Current policies do not protect workers by Dan Miller AVING recovered from the disastrous recession of the early 1980's, the forest industry and, in particular, the pulp sector, went on to enjoy some extremely profitable years prior to the current slump which started last year. Although I hesitate to try and predict the depth, or length, of the current recession, the B.C. Central Credit Union forecasts that it will be far less severe than the previous one. The main contributors to the current round of plant shutdowns can be identified. The Memoran- dum of Understanding (M.O.U.) with the United States, which imposed a 15% export tax on soft- wood lumber exports, was negotiated when the Canadian dollar stood at 72.5 cents in relation to the U.S. dollar. Unfortunately, the current British Columbia stumpage system, which fully replaced the export tax in this province, provides an adjustment for currency shifts and falling Cana- dian dollar lumber prices only after long time lags. In today’s depressed market, with the value of the Canadian dollar running over 86 cents (U.S.), the size of the B.C. stumpage target revenue is simply too large for the industry to afford. The current system does not permit enough flexibility to respond quickly to changes in lumber market values. = What is perhaps most disturbing is that the M.O.U. has taken away B.C.’s sovereign right to make the necessary adjustments in stumpage rates. This is not to suggest that simply lowering stumpage rates is a solution to the structural problems of the BC. forest industry, but it will at least put us on par with our international competi- tors during slumps in the economic cycle. Here we come to the most serious issue facing the forest industry and its workers. If we were only having to deal with the normal cycle of the forest products industry, we could look forward to an upturn and a return to higher production levels to meet increased demand. This would mean mill start-ups, and a return to work for the more than 8,000 woodworkers who have lost their jobs. However, many of the mills which closed down in the last two years did so permanently. These companies, while blam- ing the M.O.U. and high stumpage rates, also said that a shortage of timber was the main rea- son for permanent clo- sure. It appears that in . f many part of the prov- sar = ince, the milling capac- ity is 30-40% higher than the amount of timber available to harvest. The provincial government, which issues licenses to harvest and which issues a license for every processing plant, has never bothered to try to maintain a balance between supply and capacity. I suppose they thought that they could just continue to increase the annual cut indefinitely. To compound matters, reforestation was not carried out when it really mattered. Although we planted 285 million seedlings last year, in 1960, we only planted 6 million seedlings. Thus, the second I believe that the guidelines for how we deal with the problems in the forest industry have mostly been developed. The NDP commissioned the Pearse Royal Commission of 1976 provides good insight and analysis. The Forest Resources Commission, which has I1WA-CANADA President, Jack Munro as one of its members, should provide more direction. In the short term, specific measures will have to be implemented to protect forestry workers and their communities. New Democrats have pro- posed a series of measures to do this. 1. Restore the link between licenses and jobs - In return for allocating a harvest license, we expect a long term commitment from companies that they will maintain employment. This must include the requirement for capital investment in plants, in worker training and in research and development. 2, Early Retirement - It is not good enough to simply tell workers they now don't have a job. Government should work with industry to develop early retirement opportunities so that older work- ers can leave with security. growth which should be available to supply mills and maintain jobs is not there. Workers of today are paying the price for this legacy of neglect. Forests forever? Com- munity stability? Viewed against the conditions we face today, these terms seem to be noth- New Democrats have proposed a series of measures to protect forestry workers and their communities 8. Retraining - With changes to UIC funds, Mike Harcourt is de- manding that B.C. ob- tain its full share, some $90 million, to be used for retraining opportu- nities. 4, Targeted silvicul- tural funding - We need ing more than public relations “buzz” words. Faced with the reality of today, what do we do? First of all, we have to make a commitment to maintain the forest industry as a strong, vital cornerstone of B.C.’s economy. In the past, the Socreds referred to forestry as a sunset industry. In last year’s budget, they talked about building a post-industrial economy. As the New Democrat Forest Critic, I reject this view. I believe our economy will remain strong if we build on our natural strengths, and make a commitment to developing the best and most progressive forest industry possible. The Scandinavians have done it. So can we. It is significant to note that they did it because they had a Social Democratic government, similar to our New Democratic Party, which has a strong commitment to the interests of working people. to analyze each forestry region in terms of timber supply and mill require- ments, and to make silvied! Sth expenditures where they will do the most good in relieving unemployment and increasing harvesting opportunities. Finally, we reject the hands-off approach of previous governments, whose lack of foresight and planning have created the conditions we face today. Government, industry, and workers must all be involved and work together to ensure a sound future for the forest industry and our province. Dan Miller is the Forestry Critic for the New Democratic Party of British Columbia. Mr. Miller has provided the Lumberworker with a series of articles examining the forest industry and workers in B.C. This is Mr. Miller's fifth and final article in this series. e SWEARING IN — Prior to the meeting of the National Executive Board in mid- in IWA-CANADA’s National Officers, nominated by acclamation at the union's Sep- tember 1990 Convention. Taking the two year oath of office are (I. to r.) Fred Miron, 16/LUMBERWORKER/FEBRUARY, 1991 fifth vice-president; Roger Stanyer, fourth vice-president; Terry Smith, financial sec- December, 1990, former Vancouver Local 1-217 president Doug Evans (far right) swore _ retary; Jack Munro, president; Gerry Stoney, first vice-president; Neil Menard, second vice-president; and Fernie Viala, third vice-president.