Truck LoggerBC, Fall 2016 - Volume 39, Number 3

Downloading Wildfire Costs onto the Contractor ]

www.tla.ca

[ INSIDE

Fall 2016

Market Logging: A Win-Win for Everyone?

Fibre, Fibre Everywhere, But Not a Log to Mill

PM # 40010419

SLA: Understanding the Consequences of No Agreement

Fall 2016 Truck LoggerBC 1

PURPOSE-BUILT FOR TOUGH FORESTRY APPLICATIONS Link-Belt 40-Series Forestry machines are designed and built for the work See the new Link-Belt 40-Series Forestry machines you do. Tough and dependable to handle road building, harvesting, loading, at Inland. We have 14 locations across British processing and more.

Columbia and the Yukon ready to serve you.

• • • • • • • • •

Powerful, fuel-efficient Tier 4 Final engines with no DPF Larger fuel tank keeps you working longer Improved cycle times and best-in-class swing torque Increased draw bar pull 7” high-definition colour monitor Rear-view camera Oregon OSHA/WCB compliant forestry cab Free RemoteCARE® telematics for 3 years 3-year, 5000-hour Powertrain Warranty

Campbell River Cranbrook Fort St. John Kamloops Kelowna Langley Nanaimo

Penticton Prince George Quesnel Terrace Vernon Whitehorse Williams Lake

INLAND-GROUP.COM Proud member and supporter of the Truck Loggers Association.

2 Truck LoggerBC Fall 2016

CONTENTS

FALL 2016 Volume 39 Number 3 www.tla.ca Photo: Erin Wallis Photography

32

Columns & Departments

Cover

7

36 Market Logging: A Win-Win For Everyone?

8

President’s Message

Making Sure We’re “In It For The Long Run” Jacqui Beban

Executive Director’s Message

Bracing Ourselves: SLA Impacts On The Coast David Elstone

10 Interior Logging Association’s Message Contracts: Understanding Their Power and Pressure Wayne Lintott

13 North West Loggers Association’s Message

Facing Challenges, Finding Solutions: Logging in the Northwest Ken Houlden

15 Market Report

Understanding What’s Physically Possible: Canada’s Role in US Softwood Lumber Markets Brooks Mendell

16 Safety Report

BC’s Log Haulers Reduce Rollovers by More than 50 Per Cent Dustin Meierhofer

18 Legal Report

Downloading Wildfire Costs onto the Contractor John Drayton

20 Business Matters

Cracking the Rate Model Part Two: Equipment Overhead and Input Costs

Jim Girvan

Features 24 Fibre, Fibre Everywhere, But Not a Log to Mill Ian MacNeill

32 Growing Our Workforce Sandra Bishop

40 Fighting for Fair: BC Forest Safety Ombudsman Roger Harris

43 Logger Sports: Forestry & Community Coming Together for Fun! Brenda Martin

47 SLA: Understanding the Consequences of No Agreement Robin Brunet

50 Near Miss Reports are Gifts!

Cherie Whelan

54 A Mexican Fiesta at the TLA Golf Tournament!

TLA Editorial

Chris Duncan

Cover photo: Brenda Martin

Fall 2016 Truck LoggerBC 3

A&A TRADING LTD. Forestry Management and Marketing

The Truck Loggers Association 2016 Executive & Directors

Interior Logging Association 2015-2016 Board of Directors

Chairman Jacqui Beban Mike Richardson First Vice Chairman Second Vice Chairman Don Banasky Past Chairman David Elstone Directors Ted Beutler Howie McKamey Dave McNaught Clint Parcher Mark Ponting Barry Simpson Doug Sladey Matt Wealick Adam Wunderlich Associate Directors George Lambert Tim Lloyd Brian Mulvihill Carl Sweet Adam Pruss General Manager Editorial Board Don Banasky Administration Jacqui Beban

President Vice President Past President Executive Director Industrial Directors

Proven 30 year track record of maximizing timber values Experienced, qualiďŹ ed staff including 8 Registered Professional Foresters Development capital at attractive rates Strong customer base in domestic and export markets

Accurate market price forecasting Detailed planning and budgeting process to ensure performance Assisting First Nations develop successful forestry businesses for over 10 years

VANCOUVER 1210 - 1111 Melville Street Vancouver, BC V6E 3V6

SECHELT 5083 Bay Road Sechelt, BC V0N 3A2

CAMPBELL RIVER 207 - 1100 Island Highway Campbell River, BC V9W 8C6

T: 604-684-2107 F: 604-689-0977 E: dmartin@aatrading.com

T: 604-740-0603 F: 604-689-0977 E: dmarquis@aatrading.com

T: 250-287-0143 E: jpollock@aatrading.com

James Byrne Graham Lasure Wayne Lintott Brian Mulvihill Bill Sauer

Reid Hedlund Randy Spence Len Gudeit Ed Smith Lee Callow Guido Claudepierre Dennis Cook John Drayton Randy Durante Matt Edmondson Frank Etchart Shane Garner Scott Horovatin Jeff Kineshanko Hedley Larsen Bill McDonald Tim Menning Ron Volansky Wayne Lintott Nancy Hesketh

Interior Logging Association 3204 - 39th Avenue Vernon, BC V1T 3C8 Tel: 250.503.2199 Fax: 250.503.2250 E-mail: info@interiorlogging.org Website: www.interiorlogging.org

FALL 2016 / VOLUME 39 / NUMBER 3 Editor Brenda Martin Contributing Writers Jacqui Beban

Sandra Bishop Robin Brunet John Drayton Chris Duncan David Elstone Jim Girvan

Roger Harris Ken Houlden Wayne Lintott Ian McNeill Dustin Meierhofer Brooks Mendell Cherie Whelan

For editorial information, please contact the Truck Loggers Association: Tel: 604.684.4291 Email: trucklogger@tla.ca For advertising, please contact Advertising In Print: Tel: 604.681.1811 Email: info@advertisinginprint.com

Sustainable growth through healthy forests and healthy British Columbians.

Truck Loggers Association members know that a healthy forest means jobs and economic growth.

Pacific Blue Cross is a proud partner of the TLA in supporting workforce health and productivity.

Truck LoggerBC magazine is published four times a year by the Truck Loggers Association, with content and support from the Interior Logging Association and the North West Loggers Association. Its editorial content seeks to reflect issues facing the industry and to provide readers with current information on BC’s forest industry. All rights reserved.

Advertising Sales & Design Layout office:

Advertising In Print 200 - 896 Cambie Street, Vancouver, BC V6B 2P6 Tel: 604.681.1811. Fax: 604.681.0456 Publication Mailing Agreement No. 40010419.

For subscriptions, contact office@tla.ca or 604.684.4291.

Send change of address notices and covers of undeliverable copies to:

4 Truck LoggerBC Fall 2016

The Truck Loggers Association Suite 725-815 West Hastings Street Vancouver, BC V6C 1B4 E-mail: contact@tla.ca

Tel: 604.684.4291 Fax: 604.684.7134 Website: www.tla.ca

from the Editorial Board DESK...

W

elcome to the Fall 2016 edition of Truck LoggerBC! Summer has come and gone and it was a relatively cool one. I hope our TLA members had a productive summer and are positioned to have a good fall season as well.

The TLA golf tournament was another success.

