Forestry Contractors Facing Major Challenges
Tuesday, May 1, 2012 @ 3:59 AM
Prince George, B.C. – The Executive Director of the Central Interior Logging Association says the sawmill disasters at Lakeland Mills in Prince George and Babine Forest Products in Burns Lake are having enormous consequences for the northern forest industry.
MaryAnne Arcand says four Evergreen contractors have been doing the logging for Lakeland “and obviously they won’t be needing to log. All the wood that’s in the Lakeland yard now will go elsewhere, meaning there won’t be logs needed in other locations for a while either because there’s three months worth of logs there.” Arcand says truckers and loggers will likely get absorbed into other mills “but it may be a couple of months later than normal for some of them because there is all of this inventory, and there’s the Babine inventory too.” She says that inventory has been purchased by Dunkley Lumber and is being trucked there. “Of course Lakeland is one of several mills in the Sinclair group so they would likely disperse that (Lakeland inventory) amongst themselves because they share those contractors. But no matter how you shake it those contractors won’t be going back to work anytime soon and given that it’s break-up it’s going to extend break-up for them most likely.”
Arcand says many challenges lay ahead for the contractors. They’re making less money, have to find ways to retain workers and still need to capitalize on their equipment. “They planned their year and their budget to do a certain amount of logging and if they’re not able to do that the repercussions go all the way down the line, from direct employees to indirect services. The way we look at it there is 2 direct jobs in the bush for every one in the mill yard. That’s the loggers and truckers. When you take it to the next step there’s 4 more, everybody from the mechanics and welders, tire guys and fuel guys, accountants, bankers and all those service industries that go with it. The ratio Canfor uses is 6 to 1. So if there’s 250 at the mill there are 1200 more that aren’t part of the union, that have no guarantees, that are all family-owned businesses that have to figure this out for themselves.”
Arcand says there’s another big problem as well. “CILA is contacting its existing contractors to see if anyone is going to need people, and they will because we have a labour shortage which is a good thing at this point in time. But until Lakeland declares what its next steps are, the contractors can’t take on any new contracts because they have obligations. And they’re afraid of losing their people because there is a demand for people and if they’re not working they’re going to go elsewhere. Sinclair Group does have some alternatives like re-opening mills that are shut down and moving the logs there. People don’t understand that they’re not all cutting the same product or producing the same end result, so it may or may not be feasible.”
Arcand says she’s got the same challenges in Burns Lake with the CILA contractors there. “Who’s going where, where’s the wood going and can you truck for these guys or those guys? This has never happened before and everyone is trying to muddle through it.”
Comments
I think a bigger issue facing the CILA is the “race to the bottom” that the contractors have been engaging in for a long time now. Instead of bidding lower and lower all the time perhaps the time is long past when we should all band together and start charging ourselves out at something a little better than minimum wage.
“This has never happened before and everyone is trying to muddle through it.â
Well, mills have closed before. Actually many more than have exploded.
I realize that mill shut downs come with a bit more time to prepare, but many of those suppliers that supposedly give a 6:1 ratio are effected eventually in exactly the same way. It does not matter why the mill is not operating. It is obvious that when it isn’t that all those people have to find another location and/or way to make a living.
I find it strange that even with all those mill shut downs that there is a labour shortage. All those who must have been affected in th past must have been successful at relocating, reapplying their skills to other jobs or “retooling” their skills.
This whole thing reminds me of the idea used to promote the value of safety in industry – “safe operations are economical operations”.
I wonder if anyone at the UNBC or any government organization, such as IPG, has done a study of the forest industry jobs “scene” in the region from Williams Lake north to the Yukon border over the last 10 years.
“Instead of bidding lower and lower all the time perhaps the time is long past when we should all band together and start charging ourselves out at something a little better than minimum wage.”
Sure but if gas and fast food companies did it it would be illegal. Ahh the old double standard! Its okay if I do it, but you better not try that move!
“Instead of bidding lower and lower all the time perhaps the time is long past when we should all band together and start charging ourselves out at something a little better than minimum wage.” faxman
Sounds like a “contractor union”, is that true faxman, you want to start a contractor union?
I wonder if Pat Bell would help the contractors set that kind of union up. Afterall these are not lowly workers, these are businessmen. The free enterprize businessmen in the logging industry just need a little help to get their free enterprize back on track, according to faxman.
Or maybe Pat bell would deem the contractors “essential service” afterall the real free enterprize, the multi-national lumber companies probably wouldn’t want that kind of thought out there.
