The B.C. government claims it is going to deal with some major prob- lems in the forest industry. On Febru- ary 9th Forests Minister, Dan Miller met with IWA local union officers to discuss the overall strategies involved. The meeting, which took place dur- ing the Canadian Labour Congress’ Winter School at Harrison Lake, gave the Forests Minister a chance to clear the air and explain what a new Forest Sector Economic Strategy Advisory Group will be all about. A On January 22, Miller at the Truc! Loggers’ Convention, announced that the new advisory group would be formed. There he said, “this coalition of government, in partnership with forest sector stakeholders, will chart a course for B.C.’s forest industry...With the forest sector facing mounting pressures and challenges, sustaining our forests and building a secure future for industry, workers, and for- est dependent communities are going to take time and commitment.” When the announcement was made in January, IWA-CANADA President Gerry Stoney called it “a first step in an orderly process that should secure jobs for forest workers.” “Everyone in this industry under- stands some of the potentials that are out there,” said Brother Stoney in a press release statement. “What this announcement does is spell out how government, industry, labour and communities are going to achieve these objectives.” In Harrison, Miller told IWA officers that the union should participate in the advisory group which will report directly to the minister. The advisory group will involve the IWA, the CEP, and the PPWC, the major employers, smaller industry employers and the input of communi- ties through the Union of B.C. Munici- palities. Representatives will be cho- sen from the provinces interior and coast regions. Miller said the group should recom- mend policies and programs “to ensure a world class industry with potentials for increased employment.” But his message to the IWA officers was also mixed. He said he recognizes that the IWA’s recent job losses are a “terrible blow to an organization.” “At the same time there’s every indi- cation that there is going to be more job loss,” said Miller, “if you look at the issues in front of the government.” Miller said the province will set aside another 6% of the land base by the year 2000 and said “we’ve never looked at set aside issues (before) and review cut levels... It’s pretty clear that in some areas some mills are going to go down.” “Nature’s boundaries have reached their limit,” said Miller. “We can no longer expand the exploitation of that (forest) resource.” Miller also said the industry has never been pressured before to maxi- mize value from the resource because historically, markets were good and resources seemed inexhaustible. But all that has changed rapidly. Bill Routley, President of IWA- CANADA Local 1-80 questioned Miller on the way in which it is reducing the province's annual allowable cuts and said the government should play a more constructive role with unions in adjusting to any downturns in the cut. Brother Routley said the sudden shock of AAC reductions can be less- ened if cut reductions are phased in. Mr. Miller said that the ministry must work more, at the local level, to provide the public with detailed infor- mation on how cuts are determined. He said he is encouraging government staff at the regional forest districts to sit down with the IWA and other inter- ested parties to explain exactly what is going on in the cut reduction process. Miller agreed that the government, which is suffering from budget cut- backs, has to do more to soften the blow of layoffs and dislocation. Just how that is done remains to be seen and can be an important party of the forest advisory group’s mandate. Sy Pederson of Local 1-363 in Courtenay, told Miller that members are upset that the AAC is coming down and that a new Forest Practices Act, which should regulate harvesting techniques, can help create jobs. For example, the use of long line machines can put 5-8 loggers to work instead of 3-4 workers used in grapple yarding. Miller told the IWA officers that the government will institute a Forest Practices Act in 1994 which will con- solidate existing regulations on the industry. Those new regulations will be enforced with strict penalties. B.C. FORESTS MINISTER SAYS MORE JOBS. TO BE LOST BUT ACTIONS CAN BE TAKEN As for job creation with which will soften the blow of layoffs, Miller said that there needs to be some specific work done in B.C. forests: namely road rehabilitation and intensive silvi- culture. On the coast especially, he said that there were many old logging roads that have to be rehabilitated to pre- vent slides. “I don’t have any magic formula on how we are going to pay for that,” said the forests minister, who men- tioned that it will likely be a combina- tion of industry and government funds. Erich Ewert, financial secretary of IWA Local 1-217 expressed concern that too much of the timber cut in the province is being exported semi- processed forms (ie. cants, flitches and other custom cuts.) He said that the B.C. government must get the companies to do more manufacturing here in the province. Miller agreed and said when you look at export