Great weather, amazing venue, good food and some decent golf played. Congratulations to Finning Canada for the team with the lowest score. The TLA would also like to thank our sponsors for all of their support—see page 54 for tournament details.

The fall edition of the magazine includes a number of interesting topics. Our Legal Viewpoint addresses fire insurance and changes some licensees are making to their contracts and agreements. This article will assist our membership in understanding the impacts of these changes. Our Business Matters article is the second in a four-part series on rate models which continues to provide our membership with an in-depth look at how a rate model is put together. On the topic of safety, Safety Ombudsman Roger Harris provides an overview of the Ombudsman’s role and how our TLA members can reach out to him. Among our feature articles, we have a great piece on the balance between supplying fibre to small local mills and the export markets with perspectives from both the Interior and the coast.

Another article looks at market logging and the role it could play in addressing contractor sustainability in BC. The last article I want to mention is about the industry labour force. This article comes out of the TLA’s “Community Perspectives On The BC Coastal Forest Industry” report and is sure to create some discussion in the workplace around sustainable employment and the number of people the forest sector employs in your community.

So as you can see, we have an exciting and interesting lineup of issues to debate and articles raising awareness in this issue. I have only touched on a few, there are many more. As always, we hope you enjoy our magazine and find it informative. If you have any feedback or comments, please contact Brenda Martin, Director of Communications, at 604.684.4291 ext. 2 or brenda@tla.ca.

Ts’ayweyi:lesteleq (Matt Wealick, MA, RPF) Probyn Log Ltd., Editorial Board Chair

VANCOUVER ISLAND

Fall 2016 Truck LoggerBC 5

WHEN PRODUCTIVITY MATTERS

WE’LL HELP YOU SEE THE FOREST FOR THE TREES. Finning offers a complete line of purpose-built forestry equipment, from core machines that help with road building, log transport and material handling, to machines that harvest, extract, and load.

6 Truck LoggerBC Fall 2016

Jacqui Beban

TLA President’s MESSAGE

Making Sure We’re “In It For The Long Run”

L

ast month, the government released its new agenda, “Strong Past, Bright Future: Competitiveness Agenda for British Columbia’s Forest Sector.” It’s meant to “broaden the conversation to explore new actions and include other participants from our integrated forest sector, community leaders and First Nations.” This is good news for the TLA since we are a grassroots organization and a unifying voice for BC’s forest industry. We just published our report, Community Perspectives on the BC Coastal Forest Industry and our members live and work in BC’s rural communities. We welcome a broader conversation.

While the plan is quite high-level, I was pleased to read a vital strategic action within the Stable Communities and First Nations Partners goal: “Working with contractor associations and major licensees to ensure contractor interests are met.” There is an imbalance right now in the forest sector which has led to TLA members expressing concern about the health of the industry’s supply chain. I’m hopeful these concerns will be fully addressed as part of this action item.

While major licensees have significant influence given their size, contractors across the province are the foundation for the forest sector. No manufacturing, marketing or utilizing of the resource occurs without the use of independent timber harvesting contractors to harvest the timber and deliver logs to sawmills, pulp mills or export facilities. Almost every log in this province is handled by independent contractors. So, individually, contractors are small players, but collectively—under the umbrella of contractor associations such as the TLA—we create a combined voice larger than even the major licensees.

This brings me to our convention, a seasonal highpoint for many TLA members and a cornerstone in our advocacy efforts. The theme for the TLA’s 74th Annual Convention & Trade Show

is “BC Forestry: In it for the Long Run.” I think it describes our members well.

Independent timber harvesting contractors are the economic backbone of BC’s coastal communities. They helped build our coastal towns decades ago and they continue to play a strong role in their communities’ economic success.

The theme also points to our main advocacy message: contractor sustainability. To ensure TLA members will always be in it for the long run, the TLA’s advocacy focus over the last year has been on contractor sustainability.

We believe the people who work in the forest industry should share in the prosperity. And the topics at this year’s convention look at how that sharing of prosperity can happen.

With this in mind, we take another look at steep slope logging. First, we’ll check in to examine what has taken place over the last year in steep slope best practices and update you on the productivity achieved.

Then we’ll look at how success in harvesting steep slopes will demand synergy between technology and stakeholders in a changing market. What’s the risk in stranded capital and can we afford to meet the challenge? The more capital contractors need to invest without certainty in their work, the more risk they take on and the less sustainable their businesses become.

The overhead costs of operating contracting businesses continue to mount.

But we know that to drive a successful business, owners must be current, compliant and sustainable. We’ll consider three types of overhead costs: drug and alcohol testing, human resources, and safety management. And then we’ll address this question: How can contractors meet their obligations to their employees and industry regulations in a way that’s also fiscally prudent?

Taking a broader look at contractor sustainability, we’ll investigate models for success in the long run. Market logging for contractors is an old idea that’s

coming back again. (For details on the market logging concept, see the article “Market Logging: A Win-Win for Everyone?” on page 36 of this issue.)

We’ll also look at new models for our forest sector. Often, I think contractor sustainability is an achievable goal if we set aside old paradigms and not just think outside the box, but eliminate the box entirely!

Forestry continues to face a not-inmy-backyard attitude in many of our urban/rural interface areas.

We’ll have a variety of forest stakeholders—tourism, municipal government, labour and industry—discuss the relationship between their positions and resource use. When I think about this topic, I remember my first President’s Message where I talked about the importance of communicating, building trust and aligning our goals. I look forward to hearing what these stakeholders have to say.

Contractor sustainability can help build changes made within our industry. However, outside forces impact us in ways that are hard to plan for or react to. The Softwood Lumber Agreement is one of those external pressures. In order to avoid a mass exodus of independent contractors or risk losing a natural resource industry, we need to defend a strategy that moves us from the past and provides a stake in the future of equitable benefits.

This is by no means a full review of everything that will be discussed at our 74th Annual Convention & Trade Show. But I hope this introduction makes you stop and think. We’re at a critical time in the forest industry and it’s more important than ever that TLA members come together to make sure we are “In it for the Long Run” as we have been for generations.

Jacqui Beban, President, TLA Tel: 250.951.1410 Email: jacquibeban@gmail.com

Fall 2016 Truck LoggerBC 7

David Elstone

TLA Executive Director’s MESSAGE

Bracing Ourselves: SLA Impacts On The Coast

I make no apologies for the following. It may sound alarmist, but I rather shout now and be proven wrong, than be right. Here is the situation.

I

t is well understood—at least by contractors—that during the last downturn the belt tightening requested by their customers (the major licensees) would be loosened when markets improved. If you have read any Truck LoggerBC magazine over the last couple of years, you will know that expectation was not fulfilled. Contractors have steadily gone broke while many major licensees saw a healthy recovery in their balance sheets—and exported their profits as investments in southern US sawmills. While some contractors continue to persist, the TLA predicts the supply chain is at risk. The ebb of frustrated contractors leaving this sector is becoming far greater than the flow of new contractors entering.

