B.C. forest workers seek aid

Hard-hit forest workers met with the B.C. government Monday against the backdrop of a crisis in the forest industry.

Members of the United Steelworkers union asked Premier Gordon Campbell and Forests Minister Rich Coleman to help the beleaguered industry.

But Coleman said he won't get directly involved in propping up companies.
By the end of this week, Western Forest Products, the West Coast's largest forestry company, will shut down most its logging operations, laying off more than 800 loggers and contractors. Workers at the company's New Westminster lumber plant  worked their final shifts in February 2007.
By the end of this week, Western Forest Products, the West Coast's largest forestry company, will shut down most its logging operations, laying off more than 800 loggers and contractors. Workers at the company's New Westminster lumber plant  worked their final shifts in February 2007.

"We didn't get any real comfort that there's going to be a dramatic approach that this government and this minister are taking to the industry crisis," union delegation head Scott Lunny said after the hour-long meeting in Victoria.

"It seems the answer from the government is, 'If the companies ask for something, then maybe we'll look at it. But we're not prepared to get involved if the companies are not looking for help'," said Lunny.

The USW presented a 10-point plan for the industry that calls on the government to ban raw-log exports and use tax-breaks to revive value-added re-manufacturing.

"We think government has to seriously look at doing something in the short-term that would alleviate the impact of mill closures," Lunny said.

Forests Minister Rich Coleman said he's not going to decide who wins and who loses.

"If you go in and bail out a company, you change the market for another company," said Coleman.

"The trickle-down effect is that everybody says they want to be subsidized," he added. "If you had the full capacity of every mill in B.C. operating today there's nowhere to sell the wood."

The U.S. housing crisis and the high Canadian dollar have sparked a crisis in the forest industry.

The latest figures show lumber production at B.C. sawmills has fallen 20.5 per cent in February from the same month last year..

Since 2001, 46 sawmills have closed in B.C., with the loss of 20,000 jobs -- 10,000 within the past year alone.

By the end of this week, Western Forest Products, the West Coast's largest forestry company, will shut down most its logging operations, laying off more than 800 loggers and contractors.

Coleman said he's close to launching a $129-million community development trust for forest workers and their families.

"We are very concerned," he said. "We are going to work any way we can to take care of people in B.C."

Coast Forest Products Association CEO Rick Jeffery said recent B.C. legislation has not been helpful.

Recent laws, Jeffery said, give the province power to expropriate rights to title for property without compensation.

"Government's role right now should be ensuring they do not do things that add to our costs and reduce business certainty," he said.

Jeffery doesn't see the industry turning around until 2010.

"What we are doing is shutting the dogs down," he said. "The good ones are the ones that are being kept running."

Dave Lewis, executive director of the Truck Loggers Association, said government should not interfere but that it has a long-term role.

"The role of government is to create an environment that's conducive to business and investment," he said.

"It's up to us to manage within market cycles.

"Right now, we're seeing one of the worst market cycles or downturns we've ever had."