statistics from the province, over 90% isin dimension lumber (ie. 2x4’s) and pulp. The minister said that there needs to be change in the way raw timber is priced. He said the fundamental issue for value-added industry is that high input costs will force manufacturers to look at value-added. “Cheap low input costs don’t force you (ie. the forest companies) to do anything except make dimension lum- ber,” said Miller. He said, over time, the province should increase costs of raw materials to the industry. “The higher the wood cost to the customer the more you're going to force manufacturers to look at ways of creating more value - that means more jobs and more value-added products.” © >) ° Dan Miller told the IWA that government will be looking to create jobs in intensive silviculture and logging road rehabilitation. Reman Sector Continued from page one agreement job rates on remanners and realizes that certain operations need flexible work rules to allow them to expand. “We're prepared to address these issues and have done so already,” said Stoney. Dave Tones of IWA-CANADA Local 1-3567 (New Westminster and Fraser Valley) said. his local union has been realistic in negotiating flexible con- tract language in the reman sector. “We and our employers are proud of the relationship that we have,” said Brother Tones. “The big problem is that many of the reman operations are running at half speed due to lack of wood supply.” The IWA says that from a labour relations perspective, there is an urgent need for reman employers to establish a more co-ordination approach in their sector. The IWA says that greater stability and coordination of collective bargaining and labour relations should take place if employ- ers form associations. Said Brother Stoney: “If the indus- try is going to survive and workers are going to have the security they require in the future they (reman employers), will have to co-ordinate their bargain- ing strategies in the reman sector.” Stoney said remanners need a level playing field amongst themselves and co-ordinated bargaining is an essen- tial, orderly process. The SBFEP was roundly criticized by the IWA for not fulfilling its stated goals. Brother Stoney said that timber often winds up in the hands of opera- tions that don’t have a proven track record and don’t see to proper logging practices. Stoney also said that the Bid Pro- posal Program should ensure that companies have experience and money to back them up. Many times companies can’t live up to the terms of their bids under the program. The IWA’s National Financial Secre- tary, Terry Smith told the committee that the reman people who try to bid up SBFEP sales are good “ideas peo- ple” but not necessarily well versed in logging and primary lumber break- down and that they often get caught in a position where they will ask the government for a break in stumpage payments or will apply for log export permits to cover their losses. By and large Brother Smith said the result is a shuffling of jobs from secure primary producers to an inse- cure non-union workforce. IWA Assistant Research Director, Phillip Legg said that the government must assess bid proposals more rigor- ously. He said that the bid system does not address the balance of power issues between large and small producers. The union recommends that, to solve the supply issues that exist between primary producers and remanufactures, a joint industry com- mittee be established to mediate sup- ply and pricing disputes. According to the IWA the committee should be chaired by a representative of the provincial government and include representatives from primary and remanufacturing groups in both the province’s interior and coast. To be effective, the joint committee must have the power to alter supply agree- ments between a primary supplier and areman operation if such changes are necessary. The IWA is also concerned that to remain competitive, it must have an adequate employee skills training pro- gram. Brother Stoney told the committee that industry has a major responsibili- ty but that government has a responsi- bility too. The union says the number of young people entering the workforce over the next 20 years will continue to decline. As such, employers will have reduced chances to meet their skills needs with new workers. Therefore new skills will have to be taught to existing workers. _ Changes will hit the forest industry in the future. Changes in the type of wood supply, production systems, consumer preferences and new mar- ket opportunities are all forth coming. Brother Stoney said the forest industry is notorious for not keeping enough apprentices around during economic downturns. When the eco- nomic cycle bounces back up, compa- nies then rob each other of their skilled trades or go off-shore to acquire skilled labour. Stoney said the government must be there to ensure worker training “because it won't happen by itself.” To establish those programs, the IWA says government, industry and labour must work together to struc-- ture agreements on how training cur- riculums are developed. We also need to figure out what is the best way to train workers and how it all could be paid for. 2 2/LUMBERWORKER/MARCH, 1993