Tolko shuts down plant, 130 given notice

By Don Plant Saturday, October 14, 2006 http://www.dailycourier.ca/article_610.php
Friday the 13th came with a bite for workers at Tolko’s plywood plant in Kelowna. The company announced Friday afternoon it’s closing the plywood division within the next few months. The 130 employees were given notice that their last day of work will be no later than Jan. 5.“This is a very difficult decision. We regret the tremendous impact this will have on our employees,” said Jim Baskerville, regional manager of the company’s veneer and plywood operations.Sawmill operations, which employ about 200 workers, will continue at their current level, Baskerville said. The company must now negotiate with the union over severance packages and whether laid-off workers can “bump” other Tolko employees. There are four other veneer and plywood mills in B.C., including Armstrong and Lumby. Company officials waited until Friday afternoon to inform the affected workers. “This was the first they heard about it. Most folks were quite concerned,” said Baskerville. Tolko attributes the closure to changes in the North American plywood market and the “devastating effect” of the mountain pine beetle in the B.C. Interior.Oriented strand board (OSB) has proven to be a formidable challenge for the plywood industry. More than half the homes in the Okanagan use it instead of plywood, Baskerville said.“OSB is in direct competition with plywood. OSB can use very low-quality trees. Plywood needs the highest quality of tree.”The pine beetle, which has ravaged millions of pine trees in the B.C. Interior, has destroyed a major source needed to support Kelowna’s veneer and plywood business, said a company news release.Supplies of Douglas fir, which is also used in plywood, is scarce in the Okanagan, said Baskerville, making the cost of transporting it “prohibitive.” The shutdown will remove 180 million square feet of plywood from the marketplace, according to the news release. The mill has operated in Kelowna for more than 50 years.“We sincerely thank all of the employees for their contributions to the company and the community over these many years,” Baskerville said.No union spokesman was available for comment Friday.