This is my concern. Markets have been relatively good for the last few years, keeping up the demand for logs, in particular red cedar. Prices of logs have slowly improved (notwithstanding red cedar’s stellar ride). Most importantly, for the last 12 months, Canadian shipments of lumber to the US have crossed the border unimpeded by any financial or volume restraint. In other words, we have actually experienced true free trade. Unfortunately, that last 12 months of constraint-free trade was by design of the architects of the last softwood lumber agreement signed in 2006. As you read this, that free trade window will have closed and the Canadian industry will be vulnerable to whatever the US hits us with.

The probability of a new softwood lumber deal leading to managed trade is low in the next few months given the upcoming US election. In the meantime, it is not unreasonable to expect counter-veiling (CVD) and anti-dumping (AD) duties—likely totaling 30 per cent—based on the last time we were at this juncture.

8 Truck LoggerBC Fall 2016

Some people I’ve spoken to have said the softwood lumber trade issue is more an Interior SPF lumber thing than an issue for the coastal industry. I respectfully disagree. Under the last SLA, a portion of the coastal market was shielded from the full impacts of the export charges. Charges on red cedar lumber exports to the US were only applied on the first $500 per thousand board feet. Under a CVD and AD scenario, the full price is now exposed.

Approximately 30 per cent of say $1,800/thousand board feet is $540.

That will have a huge impact. Maybe this species will get excluded from future trade penalties—given its uniqueness it should be—but don’t count on it.

As loggers, let me ask you: How will our coastal and Interior industries deal with a 30 per cent increase in costs for lumber? There will be an attempt to pass off some as price increases to lumber purchasers. But it is more likely that sawmills will be looking back down their supply chain for assistance to help absorb that cost. Who is going to help?

Fuel suppliers? The unions? Equipment distributors? Bankers? No. I am betting the focus will be on you.

There will be ever more pressure from your contract managers. They’ll say “We are all in this together. Help us out Mr./Ms. Logger….your rates are too high for my sawmill to stay in business and manage these CVDs and ADs.” Here’s the thing. Contractors and some of their customers have fostered healthy, mutual respectful relationships over the last number of years. In the Fall 2015 issue of Truck LoggerBC the article, “Goliath? No, That’s The Other Guy: Building Partnerships in the Forest Industry” highlighted these relationships where the service provider and customer worked together. Those are

great relationships and I would expect if those customers ask for help, the discussions between them and the contractor will be meaningful.

However, given that most contractors have not seen their balance sheets repaired over the last few years of good markets, there is very little for most contractors to contribute to sustaining business relationships. This is especially true for those who have been working underneath the thumb of a major licensee. I am not the first to say this; good relationships are not developed for the sake of good markets; they are there for when markets are poor.

So while the logging business has been quite busy over the last year, especially with the favourable weather this summer, please don’t be lulled into thinking everything is all right. We are about to enter some very challenging and uncertain market conditions. I predict that as usual loggers will end up bearing the brunt of it as the start of the raw material supply chain.

This means there is an even greater urgency in addressing the TLA’s primary concern of contractor sustainability. Contractors are the economic backbone of rural communities.

Approximately 90 per cent of the BC harvest is conducted by independent timber harvesting contractors. Community stability will be threatened and the supply chain may break. The softwood lumber trade dispute has the potential to create widespread financial pain. And given that contractor sustainability has not been addressed, I predict today’s contractors will not be able to withstand the pressures that they once were able to and there will be no one left to take their place.

David Elstone, RPF, Executive Director, TLA Tel: 604.684.4291 ext. 1 Email: david@tla.ca

REBATES! Brandt is celebrating $1billion in annual revenue and we’re thanking our customers by offering special rebates throughout the year.

Visit thanksabillion.ca for details.

STEADY INCOME. THE ALL NEW DEERE M-SERIES.

The new M-Series Tracked Harvesters and Bunchers redefine the meaning of uptime, productivity, and low daily operating cost. Forty-five percent more tractive effort and a longer, wider undercarriage makes negotiating steep or difficult terrain safer and easier. The significantly improved powerplant produces 25-percent more power for superb multifunction performance. The M-Series are Deere’s strongest, and most productive forestry machines to date. And best of all, it’s backed by Brandt – the best trained and most committed after sales support team in the business. That’s Powerful Value. Delivered.

YOUR DEMO DEMO ATSCHEDULE BRANDTPROMO.CA

FLEXIBLE OPTIONS FIND OUT MORE 1-855-711-4545 FINANCING CUSTOMIZED,

brandt.ca 1-888-227-2638 Fall 2016 Truck LoggerBC 9

Wayne Lintott

Interior Logging Association’s MESSAGE

Contracts: Understanding Their Power and Pressure

S

ometimes it is hard to pick a topic or subject to write about; so for this article I have chosen, in part, to voice my concerns about log harvesting contractors and their legal contracts with their employers.

Whether their contracts are five-year renewable Bill 13 contracts, one-year independent road building contracts, non-renewable master timber harvesting agreements or any other form of documentation, they are all legal, documented contracts. These contracts are prepared for the employer by lawyers, accounting firms, foresters and licensee management. Thousands of dollars are spent each year modifying and changing the terms and conditions of these contracts as they are written to protect the licensee’s interests and liabilities and not those of the log harvesting contractor.

Photo: Kari Sibaugh Photography

10 Truck LoggerBC Fall 2016

Time and time again, when contracts are up for renewal, we continue to hear: “I had to sign the document so I could continue to work” or “I signed the document because I have been working for the company for years.” We have seen situations where contracts have been signed without a review by the owner, their lawyers or accounting company.

continue to see contracts being signed without any negotiations taking place.

There are many contract examples we could voice our concerns about.

But for now, as an example, please refer to page 18 and read John Drayton’s article, “Downloading Wildfire Costs onto the Contractor.”

Looking forward, please mark your

We continue to see contracts being signed without any negotiations taking place.

In some cases, contracts have been reviewed legally and financially and the contractor has been advised not to sign; but due to the pressure to continue working they sign without any further negotiations. All they can do is hope that nothing happens during the term of their contract. It is stressful. But we

calendars for next year’s Interior Logging Associations Conference and Trade Show. It will be held in Vernon, BC on May 4, 5 & 6, 2017. The theme will be “Women working in the Forest Harvesting Industry.” For further information, please call the Interior Logging Association at 250.503.2199

Fall 2016 Truck LoggerBC 11

Mobility Wins!

Peterson 5000H Whole Tree Chipper, the all-in-one chipping solution!

New tracked Peterson 4810F Debarker paired with a Peterson Disc Chipper

Peterson’s mobile chipping equipment provides innovative solutions for your in-field chipping requirements. Around the world, Peterson chippers and flails provide the highest quality chips produced at the lowest cost per ton. Let us know how we can help you grow your business!

Visit us at www.petersoncorp.com today!

PO BOX 40490 • Eugene, OR 97404 USA 12 Truck LoggerBC Fall 2016

800-269-6520

Ken Houlden

North West Loggers Association’s MESSAGE

Facing Challenges, Finding Solutions: Logging in the Northwest

O

ur efforts to revitalize the North West Loggers Association have had some success over the summer. We are back in contractors’ consciousness and a topic of discussion. Summer is a difficult time to get things rolling with sun and holidays top of mind for many.

Now that fall is here, I hope the work we’ve done so far will snowball so to speak. We held a meeting in June which resulted in picking out some key issues to focus on in the coming months. I will outline some of these topics below.

