6 THE WESTERN CANADIAN LUMBER WORKER

Forest Product Facts

PRODUCTION AND THE WORKING FORCE

In 1963, the coast lumber industry produced 3.30 billion
board feet of lumber. This is the highest production record in
the history of the industry. This production will increase next
year, as indicated by the existing market demand. The 1963
production was 7% higher than the previous year. In one
month, last October, the coast industry produced 294.5 million
board feet. is

This increased production required 12% fewer workers
than at the beginning of a five-year period. In 1957, the saw-
mills employed 13,342 workers. In 1961, sawmill employees
numbered 11,716.

In 1957, plywood workers numbered 4,580 ;in 1959, 5,069;
in 1961, 4,878.

The loggers numbered 17,723 in 1957 ;in 1960, 20,684; in
1961, 17,820.

Fraser Sawmills, New Westminster, employed 1800 workers
10 years ago. Today, Fraser Sawmills employs 875 workers
and is producing more.

~ Seven years ago the Englewood Logging Division, Canadian

Forest Products Ltd., employed approximately 1200 loggers;
today this division is producing as much or more with fewer
than 500 loggers.

These instances show a trend which is accelerating.

Fewer men produce more lumber. The labor cost for every
1000 board feet of umber goes down correspondingly and
adds to the employers’ profits.
_ On the basis of available figures, it is estimated that each
sawmill worker produces 76,019 more board feet a year than

in 1957.
Each Logger produced 66,231 more board feet of logs in

1961 than he did in 1957.
Each plywood worker produced 74,000 more square feet

in 1961 than he did in 1957.

All this means that the wage bill has dropped for the
employers by a substantial amount during a five-year period.
It dropped still more in 1963, for which the actual figures are
not available.

Consider the total value of the industry’s production. A
reasonable estimate is that wage costs for the employers have
dropped from $3.00 to $4.00 each 1000 board feet of lumber
sold. It is easily seen why the employers are amassing more
millions at the expense of the workers.

SHIPMENTS

The coast lumber industry shipped 3.36 billion feet of
lumber in 1963. This is another record high for the industry.

The United States took 996.2 million board feet in 1963 (water- ~

borne shipments) as compared to 597.3 million board feet in
1959. These exports now exceed 15% of the American con-
sumption. The Japanese market took 278.1 million board feet
of lumber in 1963 as compared to 1.2 million in 1959. The
United Kingdom market took 465.4 million board feet of
lumber in 1963 as compared to 267.3 million board feet in

1959.
INVENTORIES °
The inventory of-logs in the water is lower than usual due
to production demands. The employers are trying to stockpile
lumber to take care of future orders.

ORDER FILES
On January 1, 1964, orders on file totalled 642.2 million

board feet. This is the best record for ten years. Orders on

\' LLL

IWA RAD

LLL LLL

Radio CKNW:: Vancouver/New Westminster:

LLL LLL Lhd

PROGRAMS -

FOR INFORMATION ON. NEGOTIATIONS

: production.
The employers are now taking orders for June and July

file now represent an excess over ten weeks of

shipments.
PRICES

Prices for lumber, plywood and shingles have all risen
between six and twelve per cent.

CHIP PRODUCTION
Pulp chip deliveries to pulp mills in 1963 were 24% higher
than in 1962.
‘PLYWOOD

The production and shipment of plywood are now at an

all-time high and will follow this upward trend next year.
Kighty-five per cent of plywood production is sold in the
Canadian market with tariff protection against foreign com-
petition. :

PROFITS

The employers were never more prosperous. Profits have
been steadily and rapidly accumulating since 1959. Dividend
payments to shareholders have increased to the point where
investments in lumber companies are given a top rating by
financial houses. The return to shareholders on their invest-
ments is higher than in the majority of industries.

Four public companies reported gross profits of $114.9 mil-
lion in 1962. It is estimated that all companies grossed at least
$135 million in the same year. In the two-year period of the
present contract, it is estimated that all companies grossed
more than $300 million. A conservative estimate of the gross
profits for all companies in 1963 is $165 million. Profits will
further increase in 1964.

