Canfor Preps For More Cuts

Tuesday, April 08, 2008 04:00 AM

Prince George, B.C. - There are more curtailments and shift reductions planned at Canfor’s operations.

With no sign of the U.S. housing market improving in the near future, Canfor is planning to take some downtime this summer to take product off the market, and to reduce shifts at some of its plants.

In Prince George, the P.G. sawmill will see one shift dropped, reducing operations to just two shifts. There will be a shift cut at the Clear Lake Finger joint plant as well, leaving that plant operating with just one shift.

There’s more.

The workweek will be reduced at the Rustad , Mackenzie, Fort. St John, Quesnel, Houston, Clear Lake, Grande Prairie and Radium operations.

Polar and Plateau will take a week shutdown in May and a further two weeks in the summer when all Canfor operations will take a two week curtailment.

The company says the changes are not supposed to be permanent but are dependant on market demand. When the shifts and production will return to normal depends entirely on the market conditions.

This news is the latest in efforts by Canfor to survive the crash in the forestry sector.

The company recently asked all contractors to trim their prices, and across the board wage cuts have been implemented at the Houston operations.

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Posted on Tuesday, April 08, 2008 04:00 AM in News by 250 News

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Comments

Posted by: Eagleone on April 8 2008 4:47 AM

These moves increase the unit cost, so that means they will either be looking to reduce their costs through ways other than volume strategy, or hoping that with less inventory prices will go up?

The limbo will be when an employee is considered terminated for severance pay. Two years is completely unrealistic... maybe a month or two at most I would think. This could be the difference between a small boom or a devastating bust for this region.

I think some mills will close down at some point and then use the with holding of severance as blackmail for future considerations as well as a way to get employees to return to work for 25% pay cut kind of thing. If the employee gets their severance by law after four weeks, then I think you could have a high turn over in the industry, and thus a small economic up-turn for the region. Otherwise people will be on pins and needles for up to two years while mills negotiate the economics of returning to work and the economy will stagnate.

IMHO

Posted by: Wileycoyote on April 8 2008 6:55 AM

Hey during these work stoppages maybe they will be like when the pulp mills have shutdowns and there are 100's of people each day employed doing maintenance and repairs. That would help keeping some aspects of the economy rolling along.

Posted by: metalman on April 8 2008 7:13 AM

Wiley do you think the union would stand for that?
metalman.

Posted by: jay on April 8 2008 7:50 AM

I sense an ongoing negative attitude toward the industry. It's true there's always a corporate strategy as there is Union startegy. It's important to keep in mind that when it comes to the crunch, we all look to the best advantage to lessen the blow. Although industry and employees need each other on one hand, each thinks of themselves first on the other. I have been on both sides of the fence and appreciate the resective positions. It's life in the jungle.

Posted by: gitterdun on April 8 2008 8:40 AM

So how many jobs are lost by these latest cuts? Millworkers? Loggers? Truck drivers? All the related jobs?

Posted by: gitterdun on April 8 2008 8:42 AM

Has anyone heard if the siviculture companies have agreed to take the 10% cut Canfor imposed? (not that there was a choice)

Posted by: ShannanigansB on April 8 2008 9:36 AM

hmmmm...I'm not surprised. Its a tough go for a lot of people, but you just can't count on anything forestry these days it seems.

Posted by: justamom on April 8 2008 9:52 AM

Something I have read a few times now. Is Canfor cutting these rates for the entire company or is Houston the only one being affected?. I keep hearing 'across the board' then all I keep reading is Houston.

Posted by: Norm1 on April 8 2008 10:08 AM

I just reread the initial posting that started this topic. I count 12 locations that have been announced as being affected. Houston is listed as one of the twelve. Justamom must be missing some of the article.

Posted by: swingline on April 8 2008 10:16 AM

gitterdun, yes, all contractors are being asked for a 10% reduction, including silviculture companies.

Posted by: He speaks on April 8 2008 10:40 AM

Gee if I was a logging contractor, and had a few good years cutting down the dead forest. I would get rid of the old equipment at the auction, Go debt free, hang onto three/ four pieces of iron and wait it out. No use banging your head up against the wall, let the contractors who really need the work do it for nothing.

Logging contractor/owners. Your not a employment service. It is OK to lay them off. You have to look after yourself first. The working man will find work else where. Give them a bit of a severence, have a big party and call it a day.

Hop over the mountain and do work in Alberta.

Posted by: doneright on April 8 2008 10:49 AM

Did you know that Jim Patison owns 2 major sawmills in the states, and when he ships to these mills he doesn�t have to pay a cent in duty or tarifs.Did you know that 3 years ago he met with Bush senior on his boat. Did you know the bushes are one of largest holders of timber in the states? These back room deals have to stop.
But know one will remember this come election time.

Posted by: justamom on April 8 2008 10:52 AM

(Norm1)I meant the 10% cut, not the curtailments. Hehe..but thanks for taking the time to count them for me!..

I probably shouldnt have posted after seeing the pic of the guy that murdered his kids. It was very disturbing..

Posted by: golden bear on April 8 2008 11:11 AM

Doneright: Does Jim P ship rawlogs to his sawmills in the states or actual 2x4's?

and did you know Jimmy Carter (another US ex-president) owns large tracks of forested land in the US. Basically with past, current, and future presidents Canada will always get screwed!

Posted by: swingline on April 8 2008 11:19 AM

justamom - the cuts are across all Canfor operations

Posted by: justamom on April 8 2008 12:46 PM

Posted by: dazed_but_not_confused on April 8 2008 1:14 PM

The 7% - 10% cuts were for salaried employees across Canfor. I am not sure of Houston's hourly people, but I know other hourly employees in Canfor have not taken a pay cut....yet.

Posted by: metalman on April 8 2008 2:28 PM

We do not want them (Canfor) to quit altogether do we? I am no fan of large corporations, but Canfor pays a lot of bills around Prince George and area.
metalman.

Posted by: swingline on April 8 2008 2:30 PM

Well the pay cut is effective this pay period for salaried employees, so starting this Friday, pay cheques will be a little less :( And it's 3%-15%, depending on pay group.

Posted by: realitysetsin on April 8 2008 8:04 PM

I used to work for a logging contractor that did work for Canfor and several other major companies like West Fraser in the Cariboo region.

Canfor always paid the most. Period. Not sometimes. Not occasionally but always. If they cut the rate by 10% it would have made it about the same the other majors are paying per M3.

Canfor is NOT a low cost producer. Their logging rates are higher, their non-union staff get paid more etc.

Don't get me wrong. We thought it was great working for them. Easy money. But let's keep it in perspective.

Posted by: Captain Slashpile on April 8 2008 11:00 PM

After years of treeplanting rates staying stagnant, the last couple years have seen a rise in tree prices.....please oh please I hope the rug doesnt get pulled out from under us as well. We (like all) work very hard for our bucks and this will just send most planters on to the oilfields or construction. Yikes