Five years ago, government was putting a lot of energy into helping find solutions to the problems the forest industry faces in the northwest. Our fibre basket is heavy with low-grade sawlogs and “fibre-quality” logs—what used to be called pulp logs. However, we don’t have pulp mills in our region anymore.

We find ourselves in the position of not being able to sell the low grades unless there is a shortage on the coast. This reality leads to an on-again off-again market.

With the start-up of hydro line clearing and LNG pipeline clearing, the focus of government and contractors shifted to this wealth of demand for equipment and manpower. That demand has disappeared with the delay of LNG and completion of hydro line development. We intend to restart the conversation with government and contractors on this issue. There are opportunities for bio-energy, pellets and other wood waste products in BC’s northwest. However, these opportunities come with a challenge.

The challenge is the high percentage of fibre quality logs in our forests. For every sawlog we harvest, we must also harvest a “fibre” log. This is a problem because there isn’t a market for fibre logs. Even if we had a pellet or bio-energy plant in the area, the prices we have

seen paid for a fibre log is nowhere near what it actually costs to harvest one in the northwest. This means that the price we get for sawlogs needs to subsidize the cost of harvesting the fibre logs.

Rick Brouwer, a professional forester and the Executive Director of the Skeena-Nass Centre for Innovation in Resource Economics (SNCIRE) notes if we can find a solution where the price paid for fibre logs covers the cost of harvesting and delivering them, the benefits will be much more than the jobs from logging the fibre. It will create opportunities for additional logging

ple in the northwest to purchase cedar lumber. Some of the sawmillers have switched to other products but those markets are much smaller. The small scale milling industry provides stable, local jobs and draws money into the area with their sales. We need to support these operations and encourage the diversity they provide.

Skeena Sawmills, the only large scale sawmill in the northwest has received a a significant cash injection from industry investors. These investors must feel there is a future in the area. The membership of the NWLA hopes this is the

There are opportunities for bio-energy, pellets and other wood waste products in BC’s northwest. and manufacturing of sawlogs as well, and will encourage increased and better utilization of our forests. It will also reduce the amount of “waste” that gets left in the woods or burned. SNCIRE’s calculations show these additional benefits would be hugely beneficial to the region and also to government due to the increase in taxes, fees, royalties and stumpage paid to the Crown—so it’s in government’s interest to work with us towards finding these solutions.

As discussed in “Fibre, Fibre Everywhere, But Not A Log To Mill” on page 24 of this magazine, small mills across BC are struggling to access fibre. Small sawmills in the Northwest are no different. Due to the current high market for cedar, it is almost impossible for a sawmiller to purchase cedar round log.

Log brokers have bigger BC customers to satisfy and have difficulty redirecting to local mills when their major customers are demanding supply. (This isn’t a log export issue as the law doesn’t allow red cedar to be exported as logs.)

As a result it is also difficult for peo-

start of a trend. It has been a long time since the northwest forest industry received this kind of investment and we hope it results in some stability.

I am looking forward to the TLA convention this January. It has been a number of years since I have been able to attend. It has always been a good opportunity to discuss the issues of the day and have some fun at the same time.

I hope to see you there.

Fall 2016 Truck LoggerBC 13

NOT ALL INSuRANCE pOLICIES ARE CREATED EquAL.

How does yours stack up?

JLT Canada offers TLA Members exclusive access to an Equipment and Liability program. With competitive pricing and industry leading service, we offer: • Comprehensive, industry-leading policy coverage that mitigates the unique risks faced in the forestry industry • A robust and responsive claims service, for help when you need it most • Long-term stability, built on the strengths and safety standards of TLA members JLT Canada specializes in the insurance needs of resource-based industries like yours. To learn more, or to talk to us about our Marine, Aviation, Construction, Motor Truck Cargo, Surety, or Environmental expertise, contact us today.

Peter Pringle

Steve Hicks

Ben Fitzpatrick

Managing Director

Senior Vice president

Account Manager

T: +1 250 413 2712 C: +1 250 361 5702 E: ppringle@jltcanada.com

T: +1 250 413 2723 C: +1 250 588 1410 E: shicks@jltcanada.com

T: +1 250 413 2725 C: +1 778 679 9019 E: bfitzpatrick@jltcanada.com

Jardine Lloyd Thompson Canada Inc. Suite 350, 4396 West Saanich Road, Victoria, BC V8Z 3E9 Toll Free: +1 888 216 8018 | p: +1 250 388 4416 | F: +1 250 388 9926 www.jltcanada.com

Jardine Lloyd Thompson Canada Inc (JLT Canada) is a member of the Jardine Lloyd Thompson Group (JLT) | Registered Office: The St Botolph Building, 138 Houndsditch, London EC3A 7AW | Registered in England No. 01536540. VAT No. 244 2321 96 | © December 2015 | REF 15001180

14 Truck LoggerBC Fall 2016

Brooks Mendell

Market REPORT

Understanding What’s Physically Possible:

Canada’s Role in US Softwood Lumber Markets

T

he world is a complicated place and building forecast models may seem a futile exercise. However, the process of confirming what we know and separating it from what we doubt provides a method for defining realistic future scenarios. Pure analysis assesses and quantifies facts to detail the playing field. This helps decisionmakers avoid investments and projections untethered from what is physically possible on the ground. In the forest products industry, this means clarifying and confirming the physical, spatial realities of forests, mill capacities and market locations, and the logistics linking them together.

In practice, some markets are more important than others for timberland investors and forest industry managers.

While timberland owners sell logs to mills that make poles, paper, and panels, the markets and manufacturers that drive the forest cash flows and returns needed to justify reforestation and investment produce lumber. Softwood sawmills consume more grade logs than all other North American grade markets combined, and the value of these logs exceed any other market for stumpage or chips. US markets alone consumed over 44 billion board feet of softwood lumber in 2015. A key question moving forward is, “Where will softwood lumber supplies come from for US home builders?”

Localizing the capacity of softwood sawmills to consume wood translates into robust estimates of regional capacities. Regardless of the macroeconomic assumptions for housing starts, specific mills in specific markets must produce the boards. Are they out there and ready to go? Where? For softwood grade markets in the US South, US North, US Pacific Northwest and Canada, we aggregate mill-by-mill analysis with assessments of announced capacity changes to estimate total available lumber capacity. Sawmills in these geographies account for ~95 per cent of

the softwood lumber used in the US. Estimates rely on the “physical facts” associated with actual mill capacities.

These capacities also become constraints in local timber price models.

Each quarter, our team tests viable pathways for projected softwood lumber production. The thinking prioritizes (1) operable closed capacity that could reopen; (2) markets with well-established infrastructures that can better absorb new demand; and (3) wellsupplied markets that remain far below their historic production levels.

Critical analysis focuses on Canada’s softwood lumber industry. Canada’s ability to manufacture softwood lumber and harvest softwood logs has declined since 2006: the housing market collapse coincided with rippling effects from the mountain pine beetle on Canadian softwood forest supplies.

Forisk’s research includes mill-by-mill confirmation and analysis. So far, this includes detailed confirmation of 69 per cent of Canada’s open sawmill capacity and 91 per cent of Canada’s idled and closed softwood sawmill capacity.

Results indicate that Canada’s maximum softwood lumber production, assuming all open and idled mills oper-

ate at 100 per cent, is 30.5 billion board feet, or nearly 20 per cent less than ten years ago.

