8 B.C. LUMBER WORKER IWA WAGE ARGUMENT Argument made before the Conciliation Board with regard to cost items by the IWA Negotiating Committee rested on four main points, all amplified in evidence: (a) General wage increase would promote the welfare of British Columbia; ’ (b) Wage increase would be normal procedure in view of the continued high cost of living, increased productivity, and the prevailing wage pattern; (c) living standards have been impaired by improper use of the index; and, (d) increased labor costs will not place any undue burden on the industry under present conditions. An extensive brief support- ing the Union’s argument for a wage increase reviewed all the economic factors involved, with supporting evidence in the form of exhibits, and stated in part: “The continuance of the cost- of-living bonus on an escalator basis will only continue to re- duce the earning power of the lumber workers in the Provinde of B.C. to a point where these workers will be earning consider- ably less than their fellowmen in other industries in the same area. The base rate ‘of the lumber workers has never been brought up to a point where the escalator clause would offset the increased cost-of-living and put these work- ers on the equal basis with those in other industries in the same area. In fact the record will show that the combination of base rate and escalator cost-of-living clause has caused the IWA to fall behind industries which a few years ago were earning less per | hour than the woodworker. (Ex- hibit 20, Page 94) and (Exhibit | 21, Page 95). Backbone of Economy When we stop to consider that this is waterborne lumber trade only and does not include rail export to the United States, which is also a considerable fac- tor; we can well appreciate the fact that the lumber industry on B.C. Coast, this year, is at its highest level in history. Advantage in U.S. The B.C. Coast operator enjoys a $24 advantage per thousand that these workers should re- ceive less than workers in other industries in this area. Only a few years ago the In- ternational Woodworkers of America’s rates were slightly higher than those in other indus- tries. This relationship in regard to the over-all economic condi- tion existing in the Province, from an industrial standpoint, was a proper one. However in recent years, the wage adjustment which the work- ers have received has not kept pace with the adjustments given others in other industries. IWA Behind In fact many of the same employers. who are presently bargaining in our negotiations here have given wage adjust- ments to the pulp section of their industry, which have out- stripped our advances. A portion of one of the set- tlements which helped to a complish this end was the writ- ing into the base rate of the pulp workers the cost-of-living bonus that existed at that time. The mininmum base rate for When you stop to consider that comparable industries in this| the lumber workers represent the area is $1.50 per hour. The IWA backbone of the B.C. economy,! contract at the present time is because they are the greatest | $1.35 per hour. These other in- single working force in the Prov-| dustries which are at the present | ince, it is unreasonable to expect . time on a $1.50 base rate were a PULP WORKERS AHEAD few years ago on a lower base rate than the IWA workers. ‘This just goes to point out that the increases that have been given the IWA workers over the past few years, plus the escala- tor bonus, has not kept pace with the general over-all economy of British Columbia. In our opinion a definite in- equality’ and inequity exists when the pulp workers, who are dependent upon our section of the industry for their live- lihood, are receiving a base rate which is 15 cents higher than ours when only a few years ago they were 2 cents lower. (Exhibit 20, Page 94). Pulp Ahead 12% When one stops to think of the hazardous conditions and the other poor working conditions under which our workers earn their wages, as compared to the pulp and paper section, it is im- possible to reconcile the fact that the base rate of the people in the pulp and paper division ‘where working conditions are steady and excellent should at the same time be about 12% higher than the base rate in our section of the industry. In fact, in the .whole Coast Area of B.C. we cannot find a classification that carries the minimum rate of $1.35 an hour in manufacturing industries. We must remember that the $1.50 minimum that has been in effect in other industries in the area has been undergoing further increases ranging anywhere from 8%4 to 7% cents per hour estab- lishing therefore a new current base rate for the ensuing year of $1.57%4 an hour, (Exhibit 22, Pagé 96.) While the employers have been enjoying the highest volume of sales at the highest prices and with the greatest profits in its history, they have not been pay- ing their workers, over the pa! three years, the amount of money to which they were entitled—nor have they kept pace with what other industries are paying. The questions that arise at this time are (1) what is the market conditions in the lumber industry as of recent date, and (2) can the employers afford to meet the union demands. Market Conditions Let's have a look at the lumber market. (Exhibit 23, Page 97.) Production is up 8 to 10% over the same period a year ago. Ship- ments are up a like percentage. Orders-on-hand