Indefinite shutdown at Kelowna lumber mill to become permanent: Tolko Industries

“At this time, our thoughts are with impacted employees in Kelowna,” said Tolko president and CEO Brad Thorlakson. “This is a difficult decision.

“The Kelowna mill has been in operation since the 1930s and has contributed to the community through job creation and many other economic spinoffs for more than 80 years.”

“The mill has always had an excellent team that produced a highly regarded quality stud for North American and export markets. It will always stand as an example of what can be accomplished when ingenuity and know-how come together for a common purpose.”

Thorlakson said employees were informed about the decision earlier Friday, and that they will soon be given detailed information on what they can expect next in terms of severance packages and benefits.

He said wherever possible, employees will be offered positions at other Tolko locations that currently have vacancies.

“Our HR team is on-site, providing information and support for accessing career transition services,” said Troy Connolly, vice-president of solid wood.

“And they will be available to help people as we move through this process.”

Connolly added “we want to thank everyone at Kelowna for their many years of dedication and support and assure them this decision was not easy for us to make and has nothing to do with the quality of work or the caliber of people at the mill.

“The industry is facing many challenges that are beyond our control, and tough decisions are necessary to ensure our future sustainability.”

On Sept. 12, Tolko announced that it was indefinitely curtailing work at its Kelowna mill because of continued high log costs and poor North American market conditions.

Prior to that announcement, the plant underwent a shift reduction in July, with 90 employees being affected. Then came six weeks of downtime that was supposed to run Aug. 6 to Sept. 15, which turned into the indefinite shutdown.

“This decision was not easy for us to make,” Connolly said on Sept. 12. “We are very disappointed to be in a position where we have to curtail the mill, particularly given the reasons for this extension are beyond our control.

“However, with lumber market prices at sustained low levels and high log costs in B.C., the mill cannot be cost-competitive.”

On Friday, the president of the workers’ union, United Steelworkers Local 1-423, spoke to Global News.

“We received a call earlier this morning from Tolko Industries letting us know that they’ve come to a decision on the Kelowna mill,” said Pat McGregor.

“Right now, it affects about 200 people who were actively employed at the mill. We’re meeting next week on the 15^th to go over the list of the affected people and make sure we haven’t missed anyone.

McGregor added “some people have left to go onto other jobs, but the majority of the workers were in limbo until today. This gives them at least a little bit of closure on the situation.”

Asked about the crisis the industry is facing, McGregor said “until now, it really hasn’t affect us in the (Southern) Interior. But it is a microcosm of what’s going on.

“Mills are telling us they can’t afford to get logs in and it doesn’t seem anybody’s willing to move one way or another. So the effects are mills are shutting down all over the province, and that’s just unacceptable to us.”

by Doyle Potenteau / Global News

Indefinite shutdown at Kelowna lumber mill to become permanent: Tolko Industries

Our Community