In sum, Canada no longer has the physical capacity to produce and import softwood lumber to the United States at levels reached from 1999 through 2007 while also meeting domestic Canadian demands. This period of time coincided with major investments by Canadian forest products firms in the US South. The figure below summarizes the implications and projected US softwood lumber consumption by source. In addition to Canada, the US Pacific Northwest faces physical supply constraints of its own. After leading US softwood lumber supplies in the 1990s, the Northwest industry now operates in a box constrained by drastically reduced log supplies from the US Forest Service (public lands). No matter how much the region “wants” to produce, it, along with Canada, cannot match levels reached 20 years ago.

In sum, two sources—the US Pacific Northwest and Canada—must navigate true, physical supply constraints. That leaves one region able to respond to (Continued to page 51)

Fall 2016 Truck LoggerBC 15

Dustin Meierhofer

Safety REPORT

BC’s log haulers reduce rollovers by more than 50 per cent

O

ver the past three years, highprofile log truck rollovers in BC have been reduced by more than 50 per cent thanks to the dedication of log truck drivers and loadermen, with the support of contractors, fleet managers, licensees and road maintenance contractors.

On average, roughly 2,800 log truck drivers move about one million loads of logs each year across the province with an incident rate of less than 1 per cent. However, it only takes one spilled load of logs to lead to tragedy. In the late summer/early fall of 2013, awareness was heightened with an unusual cluster of five high-profile on-highway log truck rollovers, one of which resulted in the fatality of a member of the public near Whistler.

Within days industry had started the

16 Truck LoggerBC Fall 2016

process to strike a trucking safety group to explore each of the events and focus on what needed to be done to prevent similar incidents. Just weeks later, the Trucking Advisory Group (TAG) was formed, bringing industry representatives together to support the safe delivery of logs. TAG members include representatives from BC’s major forest licensees; forest industry contractor associations, such as the Truck Loggers Association and Interior Logging Association; the Log Truck Technical Advisory Committee (LTTAC); log hauling contractors and safety professionals.

Early on, TAG recognized that improving the safety of log hauling activities meant ensuring that each aspect of hauling had to perform optimally. This includes cycle times, mill weight poli-

cies and efficient unloading; road maintenance; and empowering drivers and loadermen with the knowledge for safe loading and transporting. This meant addressing weights, centre of gravity, crowning, load securement, etc. and the mechanical and driving inputs (speed, steering, braking, etc.) that influence roll-overs. Even for many highly experienced drivers and loadermen, attending seminars—particularly the Anatomy of a Rollover—has been an eye-opener. To date, over the three year period, TAG has helped facilitate more than 100 sessions across the province on four critical topics: Standard of Care, Your Greatest Risk, Distracted Driving, and Anatomy of a Rollover. These sessions were attended by over 4,000 drivers, loadermen, contractors, supervisors and licensee

BC Forest Safety Council

representatives and they are still available by request. If you’d like a session on any of these four topics held in your community, contact me at 250-562-3215 or dmeierhofer@bcforestsafe.org.

In addition to the reduction in the number of high profile rollovers, for the same period, WorkSafeBC also reported a drop in time loss, short- and long-term disability and serious injury claims in both 2014 and 2015. (Note: A high profile rollover is any rollover that occurs on public roads/in public view and/or is reported by the media.)

Industry continues to work on initiatives to further support a reduction in incidents as well as on improved reporting to better track and share the actual number of high profile public highway incidents as well as all incidents and near misses on resource roads. There is one shared objective: deliver every load safely!

Industry is also aware that despite the efforts made to improve cycle times, a perception continues that how drivers are paid influences driving speed, which increases risk and impacts safety. TAG continues to look at opportunities and find solutions, resulting in several mills

The above data is up till August 15, 2016. Please note that these statistics are for high profile rollovers tracked by the BCFSC’s Transportation Safety Department. improving unloading processes to reduce the wait times and making changes to the way they establish, monitor and compensate for cycle times. Any drivers who are concerned about their cycle

times are encouraged to raise these directly with their licensees, contractors and/or with BCFSC or the BC Forest (Continued to page 51)

Plans change.

Make effective communication part of your operation.

The planning decisions you make today can affect the health and safety of workers tomorrow. Find resources to help prevent accidents and injuries at worksafebc.com/safetyatwork.

Fall 2016 Truck LoggerBC 17

John Drayton

Legal REPORT

Downloading Wildfire Costs onto the Contractor

T

here can be many causes of a wildfire: a carelessly discarded cigarette; a lightning strike; a machine fire that spreads to the surrounding forest.

Sometimes a logger will say, “We had a fire on our block, but we have no idea how it started.”

The logger, at least initially, will be expected to fight that fire, and there will be costs associated with that. The government may take over the firefighting.

Once the fire is extinguished, the issue of cost recovery arises. That’s when the provisions of the Wildfire Act intertwine with the logging contract and the contractor’s insurance policy. The results can be quite scary.

Government can recover its firefighting costs from anyone who contravenes the Wildfire Act or Wildfire Regulation if that contravention results, directly or indirectly, in a wildfire. In addition, it can recover the stumpage value of the standing timber that it loses in a fire and the cost of reforestation. The alleged contravener has an opportunity to prove due diligence in order to escape liability, but that’s usually a fairly tall order.

Certainly government has the right to directly pursue a contractor for recovery. More likely, however, is government pursuing the licensee for the acts of its contractor.

What happens when the licensee receives a bill from government? The licensee will probably turn to the contractor and say, “Under the terms of our written logging agreement, you are responsible for paying this bill.” The licensee might also add, “We have incurred our own firefighting costs (different from government’s) and we have suffered our own losses in terms of developing the block, and we want you to reimburse us for that as well.”

Responsibility for paying these costs will be found in the written contract.

Probably it will be found in two different places in the contract—one place for government and licensee firefight-

18 Truck LoggerBC Fall 2016

ing costs; another place for the licensee’s own losses including government losses passed onto the licensee.

There is no uniformity to these contracts—some are harsher to the contractor than others. At one extreme, the contractor is liable to pay even if the cause of the fire is unknown, provided that it is proved to have happened within 24 hours of the contractor last working on a block, and the fire occurred within 100 metres of that block. As a middle ground, one sees the contractor responsible if he caused the fire, regardless of whether he was negligent or careful, in compliance with the Wildfire Act or not. At the other end, one finds the contractor being liable

sible that the contractor will be liable to the licensee on the one hand, but have no insurance coverage on the other.

I have only scratched the surface here.

What I have not talked about is the logging contractor’s own firefighting expenses. Sometimes those might get reimbursed by government or by the licensee; sometimes not. One Interior licensee is requiring that a contractor who causes a fire, even accidentally, bear his own firefighting costs and also pay the licensee’s insurance deductible on top of that.

It is possible for a contractor to obtain insurance for his own firefighting costs— called “first party coverage”—but I understand that this insurance is expensive

At one extreme, the contractor is liable to pay even if the cause of the fire is unknown. only where his negligence caused the fire.

