Canadian Forest Products (Canfor) announced on Friday that it would be indefinitely closing three sawmills, including the Radium site, once existing log inventories are used and finished products are shipped. According to a press release it is a move that will impact approximately 570 workers.
“These decisions are never easy, but are taken in the face of a market downturn that is unprecedented in terms of both duration and intensity. Canfor must continue to restructure its production capabilities to match the demands of the market and ensure that the needs of key customers continue to be met,” said Canfor president and CEO Jim Shepard.
The closing follows a three-week shutdown that took place in April as well as other industry shutdowns in Canal Flats and Elko. It comes as a result of a strengthening Canadian dollar and low demand for product, according to Dave Lefebvre of Canfor.
“These decisions are in no way a reflection of the employees in these communities,” said Lefebvre. “They have worked incredibly hard. They understood the situation that Canfor was in. It is despite their best efforts that we have had to make these decisions.”
Recently re-elected MLA Norm Macdonald expressed concern for the roughly 170 workers who will be out of work in Radium. “It means a major impact for people in the communities of not only Radium but of Invermere, Edgewater and as far as Brisco and it’s going to hit small businesses hard as well,” said Macdonald. “We’re going to have to watch very carefully to make sure that Canfor is going to live up to the obligations it has to workers and to the communities that are impacted.”
Radium Hot Springs Mayor Dee Conklin commented on the effect the closing would have on the town.
“The announcement today regarding Canfor’s decision to close its operations in Radium comes as a great shock to the community,” said Conklin, “not only because of the impact it will have economically, but more importantly because of the hundreds of families who live in our valley that will be affected. These are our friends and neighbours and this is a very sad day for our community.”
She went on to say that RHS has tried to diversify its economy and she is confident the town will continue to move forward.
Macdonald also expressed his hopes for the future of the mill. “My expectation is that when markets improve that this mill will reopen and I think we need to say very clearly that that needs to happen,” said Macdonald.
Canfor’s outlook is less concrete. “We use the word indefinite for a very specific reason because of what this is. It’s an indefinite closure,” said Lefebvre.
“What we need to see is a sustained market turnaround to make a decision to reopen a mill.”
As for the present, mill workers are looking at their options. Melodie Krasnuik of the Columbia Valley Employment Centre said the centre is in the process of finding out what those options might be.
“If the folks come in, some of them just apply for their EI and utilize that until they go back,” said Krasnuik, “but with this one I imagine we’re going to see an influx of people who are going to do that as well as starting their job search.”
Lefebvre said that Canfor has a team in place to help people transition into collecting EI.
As well, Krasnuik said there are some programs in place to assist forestry workers facing layoffs but they vary according to the specific case. She said anyone needing further assistance should come by their office in Invermere.