IWA Initiative Issues
Japanese Market Report

As a result of a Marketing Develop-
ment Initiative by IWA-CANADA, a
report on a fact finding mission to
Japan has been generated by acontin-
gent of union and industry observers.
The report, released in December,
1988 by Keith Johnson, Special Lab-
our Representative of a Co-operative
Overseas marked Development Pro-
gram, expresses optimism for increas-
ing shipments of British Columbian
manufactured wood products to the
Japanese market.

The mission was made possible by
funding from the Western Economic
Diversification Office in addition to
contributions from Fletcher Challenge
Canada, Canadian Forest Products,
Balfour Forest Products and the [WA
National office along with its Vancou-
ver, Kamloops and Prince George
Locals.

From October 29 to November 11 of
last year, eight delegates fulfilled an
extensive tour of Japanese sawmills,
plywood plants and construction
sites. In addition the Canadians met
with Japanese wood importing asso-
ciations to gain particulars about the
Japanese market.

Among the recommendations pre-
sented by Johnson is that IWA-
CANADA work with industry to
become more involved in quality as-
surance programs. This is seen as a
necessity if we are to penetrate Japan-
ese markets where product quality is
the most important demand.

The delegation also recommends
that the Western Wood Products
Forum sponsor quality control semi-
nars. To ensure this market it is
required that quality consciousness
be extended from mill managers to

supervisors to the shop floor.

The report notes that British
Columbian industry had begun to
successfully promote Platform Frame
Construction (PFC) in the Japanese
housing industry. Since 1975, changes
in Japan’s National Building Code
have allowed the limited acceptance
of North American dimensional lum-

ber. At present at least 50,000 annual
housing starts are of the PFC design.

The current log harvesting activity
in Japan accounts for production of
approximately 30 million cubic meters
of wood annually. Japan has been
steadily increasing log imports over
the past 20 years to about 8.5 million
cubic meters by 1988.

Several Japanese companies are
now responding to international pres-
sure to restrict whole log exports.
Joint manufacturing facilities over-
seas in such nations as Malaysia and
Indonesia have been established as a
result of increased political pressure
from those countries of supply.

British Columbian timber supplies
are facing similar constraints, the
report notes. Growing demands of
domestic secondary wood manufac-
turers, which require existing timber
supplies, should eliminate log exports
from Canada in the future.

In British Columbia at present six
plywood mills have been granted cer-
tification from Japan Agricultural
Standards to stamp plywood to rigid
Japanese specifications. A transition
from 3'x 6’plywood panels to 4’x 8’
sizes is taking place slowly.

It is noted that since 1978, when
IWA representatives visited Japan,
improvements in shipping procedure
have been made. Dunnage blocking
and corner strapping have helped to
minimize damage to B.C. products.

The report recommends that com-
ponents for an entire Japanese house
be assembled, packaged, and contain-
erized in B.C. before shipment to
Japan. This could assure timely deliv-
ery of quality goods to the Japanese
market.

The report mentions that produc-
ers in the U.S. Pacific Northwest have
been promoting their products in a
sophisticated, strategic, and well
funded manner.

Additional funding must be sought
for a greater promotional presence in
Japan for B.C. producers.

spruce logs.

Sawmill Workers in Sanki City handle lumber cut from Soviet white

Anegasaki City, near Tokyo.

Traditional Japanese construction at new housing development in

SPECIAL LABOUR REPRESENTATIVE KEITH JOHNSON

The IWA-CANADA Market Devel-
opment Initiative began in December
of 1987 with the appointment of a
special labour representative, Keith
Johnson into a joint union-industry
Co-operative Overseas Market Devel-
opment Program. The December,

1988 report on Japan will be com-
bined with future reports from Europe
and the U.S. Atlantic Coast to form a
final analysis of the marketing initia-
tive.

Brother Johnson is the former [WA
International President.

Delegates on the Outbound Mission to Japan were, left to right: Phillip
Legg, [WA-CANADA: Keith Johnson, Forest Industrial Relations Ltd.;
Doug Rickbiel, IWA Local 1-424; John Fenton, Fletcher Challenge
Canada; Harry Bains, IWA Local 1-217; Jack Munro, IWA-CANADA:
Keith Johnson, Special Labour Representative (COMDP); and Ted
Delanowski, IWA Local 423.

J

He was recently asked some ques-
tions about trade with Japan.

Q. What do you think would hap-
pen to political relations between Can-
ada and Japan if our country put an
absolute ban on raw log exports to
Japan?

A. It is important to remember
that Canada is not a big part of the
Japanese log market, so a complete
restriction of our log exports would
not have a serious impact on Japan’s
sourcing of logs. However, such a
restriction would send a clear signal
to Japanese customers that Canadais
a dependable source of high quality
manufactured wood products. That’s
the message we are sending right now
through programs like COMDP.

Q. Many union members are sus-
pect of an employees ulterior motive
when quality control seminars are
introduced. Can you further explain
why the mission delegates recom-
mend that IWA-CANADA be involved
in quality assurance programmes?

A. In markets like Japan, finding
new opportunities for wood products
depends an awful lot on quality. If the
IWA is serious about making sure
that our industry pursues opportuni-
ties which provide good stable em-
ployment for our members, then our
union has to become more involved in
the quality question. From my per-
spective, it is just as valid for us to be
concerned about the kinds of wood
products we produce as it is for us to
be concerned about the health and
safety of our workplace. And rather

than be passive in that whole process,
the IWA needs to be actively involved
in those kinds of issues.

Q. Japanese producers are very
protectionist. Can you see these barri-
ers to our products removed in the
near future?

A. The short answer is yes. The
Canadian industry and the federal
government are both pushing for bet-
ter access to the Japanese market.
They are currently pursuing a_re-
assessment of Japan's tariff against
SPF lumber products. And they are
also involved in other areas to negoti-
ate the removal of many non-tariff
barriers which restrict access of Cana-
dian wood products, such as Japanese
building codes.

Q. How well has the B.C. Forest
industry received this IWA initiative?

A. The industry has been very pos-
itive about our initiative. Wood prod-
ucts customers are also very support-
ive. I think woodworkers have a role
to play in market development and
our initiative is showing producers
and customers just how interested we
are in that process.

6/LUMBERWORKER/MARCH, 1989