I have had a chance to look at the insurance policies of the three main insurance providers in the province. The bottom line is this: If the contractor was in non-compliance with the Wildfire Act or regulation, and if that resulted directly or indirectly in a wildfire, then the insurance will provide coverage for the government’s claims (up to the policy limits, of course). This is regardless of whether government comes directly after the contractor, or if it comes after the licensee who in turn looks to the contractor for reimbursement.

The matter becomes trickier when the licensee comes directly after the contractor for the licensee’s own firefighting costs (including if it hired other contractors to fight a fire), and for its lost development costs and lost profits regarding standing and decked timber. In that case, there may be a disconnect between the contractor’s responsibilities to the licensee under the contract, and the coverage in the insurance policy. In the case of a machine fire spreading to the forest, or a fire of unknown origin, it’s quite pos-

and rarely purchased. So too is insurance over the processed timber in the forest which, if burnt, means that the contractor’s work will not be paid for.

Contractors are advised to work with their lawyers to avoid taking on too much liability under their contracts. They may want to consider a corporate structure that separates operations from holdings, as a further measure of reducing risk.

And, contractors ought to be taking their contracts to their insurance agents, to ensure that they have adequate coverage.

Finally, from a proactive point of view, contractors should make sure their firefighting equipment and training is upto-date. And, from a big picture point of view, they should consider their liabilities above the demands of getting the wood out when the wildfire hazard increases. It may not be worth the risk.

John Drayton is a lawyer with Gibraltar Law Group who practises in the areas of forestry and motor transport law.

†

YOU’VE GOT AN AXE TO GRIND WITH THIS TREE. YOU CAN’T CALL IT A DAY UNTIL YOU CONQUER IT. ITS ROOTS RUN DEEP BUT YOUR DETERMINATION RUNS DEEPER. ONE OF YOU IS GOING DOWN. AND IT AIN’T GONNA BE YOU.

YOU ALWAYS POWER THROUGH. WHICH IS WHY YOU NEED A TRUCK THAT’S

MEET THE ALL-NEW 2017 SUPER DUTY®.

BEST-IN-CLASS MAX. TOWING 32,500 LBS *

BEST-IN-CLASS PAYLOAD 7,630 LBS **

BEST-IN-CLASS 440 HORSEPOWER ***

BEST-IN-CLASS 925 LB-FT OF TORQUE ***

FORD.CA/SUPERDUTY

Vehicle(s) may be shown with optional features. *On F-450 DRW with 6.7L-V8 diesel engine. When properly equipped with available factory-installed equipment. Class is Full-Size Heavy Duty Pickups over 8,500 lbs. GVWR vs. 2016 competitors. **On F-350 DRW with 6.2L-V8 gas engine. When properly equipped. Class is Full-Size Heavy Duty Pickups over 8,500 lbs. GVWR vs. 2016 competitors. ***On F-250/F-350 with 6.7L-V8 diesel engine with automatic transmission. When properly equipped. Class is Full-Size Heavy Duty Pickups over 8,500 lbs. GVWR vs. 2016 competitors. †F-Series is the best-selling line of pickup trucks in Canada for 50 years in a row, based on Canadian Vehicle Manufacturers’ Association statistical sales report up to 2015 year-end. ©2016 Ford Motor Company of Canada, Limited. All rights reserved.

Fall 2016 Truck LoggerBC 19

Chris Duncan

Business MATTERS

Cracking the Rate Model

Part Two: Equipment Overhead and Input Costs

I

n part two of this four-part series, I am focusing on overhead and input costs. These are the parts of the model we commonly see when a client brings a rate model to us they have prepared.

These are the hard costs of operating your equipment and the real costs you pay out of your pocket to keep the machine moving. These costs are essential to the day-to-day operation of your equipment and cannot be cut completely. As a result, the focus for these costs should be on increasing efficiency.

Overhead and Input Costs 101

These costs will vary depending on the type of equipment you are including in your model. For example, a steep slope harvester will have a far different set of unique costs than a rock drill or a grapple yarder. However, the base underly-

ing model and input costs remain the same—fuel, maintenance, major overhauls, etc.

In part one, we discussed depreciation and amortization and the effect it can have on your rate model. We also spoke about the useful life of the equipment. The useful life of equipment is required when figuring out your overhead and input costs. Some costs, such as fuel, may be extended over the life of the equipment as a consumable expense.

While others, such as major overhauls, may be only triggered at a certain stage of the equipment’s use.

Items to Consider

The list of expenses to consider in a rate model is endless; but here are some of the common costs to consider:

Rigging and Wire Rope

Applies to: Steep slope harvesters, grapple yarders, and any other line based equipment.

Factors to consider: When it comes to rigging and wire, you need to know how many feet and what additional rigging is required. You also need to consider how often the wire and rigging will need to be replaced.

Fuel

Applies to: All equipment Factors to consider: When it comes to fuel, you need to know the fuel consumption of the equipment and what your cost for fuel is going to be on the job site. You also need to be mindful of the volatility of fuel prices and factor in a cushion or negotiate a surcharge or rate change clause based on fuel price.

• Service To All Makes • Kenwood 2-Way Radios • Protec Answering Service • 24-hour Man Checks • Iridium Satellite Phones • Talkie Tooter Service • Satellite Powder Mag Alarms • Telus Cellular • Alarms Sales & Service • Globalstar Satellite Phones

TUG & BARGE

1-877-977-9207

G oo

ood Serv d Company. Good People. G

ice.

www.nicomm.com PH: 250-287-9207 Dave.Emery@nicomm.com 1690 Island Highway, Campbell River MEMBER OF

www.westcoasttug.ca

20 Truck LoggerBC Fall 2016 LAYOUT-1.indd 1

16-08-31 2:38 PM

24/7 SERVICES AVAILABLE

Maintenance Lube and Oil

Applies to: All equipment Factors to consider: With maintenance you need to consider how often and what types of maintenance are required as well as the effects of a poor maintenance schedule. Poor maintenance could increase costs to run the equipment down the road, decreasing overall profitability.

Major Overhaul Parts

Applies to: All equipment Factors to consider: With major overhauls, a business owner needs to consider the wear and tear on equipment.

How rough are their operators on the equipment? Can processes be put into place that reduce strain and increase the lifespan of major components? Break the equipment apart and consider the life of each major part without an overhaul.

How does this compare to the useful life of the equipment? This allows you to factor in how many times this type of major overhaul will occur. Is it every

5,000 hours? Or every 10,000 hours?

Each part will have a different lifespan which can be decreased or increased based on maintenance and operating habits. You will need to factor into your rate model the costs of each major overhaul required to get the full useful life from the equipment.

Maintenance and Major Overhaul Labour / Shop Time

Applies to: All equipment Factors to consider: Who’s doing the major overhauls and maintenance? Do you have a company mechanic working for you? What are their costs? Or will you send it back to the equipment dealer for work? What is their hourly rate? Think about these questions when you’re building your model.

as low bedding, accessories to outfit the equipment such as fire protection, first aid and other safety gear. These costs would normally be prorated over the course of the equipment’s useful life.

These expenses are but a starting point for a generic rate model and do not encompass all the expenses of operating equipment in the industry. However by including them in your model you will have a great starting point and can further customise your model from there.

Stay tuned for “Part Three: Labour and Profit” in the winter edition of Truck LoggerBC. Chris Duncan, CPA, CA is a Forestry Services Business Advisor for MNP LLP. He can be reached at 250.748.3761 or chris.duncan@mnp.ca.

