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Published on: 8/4/2009
Last Visited: 8/5/2009
Forest industry analyst Paul Quinn said because of the current economic environment there is a huge need for industry to reduce costs.
He said it's hard to see how industry would take on any labour cost increase.
He noted that in particular the strength of the Canadian dollar is hurting forest companies.
The loonie today, at 93 cents to the U.S. dollar, is 20 cents higher than it was in 2003, the last time the Interior sawmill sector negotiated a contract.
Quinn, an analyst with RBC Capital Markets, said one possible solution would be if a profit sharing mechanism for workers is coupled with a base wage, so that both companies and workers could share the ups and downs of the market.
There is no indication of a quick settlement, with negotiations likely to continue into the fall, observed Quinn.