Friday, May 02, 2008

Tolko trims staff and costs

107.5 KISSFM Pete McIntyre

A Vernon based company is taking additional steps to address the drop in demand for wood building products. Tolko Industries has announced a five per cent staff reduction, and all remaining salaried employees are being asked to take a salary reduction based on their level of responsibility, for up to 18 months. Sources tell KISS FM News, the wages are being rolled back six percent. In a news release, CEO and President Al Thorlakson says, "In spite of the actions already taken over the last year more needs to be done to address these market realities." "This is a very painful move in that these are very good employees, who have made a solid contribution to the company. "Our facilities are operating exceptionally well, reflecting an outstanding commitment from all of our employees. "The tough market we are facing is a product of factors outside of our control or influence." Tolko will continue working with all suppliers, municipal and provincial governments and other stakeholders in an effort to reduce the cost of doing business. The latest moves come after layoffs at the company's plywood and veneer plants in Armstrong, Lumby and Kelowna were extended indefinately last month.

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