The Financial Post, March 14, 1964, states:

“1963 was a record year for the B.C. forest industry with
increased output, sales and profits and 1964 will likely see a
continuation of this upward trend. More than $100 million
was spent in capital investment in the industry in 1963 and
even more should be spent in 1964. Present plant capacity
has been operating at near capacity level.

“Half the firms reported sizeable earning gains in 1963
and all of the integrated companies expect further profit
gains in 1964.

“As earnings increased, so did wages, rising by 4% in
1963 and are expected to increase even more this year when
major labour contracts are re-negotiated . . . There was a
substantial growth in plywood sales in 1963, and 1964 should
be another good year ... Lumber sales rose 15% in 1963.”

Under the same date, the Financial Post states:

“If you had invested $12,500 in B.C. Forest Products shares
at the beginning of 1963, your investment would be worth
$25,500. this week.

“That’s not a bad performance in a period in which the
market as a whole (as represented by the DBS index of
110 stocks) has moved up only 11.3%.

“Vain beneficiaries: Argus Corp., which owns 400,000 B.C.
Forest shares, and Mead Corp., and Scott Paper Co. in the
U.S. which own one million of the shares through their jointly
owned Brunswick Pulp and Paper:Co. The gain in market
value is $5.2 million for Argus and $13 million for Mead and

Scott together.

“Part of the reason for the zoom in stock price is the 86%
jump in net profit, to $2.60 per share from $1.40 in 1962 and
$1.03 in 1961. And this leap in earnings was due in part to
more generous cost allowance provisions in the June 1963

federal budget.

117%

os | British Ce

600 | Orders on
(Million Board F,

575 ;
oa]
550
nn

525

Source: DBS a)

“, .. The company expects}
million on capital projects in |

“. . On its recent price of
B.C. Forest sells at 9.8 times i
and yield 2.35% on the indicat
dend rate.” }

In its report on a general
of 6.9% the Financial Post,
states:

“Here is a list of declarati
1964, as compiled by the Fina
records available to March 6.”

On the list: “MacMillan, *
River Ltd... . rate 25q... :

206,564.” ol

v

' Note that the profits made
resources do not all stay in the,
also that the shareholders have
higher wage boost for doing”
vest than the workers, whose .
their wealth.

The IWA proposed gener
less than fifteen per cent of

{
/
{
!

j “a
CH

PS Ry

3 x 1-minute spots per week, rotating 6:45 - 7:45 a.m. Tuesday, Wed-
nesday, Thursday. =

Radio CFUN: Vancouver:
2 x 5 minutes, Tuesday and Thursday, 6:50 a.m.

‘Radio CHWK: Chilliwack:
‘2x 5 minutes, Tuesday and Thursday, 6:50 a.m.

Radio CFCP: Courtenay:
2 x 5 minutes, Tuesday and Thursday, 6:55 a.m.

Radio CFWB: Campbell River:
2 x 5 minutes, Tuesday and Thursday, 6:55 a.m.

Radio CJJC: Langley:
2 x 5 minutes, Tuesday and Thursday, 6:55 a.m.

Radio CHUB: Nanaimo:
2 x 5 minutes, Tuesday and Thursday, 7:05 a.m.

Radio CJAV: Port Alberni:
4 x 5 minutes, Tuesday and Thursday, 7:05 a.m. Wednesday and
Friday, 12:25. p.m.

Radio CFTK: Terrace/Kitimat:
2 x 5 minutes, Tuesday and Thursday, 6:30 a.m.

Radio CKDA: Victoria:
2 x 5 minutes, Tuesday and Thursday, 7:10 a.m.

Ts

vd

Sider File 2)
. “Prices: Lumber

RII MddsidldtlisisuddidluldaddddldddddddddddaddddddadaiddididdddddddZZZZZZZZZZZZZZ.

LLL hls ZZ
Lik ha LLAMA EETEEEEEZZZEZZEZZZ.

WLLL LLL Vb

LLL ELL

Z