Approximately 180 contracted workers and employees of Teal-Jones Group are out of work following a curtailment of operations. (File photo)

By Alex Rawnsley

LUMBER LAYOFFS

Local forestry workers laid off as economy weakens

Sep 10, 2019 | 8:01 AM

NANAIMO — Lower lumber prices, higher costs for source materials and a trade dispute between the United States and China have forced a large layoff of mid-island forestry workers.

Surrey-based Teal-Jones Group announced on Tuesday, Sept. 10, approximately 180 contractors and a small number of employees at their log sort in Duke Point and Honeymoon Bay area of license were laid off, effective immediately.

Group vice president and chief financial officer Gerry Kotze told NanaimoNewsNOW economic conditions don’t allow them to be profitable under their current system.

“We’ve struggled with low lumber prices for upwards of 12 months. Lumber prices really started coming down in Q3 of 2018 and the poor prices have persisted through today.”

Prices peaked in May 2018 at $651 (USD). The market closed on Tuesday, Sept. 10 at $361 (USD).

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Despite fluctuating prices, Kotze said there are no immediate plans to bring workers back

“What we’ll require (to increase operations) is a better market, better lumber prices. A lot of factors impact those markets including the ongoing trade dispute between the US and China that’s impacting two big markets for us.”

Up to 300 contracted workers and employees across B.C. were laid off.

Kotze said further layoffs could be pending in their lower mainland operations, staffed by around 500 forestry workers.

alex.rawnsley@jpbg.ca

On Twitter: @alexrawnsley