Saturday July 31, 2010

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  • City & Region

    Mill not likely to re-open soon

    Ainsworth Lumber officials offered little hope in a meeting this week the company's Savona mill will re-open soon.

    Company and United Steelworkers Local 1-417 representatives met to discuss ways to get 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.

    "They haven't been able to give us numbers or tell us if operating the mill is even possible," union spokesman Marty Gibbons said.

    A representative from Ainsworth could not be reached Thursday for comment.

    While wages were not part of the meeting because the two sides are engaged in provincial pattern bargaining, Gibbons said the union was told salary cuts of 40 per cent might not be enough to restart 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.


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