* the motion, TERRACE STANDARD ~ Business REvIEw | New Skeena, union resume formal talks By JEFF NAGEL FORMAL negotiations to restart Terrace’s idled sawmill began last Thurs- day between union. leaders and New Skeena Forest Products. IWA president Darrel Wong and company presi- dent Dan Veniez said their exploratory discussions had moved to the point of detailed negotiations. Terrace . union’ reps — business agent Surinder Malhotra and plant com- mittee chair Allan Chesterman — also joined the talks at New Skeena’s Vancouver offices. “I'm a lot more opti- mistic about the prospects than I was in the. past.” Wong said. “I think’ the company more clearly un- derstands our issues.” Veniez said both he and Wong understanding ‘each other's position. “We're not far. apart.” Veniez said, “It's time for us to get down to some hard conversations and try to hash this thing out.” The jobs of about 150 Terrace sawmill . workers are at stake, If the deal mirrors ane nearly.teached last De- cember,. the. union here will agree to-a 20 per cent pay cut and other mea- sures to aid the company in exchange: for a profit sharing. package. Talks had broken down over vacation. time.- The IWA wanted seven weéks while “Veniez ‘said —he could give no more than five weeks. Wong said he's comfor- ted by: Veniez'’s assurances ‘RD-wants:public-probe intow""" eet ae meena ce 3 gov't sale of Skeena Cellulose | enterprise. minister. Rick — LOCAL politicians are de- manding a public inquiry into the sale of Skeena Cellulose: . Kitimat-Stikine regional district directors voted to push Victoria to, name a ‘special commissioner with powers to subpoena wilt- “Messes to probe all aspects of’ the sale of the forest " company... : Thornhill director .Les Watmough said NWBC Timber and Pulp has yet to restart: the operations: il bought for $6 million from the provincial government just over a year ago. Watmough, who moved noted the ‘Dan Veniez that the seniority rights of union members — which technically elapsed a cou- ple of months ago — will be extended. - His other prime concern is a- firm start date for the sawmill. “]owas very. specific that there had to be a date carved in stone as to when the operation was to open prior tous ever being able Io go to a vote of the ‘membership,” Wong said. But he said it appears New Skeena’s ‘owners are serious about a rapid start- up of the Prince Rupert pulp mill. and he said that encourages the union. “It gives us a little more comfort that the Ter- race sawmill can open.” he said, “There was really “no point in the local union: negotiating an agreement without. having a fixed guaranteed. date’ opening.’ Wong said: there will need-to be more give and take by both sides to con- clude a deal, but added it is possible, “I always was company’s assets were as-. sessed at $300 million. “There’s obviously something wrong with this whole deal,” he said He said the province should not have sold the company without a re- quirement that new owners operate it, he added. Watmough said rival bidder Mercer Internation- al. was. turned down ‘be- cause it wanted changes lo forest regulations that Vic- toria wouldn’t accept. But he said the province has embarked on radical for-. estry reforms since then, The regional district is also questioning whether current . contract for quite frankly surprised we didn't get a deal back in December,” he added. Veniez said time is also of the essence because Terrace sawmil] workers — out of a job for about 20 months — are beginning to leave town. Many are hanging on until their children finish off the school year, he said, “I think a great deal of them are saying it's time to get on with it - or move on.” he said. “Unless we're able to provide them a basis to come. back to Work they will. have. no choice but to leave Terracee and say goodbye,” The mill would lose key skilled workers if that hap- pens, he added. “From a timing stand- -point that has to be a con- cern for everyone.” Veniez said the current low lumber prices and. high inventories have been ex- acerbated by the recent tise of the loonie against the U.S, dollar. That means Skeena’s lumber would fetch fewer U.S. dollars from buyers if the mill did open, eating into profits, “It's about $5 million per year for every cent increase," he said. Prices are’ too: low to make. money based on the at the sawmill. Veniez said, but a Fresh: Start deal. would put Terrace lumber back in the black, © 0-7 ’ “He said profits would be even more substantial if the Terrace sawmill runs three shifts per -day,. as planned. Thorpe, who was a director on SCI before the sale, properly fulfilled his re- ‘sponsibility to B.C. tax- payers in approving the sale. Backing both motions is Terrace mayor Jack Tai- stra... ‘ -“You cannot as a gov- ernment just leave us hanging here,” Talstra said.."“You have some re- sponsibilities.” Skeena MLA Roger Harris said an inquiry into the SCI deal is unneces- sary. Northwest towns were involved in the sale pro- cess, he said. 4643 Park Avenue, Terrace Fora limited time al participating Dairy Queen Brazier restaurants, ©2009 A.M, D.0. 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