Region Archives: Canada West

The coming closure of a pulp mill in Prince George and the loss of 300 high-paying jobs is just the beginning of what promises to be a new and painful chapter for the province’s beleaguered forest industry, which has already lost more than 40,000 direct jobs in the past 20 years.    …Most of the readily accessible primary forests in that 80,000-square-kilometre land mass are gone, stripped of their green gold by the logging industry in the space of just 50 years.  …The evidence has long been clear that a supply crisis loomed. But rather than reduce logging rates immediately so as to avoid an even worse day of reckoning, provincial governments have for decades elected to roll the dice, keep logging rates artificially high and gamble that the carnage would happen on someone else’s watch.

New BC Premier David Eby and forests minister Bruce Ralston are setting out to remake the province’s forestry industry to one that crafts high-value products here at home rather than shipping raw logs for milling elsewhere. By creating more finished products here, the industry would support more jobs with less timber. Crafting innovative wood products locally is a familiar theme for Teal Jones. It’s what we’ve always done. When founder Jack Jones returned from the Second World War he used his army stipend to start the company as a one-man cedar roofing mill. It wasn’t long before his sons were old enough to start cruising timber and bringing in the cedar he needed to cut shingles, shakes, and siding with his growing labour force. Today, his sons Tom and Dick remain true to their father’s legacy, employing more than 1,000 British Columbians across the entire process – from planning harvests to replanting new forests. Well over half of those employees work in value-added milling and manufacturing, more than 500 at the company’s Surrey headquarters alone. 

Past columns on BC follies highlighted the absurdity and hypocrisy of BC and federal government policies to destroy its once-thriving resource economy. Of course, it’s all woke and politically correct justified to save the planet and undo past injustices. But unfortunately, all that tends to ignore the severe economic impact on the livelihood of thousands of workers and their families. But then most of those unfortunates don’t vote for progressive green-left political parties. …One can see the change with the BC NDP government placing moratoriums on harvesting old-growth forests. New BC Premier Eby refers to the forest sector as being exhausted. I suspect that is his code word for shutting down even more of the industry. …I expect Premier Eby will use the same tactics to restrict the forestry sector as Trudeau uses against Alberta’s energy industry – death by a-thousand regulations, project delays, environmental assessments and carbon taxes. 

Pat Bell

PRINCE GEORGE – In the last 15 months, four pulp mills in BC have shuttered as a result of a lack of fibre, a figure even worse than projected by forestry economists. Record-breaking forest fires, a mountain pine beetle epidemic, and an environmental push to restrict and safe parts of BC’s forests for caribou all factors in a consistent decline in available fibre for mills. With the fibre that is left, critics argue there is still a lot that can be done. Former BC Minister of Forests Pat Bell argued the province can still find a way for Canfor to reverse their decision on PG Pulp Mill operations but they must act fast. “The disappointing part of this is it didn’t have to happen,” said Bell. Bell said during his time as BC’s Minister of Forests, he successfully restarted multiple pulp mills, including the one in Mackenzie, which shuttered in 2008 before being restarted. [END]

David Eby

Premier David Eby says B.C.’s forest industry is facing a “reckoning” following last week’s announcement that 300 jobs will be lost at a Prince George pulp and paper mill. Eby is in the city to deliver remarks at the B.C. Natural Resources Forum, an annual gathering of industry and political leaders. …In an interview on Monday, Eby addressed remarks made by union representative Chuck LeBlanc blaming the cuts in part on the provincial government’s decision to temporarily defer logging in about one million hectares of forest while it comes up with an old-growth management plan. …Eby countered by saying the deferrals are just a small part of a decade of challenges which include massive forest fires and the rise of the mountain pine beetle in the late 1990s. …Eby said his goal is to develop a long-term plan that recognizes the challenges facing the industry and the communities that rely on the jobs it creates.

