Tolko slashes 14 jobs, cuts winter log haul

Chris Clegg
South Peace News

Tolko Industries’ High Prairie Division put 14 people out of work Oct. 16, some who have been employed by the company since its first day of operation over 10 years ago. Several factors prompted the decision including a North American housing market slump for oriented strandboard, the rise of the Canadian dollar, rising energy costs and rising transportation costs, says Parker Snyder, business unit manager, High Prairie. “It’s a difficult time,” says Snyder. “Those people are looking for another income. The mill is really in a funk. Some (workers) have lost friends they’ve worked side by side with.” Tolko also announced cuts at its Slave Lake and Meadow Lake, Sask. mills. Snyder says when all is said and done, Tolko estimates the three communities will suffer a $45 million economic hit. In addition to job cuts, the winter log haul will be severely impacted. Snyder says the log haul is not suspended entirely despite rumours. “Not quite,” he says. “But it won’t be the usual log haul. We’re scaling back what we usually have.” Snyder could not be specific on the exact economic impact in High Prairie, but with the job cuts and decreased winter log haul it will be significant. Tolko announced in a news release the “indefinite production reduction” was necessary for the company as it reorganizes to ensure long-term success. The High Prairie job cuts means the mill reduced to two shifts Oct. 21, similar to Meadow Lake. “I commend these employees and contractors for the effort and commitment they’ve shown over the last several months,” says Rick Huff, vice president and general manager, OSB and Energy. “Today’s business conditions require tough decisions.” Huffs adds the company’s decision was more than simply cutting jobs. “We’re right-sizing and redirecting the focus of our stand-based business away from heavy commodities,” says Huff. “These are key steps in re-engineering Tolko for long-term success.” What that means, says Snyder, is that Tolko has to find new markets for its product. However, that is extremely difficult regarding a severe North American housing market slump. “We have to find new and realistic potential users,” says Snyder. And, somehow address the rising energy and transportation costs. “All of them are extremely important, says Snyder. He says the mill pays the fluctuating energy costs and deregulation has caused quite a hit. In fact, Tolko caught a break this past summer when power demand caused prices to soar. “In July, we took a vacation ... we would have had to stop because of the demand for power,” says Snyder. Tolko also cut jobs at the High Prairie mill June 18. At the time, Tolko cited poor markets, the rising Canadian dollar, escalating energy, fibre and transportation costs.

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