“Sure but if gas and fast food companies did it it would be illegal. Ahh the old double standard! Its okay if I do it, but you better not try that move!”
You’re not making any sense. If fast food people did it, no one would buy their product and they’d be out of work in a week.
Gas companies are already making lots and lots of money and they are paying their workers quite well.
“Sounds like a “contractor union”, is that true faxman, you want to start a contractor union?”
Unions (or some sort of umbrella organization) have their place. This is one of them.
“The free enterprize businessmen in the logging industry just need a little help to get their free enterprize back on track, according to faxman.”
Comprehension is not your long suit I see. No one said anything about “a little help”. All I said was that the contractors need to stop bidding each other into the ground.
I thought that was free enterprize…or does free enterprize only apply when it is beneficial to business.
Or is “free enterprize” only apply to profits and a kind of Union (or some sort of unbrella organization) apply to the losses.
I say let them fail, if these contractors are bidding too low in order to get work, perhaps there are too many. That would be free enterprize as I am aware of it and the market will determine whether rates go up.
“I say let them fail, if these contractors are bidding too low in order to get work, perhaps there are too many. That would be free enterprize as I am aware of it and the market will determine whether rates go up.”
I don’t think there’s too many of them; they’re just not realizing their market power. Lowest bid is bad for everybody.
Well isn’t that free enterprize as well faxman. Lousy businessmen should fail in the free enterprize system. I think that is the problem with the free emnterprize movement its all about free enterprize profits and socialized losses.
“The problem with the free enterprize movement is it’s all about free enterprize profits and socialized losses.”
BINGO
“I think that is the problem with the free emnterprize movement its all about free enterprize profits and socialized losses. “
Huh? Sorry, but I have no idea what you’re trying to say.
Well there is no point in discussing it then!
“Well there is no point in discussing it then!”
Suit yourself. Maybe next time then.
When you said “we” should all band together…
I made an assumption that that included you faxman as a contractor,
As you have no idea what I am saying, having a contractor fail may be better for the ones smart enough to run in a free enterprize market.
(enterprise)
Do either of you 2 work in the forest industry? I think you would be surprised by the wages and benefit plans that are out there.
i do cougs78
Taxed out “I say let them fail, if these contractors are bidding too low in order to get work, perhaps there are too many. That would be free enterprize as I am aware of it and the market will determine whether rates go up.”
Yet you champion the teachers and their union? There are too many teachers for the positions available right now. So which is it? Too many contractors should fail but too many teachers need a raise?
And you don’t make a decent living!
So do you work for one of these contractors that you want to fail?
Exactly interceptor, you nailed it….all I did was point out the hypocracy of the free enterprise system. I guess the people who beat the drum of bashing teachers and their BCTF should maybe practice what they preach. I have no tolerance for a champion of free enterprise whinning when things don’t go his way wanting a bailout.
No where did I complain about my wages, rate, or bid cougs78, It was faxman who implied in his first post he was a contractor and struggling.
I found it quite ironic that a free enterpriser in faxman all of a sudden wanted a social style ideal to bail him out. In fact in 2005 I was very instrumental in the only work stoppage that has happened in my career in the woods, where I live, of course I was for shutting down.
I could care less if any of these contractors fail cougs78, I am quite talented in what I do, I will survive.
“As you have no idea what I am saying, having a contractor fail may be better for the ones smart enough to run in a free enterprize market.”
That may be true but my suggestion was to band together and stop the race to the bottom. I don’t want anyone to fail, I’d like to see everyone succeed. There is enough work out there now for everyone in this business to profit short term.
Once the beetle wood is gone we’re all pretty much screwed though. I’m not looking forward to that time.
“I found it quite ironic that a free enterpriser in faxman all of a sudden wanted a social style ideal to bail him out. In fact in 2005 I was very instrumental in the only work stoppage that has happened in my career in the woods, where I live, of course I was for shutting down. “
I guess we were typing at the same time because I missed this nonsense. Again, I see your comprehension skills are being overtaxed; no where was I asking for or suggesting a bailout.
Taxed out does not even understand what free enterprise, as opposed to free markets is, so that says a lot about the rest of his argument.
Free Enterprise = An economic system in which private business operates in competition and free of state control.
Free Market = An economic system in which prices are determined by unrestricted competition between privately owned businesses.
So my question is, can there be a free market without free enterprise?
And, of course, the reverse question, can there be free enterprise without a free market?
I think the two are synonymous because one cannot have one without the other. They are both components of an unrestricted economic system.
The taxpayers will bail them all out. We have bottomless pockets!
It’s the Liberal way!
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