and the layoffs continue. The scary part is that we have not seen the last of these . That is a long time to shut down lets hope that it is not permnate

This debate is intersting.

Canfor's Plateau Sawmill is rated at the top and as a result we are not going down. Reward the top and drop the bottom.

We believe that Plateau's sucess is in threes. A massive 150 million dollar upgrade making Plateau the largest and most cost effective stud mill in North America. An abundent supply of inexpensive beetle kill logs. An incredable work force. But then all mills have an incredable work force.

My employment at Plateau is pure chance, I live in Vanderhoof. I like to think I make a difference, but then most people beleive they do.

Lumber markets are terrible. US housing sales have fallen from 2,000,000 to 313,000. That is over 80%. By the end of 2008 Candain and US production had fallen by around 50%. Industry, government and retail construction was strong. These areas are now falling.

The debate at Plateau revolves around several themes.

Should the pain be shared? Is it right for Plateau to run because we are the most cost effect. We are making a profit at even these low low prices. Not a small part is due to Canfor's relationship with Home Depot. A relationship that was attacked as poor management not many years back. Management decisions do matter!

Should you cut back to four days per week rather than take a week off here and there?

What effect is the Conifex Fort St James
$2.50/hour pay cut going to have on the industry as a whole? And why on earth is Conifex trying to start up now?

Are the Conifex pay cuts going to spread? Is it staying working the only issue? What are we going to do when Canfor comes calling saying our labour costs are too high? How much will you give up to stay employeed?

Is Canada headed for third world employment wage and working conditions?
Are the golden years from 1960 to the present over? Will workers fall back to the workingman status and life styles of the early 1900's?

There are a lot of very large issues out there.

Is anyone worth $5,000,000 a year?
How much return on investment is reasonable?
What is investment anyway? If you borrow the money to referbish the mill, can the shareholders then turn around and say where is our return on investment?
Do the current shareholders actually have an investment in the Company or is their investment in the some out of reality stock market?

Time to stop! I could go on and on.

Still working in Vanderhoof and hoping to get out in less than a year at sixty, but that is dimming?

May you live in interesting times.

Frank

An intelligent post, thanks Frank.
Everyone buckle in, it's getting bumpy.

Plateau is not making money and you should know this, especially if you’re a Canfor employee. The $150,000,000 upgrade has probably helped Plateau by lowering their fixed costs, but unfortunately no mill can make money when lumber prices are this low.

Another thing that probably helps Plateau is a postive attitude and work ethic, which it seems like you have. You say "I like to think I make a difference, but then most people beleive they do." This is great because people at other mills try and make as little difference at their job as possible.

Another one bites the dust in Chetwynd...

I guess it depends on how you define making money.

Plateau's operational costs are less than the current price of lumber. The taxable write offs and corporate head office charges are another matter.

Our actual cost is considered a trade secret but trust me Plateau can operate at the current market prices, pay our bank loan and send money to head office.

Frank

I guess it depends on how you define making money.

Plateau's operational costs are less than the current price of lumber. The taxable write offs and corporate head office charges are another matter.

Our actual cost is considered a trade secret but trust me Plateau can operate at the current market prices, pay our bank loan and send money to head office.

Frank

I was in the US last week the pain across the line is the same- mill after mill closing and at least two majors in deep trouble- tough times ahead- hope the markets recover by late 2010 but the recovery will be painfull and very slow.

Great post Frank!

I just read elsewhere that Tolko is closing 7 mills, 4 of them (Quesnel and 3 in Williams Lake) indefinitely.

OUCH! GULP. Not good.

the truth at Plateau is that because of all the upgrade costs - it costs more to shutdown than run at this time. So they are only running because because they loose slightly less by running but they are loosing money as well. There is no company making anything right now.

Plus it wouldn't give shareholders much confidence if they shut down a mill where they spent so much in upgrades.

yo frank what ya gonna do at 59 when plateau shuts down brag about the years of when the forrest was green seems to me you guys will run out of merchanable timber before the economy turns around just a little gab for you and your co workers to mull over a lunch

I understand the $2.50 hourly wage reduction for Conifex employees is a wage bank. This reduction once lumber pricing hits a certain price on the market will then be removed and retro active. This is how I understand it.
Conifex also wants to start up to take advantage of a government program that pays $10,000 to the company for every new job they created, and the company must make products that are for export.
Even though the mill and the employees are not new the company is so they qualify as creating new jobs.
Conifex is looking at putting in one shift to start which is estimated to employee up to 130 people in this start up so they will receive $1.5 million.
Talk is they have a market for certain products and are hoping to cut mostly to meet this demand.
Hope they can make a go of it, sure would help everyone out in Fort St James

I understand the $2.50 hourly wage reduction for Conifex employees is a wage bank. This reduction once lumber pricing hits a certain price on the market will then be removed and retro active. This is how I understand it.
Conifex also wants to start up to take advantage of a government program that pays $10,000 to the company for every new job they created, and the company must make products that are for export.
Even though the mill and the employees are not new the company is so they qualify as creating new jobs.
Conifex is looking at putting in one shift to start which is estimated to employee up to 130 people, so they should receive $1.3 million.
Talk is they have a market for certain products and are hoping to cut mostly to meet this demand.
Hope they can make a go of it, sure would help everyone out in Fort St James