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

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 Rupertare 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 jobon July 1after 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 Vancouveralone 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

1 year ago

Duration 3:45

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.

On Wednesday morning, a mediator appointed by federal Labour Minister Seamus O'Regandelivered a recommended settlement to both the ILWU and BCMEA.The parties have 24 hours to respond to the proposed deal.

Announcing the mediator's appointment Tuesday, O'Regansaid 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 positionis not sufficient to justify a continued work stoppage," he wrote in a statement.

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.

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 Saskatchewanand has analysts warning about impacts of sales on items ranging from booksto cars.

At issue for port workers are concerns that theBCMEAis refusing to give a fair pay increase despite making billions of dollars in profits in recent years.

There are also worries aboutcost of living,port automation, and outside contracting.

In statements late on Monday, both sides blamed each other for failing to reach a new deal. The association said its proposals to addressILWU Canada's demand to expand the union's jurisdiction over regular maintenance work on terminals were rejected by the union.

Rob Ashton, ILWU Canada president, told CBC News that the union would withhold comment until they had seen the mediator's report. A spokesperson for the BCMEA also declined comment Tuesday night.

The strike so far has cost an estimated C$5.5 billion, based on industry body Canadian Manufacturers & Exporters calculation of about $500 million in disrupted trade every day.

More than half of Canadian small business owners say the strike at thePortof Vancouver will affect their operations, according to preliminary survey results from the Canadian Federation of Independent Business (CFIB) released on Tuesday.