Four-thousand people are out of work due to recent mill closures and curtailments (Image Credit: CFJC Today)

By Chad Klassen

B.C. FOREST CRISIS

Ministry says no funds have been dispersed yet to help laid-off forestry workers

Nov 25, 2019 | 5:00 PM

KAMLOOPS — Many communities in the B.C. Interior are still reeling from reduced workforces, layoffs and closures. During the summer, more than 20 mills shut down or curtailed production, costing thousands of people their livelihoods.

The crisis only deepened on Monday with Canfor announcing it will take a two-week curtailment at all of its B.C. sawmills beginning Dec. 23.

The NDP says it’s making progress with initiatives like increasing the allowable cut for First Nations and creating a new community forest agreement in places like Quesnel. However, the MLA for Cariboo-Chilcotin Donna Barnett argues the people out of work aren’t being helped quick enough.

“You have many every day, you have them in here wondering how they’re going to make mortgage [payments],” said Cariboo-Chilcotin MLA Donna Barnett. “Whole families, fathers, sons. They don’t want to leave here, but they have no choice.”

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According to the ministry, 500 laid-off sawmill workers have applied to the province’s retirement bridging program. The program supports forestry workers 55 years or older to transition to retirement. Workers are eligible for up to $75,000 based on years of experience and age at retirement. No funds have been dispersed yet, but the ministry expects the first payments to go out soon.

To date, about 4,000 people across 27 communities in B.C. are out of work due to mill closures. The NDP announced in September $69 million to help laid-off workers.

“We’re doing things in the interim. We’re providing supports for workers who have been impacted,” said the parliamentary secretary for Forest, Lands, Natural Resource Operations and Rural Development Ravi Kahlon. “We’re providing support for contractors. We announced $28 million. We know it’s going to be a challenging time for families affected right now, but we know the forest industry has a bright future.”

Barnett added, “It’s not over yet, and yet there’s no help. Then, they canceled the Rural Dividend [Fund], which my ministry put together that created jobs. So now, you’ve got all of those people who thought they were going to have projects and jobs, they haven’t got any jobs.”

Forest companies have reported millions of dollars in losses in 2019. Last quarter, for example, Canfor was down $44 million compared to $157 million of net gains at the same time last year.

Dwindling supply has been blamed for the crisis. But some have called on the B.C. government to reduce stumpage rates.

“The costs of doing business in British Columbia are the highest in any province in North America, so it’s sad,” noted Barnett. “Business doesn’t need us anymore.”

Kahlon added, “Our government didn’t create the system. It was created by the previous government, and I have frustrations with it. But the challenge we have is, if we change the system now, it could mean more tariffs from the U.S., which would negate any changes you would make to the stumpage system.”

Kahlon has confidence the industry will eventually turn around. He says the government plans to change building code, so more B.C. wood products are utilized.

“We know we have product that is wanted around the world,” he said. “The challenges we have are on the allowable cut coming down and the pricing system making it a little bit difficult for companies to proceed will level off. We know that.”

For more information on the Retirement Bridging Program, click here.