Clear Full Forecast

Re-Opening Winton Global Depends On U.S. Market

By 250 News

Tuesday, November 02, 2010 03:55 AM

The Winton Global office on  River Road  has been closed since shortly after the  ice jam floods of '07/'08
 
 
Prince George, B.C. - The President of the Sinclar Group, Greg Stewart, says the decision as to when Winton Global lumber might re- open remains with the U.S. market.
 
Stewart says, "The USA is our biggest market and with the US in the housing slump that exists today, the demand for BC lumber is away off."
 
Stewart  doubts the former  growth  will return “I don’t see us ever getting back to the 2.3 Million housing starts that took place in the better years “Stewart said, "but it will have to improve from the 600,000 we have been doing in the past year."
 
Stewart added that he is happy with the work that Forest Minister Pat Bell has done in selling lumber in the Chinese market, "But it does not compare to what we lost in the US down turn."

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The Federal Gov't will never allow Winton Global to run their thermal oil plant
where it now stands. I highly doubt Sinclar
is willing to ante up the 14 million it would cost to build a new plant. Add that
to the cost of restarting their planer mill, dry kilns & sawmill the figure would be up around 30 million. Highly doubtful that Winton Global will ever reopen.
Why doesn't Stewart & Co. acknowledge that
& pay the long suffering former employees what they are owed & deserve instead of jerking them around with termination notices & BS rehire letters. Great corporate citizens that Sinclar are. Maybe they have an award for that as well.
well said detoe43...my husband is one of those Winton Global employees owed his severence. thank you!
Thankyou detoe43, we are also former emploees of Winton Global and we got both letters the first saying my husband was terminated and a while later another letter saying he was reistated, it is a run
around for sure.
That way they don't need to pay what they owe. Another Gordon Campbell handout to the corporations.

Had enough yet people?
Legally it may be owed but it always amazed me that, after employing people for many years, the employer has to buy their way out. The funniest part is that this is true even (especially?) if the employee was useless. The BC Labor code needs to be gutted to give us all the chance to be competitive instead of blead to death by productivity destroying big labor.
Why would it amaze you? Both parties signed an agreement. That means both parties agree.

"The BC Labor code needs to be gutted to give us all the chance to be competitive instead of blead to death by productivity destroying big labor"

So what you're saying is, we need to go back to the days when big business can do whatever they want to their employees such as firing without cause, paying the liberal minimum wage, no benefits etc.
I don't think you'd be winning any votes on that Liberal gov't platform.
They use the Forest to generate the profit the forest belong to the people. Working for someone for 30 years and having them close an operation its not to much to ask. Look at the payout given to crown corp CEOs and bureaucrats give me a break.
Non-union employees at the sawmills were given huge severance packages, some as much as 2 years salary. The hourly workers deserve the same, especially since they have a signed, legal contract that says they are entitled to it.

Canfor just announced they made $33 million for the 3rd quarter & over $100 million so far this year. Other mills have announced similar profits. I think they can afford to pay.
People that worked for this company deserve to receive their severance pay. Why has it been neglected for this company when every other company has to pay. It is in the union agreement, but they have been stalling and stalling, probably waiting for the oldtimers to die, so they won't have to pay them the biggest payouts. It's a shame that loyality doesn't count anymore with a company.

SHAME ON YOU "WINTON GLOBAL"
Greg Stewart added that he is happy with the work that Forest Minister Pat Bell has done in selling lumber in the Chinese market.Pat bell added that Frank Everitt was doing a job with the opening of a Prince George mill this fall that he wouldn't name. One would have to wonder if every one is doing such a good job why is the mill still down.Do the right thing Greg Stewart offer the employee's of Winton Global the severance pay that they are entitled too.Would you really want employee's that have been screwed over by you to come back and work for you.I am sure they will all be productive employee's.Everyone knows it will never open again so let people get on with life's and pay them what they deserve.
Winton Global is an anomoly. They truck their rough lumber from the sawmill in Bear Lake to the Planer in Prince George. Years ago they used to rail it in, then they changed to truck. This has to help make it a high cost mill.