Other Costs to Consider

Other costs commonly seen in the rate model or costs that almost all equipment require would include costs such

Productive & Safe Felling on Steep Slopes WITH ROB! THE TWIN ROPE WINCH-ASSIST SYSTEM UTILIZING THE MOST STABLE ANCHORING MACHINE AVAILABLE – A BULLDOZER Low center of gravity & dozer blade fairleads that allow a wide 45° felling pattern and more wood on the ground Dynamic tension & rope control with multiple safety redundancies Minimal footprint & soil disturbance for year-round logging in the wettest conditions

Kaelyn Sanders 250-246-1414

250-732-7097

www.remotebulldozer.com Fall 2016 Truck LoggerBC 21

In it for THE LONG RUN

74 TH ANNUAL TRUCK LOGGERS ASSOCIATION

JANUARY 18 – 20, 2017

|

WESTIN BAYSHORE VANCOUVER, BC

RegistRation begins octobeR 12, 2016 visit tla.ca/convention to RegisteR

Tla member NoN member After December 11

$575 $680 $690

Limited Gold Passports available for Members and Non Members.

Gold Passports do not include the Loggers’ Dinner and Comedy Club or the Ladies’ Luncheon.

22 Truck LoggerBC Fall 2016

Purchase your gold Passport before they are gone.

With a three - day program full of relevant and compelling speakers, sessions and trade show networking, you will receive unparalleled value and savings with the purchase of a Gold Passport.

Become a valued sponsor and auction donor at the 74th Annual TLA Convention and Trade Show and showcase your brand to BC’s forest industry.

Visit tla.ca/convention for available sponsorship opportunities or contact monica@tla.ca

SNEAK PEAK AT THIS YEAR’S PROGRAM Annual Favourites

Hot Topics

• Welcome Reception

• Minister of Forest’s Breakfast

• Premier’s Luncheon

• Lunch on the Trade Show Floor

• Ladies’ Luncheon

• Suppliers’ Night

• Loggers’ Dinner and Comedy Club

• The After Party • Live and Silent Auction

• Industry Trade Show

• Steep Slopes Where are we now?

Can we afford them?

• Political Compass with Vaughn Palmer • Not in My Back Yard • Maximizing Potential of Coastal Forestry

• First Nations Panel • Realities of Operating a Contracting Business • Long Run Models for Success • Market Update - Moving toward the Future

Thank you to our committed 2016/2017 annual sponsors PREMIER SPONSOR

DIAMOND SPONSOR

STRATEGIC SPONSORS

Fall 2016 Truck LoggerBC 23

Photo: Brenda Martin

Fibre, Fibre Everywhere, But Not A Log To Mill

By Ian MacNeill

T

he TLA’s most recent report, Community Perspectives On The BC Coastal Forest Industry, found coastal mayors are not nearly as optimistic as they once were about the future of forestry in their communities, marking a significant change in tone. Just over a decade ago, 88 per cent of community leaders surveyed felt positive about the direction forest policy changes were taking and were confident these changes would lead to a successful forest industry in their community. A dozen years later, only 56 per cent of community leaders are optimistic about the future of forestry.

The report findings also showed that lack of local manufacturing in their communities continued to be one of the mayors’ biggest concerns. They are frustrated

24 Truck LoggerBC Fall 2016

by BC’s inability to compete with other regions and other countries in manufacturing and with the lack of local mills capable of efficiently utilizing the harvest while recognizing the true value of our fibre. While the finger is often pointed at log exports as a detractor to local manufacturing on the BC coast, the community leaders we surveyed show guarded support for log exports with 62 per cent supporting them today as compared to 60 per cent in the past. Discussions with small to medium size independent sawmillers on the coast made it clear that log availability was an issue. We asked the same type of manufacturers in BC’s Interior and got a similar response. So, why are logs not available?

With this question in hand, we set out to investigate the challenges small mill

owners on the coast and in the Interior are facing and ask them about their fibre supply knowing that both regions have issues unique to their operating areas.

Interior Fibre Supply Perspective

All Ken Kalesnikoff wants is some wood.

Not just any wood. Good wood. Highquality fibre he can use to produce a wide range of specialty products for niche markets, everything from lamstock and furniture-grade wood to flooring and Japan Zarai, a fine grain, small-knot fibre used to build traditional Japanese houses. He even produces wood to build guitar tops and pianos. “We look at every log and try to come up with the best use for it,” says the owner of Kalesnikoff Lumber in Castlegar, adding that doing so is the proven way to get the maximum

Photo courtesy of Kalesnikoff Lumber

value out of British Columbia’s forest resources and create the most jobs, often in small communities that need these jobs to survive.

Kalesnikoff Lumber has a history that spans more than 75 years and four generations. Ken Kalesnikoff would like to see it carry on into the future; his son Chris is the mill’s operations manager and his daughter Krystle Seed is the chief financial officer. The company has practiced sustainable forestry management throughout and boasts a solid reputation for maximizing value from the resource.

The problem is not that the fibre he needs doesn’t exist, says Kalesnikoff; it’s that he has trouble getting his hands on it. (It is important to note that Castlegar is well outside of the beetle-killed areas.) Most of the wood in British

Kalesnikoff Lumber is based in Castlegar and has created secure, local, well-paid jobs for over 75 years.

Fall 2016 Truck LoggerBC 25

Columbia’s Interior is controlled by a handful of companies whose business model, according to Kalesnikoff, consists of “blowing it all into dimension lumber as quickly as they can” rather than sorting through it and sifting out the kind of logs Kalesnikoff and other wood remanufacturers in BC need.

“When we try to do deals they just don’t work,” he says. Adding to the frustration is that he can’t even buy the logs he needs when he’s prepared to pay over and above market prices. He recalls a deal he tried to do where he offered one of the major mills in his area $200 a cubic meter for the logs he needed at a time they were worth about $50. “I even offered to sell him two logs for every one he sold me and he still said no,” Kalesnikoff recalls in disbelief.

While Castlegar isn’t in the heart of beetle-kill country, over 54 per cent of the merchantable pine in the province— roughly the equivalent of 15 years of the current BC Interior annual harvested

volume—has been killed by the mountain pine beetle outbreak according to BC provincial government projections.

In Enderby, mountain pine beetle has much more impact on the fibre supply shortage. But even there, it’s not the whole story.

Warren Carter of North Enderby Timber, which employs 160 directly in the north Okanagan community, say both tenure consolidation and the beetle kill have presented serious challenges, often forcing him to augment his fibre supply by turning to BC Timber Sales (BCTS), First Nations and woodlots. However, “while we may have fibre today, we are left waiting for others to determine our destiny.” He says supply is so uncertain that it is virtually impossible to plan for the future because he hardly knows from one month to the next where his next log is coming from.

