Friday, February 22, 2008 03:59 AM
Tolko has announced some temporary curtailments at all four of its Cariboo lumber operations.
A minimum two-week curtailment will begin March 3, affecting more than 1,100 direct and contractor employees at three mills in Williams Lake and one in Quesnel. Nearly 40 million board feet, or one billion board feet on an annual basis, will be removed from the marketplace.
“These decisions are never easy and they are even more difficult when our employees, mills and contractors have performed so well,” says Rob Fraser, General Manager, Cariboo and Alberta Lumber. “Unfortunately, the current economic conditions do not support the continued operation of our mills at their current levels.”
A return to operation for all four mills will depend on market improvements.
2008 has seen Tolko take plenty of action.
January 10th, Tolko announces temporary sawmill curtailment of it’s Manitoba division between January 28 and February 8. 110 employees impacted
February 11th Tolko announces indefinite closure of High Prairie OSB mill 119 employees
February 18th Tolko extends the downtime at two panel operations in Armstrong and White Valley ( near Vernon) 300 workers impacted
February 22nd, Tolko announces curtailment at four Cariboo lumber operations, 1100 direct and indirect workers impacted
In all cases, the curtailments or closures are being blamed on poor market conditions.
More mill closures.
I just have to ask what are the laid off mill workers going to do? Move to Vancouver? Live where? They can't afford to buy any housing here and who would buy their old house anyway. Maybe they could work construction for a year or two and then what? I think its more likely that these people will go work in Alberta in the oil patch and probably retain ownership of their home.
7 comments:
They can't afford to buy any housing here and who would buy their old house anyway.
Why locusts from Vancouver of course. It's way cheaper so it must be a good buy right? The properties can cash flow, well so it appears in the rear view mirror.
"I think its more likely that these people will go work in Alberta in the oil patch and probably retain ownership of their home." I agree most forestry workers are used to boom/bust and will work away from home at least for a year or two, after that they may decide to pack it in in this province and move to Alberta. They tend however to be community minded and most buy homes to live in NOT for an investment. I think they will outlast Vancouver condo owners who will just panic..and likely be unemployable in Alberta's oil patch.
A must read regarding Alberta oil patch:
Understanding Energy In Alberta:
Why We Have a Conventional Oil & Gas Recession in 2008
From what I understand, there have already been 10,000 layoffs and Ziff Energy believes there will be another 40,000. With a 40% drop in drilling, the industry is in a recession and many equipment and people are sitting idle.
In addition, this will have a 'multiplier effect' across the broader economy.
What this paper points out many common misconceptions people have about the oilpatch, and the direction it is going.
I work as a petroleum engineer in Alberta and I don't think the average guy gets this points yet:
1) Most Alberta wells are drilled for gas, not oil.
2) Alberta's conventional oil pools are 'legacy.' e.g. I believe over 90% of conventional oil has already been recovered.
3) Future is unconventional oil, but will require a sea change in technology and migration.
radley77 - I think you are right that most people don't understand what is going on in alberta.
Sorry for being out of topic, however, does anyone know what to do if you over contribute in your RRSP (over $2000)? Help.
First of all is it a real overcontribution? Remember if you contribute in the first 60 days of 2008 you can claim it against your 2007 or 2008 income.
If it is, you have to file an overcontribution schedule and pay a penalty of 1% per month. I think you get to take the overcontribution back out without it being taxable (the contribution is not deductible of course).
There has been some discussion of this on Financial Web Ring, you might like to check it out.
"does anyone know what to do if you over contribute in your RRSP (over $2000)?"
You can file for exemption where money is removed from RRSP without withholding tax. As long as the deductions are unclaimed you should be able to transfer them out of the RRSP account with no penalty. See this form for more information.
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