Local 1-217 Continued from page six Mexico as a further blow to the estab- lishment of a value-added sector. The Mexican labour market offers even cheaper labour in competition against Canadian and American workers. Kobayashi says the union’s long term survival depends on more jobs out of less fibre and that low wage free trade zones are a threat to good paying union jobs. INDUSTRIAL LAND BASE UNDER ATTACK Just as free trade is a threat to Bisent and future job creation in the forest industry, the local’s future may be threatened by rezoning of indus- trial land into residential develop- ment. The entire False Creek industrial site was bulldozed in the early 1980's to make room for EXPO ’86, then subsequently sold off for residential and commercial development. Local union financial secretary Erich Ewert, who has worked for 1-217 for 20 years says that if the union doesn’t put its foot down to stop the erosion of industrial land, especially along the Fraser River, where most milling and logging operations are, then the local will eventually cease to exist. The local union is putting pressure on the municipal government in Van- couver to preserve all existing indus- trial land. LOCAL UNION PROGRAMS - Local 1-217 takes pride in the fact that every year, since it was estab- lished, it has sent a delegate to the CLC’s Labour College, of Canada. At home the union takes priority in host- ing Job Steward seminars for all its operations. Since the mid 1980's, Local. 1-217 has maintained an elected safety coun- cil consisting of local union officers and representatives from joint occu- pational health and safety commit- tees. According to Brother Ewert, a for- mer chairman of the safety council, technological changes pose new prob- lems for analyzing the safeness of jobs. “We've seen different kinds of acci- dents now in the newer, high tech mills,” says Ewert. “As industry changes we constantly have to get a © Clockwise from top left are Local 1-217 members: At Sauder Door, George Zacharias cuts a lite in a french door; at MB Canadian White Pine, filer Rick Estok; at Sawarne Lumber Col, Swaran S. Hayer operates a chop saw cutting cedar siding; and at Westcoast Plywood, Karen Hawkes feeds veneer through machine. handle on these new scenarios.” The local has participated with industry in putting on joint seminars in the handling of toxic wood preser- vatives. Other prime areas of concern in health and safety are on the job safety instruction, lockout proce- dures, and enforcement of WC.B regulations. POLITICAL ACTION Local 1-217 is front and centre in its support of the New Democratic Party both provincially and federally. According to Brother Kobayashi, the local has among the highest per- centage of IWA members amongst any union local, who are members and participate in party activities. In November of 1990, recently retired local union president Doug Evans was elected as alderman on an NDP civic slate in Burnaby. Brother Evan’s win was made possible by the help of ey IWA members including campaign chairman Don Jantzen, for- mer first vice-president of Local 1-217. MPs hear IWA Continued from page one design values required in truss manu- facture. The research director pre- dicts that Canadian Spruce and Pine will do well in the engineered a compo- nent market in the U.S., where wood with high strength, stiffness, and structural integrity will be required. The researcher predicts, based ona major study being completed, that market demand for softwood lumber in the US., during the 1990’s will far exceed the production of domestic American industries. But he warns that unless the Canadian dollar falls and the 15 percent federal export tax on shipments south of the border, is reduced, then some Canadian soft- wood producers are unlikely to sur- vive the recession to enjoy the market upturn. ' Since the export tax was imposed by the U.S. in January of 1987, the value of our dollar, versus its U.S. counterpart, has risen by over 19%. Smyth told the panel that the jump in the dollar and increases in stump- age have added huge costs to lumber production, especially in the B.C. interior. “We all understand that the poor US. lumber markets of the past two years have depressed prices. However when the size of the market pie shrinks, we know we can maintain our share by being cost competitive,” said Smyth. “Both our (IWA) 1990 and 1986 studies show beyond any doubt. that B.C. sawmills are by far the most efficient in North America.” “On a regular basis,” said Smyth, “We are more than twice as produc- tive as the U.S. industry. “B.C. sawmills are still much more efficient than the average U.S. mill,” said Smyth. “However they have lost much of their manufacturing cost advantage that they enjoyed during the mid-1980s.” “They needed to maintain that superiority in order to overcome a serious disadvantage in freight costs to the U.S. market. Smyth said that the mills in the US. Southeast pay up to $80 (U.S.) less per thousand board feet for deliv- eries to their own region than BC. Interior mills do for access to the same market. Smyth said that, on a regional basis, the B.C. interior is more than twice as productive as the industry in the U.S. Through the early 80's the extra efficiency helped B.C. producers increase their share in the U.S. market but now in the early 90’s the burden of export tax related stumpage increases and the high Canadian dollar is cur- tailing some operations. The research director presented fig- ures that indicated over 20% of B.C. sawmill and plywood plant workers are unemployed. Smyth said that Bank of Canada Governor John Crow has been unable to present evidence that inflation is a real threat to the economy, and that Crow apparently “felt that he had to prevent a few ’hot spots’ in central Canada from spreading to the rest of the country by giving everybody a strong dose of anti-inflation psychol- ogy. “For over 3 years, John Crow has put the forest products industry in severe jeopardy by trying to play a confidence game in order to keep investors happy,” said Smyth. “What Mr. Crow has overlooked is that current circumstances are much different than they were in the 1970s” said Smyth. “Much of the ‘heat’ in Central Canada resulted from demand generated by the robust U.S. econ- omy. However, as the level of business activity in the United States has cooled, so too has the alleged ‘over- heating’ in Ontario.” The research director said the union was pleased to see that the U.S. Fed- eral Reserve Board has responded to rising unemployment rates by cut- ting its discount rates to banks for commercial loans. The U.S. rate is now down to 6 percent, nearly 5 per- cent less than the Bank of Canada’s rate. “We hope that the Bank of Canada finally sees the handwriting on the wall and follows suit. Since 1987 its policies have pulled our industry to. the edge of the cliff. i Smyth said “this unbearable situa- tion must be corrected so that Cana- dian sawmilling and plywood indus- tries can meet the expanded market opportunities which will occur during the 1990s.” He predicted that lumber and ply- wood consumption in the United States shall again approach modern day record levels set in the late 80s. But he warned that action must be taken right away to soften the cost disadvantage currently imposed on the forest industry by the over inflated Canadian dollar. For over 3 years, Crow’s high inter- est rate policy has been putting ply- wood plants and sawmills out of busi- ness. Canadian forest products companies pay out a third more fo: financing, and the spread between some Canadian and U.S. short-term rates widened to as much as 5.6 per- cent, compared to the historical spread of one percent. “The seriousness of the current sit- uation requires that immediate action be taken,” said Smyth. “Failure to do so will needlessly cripple Canada’s largest export industry, and will cre- ate enormous economic and social costs associated with the direct and indirect job losses that will take place.” ——— 14/LUMBERWORKER/FEBRUARY, 1991