With new labour agreement, Conifex sawmill can reopen in Mackenzie, B.C.

The Conifex owned sawmill in Mackenzie, British Columbia can resume operations now that a new labour agreement has been ratified with the United Steelworkers Local I-424.

Details of the new agreement include:

• 3 year agreement


• $2.50/hr is deferred by the workers until July 1, 2013


• In 3 years, the payback is triggered and the workers will be paid back their deferred hourly amount of $2.50


• A payback can be triggered earlier if the price of lumber reaches $315 per thousand board feet but no higher than $355 per thousand board feet


• If the price of lumber goes over $355 per thousand board feet, the payout will be $2.60 per hour

The restart date for the sawmill has tentatively been set for November 1, 2010. 60-70 employees will be returning to work.

Conifex purchased this operation from AbitibiBowater in June. The total acquisition included:

• two sawmills


• a planer mill


• a forest licence with an annual allowable cut of approximately 932,500 cubic metres


• a steam/power plant and associated turbine and boiler


• a paper mill (excluding the headbox)

The combined annual production capacity of the sawmills and planer mill are 445 million board feet of lumber on a two shift schedule.

Conifex intends to dispose of the paper mill assets but plans to retain the power generation assets.

Source:

Conifex Mackenzie Ratifies Deal, Sets Start Up Date (Opinion 250 News)