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THE WESTERN CANADIAN LUMBER WORKER

11

CONTINUED FROM PAGE 12

- IWA PROPOSED SCOPE OF ENQUIRY

4 Living Costs
1. Impact of rising consumer prices upon wages.
4 Improvements in Productivity

2. Productivity per man-hour — fewer workers
produce more goods resulting in lower unit
labour costs per 1,000 b.f. of lumber or 1,000
sq. ft. of plywood. The study should also

‘ analyze all elements of production costs such

} as advertising, sales, political donations, F.LR.,

B.C. Council of Forest Industries and other
association fees,

Income Tax Advantages Utilized to Minimize

‘ Profit Picture

3. Lucrative salaries, bonuses, stock options and
expense accounts of top management, sales,
and similar personnel. ;

4. Understating current profits by writing off new
pulp mill costs in order to pick up cutting
rights and capture future markets.

». Minimizing taxable profits by charging acceler-
ated rates of depreciation on new equipment
against revenues.

~ 6. The extent to which net worth is overstated by
the current value of free land grants, thus

is understating the percentage of profits to net
worth.

Competitive Advantages Compared to
3 U.S. North West

7. The extent to which the Jones Act benefits B.C.

“ Coast waterborne shippers in their competition
with U.S. operators.
‘ 8. The extent to which B.C. coastal operators

enjoy a competitive advantage over the U.S.
North West in stumpage prices.

9. The extent to which B.C. coast operators enjoy

similar competitive advantages on wages and

FIR'S LIMITATION .
ON ENQUIRY

These terms of reference were:

© The growth in real income, ie., the ratio
between wage increases and cost of living
increases.

e Productivity study in terms of labor costs.

© History of price fluctuations.

e Comparison of employee earnings (in Ca-
nadian dollars) with other areas of Canada
and the United States.

e The relationship of capital invested to
labor hours.

e Profit as a percentage of capital employed.

© Profit as a percentage of sales.

© An analysis of the competitive balance be-
tween the B.C. Coast. and other areas such
as the northwest United States with refer-
ence to factors such as terrain, species mix,
taxation, equipment cost, road building
cost, depletion allowance, etc.

These terms are broad enough to cover all

information which might be necessary to the

inquiry.

fringe benefits (recognizing that the Canadian
dollar is worth less than the U.S. dollar).

Industry’s Condition (past performance)

10.
11.

12.
13.

14,

Profits per share for each company.

Profits as a percentage of net worth for each
company.

Profits for each company by type of operation
(plywood, sawmill, pulp, etc.).
A detailed report on value added (the worker’s
contribution to the value of the product) -in
order to determine the potential for wage im-
provements.

Examination of the companies’ source and
application of funds in order to determine ex-
penditures on new and used equipment.

Industry’s Condition (future outlook)

15.

16.

17.

18.

The effect of mechanization upon profits
through the replacing of hourly paid workers
by salaried employees who are not directly
affected by negotiated settlements.

The probable impact upon housing starts and
further improvements in market prices caused
by the population explosion, new family for-
mations, slum clearance, low vacancy rates
and the growing potential from the emerging
nations.

Further. improvements in the industry’s out-
look due to the development of new uses for
wood and its by-products.

Improved utilization of the log through sal-
vage and elimination of wastage.

SIMPSON'S RESIGNATION DEMANDED

Striking International
Woodworkers of America
members have called for the
resignation of Horace Simp-
son from the Southern Inter-
jor operators’ negotiating
committee.

The members termed the
latest wage offer “totally un-
acceptable” at a mass meet-
ing held in the Kelowna Le-
gion auditorium on Sunday,
March 3rd.

The meeting was attended
by strikers from S. M. Simp-

son Co., S and K Plywoods
Ltd. and Trautman and Gar-
raway Ltd. mill in Peachland.

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127 E 2nd Ave., Vancouver, B.C.

William Schumaker, presi-
dent of the Kelowna IWA lo-
cal, compared the industry’s
latest offer of 62c over the
next three years with the
Munroe RE oie the report re-
jected by a majority of 90

per cent of IWA members:

before the strike.

Tony Vanderheide, IWA re-
gional representative branded
company supervisory person-
nel as “scabs” wherever they
are producing and/or ship-
ping lumber behind legal IWA
picket lines. He compared the
intent of the proposed Social

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IWA members passed a mo-
tion of confidence in their ne-
gotiating committee, and sent
the following petition to Mr.
Simpson:

“We, the undersigned em-
ployees deplore and severely
criticize your participation in
these crucial Southern Inter-

have betrayed the very peo-
ple who have for many years
worked faithfully for the
Simpson company.

“We strongly protest your
radio broadcasts, wherein you
made misleading statements
on your proposed settlement
and we further request that
you resign from the negotiat-

War.

ior negotiations. We feel you ing committee.”

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A series from the Masters
dedicated in Canada’s Cen-
tennial Yeur to the men priv-
ileged to wear footwear cre-
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living leather for over half
of Canada’s Centennial.

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Vancouver 3) B.C.
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