Chetwynd Mill Re-Start Approved

Wednesday, December 16, 2009 03:59 AM

Chetwynd, B.C.- The Board of Directors of Canfor has reviewed the business plan for the Chetwynd sawmill re-start and has approved the re-start.

Under the plan, Canfor will pump $15 million dollars into the mill for retooling. The plan calls for one shift of about 65 workers to return to work, likely in late May.

In order for the mill to re-open the union membership agreed to accept a 20% cut in wages.

The mill’s operation became viable because of a combination of favourable financial factors including the wage roll back, reduced fibre costs and increased tax relief.

The Chetwynd mill has been idle since April of 2008.

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Posted on Wednesday, December 16, 2009 03:59 AM in News by 250 News

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Comments

Posted by: mythoughts on December 16 2009 6:39 AM

This is great news! I wonder how many other sawmills will open in 2010. What about Winton Global? Does anyone know if there are plans for it to reopen?

Posted by: He spoke on December 16 2009 8:07 AM

I thought the City of Prince George wants Lakeland and Winton Global out of that part of town. I thought about 10 years ago, that was in the master plan.

Posted by: jonnypg on December 16 2009 9:35 AM

A 20% cut in wages...geez.
Was that the plan from the begining!
Target the workers hey.

Posted by: Junco on December 16 2009 10:00 AM

Re-open one, close another that won't take concessions. That's the rumor that I heard.
Hope it's not true.

Posted by: mythoughts on December 16 2009 10:09 AM

What about severance? I also heard that the guys at the closed mils are not going to get it. There is nothing in the contract to cover severance for 'indefinite closures'.

Posted by: He spoke on December 16 2009 10:17 AM

I think Frank needs a 20% cut. As I mentioned before, The cost of the labor is barely $30/mbf. Meaning that saving 20% on wages, is $6/mbf, or a bit over 3.22 cents per stud.

I think the deal involves something else, I am sure the union leaders can not be that gullable to give up 5 years of wage increases that quickly.

Posted by: swingline on December 16 2009 10:56 AM

Previous reports have mentioned a profit-sharing agreement, so if (and hopefully when!) the mill makes money, a portion is given back to employees. Another thing to be cynical about though, until all the details are out.

Posted by: He spoke on December 16 2009 11:20 AM

Hmmm, Profit sharing..... Seems like nice words. In reality, basis for future disputes.

Posted by: swingline on December 17 2009 6:35 AM

For sure!