Tolko Manitoba Solid Wood advised its employees today of a shift reduction at its sawmill operation at The Pas, eff…
Tolko Manitoba Solid Wood advised its employees today of a shift reduction at its sawmill operation at The Pas, effective Monday, May 5, 2003. The sawmill will reduce its operating schedule to two shifts, eight hours per day, five days per week. Approximately 125 employees in both the sawmill and woodlands will be affected by this shift reduction.
Tolko says the 32-day labour interruption of timber harvest and deliveries during the labour dispute in February will result in a shortage of sawlogs to run the sawmill at three shifts throughout the summer.
As well, the ongoing losses at the sawmill threaten the ongoing viability of the operation, and after extensive review, the company determined that the best economic option for both the sawmill and the kraft paper mill is a shift reduction at the sawmill. These ongoing losses have been exacerbated by the trade dispute with the US, causing the Canadian industry to increase production in an effort to lower unit costs. This has resulted in an oversupplied market and subsequent low lumber prices.
Woodlands operations will be curtailed for seasonal reasons. During this period, Tolko will make every effort to identify and harvest all accessible ground in an effort to build log inventories.
The sawmill will operate on a two-shift schedule until further notice. A resumption of full-scale operations will be dependent on market conditions and log deliveries to the mill yard and rail spurs. These factors will be monitored on a monthly basis.
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