Local union condemns closure of Canal Flats sawmill

VANCOUVER (Scrap Monster): The United Steelworkers Local 1-405 has condemned the closure of Canfor’s Canal Flats sawmill after over 100 years of operation in the region.

According to reports, mill operations have come to an end by late-September and workers are reported to be preparing the mill for closure since then. Doug Singer, Union President noted that the May ’15 layoff of nearly 80 employees and the company announcement in Sep ’15 to close the mill operations have affected around 180 employees and families.

“It’s going to have a very negative impact on people of Canal Flats and indeed, the entire valley,” Singer said. “Many of the members reside in Canal Flats, Kimberley, Cranbrook and Invermere. These are workers with families and mortgages.”

Over the past several months, the union has been meeting with company representatives to discuss matters relating to severance pay for affected employees and possible transfer of workers to Canfor’s Elko and Radium facilities. In addition, various private and government organizations had extended full co-operation in assisting the smooth transition of affected employees.

Effective May this year, the company had cut two shifts to one. The shortage of economically available fiber has resulted in lack of sufficient timber supply to the mill, forcing the company to reduce the operating capacity at the mill. This had led to nearly 80 layoffs. Meantime, the company has blamed poor market conditions for the closure. The sharp downturn in oil and gas and lumber markets coupled with shortage of fibre has led to unsustainable operating loss, they said.

The Canal Flats sawmill with 1780 members has existed on the current site for over 85 years. Canfor Corp had purchased the mill from Tembec nearly three years ago.