40% wage cut likely not enough to reopen Ainsworth Savona and Lillooet mills

Ainsworth Lumber officials recently met in British Columbia with representatives of United Steelworkers Local 1-417 to discuss the possibility of getting the specialty mill at Savona and a feeder mill in Lillooet operating.

Ainsworth Lumber closed its Lillooet sawmill and associated Savona mill that manufactures concrete forming products in June, laying off 250 workers. It blamed a rising Canadian dollar and poor markets.

Wages were not part of the meeting, but union spokesman Marty Gibbons said the union was told that wage cuts of 40% might not even be enough to reopen the mills.

The two sides have agreed to meet again. Gibbons said the union is asking Ainsworth to sign a letter of understanding that would ensure severance is paid out if the mill does not reopen. Under the contract union members receive no severance pay if the operation is on indefinite work stoppage for more than 24 months.

Source:

Mill not likely to re-open soon (Kamloops Daily News)