Softwood lumber is pictured at Tolko Industries in Heffley Creek, B.C., on April, 1, 2018. The crisis facing British Columbia’s forest industry is intensifying as markets decline, mills shut and a strike involving 3,000 forestry workers enters its seventh month. The multiple threats are deeper than the global meltdown of 2008 and may rival the damage wrought by B.C.’s 1980s recession, setting off massive industry restructuring, says an insider who is hearing from many people on the brink of financial collapse. THE CANADIAN PRESS/Jonathan Hayward

B.C. forest industry grasps for hope amid seven-month strike, shutdowns, changes

Some experts say this could be worse for forestry than the 2008 financial crisis

The crisis facing British Columbia’s forest industry is intensifying as markets decline, mills shut and a strike involving 3,000 forestry workers enters its seventh month.

The multiple threats are deeper than the global meltdown of 2008 and may rival the damage wrought by B.C.’s 1980s recession, setting off massive industry restructuring, says an insider who is hearing from many people on the brink of financial collapse.

“There’s a whole bunch of things swirling around that’s causing a whole world of hurt for people working in this industry,” said David Elstone, executive director for the B.C. Truck Loggers Association.

“Many people are saying this is worse than 2008. Back in 2008, the industry was in rough shape but so was the rest of the world in tough shape with the global financial crisis.”

Other factors hitting B.C.’s forest industry now include low timber prices, less demand from Asian markets, U.S. tariffs, high cost structures, government fees or stumpage rates, timber supply shortages, mill closures in B.C.’s Interior and the strike on Vancouver Island, he said.

“Time will hopefully end the strike,” said Elstone. “Time will hopefully help us recover markets.”

Late last year, Finance Ministry budget numbers revealed forest revenues were down 11 per cent and projected harvest volumes of 46 million cubic metres were the lowest in years.

Among the mill closures was Mosaic Forest Management on Vancouver Island, which announced an early winter shutdown of timber harvesting operations, putting 2,000 people out of work indefinitely.

About 175 workers at a mill owned by Tolko Industries in Kelowna lost their jobs with the operation’s permanent closure on Jan. 8. Last year Canfor’s permanent closure of its mill in Vavenby, north of Kamloops, resulted in the loss of 172 jobs in the community of about 700 people.

Elstone said he heard from many forest industry contractors at the recent Truck Loggers Association annual convention who are struggling to make ends meet, especially from those on Vancouver Island where the strike has hit hard.

“It goes well beyond the 3,000 workers being affected,” he said. “My membership, the contractors, employ the majority of the workers. It goes to the tire shops, the dealerships, the grocery stores.”

Premier John Horgan spoke at the convention Thursday, saying the government will make $5 million available for loans to help contractors in danger of losing their equipment due to the strike.

He said he was aware many of the contractors have not been able to work since last July when the strike between Western Forest Products and members of the Steelworkers union started.

Horgan mentioned the challenges facing B.C.’s forest industry, including U.S. duties on B.C. softwood exports, mill closures in the Interior, two consecutive wildfire seasons and ongoing structural changes in the industry. But he said the strike remains deeply concerning.

“The elephant in the room is abundantly clear to everyone here,” said Horgan. “A labour disruption of seven months is unprecedented in B.C. history. If you haven’t made a dollar since July, there’s not much I can say to you that’s going to give you comfort other than we are indeed in this together.”

Horgan said he has contacted both the company and the union and firmly suggested they negotiate a settlement. He said he expected some movement next week but did not elaborate.

The company said in a statement Friday it is waiting for contact from the mediators in the dispute.

“Western is doing everything we can to reach a mutually beneficial settlement with the USW,” said the statement. “We continue to take our lead from mediators, Vince Ready and Amanda Rogers, and we are awaiting word on next steps.”

Elstone said the Truck Loggers Association appreciated Horgan’s appearance at the convention.

“By being there he did demonstrate he is concerned himself,” said Elstone. “He did say what’s been going on with the length of the strike is unacceptable. I will give the premier credit for showing some strong emotion and trying to reach out and show some empathy for people who are suffering right now with their livelihoods in question with the strike and the forest industry crisis in general.”

Opposition Liberals forestry critic John Rustad also attended the convention and said the premier’s speech did not provide much relief to contractors facing financial hard times.

“They’re frustrated. They’re angry,” he said. “They want to be working and they aren’t working. They’re financially stressed. It was probably the most sombre truck loggers convention I’ve attended in all the years I’ve been going to them.”

READ MORE: B.C. offers $5 million equipment loan program to help ailing forest contractors

READ MORE: Fewer trees, higher costs blamed for devastating downturn in B.C. forestry

Dirk Meissner, The Canadian Press


Like us on Facebook and follow us on Twitter.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

North Island College receives $125,000 donation from accounting firm

The donation from Chan Nowosad Boates will be used to purchase technology as well to award bursaries for students

Mobile Health Unit takes to Campbell River streets

KDC Health-operated health bus offers holistic approach to health

Vancouver Island business ad unintentionally features OK gesture linked to white supremacy

Innocuous ‘OK’ gesture in cleaning franchise advertisement gets flak on social media for ‘supposedly’ promoting white supremacy

RCMP disarm man experiencing mental health crisis

The male pulled a knife on officers and then held it to his own throat expressing a desire to die

Mowi’s B.C. salmon farms achieve environmental certification from independent watchdog

Aquaculture Steward Council certification complies with 500 sustainability and social measures

B.C. sees 25 new COVID-19 cases, community exposure tracked

One death, outbreaks remain in two long-term care facilities

VIDEO: Vancouver Island cat missing 18 months reunited with family

Blue the cat found at Victoria museum 17 kilometres from home

Mirror business directory and map

If you’d like to be added to the list, shoot us an email

VIDEO: Alberta man rescues baby eagle believed to be drowning in East Kootenay lake

Brett Bacon was boating on a lake in Windermere when he spotted the baby eagle struggling in the water

Minivan driver’s speed a factor in fatal 2018 Malahat crash

Driver was travelling at 110 km/h in a construction zone

Comox Valley RCMP looking for missing woman

Ami Guthrie was last seen in Courtenay in early July

Conservationists raise concerns over state of care for grizzly cubs transferred to B.C. zoo

‘Let them be assessed now before their fate is sealed,’ urges B.C. conservationist Barb Murray

B.C.’s COVID-19 job recovery led by tourism, finance minister says

Okanagan a bright spot for in-province visitor economy

National Kitten Day aka the ‘purrfect’ day to foster a new friend

July 10 marks National Kitten Day, a special day to celebrate all things kittens

Most Read