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CONVENTION
HIGHLIGHTS99

[.W.A. calls for end of softwood
lumber quota accord with U.S.

anadian woodworkers would

be best served with free and

fair access to the U.S. mar-

ket, says I.W.A. CANADA
president Dave Haggard.

The national president has called
on the federal government, provinces
and industry to allow the Canada-
U.S. Softwood Lumber Agreement to
lapse rather than negotiate a new

uota-based agreement when the
neal comes up for renegotiation in
2001.

“It’s simply not fair,” explains Hag-
ard. “The current deal treats pro-
lucers in various parts of Canada dif-

ferently, rather than creating a level
laying field and allowi e and
fais competition. Worse, the system
for allocating quota is completely
arbitrary.” :

Under the agreement, negotiated
in early 1996 following some Ameri-
can companies’ complaints about
alleged subsidization of Canadian
Jumber exports to the US., Canadian
producers are generally allowed to
ship 14.7 billion board feet of lumber
jnto the U.S. without duty or penalty,
After that B.C. firms pay penalty fees
of $53, $106 and $146 (U.S.) per thou-
sand board feet on top of the cost of
production for U.S, shipments which
exceed each comp: 's individual

uota. Quota allocations are based on

e firm’s 1994-1995 exports to the
United States. R

Lumber producers in Canada’s
four biggest lumber producing

provinces — British Columbia,
Alberta, Ontario and Quebec — are
covered by the agreement. All others
are exempt. The agreement initially
covered commodity lumber products.
However, the U.S. Coalition has
pressured the U.S. Customs Service
into extending the coverage to sev-
eral value-added products such as
prcarilled studs and rougher-header
fascia.

“The problem,” Haggard notes, “is
that many companies, especially on
the B.C. Coast, were heavily into
Japan and other Asian markets dur-
ing 1994 and 1995. So when they
attempted to sell into the American
market, they ran into a brick wall
because they had no quota and no
means of getting any.”

“This has created a division
between the “haves,” who enjoy a
higher ratio of quota to production,
and “have-nots,” who have little or
none,” says Haggard.

The situation came to a head in
late 1999, when an otherwise per-
fectly competitive mill in Boston Bar,
B.C. announced plans to close
because it could not obtain enough
quota to operate. The J.S. Jones mill
in Boston Bar has been rated as one
of the most efficient and cost-effec-
tive mills in the province. But
because it was actually not operating
during the quota-base period, it can-
not get enough to keep going.

In addition, even several
“have”mills will take extended

Christmas shutdowns this year
because they lack enough quota.

“That situation is, quite frankly,
horseshit. It’s completely unfair and
exposes the arbitrary nature of the
quota system. I don’t blame those
who have quota for not wanting to
give up any to their competitors, but
governments should be ensuring
that there is a level playing field and
that workers at one plant are not
unfairly disadvantaged by a com-
pletely arbitrary system. For me, the
arbitrary nature of the system con-
vinces me that this deal is broken
and there’s likely no way to fix it. We
must let it lapse.”

In addition, the national president
notes that certain political, struc-
tural and administrative changes
will help Canada fight off future
trade actions by the U.S. Coalition
which has fought to restrict the free
flow of wood across the Canada-U.S.
border.

First, he notes, there is a much
stronger lobby within the U.S. in
favour of cheap, plentiful wood prod-
ucts from Canada. “Last time we
fought against a countervailing duty
action, you didn’t have big retailers
like Home Depot, who cannot obtain
the grades and sizes of lumber that
they need from U.S. mills, and who
have no interest at all in paying more
for wood products. These big retail-
ers, in association with big firms like
Champion who operate on a huge

Continued on page two

New Brunswick
Co-op joins
|.W.A. local

On December 15, The Industrial,
Wood and Allied Workers of
Canada announced that the Labour
Relations Board of New Brunswick
granted it certification as the legal
bargaining agent for 142 workers
employed at Northumberland Co-
operative Ltd in Miramichi. The
employees also work at depots in
Moncton, St. John’s, Fredricton
and Bathurst.

“Both the I.W.A. and our mem-
bership at the Co-op look forward to
working with the Northumberland
Co-op to make it a better place to
work in,” said Local 306 President
Terry Vickery, an employee at the
Nelson Forest Products plywood
mill in Miramichi.” The co-op is a
business leader in the province and
the employees take a great deal of
pride in the job they do.”

The new union certification is an
early victory for the union’s orga-
nizing program in the province.
The union opened a new office at
323 Pleasant Street, in late October
of this year (see story pages 8-9).

“During the organizing campaign
we had lots of people from the Co-
op dropping in to ask what the
I.W.A. is all about,” says Mr. Vick-
ery. “We have been able to reach
out to the crew and create a positive
atmosphere for unionization in the
community.”

Northumberland Co-operative is
a multi-faceted business with a
major dairy facility and a retail out-
let which sells hardware products
and various other goods.

It offers quality products to the
the city of Miramichi, Northumber-
land County, and the Miramichi
region.

The business was recently cited
by New Brunswick Business maga-
zine as New Brunswick’s eighth
leading revenue producer and is a
recipient of that publication’s Pro-
Q Quality Award for 1999.

“Our members there know how
hard they have worked to help this
company earn the reputation that
is has,” said Local 306 organizer
Darren McFarlane. “The workers
have some important issues to be
addressed which will be put for-
ward at a meeting to formulate con-
tract demands to be presented to
the company.”

The local union will request a
first meeting with Northumber-
land to discuss collective bargain-
ing arrangements following the
meeting to discussion wage and
contract issues.

National fifth vice president Wilf
McIntyre says the new certification

is a big boost to the union’s orga-
nizing program.

“We are very pleased with the
results of the vote and the new
membership at Northumberland,”
he said. The workers already have
a collective agreement as an inde-
pendent association and McIntyre
does not expect trouble negotiating
a first agreement.