Clear Lake planed their lumber and then trucked it to Prince George to load on Flat Cars to the USA. This was also a high cost mill. Clear Lakes biggest customers were Japan and the USA. They didnt sell any crap lumber to China.

High cost mills are the first ones on the chopping block.

The US Market is not going to ever get back to what it was 2.3 Million housing starts, because those starts were predicated by the phony mortgage scam in the US. The housing starts will probably go to 1.5 million in the next 3,4 years which is the **norm**.

For those people who think that the Chinese Market will be our saviour, dont hold your breath. The lumber being sold to China is Utility lumber (Junk) and you can bet your bottom dollar there is not much money being made on this product, however, because China buys junk lumber Canfor was able to start up their mill in Quesnel to utilize the beetle kill trees in that area, and supply the junk market.

Have you noticed that they never mention how much they get paid for the lumber they are shipping to China. The US Price is posted daily on this site and many others, to-day it was $266.00 per 1000 FBM US. The $266.00 price is subject to a 15% tax at the border because of the Softwood Lumber Agreement so in effect the price of lumber to the US for BC mills would be around $227.00 per 1000 FBM.

I suggest to you that the lumber being sold into China would be somewhat less than $227.00, so the question is how can they sell this lumber at such a low price and still make money????

Is it possible that they are getting a better stumpage rate from the Government on Lumber sold to China???? BC Mills cannot get a better stumpage rate on lumber sold to the US because it would contravene the Softwood Lumber Agreement. In addition the Quesnel mill can sell its woodchips, and hog fuel to the pulp mills, and sawdust to the pellet plants , and that would help to offset their costs.

Once the US/Japanese market rises the Chinese market will disapear.
Not shame on Winton Global, shame on
Sinclar Enterprises. They are the parent company of Lakeland, Winton Global, L & M
Lumber, Apollo Lumber, Winton Global Homes
& some smaller businesses. Yes the same
Sinclar that is supplying UNBC with fuel
for their Bioenergy Plant. The same Sinclar
that buttoned up a deal with the City of PG
to supply fuel for a thermal energy heating system. The parent company that is busy congratulating itself for energy
savings & patting itself on the back while using the other hand to stab all the former
WG employees in the back.
Sinclar Enterprises come clean, give the women & men, your former employees who deserve some closure & restitution for the years of work they gave you. As Red1 stated it's the right thing to do.
Just to add to that detoe43, Canfor is a one third partner in Sinclair Enterprises and I suspect they are part of the reason WG is not opening because it's competition with their mills.
If Winton Global is waiting for the U.S. market to rebound they are in for a long wait. Greg Stewart, that might give you time to look for a new CEO, new Mill Manager's,Supervisor's and office staff due to the fact that you have severanced them all off. One would have to think that they were better off being non union, at least they got paid what they were intitled to. I was a strong believer that Steelworkers Local 1-424 was a strong union... boy was I wrong! Two and a half years later all that the union has done for the employee's of Winton Global was come up with a deal to keep their seniority retention(WOW). Unfortunately Frank Everitt, seniority retention just won't pay the bills, however, severance will. When the employees start pulling their commuted value from their pensions come January 1,2011 that will be a sign that they have moved on.
Hey Red1 give Frank a break, he's busy in China doing.....well, I really have no clue why a Union rep is on a trade mission to begin with. Really, what can he hope to sell them? How to sell out to big business?
Oh I know..."Caving in, it's the Steelworkers way." or maybe "How can we help you to call the shots"
Yeah, I'm quite disgusted by the lack of action by a union that once prided itself on its ability to stand up to large corporations. You hit the nail on the head though, once all these "temporary layoffs"
start asking for their money from the pension I bet they sit up & take notice.