Warning of ‘extreme insecurity’ sent to communities by IWA

THE SAME DAY that the B.C. Liberals
introduced their legislation to change
the province’s forest policy (see article
Page one), [WA national president Dave
Haggard sent a letter to all mayors and
town council in forest-dependent com-
munities, calling the changes “a seri-
ous potential threat to WA members
and their communities.”

Requesting the parties to flood the
Minister of Forest’s office with mes-
sages that such changes which “are
Sure to cause immense disruption of
the labour force and turmoil in

resource communities,” Brother
Haggard also asked them to inform the
government that there are alternatives,
including the IWA-proposed “social
accountability clause” which should be
included. Details of that clause were
sent to the mayors and councils.

The union proposed a log market
system as opposed to an open auction
system for standing trees in order to
achieve a market-based system, which
is one of the government’s stated
objectives.

Haggard said that measures to allow

marketing of standing timber will “per-
mit foreign and outside companies to
bid timber from under workers who
have lived all their lives in a community
or put down roots there.” That, com-
bined with easy transfer of licences or
portions of licences, will cause “extreme
insecurity,” says Haggard, as workers
won’t know from one day to the next
where or for whom they will be working.
By eliminating the “social contract” com-
panies would be able to harvest how
much they want, whenever they want
and mill the timber wherever they want.

“At the stroke of a pen, timber will flow
to the highest bidder, regardless of the
social costs and upheaval,” writes
Haggard. He also warned that Minister
de Jong has repeatedly said he welcomes
American firms to bid on B.C. timber.

“The more timber they buy, the more
they will pressure the province to let
them take them home with them. How
long do you think this government will
resist?” wrote Haggard.

Numerous community leaders have
already begun to voice their concerns
and Haggard expects that to increase.

A North American
trade bloc for lumber

Canadian and American unions

put forward proposals to end the
damaging softwood lumber war

BECAUSE GOVERNMENTS can’t

seem to get the job done, unionized
woodworkers in Canada and the
United States have stepped into the
Softwood lumber fray by developing
and presenting a binational proposal to
resolve the dispute.

On January 27 the IWA joined with
the CEP and the CLC in Canada and
the IAM, PACE and AFL-CIO labour
central in the United States to put for-
ward workers’
solutions to
the damaging
softwood
lumber war.
At the heart of
the joint pro-
posal is the
imposing of a
graduated
export tax, to be

4 collected onthe

IWA’s Dave Haggard Gaara

of the border, which would then change,
depending on the world price for lumber.
As this tax would be in place, provincial
governments would exercise their
sovereign right to change timber fees
and/or fee structures to stabilize the
North American Market.

The other pillar of the proposal is the
formation of a tripartite panel to devel-
op a North American marketing strate-
gy for wood products.

“We believe that this proposed
solution, supported by thousands of
workers, potentially provides a way out
of the softwood impasse,” said
Haggard when the proposal was
released. “The fact that we could all
set aside our differences and agree on
this package is a real breakthrough.” He
added that the tariff, which has caused
thousands of job losses in Canada, has
also backfired on American workers, as
Canadian mills have increased produc-

tion, driving lumber prices lower.
Union leaders met with Canada’s

International Trade Minister Pierre

Pettigrew in early February to promote

“WE BELIEVE THAT THIS
PROPOSED SOLUTION ...
PROVIDES A WAY OUT OF
THE SOFTWOOD IMPASSE ...”
- DAVE HAGGARD
PRESIDENT, IWA CANADA

the proposal and express their con-
cerns over the damage to workers and
communties on both sides of the bor-
der and to point out that the current
binational negotiations are failing.

On a positive note, Pettigrew did
react favourably to the concept of work-
ing cooperatively for a binational mar-
keting strategy.

A subsequent meeting with the U.S.
Department of Commerce’s Under
Secretary Grant Aldonas was made,

PHOTOS BY NORMAN GARCIA

= In January the IWA, CEP, CLC, IAM. PACE and the AFL-CIO released their
joint proposal to solve the damaging effects of the softwood lumber dispute.

following a review of the DOC’s policy
paper which proposes a “free market”
approach based on changes to forest
policy in Canada dictated by the
Americans (see feature pages ten and
eleven). The paper calls for changes
to stumpage formulas, and the
elimination of cut control and
appurtenancy (tying forest licences to
manufacturing facilities).

“These unions see the elimination of

HERE’S WHAT’S IN THE JOINT PROPOSAL

¢ A GRADUATED EXPORT TAX - which
would be collected by Canada. It would
be in lieu of current subsidy and anti-
dumping duties and would decrease as
lumber prices increase. If currency val-
ues fluctuate significantly, the tax
would be adjusted.

¢ SOVEREIGNTY OVER FOREST POLICY -
Canadian provinces would determine, at
their option, to change timber fees
and/or timber fee structures to stabilize
a sustainable North American market.
As changes would be made, the export
tax would be replaced or terminated by
mutual agreement of the countries.

¢ CREATION OF A BINATIONAL PANEL -
Ajoint U.S. - Canada panel, consisting of
representatives from governments,
industry and labour would be struck and
work to develop plans to jointly market
North American Wood Products to:

a) Increase the size of the North
American market for wood products, and

b) Increase exports and develop new
markets for North American wood prod-
uct exports.

~ Signed by the CLC, IWA, CEP, AFL-CIO,
1AM and PACE - January 27, 2003

such provisions as potentially detri-
mental to the hundreds of forest com-

_, munities across
Canada,” says
| Brother Haggard.
“However in
terms of U.S.
trade law, we're
not convinced
Aldonas’ paper
will result in a
lasting solution.”

“Tt would elim-
inate all of the
social protections we have built up over
the years and future trade actions would
still be brought to bear by the U.S.
industry,” he added.

Brother Rod Kilty, the Administrative
Assistant for the IAM’s Wood Department
spoke on the issue. “Neither country
took the steps necessary to resolve
this crisis,” said Brother Kilty.
“The unions believe our proposal
offers the best way to restore stabili-
ty to lumber prices while allowing
each country to expand their markets
in North American and overseaas.”
The IAM represents woodworkers in
the U.S. South and Pacific Northwest.

Rod Kilty, IAM

APRIL 2003 THE ALLIED WORKER IE: 3