are approximate- ly 20% more than they were for the last 6-month period of 1952. (Monthly average.) The operators on the Coast point out that theirs is predomi- nantly an export market, u fact to which we all agree. Up through April of this year the ex- port market was 20% over the same period of 1952—running at an average figure of 115 million board feet per month. The employers have always been publicly lamenting the loss of the U.K. market but when one considers that they were in the midst of record shipments to the U.K. over this same period a year ago this drop-off has been more than absorbed by the U.S. market on the basis of an over-all gain between the U.K. and the U.S. over a year ago of better than 13% percent. U.K. Market The B.C. Coast lumber opera- tor is not as sad about the U.K. board feet over his Pacific North- west Douglas fir competitor. Since the wages being paid in the Douglas Fir region are 23% more than is being paid by the Coast operators and the produc- tivity in both areas is approxi- mately the same, the B.C. Coast labor cost advantage per thous- and board feet is $4.00. According to the U.S, Maritime Commission, B. C.’s shipping ad- vantage over the Douglas fir op- exator per thousand board fect is $6.00 average. “The stumpage for all species in the Douglas fir area is $22.00 and in the B. C. Coast area it is $8.00 which gives the B.C. operator a stumpage advantage per thous- Sterling Area ‘and board feet of $14.00. At this same period a year ago,! These figures totaled together we heard the employers contend- | give the increase of $24.00. (See ing that they were going to prac- | Exhibit 25, Page 99.) tically lose the entire sterling It is obvious to see from this market condition as he pretends, It is much more profitable for him to come into the U.S. mar- ket. Conditions now are similar to what they were in 1950 when the Canadian operator was reluctant to do business with the U.K. un- less they were able to meet the price demanded. We are informed, by our con- nections in England, that the! quotations coming out of British Columbia for lumber has been in- creased of late which is a further indication that the Operators here are not overly interested in the U.K. market today except at top prices. | area market due to the dollar, that the prices which the B.C. situation. Whereas ' Coast operator can quote on the in actual fact the U.S. market affords him definite eaane advantages over the operator. The employers’ prices would have to drop a long way before ‘we would become concerned when he has this wide differential ad- vantage within which to maneu- ver. The lumber Coast operator has been able to derive the high- est price that the market would command over these past few years. Profits Up 100% Five of the major companies with whom we are presently negotiating have increased their net profits from a level of $13 million in 1946 to a total of $26 million in 1952. This rep- resents a 100% increase in a ' six-year period. During this same time the wages that these employers paid to their production work- ers in IWA increased 64% and including the cost - of - living bonus—75%. If the employees of these companies had shared propor- tionately in the profits over the past six years the present rate going into these negotiations this year would be $1.65 in- stead of $1.35. (The IWA base rate in 1946 was 82'4¢.) (SRES SSSR Reese ATTEND YOUR UNION MEETINGS a B.C. COAST LUMBER INDUSTRY Production — Shipments — Stocks Thousand Board Feet Production: 1952 1951 Volume for the year . 2,170,688 2,400,971 Monthly Average .. 180,891 200,066 1953 vs. 1952 1953 1952 January 199,363 183,610 February 204,342 185,304 Shipments: 1952 1951 Volume for the Year . 2,183,610 2,447,372 Monthly Average 181,984 203,948 1953 vs, 1952 1953 1952 January . 184,152 176,830 February 196,150 175,432 Unsold Stocks on Hand: 1952 1951 Monthly Average . 74,910 75,598 1953 vs. 1952 1953 1952 January . 68,750 78,776 February 87,834 72,682 1950 2,511,731 209,311 Percentage Increase or Decrease + 8.5% + 10.3% 1949 3,172,188 181,015 1950 2,491,674 207,639 Percentage Increase or Decrease + 41% + 11.8% 1949 2,179,592 181,635 1950 80,359 Percentage Increase or Decrease — 12.7% + 20.8% 1949 90,345 record shows that they are ship- ping more to these sterling areas than they were for the same per- iod a year ago. In other words the export conditions are such that the B.C. Coast operator can call his shots, ship his material where he likes and at prices that he demands on a take-it-or-leave- it basis with the exception of U.S. where he must be and is competitive. For all the employers crying last year in negotiations and des- pite the 6-week shut-down due to strike and fire conditions they exported approximately 2 million more board feet in 1952 than they did in 1951. (Exhibit 24, Page 98.) Exports Increase ‘At the present rate of export, based.on the first quarter figures of 1958, B.C. will export this year around 1,350,000,000 board feet. This will exceed the 1952 total by 17% and the 10-year average for B.C. by 51%. (Ex- hibit 3, Page 75.) QUALITY ROOM 4, 505 DUNSMUIR ST. Co-operative Life Insurance Co. Serving Co-operative people from the Atlantic to the Pacific a A NUMBER OF AGENCIES ARE STILL OPEN. Enquire B.C, Office: The Standard Are Judged No. 6400 “Super Logger” VANCOUVER, B.C. 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