The permanent closure at the Canfor’s Prince George Pulp and Paper’s pulp line will put 300 mill employees out of work and those lost wages could take $30 million out of the local economy,  And that’s just the immediate impact. Nechako Lakes MLA John Rustad says that for every job lost at the mill, local contractors, suppliers, retail stores and service providers will also feel the pinch once the mill closes in March.   “It’s obviously incredibly challenging and very difficult for the families and workers affected and it’s not just the direct jobs, the forest sector has a 2-to-1 ratio in the jobs that are going to be impacted in our community and that’s really tough for so many people,” said Rustad.  …“If you carry on with the approach of not being able to make money eventually you get to place where you might be putting people’s pensions at risk,” said Rustad. 

In June 2019, the We Wai Kai First Nation signed an incremental treaty agreement with B.C.’s provincial government. While making the announcement, the province said this first step toward a treaty would bring the community early economic opportunities, increased participation in the local forest economy and long-term benefits.  Over three years later, We Wai Kai Chief Ronnie Chickite says B.C. has yet to hand over any of the 30 square kilometres of land in the Lower Campbell River area of Vancouver Island that was promised in the initial agreement.   …Chickite describes the land in question as “rich in forest.” He says the First Nation selected the parcel specifically for forestry because it’s an ideal site to harvest valuable fir and cedar trees.   …Chickite says the We Wai Kai purchased a logging company as part of its plan to start a new timber operation on Vancouver Island. 

A rally is in the works to protest the recently announced closure of the pulp line at Canfor’s Prince George Pulp and Paper Mill. The closure will result in the loss of 300 jobs and Canfor is blaming a lack of fibre for its pulp operations. …Canfor said the specialty paper facility at the mill will stay open. Organizers of the rally say the closure will be a big blow to workers and the community at large. The rally… coincides with the attendance of BC Premier David Eby at a dinner during the annual Northern Resource Forum in Prince George at which he is expected to speak on the government’s forest policy. …Rally organizers from Stop the Spray BC supported by Conservation North and Stand Up for the North Committee said they the rally will be an opportunity for everyone to have their voices heard.

About 20 northern Alberta municipalities and industry associations are joining forces to lobby for better rail freight service for their region. The Community Rail Advocacy Alliance plans to lobby the federal and provincial government and talk to CP and CN in hopes of improving what its members say is inconsistent access to rail cars in northern Alberta. Members include the Alberta Forest Products Association, the Alberta Wheat and Barley Commissions, Grande Prairie, Edson, High Level, Slake Lake, Whitecourt, Peace River, Mackenzie County, Northern Sunrise County, County of Northern Lights and the Municipal District of Peace. Industry associations are frustrated about rail access for their members. Municipal councils are concerned about the effects on their communities. “One of our local industry partners had to reduce shifts and of course now you’re talking about people’s jobs,” Edson Mayor Kevin Zahara said. 

Chuck LeBlanc… president of the Public and Private Workers of Canada… says having to field concerns from his junior comrades and see their furrowed faces, which once beamed with ambition, weighs on him. …The layoffs were more than just sad news for the workers — the whole of Prince George underwent a period of mourning. Joel McKay, CEO of Northern Development Initiative Trust, called the news devastating. Eby and MLA Shirley Bond couched their sorrow in the same expression. …“It was not a matter of if but when,” said Brink, the CEO of Brink Forest Products. …Brink ascribes the industry’s woes to the mountain pine beetle infestation in 2001. …Then, in 2017 and 2018, wildfires engulfed forests in the Interiors. To preserve the remaining trees, the government slashed the annual allowable cut. …But Ben Parfitt, at the Centre for Policy Alternatives, says the plight of forestry companies is a reckoning of failed government policies.

