The economic crisis has hit home for some North Okanagan workers.
Starting Monday, 332 workers at Tolko Industries’ Armstrong and Lavington sawmills are being impacted by curtailed operations for two weeks because of the economy.
“Market conditions for our softwood lumber products continue to be the worst Tolko has seen in its 52-year history,” said Mike Harkies, company vice-president, in a release.
“This decision is difficult and unfortunate but we must take steps to match our production level to market demand.”
Representatives for the Armstrong workers aren’t surprised by Tolko’s actions.
“Supply is far exceeding demand,” said Bruce Gardner, Steelworkers local 1-423 president.
“We knew by the declining lumber value that something would happen.”
Gardner hopes the slowdown at the Armstrong mill will only be for two weeks.
“We are very confident in the Armstrong mill because it’s one of the top performers. Our guys are doing a good job there,” he said.
Tolko’s Lavington operation is non-unionized.
Beyond the North Okanagan, there will also be a two-week curtailment at the Tolko operation at High Level, Alberta, while similar action at four mills in the Cariboo is indefinite until the market improves.
The two-week curtailments will reduce Tolko’s lumber production by 68-million-board-feet. The further curtailment of the four Cariboo operations will reduce Tolko’s lumber production by 18.5-million-board-feet for every week of additional downtime.
Related woodlands activities are also being adjusted accordingly.
All of the curtailments affect approximately 1,300 employees.
“This announcement does not reflect the performance of our employees,” said Harkies in the release.
“We appreciate their efforts and understanding while we work to manage our business through this difficult period. We will also work hard to ensure that we continue to meet our loyal customers’ product needs.”
The NDP blames the job curtailments completely on the provincial government.
“The industry is in free-fall and the government has done nothing to offset the hardships,” said Mark Olsen, the NDP’s Okanagan Monashee candidate.
“There’s no plan in place.”
Olsen questions why the Liberal government is pumping millions of dollars in the Winter Olympics and a new Port Mann bridge at the Lower Mainland.
“All of these pet projects are getting funding but rural B.C. is being shut down,” he said.
But MLA Tom Christensen takes issue with Olsen’s comments.
“He needs to do his homework and ignore the negative messaging from his party,” said Christensen.
“To think there is a nice, simple answer to the challenges in the forest sector is naive at best and misleading at worst.”
Christensen says his government is taking steps to stimulate the economy, but recovery in U.S. markets is necessary if the forest industry is to improve.
“I’ve yet to hear any ideas from the NDP to stimulate the economy,” he said.
Colin Mayes, Okanagan-Shuswap MP, has discussed the situation with Al Thorlakson, Tolko president.
“It’s really unfortunate and a sign of our economic times,” said Mayes.
“But Tolko is a great company and solid with its employees. When they can reopen the mills I’m sure they will.”
Starting Monday, 332 workers at Tolko Industries’ Armstrong and Lavington sawmills are being impacted by curtailed operations for two weeks because of the economy.
“Market conditions for our softwood lumber products continue to be the worst Tolko has seen in its 52-year history,” said Mike Harkies, company vice-president, in a release.
“This decision is difficult and unfortunate but we must take steps to match our production level to market demand.”
Representatives for the Armstrong workers aren’t surprised by Tolko’s actions.
“Supply is far exceeding demand,” said Bruce Gardner, Steelworkers local 1-423 president.
“We knew by the declining lumber value that something would happen.”
Gardner hopes the slowdown at the Armstrong mill will only be for two weeks.
“We are very confident in the Armstrong mill because it’s one of the top performers. Our guys are doing a good job there,” he said.
Tolko’s Lavington operation is non-unionized.
Beyond the North Okanagan, there will also be a two-week curtailment at the Tolko operation at High Level, Alberta, while similar action at four mills in the Cariboo is indefinite until the market improves.
The two-week curtailments will reduce Tolko’s lumber production by 68-million-board-feet. The further curtailment of the four Cariboo operations will reduce Tolko’s lumber production by 18.5-million-board-feet for every week of additional downtime.
Related woodlands activities are also being adjusted accordingly.
All of the curtailments affect approximately 1,300 employees.
“This announcement does not reflect the performance of our employees,” said Harkies in the release.
“We appreciate their efforts and understanding while we work to manage our business through this difficult period. We will also work hard to ensure that we continue to meet our loyal customers’ product needs.”
The NDP blames the job curtailments completely on the provincial government.
“The industry is in free-fall and the government has done nothing to offset the hardships,” said Mark Olsen, the NDP’s Okanagan Monashee candidate.
“There’s no plan in place.”
Olsen questions why the Liberal government is pumping millions of dollars in the Winter Olympics and a new Port Mann bridge at the Lower Mainland.
“All of these pet projects are getting funding but rural B.C. is being shut down,” he said.
But MLA Tom Christensen takes issue with Olsen’s comments.
“He needs to do his homework and ignore the negative messaging from his party,” said Christensen.
“To think there is a nice, simple answer to the challenges in the forest sector is naive at best and misleading at worst.”
Christensen says his government is taking steps to stimulate the economy, but recovery in U.S. markets is necessary if the forest industry is to improve.
“I’ve yet to hear any ideas from the NDP to stimulate the economy,” he said.
Colin Mayes, Okanagan-Shuswap MP, has discussed the situation with Al Thorlakson, Tolko president.
“It’s really unfortunate and a sign of our economic times,” said Mayes.
“But Tolko is a great company and solid with its employees. When they can reopen the mills I’m sure they will.”
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