Joel Neuheimer, vice president of international trade and transportation at Forest Products Association of Canada, whose members include Canfor Corp and West Fraser Timber.