Additional coverage in CKPG Today by Jack Clark: Union representing laid-off workers reacts to PG Pulp closure

Rob Shaw

Hopes are high in B.C.’s forestry sector that Premier David Eby might be ready to offer up some sort of financial assistance to a beleaguered industry that is shutting down mills and laying off hundreds of people. …Eby is set to speak to the Natural Resources Forum in Prince George and the BC Truck Loggers convention in Vancouver. He’d get standing ovations at both if he committed to some sort of government assistance. Instead, more than likely, he’ll …stall for time by making vague promises about boosting the “value-added” sector of the industry through “innovation.” It sounds good, but it never happens. It requires forest companies to invest millions in retooling their mills to produce those new “value-added” products, and they seize up with hesitancy because they can’t get straight answers out of the province on key issues of forest policy. …Someone should break the cycle of dysfunction between the New Democrat administration and the major players of B.C.’s forestry sector. 

A once dormant log yard has come back to life at the far western end of Keith Ave. in the light industrial sector of the city. For the past months it’s been the collection point for companies selling small-diameter logs to interior processors. That’s thanks to a new venture by a business arm of the Lax Kw’alaams Band that owns the Poirier yard. Carl Sampson who is the chief operating officer for Lax Kw’allams Business Development, said the logs are destined for the Kalum Logistics site, owned by the Kitsumkalum First Nation’s economic development arm. From the Kalum Logistics location just across the Kalum River adjacent to Kitsumkalum, the logs will be sent east to various locations, he said. …Kim Haworth, the general manager of the City of Terrace-owned community forest, one of the companies sending logs to the yard, is excited about the opportunities now opening up.

Resource companies in Western Canada had a good year in 2022, which means provincial and federal governments had a good year, thanks to royalties and taxes. But a series of federal and provincial government policies that are deliberately squelching growth in certain sectors, such as metallurgical coal and lumber – B.C.’s two most valuable exports – will mean lost opportunities for Canadian companies, analysts say. …Lumber prices dropped to US$360 per thousand board feet in December. The break-even price for most sawmills in B.C. is US$450 to US$500, said Russ Taylor. …“There are going to be a few more [permanent] curtailments because of all this endless government policy. Primarily it’s the old-growth deferrals, all the caribou habitat protection that they have to still implement, they have all these tenure transfers … and then they’re introducing core landscape planning. Now there’s a commitment to preserve 30 per cent of B.C. forests by 2030.”

Joel McKay

PRINCE GEORGE – Operations at the Canfor’s PG Pulp Mill coming to a close at the end of March could hit the economy in a big way say commerce and industry experts. …Todd Corrigall, CEO at the Prince George Chamber of Commerce said when the pulp line does shut the impacts will stretch well beyond those affected and into small and medium size businesses in the city. …Natural resource expert Joel McKay said he believes Northern BC as a whole needs to come together to find a solution in the transition away from forestry. See video here

“The city is not going to take this lying down,” Prince George Mayor Simon Yu said in reaction to Canfor’s plans to permanently close the pulp division of Prince George Pulp and Paper. “I will be talking to potential investors to see if there are economic opportunities we can seize upon immediately,” he said. “If we do not have a program for these 300 families they will move out of town and this will be devastating to the local economy and beyond.” …Yu said there could be opportunities to work mining or transportation sectors. …Bailey, Ralston and Premier David Eby will be in the city next week for the three-day reources forum. Some senior employees will be offered early retirement packages to help absorb the job losses. But with so many other businesses connected to the pulp mill supply chain there will be an obvious ripple effect.

Collin Phillip and Marlene Higgins

Victoria, BC – PRT Growing Services Ltd., North America’s premier producer of container-grown forest seedlings, announced today two strategic additions to its executive leadership team, with Collin Phillip joining the company as Chief Commercial Officer and Marlene Higgins as Chief People Officer. Both hires bring extensive leadership experience and will help position PRT for its next phase of growth. “At PRT, we believe people make all the difference, so we are pleased to welcome Collin and Marlene to the team,” said Randy Fournier, CEO, PRT. “They each bring diverse experiences to their roles, and have a shared vision of expanding our critical natural resources, which drives PRT’s future success.” Phillip previously held positions at Corteva Agriscience and The Monsanto Company, operating in a variety of sales and supply chain management roles. …Higgins brings a wealth of experience to PRT, most recently serving as Senior Vice President, Human Resources for Structurlam. 

