May 4, 2024
Canfor blames B.C. port strike as it temporarily lays off 450 workers in Prince George | CBC News

Canfor blames B.C. port strike as it temporarily lays off 450 workers in Prince George | CBC News

B.C. forestry giant Canfor is temporarily laying off approximately 450 workers at Prince George’s Northwood Pulp Mill, blaming the ongoing port strike in the province for the move.

The company says it is running out of space to store its pulp products destined for overseas markets that are unable to be shipped as long as port workers in Vancouver and Prince Rupert are off the job.

President and CEO Kevin Edgson said roughly 70 per cent of its pulp products destined for Asia are being held up and that the curtailment will last as long as the strike continues.

“We are urging the federal government to take action to bring a swift end to the labour dispute,” he said in a written statement.

Mediator to set terms to end strike

Some 7,500 dock workers represented by the International Longshore and Warehouse Union (ILWU) walked off the job on July 1 after failing to agree on a new wage deal with the British Columbia Maritime Employers Association (BCMEA).

The job action is having a major impact on the economy, with the ports of Vancouver and Prince Rupert being the largest and third-largest sources, respectively, of overseas imports and exports in Canada.

The Port of Vancouver alone is about the same size as the next five largest Canadian ports combined, connecting the country to approximately 170 world economies and handling one-third of Canada’s trade in goods outside of North America.

WATCH | What the B.C. port strike means for you: 

What the B.C. port strike means for Canada

Workers at ports across B.C. are on strike. We break down why it’s happening and what it means for you and for Canada’s economy.

That importance has led several business leaders, politicians and industry groups to call on the federal government to step in to end the dispute. 

Late Tuesday, federal Labour Minister Seamus O’Regan said a good deal was “within reach” for both parties.

“After 11 days of a work stoppage, I have decided that the difference between the employer’s and the union’s position is not sufficient to justify a continued work stoppage,” he wrote in a statement.

O’Regan said he has asked the senior federal mediator to send him a written recommendation on the terms of the deal within a day.

Ongoing troubles for forestry

But Canfor spokesperson Michelle Ward said until a deal is actually reached, Canfor will continue with its plans to curtail operations down to a skeleton crew.

“We’ll start the process to curtail the mill [Wednesday] evening and it will be fully curtailed on Thursday,” she said Wednesday.

“When we’re able to restart the mill, employees will be brought back to help with the process.”

The curtailment is just the latest in a series of layoffs affecting workers in B.C.’s forest industry.

Over the first quarter of 2023, hundreds of workers in Prince George, Chetywnd and Houston lost their jobs after Canfor announced the closure of mills that had long served as economic backbones of their communities.

A white man points his finger while standing among a group of people.
Labour Minister Seamus O’Regan says he has asked a federal mediator to provide recommendations for settlement within a day after deciding the two sides are not far enough apart to justify prolonging the strike. (Justin Tang/The Canadian Press)

Dozens of other jobs have been lost elsewhere as other companies announced curtailments due to a combination of declining sales and a dwindling supply of harvestable forests.

Further impact of strike

Other industries are feeling the impact of the port strike, as well, which has prompted the world’s top fertilizer producer to reduce its output in Saskatchewan and has analysts warning about impacts of sales on items ranging from books

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