Monthly Archives: December 2019

As its last official act of 2019, Campbell River City Council decided to make use of its remaining unspent “council contingency” to support struggling forestry workers. Coun. Ron Kerr presented the motion, saying he recognizes how important the forest industry has been, historically, to the community, and how critical it remains to so many in the region. …Kerr said, “I think this is a very challenging time for the logging industry and its employees in the North Island. I’ve never been a logger, but as a businessman, I’ve suffered alongside them when the community has gone through times like this. It doesn’t just effect them, it effects everyone, especially at this time of the year.” …Coun. Cornfield said, “the strike affects everyone in the forest sector on the coast … it’s going to get worse before it gets better. We need to support the industry that was there to help build this community.”

…B.C.’s forest sector was beaten to a pulp in 2019, as a “perfect storm” of market, policy and natural forces converged, triggering multiple sawmill closures and curtailments, and spurring anger among laid-off workers towards politicians and conservationists. …“The companies are bleeding,” John Desjardins, forest products lead for KPMG in Canada. “They’re in the red.” …Forestry is cyclical, and B.C. is used to downturns. “This time it’s different,” Susan Yurkovich said. …Increased log exports have been blamed, in part, for the shortage of timber on the B.C. coast – something the NDP government has been trying to address with new regulations. Girvan doesn’t think any of the regulations that the government has adopted will address the fundamental problem of access to timber. “It’s not log exports – it’s because the cut went down,” Jim Girvan said. “The cut’s going down because they’re systematically preserving more and more timber for a variety of reasons.”

Western Forest Products announced Tuesday that talks have broken down in mediated bargaining that had resumed Dec. 12 with the striking United Steelworkers Union. Mediators Vince Ready and Amanda Rogers were asked last week by Western to get involved. No future mediation dates have been scheduled. …United Steelworkers president Brian Butler said last week that the union had been requesting a return to the bargaining table since talks had broken off in late November. The total number of forest workers off the job reached about 5,000 when Mosaic Forest Management, which does forest management for TimberWest and Island Timberlands, curtailed its harvesting operations on Nov. 25.

We’re behind the striking forestry workers. That’s what the organizers of yesterday’s rally and fundraiser at Campbell River’s Robert Ostler Park are saying, after coming under fire from the United Steelworkers union.  Last Saturday, USW  Local 1-1937 warned that the rally “is supported by a group calling itself ‘Taking A Stand,’ which is just a front for contractor owners trying to trick USW members into thinking it is a rally for them.” The union added that this event was “an underhanded attempt to convince USW members that they should give up their rights and agree to WFP’s last substandard, concession-filled offer.” During the rally, however, co-organizer Michelle Downey said the group was formed to raise awareness about how important resource jobs are to the North Island and the economy, and how much they value the workers.

Tamara Meggitt

The holiday season aside, this week is a very busy week for Tamara Meggitt. As one of the organizers for Loonies For Loggers, Meggitt, along with her husband and other volunteers, are packing the final boxes to prepare for distribution to families across Vancouver Island. …The initiative, which began in early fall, focused on basic necessities, along with Christmas presents for children, available to families of striking workers. …“We’ve got more than $80,000 in (cash) donation, about $10,000 in food donations, $20,000 in toys and thousands of dollars in gift cards.” She added logging plays an instrumental role for many Island families particularly those in the north Island.

Jim Pattison

Lumber giant Canfor has terminated an arrangement agreement between the company and Jim Pattison’s Great Pacific Capital Corporation. The decision came despite a special committee of Canfor’s board previously supporting the almost $1-billion offer to take full control of the publicly listed company and take it private. Great Pacific Capital Corp already owns 51 per cent of Canfor, but to get the go-ahead for the $16-a-share cash offer, more than 50 per cent of the remaining shareholders had to back the offer. …About 45 per cent of the minority voters were in favour, but that fell five per cent short. …All of the directors, other than Barbara Hislop, and certain senior officers of Canfor had agreed to support the takeover bid. However, recently there have been dissenters. Investment company Letko Brosseau & Associates, that holds 4.8 per cent of stock, said the offer undervalued the company.

Jim Pattison

The bid by billionaire Jim Pattison to take Canfor Corp. private is facing growing opposition from shareholders, though the investment firm has no plans to sweeten its bid for the Canadian lumber company. Several investors have balked at Pattison’s offer of $16 a share, saying it undervalues the firm that traded at more than twice that price in 2018. Proxy votes were due today, with results being released later and a final vote on Wednesday in Vancouver still possible. “I don’t know” if the vote will go through, Glen Clark, president of The Jim Pattison Group that controls Canfor, said in a phone interview. “Fairly large shareholders have indicated that they prefer to stay in, and from a Jim Pattison point of view we’re quite relaxed about it because we control the majority of the company in any event.”

VANCOUVER — Canfor Corporation has agreed with Great Pacific Capital Corp… to terminate the previously announced arrangement agreement dated October 28, 2019 with respect to the proposed plan of arrangement of Canfor. Based on the Canfor shareholder votes cast by proxy prior to the December 16, 2019 proxy cutoff, the “majority of the minority” vote required to approve the Arrangement pursuant to Multilateral Instrument 61-101 – Protection of Minority Security Holders in ‎Special Transactions, will not be achieved. Approximately 45% of the votes cast by proxy by minority shareholders as at the proxy cutoff were in favour of the Arrangement.‎ The special meeting of Canfor shareholders… has been cancelled. Pursuant to the Arrangement Agreement, the Purchaser will pay 50% of the actual reasonable out-of-pocket expenses incurred by Canfor in connection with the Arrangement.

B.C. enacted the Declaration on the Rights of Indigenous Peoples Act — the first jurisdiction in Canada to do so. Much of the debate has focused on high-level statements of principle that are not controversial. Principles related to reconciliation, the need to work together, the need to narrow the socioeconomic gap between Indigenous and non-Indigenous Canadians. Described in such terms, how could anybody reasonably be concerned about the legislation? Unfortunately, it is not so simple. …the act states “the government must take all measures necessary to ensure the laws of British Columbia are consistent with the declaration.” This will require government to review all kinds of legislation, such as the Mineral Tenure Act, the Forest Act, and the Petroleum and Natural Gas Act, which give permit holders the right to extract [resources]. …it is likely that the only real winners will be the lawyers called upon to argue and litigate over this legislation for years to come.