A Labour Relations Board panel member has set aside an arbitrator’s decision that would have entitled workers to “group termination pay” following closure of Canfor’s Mackenzie sawmill. On June 10, 2019, Canfor issued a six-week “curtailment” and one week later, on June 17, 2019, laid off almost all of its 187 unionized employees. Then, on July 18, 2019 – 10 days before the mill was scheduled to re-open – the company announced that the curtailment would be extended indefinitely. The Pulp, Paper and Woodworkers of Canada filed a grievance which contended… an employer must pay out group termination pay whenever it terminates 50 or more employees at a single location within any two-month period. In a decision issued May 10, 2021, arbitrator, Nicholas Glass, agreed with the union. But the panel member, LRB vice chair Stephanie Drake, found in favour of Canfor. …Drake found there were “exceptional and compelling reasons” for granting an extension and hearing the appeal.”

B.C. Premier David Eby says he is deploying a crisis response team to Prince George to support workers losing their jobs at a Canfor pulp mill. …”It’s an incredibly stressful time for them and for the whole community in Prince George,” Eby said, adding that the transition team will help workers losing their jobs with access to benefits the government has established, including training, transition to retirement or other supports. Chuck LeBlanc, a union representative for those employed at the mill, says workers were “all in shock” at the news but said it had long been expected that a pulp mill in the Interior would shut down as raw fibre available to supply it declined. …Joel McKay, CEO of the economic development organization Northern Development Initiative Trust, said he would expect up to 900 additional jobs to be lost as a result of the closure, for a total of 1,200.

Chuck LeBlanc

The president of the local representing unionized workers losing their jobs as the result of Canfor’s decision this week to close its Prince George Pulp division blames the move on “failed forestry policy.” …“Starting with the Liberals when they changed the forests code to recently the old-growth deferrals to recently the caribou habitat stuff… has definitely put pressure on them,” Chuck LeBlanc, Local 9 president of the union said. …“On top of that, we have five million cubic metres of raw log exports shipped overseas. That’s eight to 10 sawmills and it affects the pulp mills after that and it’s happening year after year. We need to change what we’re presently doing, otherwise we’re going to lose a lot more jobs in this area.” …City councillor Brian Skakun…“In my opinion, Canfor has not reinvested like they could have and have invested heavily in U.S. operations.”

Additional coverage in MyPGNow, by Brendan Pawliw: “It’s a dark day for Prince George,”: Union President, city councillor weigh in on Canfor closure

MERRITT, B.C. — In December, Aspen Planers announced a three-week shutdown of its two mills in Merritt, citing a lack of steady log supply. Those three weeks have come and passed with the mills remaining silent. “This is the last actual operating sawmill in this community. We need to protect it,” Merritt Mayor Mike Goetz said. The city of Merritt once had five mills. After the closure of Tolko in 2016, Aspen Planers is the last one standing. …“When we lose a tax base, a lot of our things in the community are threatened. Do we change hours on the pool? Do we change hours at the civic centre? Because … when we lose a corporate taxpayer, it’s hard on the community,” stated Goetz about the importance of Aspen to the community. Aspen Planers is a B.C.-only company, and Goetz believes it’s time for the government to support local.

Mike Bernier

BC Liberal Critic for Forests Mike Bernier on Thursday said that the news about Canfor’s Pulp and Paper Mill shut down is devastating. Bernier said in a statement: “The situation in our forestry-dependent communities is dire, and this second-term NDP government has failed to come to the table with solutions. No solutions for the industry as a whole, and no solutions for workers and their families. [Premier] David Eby has admitted that the industry is facing unprecedented amounts of stress and yet one of his first orders of business was to disband the Cabinet Working Group on Forestry. …This requires a concerted focus and commitment from government with tangible supports made available on the ground immediately for the families impacted and a plan forward for forest sector workers and forestry-dependent communities that addresses a range of NDP policies that have unnecessarily exacerbated strains on the industry.