“We were one of the largest independent bidders of BC Timber Sales wood in BC,” says Carter. “Traditionally, over

JACQUI BEBAN VP Logging C 250.951.1410 T 778.441.1190

F 778.441.1191 E jacqui@beban.bc.ca

#204 – 321 Wallace Street Nanaimo, BC V9R 5B6

26 Truck LoggerBC Fall 2016

the last 10 years, we’ve logged 250,000 – 300,000 cubic metres of BCTS wood annually in both categories one and two [bidding categories as defined by BCTS]. Currently, I only have one timber sale license in inventory of about 13,000 cubic metres where we would normally have 150,000 cubic metres and more ahead of us.” But Carter is experiencing another change in industry dynamics—major licences are now bidding to supplement their licence wood reflecting future planning around timber reductions. It boils down to this: There is more milling capacity in the BC Interior than there are logs to support it. Our tenure system is outdated and needs major reform to account for the new reality of falling AAC and the growing needs of First Nations, communities and other industry sectors.

It’s no exaggeration to say that it’s a matter of survival. Kalesnikoff Lumber is part of the Interior Lumber Manufacturers Association (ILMA), an industry group of nine members and they’re struggling to access fibre at a price they can afford. They’re located in smaller centres in southeast British Columbia and they all play a vital role in the economic health of their communities, providing both employment and taxes. They range from companies like J.H. Huscroft in Creston to Atco Wood Products in Fruitvale.

The ILMA is working to find mechanisms to allow untenured sawmills and other wood high-value specialty product manufacturers to get the fibre they need. It’s “the million-dollar question,” says Ken Kalesnikoff. While the ILMA may not have the answers yet, they are exploring options with Ministry of Forest, Lands and Natural Resource Operations staff to help find some and have developed a solutions document, Making British Columbia’s Forest Economic Engine Great. Right now that work includes the following: • Initiating pilot projects within the BC Timber Sales structure that would target the flow of fibre to high-value wood-product production, potentially leading to the creation of a separate category in BCTS that would direct a substantial portion of the BCTS cut to these same producers on a permanent basis.

Fall 2016 Truck LoggerBC 27

• Conducting an economic analysis

that would determine the comparative true value to communities, stakeholders and people of British Columbia of optimizing the flow of fibre to “highest best use” as compared to simply directing the bulk of the annual allowable cut through large commodity sawmills. This analysis will help support the business case to invest in creating a stronger high-value wood product sector and ensuring consistent access to the raw log required.

• Creating incentives that encourage large licensees to maximize the trade of high-value logs for logs suitable to their product production so that all players can move forward with greater security of log supply.

“We know we’re not going to gain anything by stomping up and down and yelling about what the major licensees are doing and how they control everything,” says Kalesnikoff. “They’re entitled to their business model and you can’t blame them for making the best use of the wood they control. But I think it’s wrong to take high-value timber and blow it all into two-by-fours.

That’s an important part of the business and God bless them for doing it, but what we do is important too. It’s important for us, it’s important for our customers who want and appreciate the products we make and sell, and it’s important to the communities we live in and the BC economy.”

Coastal Fibre Supply Perspective

Here’s how bad the situation has become on the BC coast for small to mid-size sawmills and remanufacturers when it comes to accessing fibre—nobody wants to talk about it for fear of being cut off by suppliers altogether. Truck LoggerBC magazine spoke to a few of them, but only on condition that we don’t use their names.

“Nobody wants to say anything for fear of reprisals,” says Mr. Cedar (not his real name). “It happened to me once a long time ago and I don’t want to risk it again.”

“There’s no upside talking to the press,” said Mr. Fir (not his real name).

28 Truck LoggerBC Fall 2016

According to Mr. Cedar, the problem isn’t that the fibre does not exist; it is that the tenure holders who have control of it either won’t cut it, or if they do, won’t sell it. He argues that the distribution of tenure—with the overwhelming majority in the hands of only a few major licensees and a small portion available through BC Timber Sales—is driving up the cost of wood up for everyone else making it a struggle to survive.

“A year and a half ago I was paying $58 to $68 a meter for logs with an average diameter of 1.8 meters,” says Mr. Cedar.

“Now, before dewatering and trucking I’m paying $127 a meter and the log average is down to 0.4 to 0.5 meters.”

Even at those prices he has trouble getting logs, so much so that “we’re taking more four-day weekends than you can shake a stick at.” Ironically, he considers himself one of the lucky ones. “We have good relations with log suppliers and that has kept us going, but I hear from other mills who can’t get anything.”

In such a climate it is not surprising many smaller mills and remanufacturers are calling it quits or being driven out of business. According to Russ Cameron, President of the Independent Wood Producers Association (IWPA), the uneven economic playing field combined with the impacts of the Softwood Lumber Agreement is primarily responsible for the demise of 54 of the 107 members that the International Wood Products Association had in 2002. “And while BC has been losing its value added sector,” he adds, “the major licensees have purchased as many as 39 sawmills in the United States.”

Given the opportunity to speak without fear of reprisal, Mr. Fir is frank in expressing his frustration and condemning the current system. “We’re not going out of business because we can’t run a business,” he says. “Tenure has consolidated into the hands of a few major licences and now it’s considered the new normal and we’re asked to live with it. We can’t.”

It would be a shame if Mr. Fir’s and yet more independent mills and remanufacturers in BC were to call it quits. Their customer bases, sometimes cultivated over decades if not generations, would

have to find the products they make elsewhere, their employees would have to find new jobs, often in communities that have few options for them, and the community themselves would lose tax revenues, further challenging their very viability. However, if something doesn’t change it’s hard to imagine that there won’t be more casualties.

Provincial Solutions for Fibre Supply

Based on these interviews, it’s clear the preconceived notions of why coastal and Interior small to medium manufacturers are struggling aren’t the whole story.

Beetle-killed timber is a challenge but not the be-all end-all. Log exports are often seen as part of the problem, but as Barry Simpson of Oceanview Forest Products explains (see sidebar on page 31), they are actually a part of the solution. However, in both regions there is a distinct underlying theme—an overwhelming control of the public resource by a few.

However, the government isn’t sitting idle. “Last month I attended the launch for Strong Past, Bright Future: A Competiveness Agenda for BC’s Forest Sector and was pleased to see an action plan for the value added sector launched at the same time.,” said Elstone. “I also like the ideas the ILMA are working on (see bottom of third column, page 26) and I think they would also be applicable here on the coast.” Elstone considers the Community Perspectives On The BC Coastal Forest Industry report on his desk. “All things considered, if coastal mayors are not nearly as optimistic as they were about the future of forestry in their communities a decade ago, we know something’s not working. Perhaps the Forest Revitalization Act of 2003 did not go far enough in addressing tenure?” suggests Elstone. “I look forward to seeing what changes the Competiveness Agenda brings about.”

Fall 2016 Truck LoggerBC 29

CUTTING EDGE PERFORMANCE.

BY YOUR DESIGN. The BarkoÂŽ 260 Harvester/Feller Buncher delivers everything forestry professionals look for.

In fact, we specifically designed it using expert input from end users, so we could give you the best-performing machine possible. More ground clearance. More stability. Exceptional drawbar pull (1.13:1 ratio). Larger attachments. From top to bottom, the 260 is built to get your job done.

Cut through the forest with maximum efficiency.

Perform to a higher standard with Barko.

WOODLAND EQUIPMENT INC. www.woodlandequip.com

Kamploops Phone: 877-372-2855 Fax: 250-374-2844

Cranbrook Phone: 250-489-6131 Cell: 250-919-2235

30 Truck LoggerBC Fall 2016

Vernon Phone: 877-542-2280 Fax: 250-542-2674

www.barko.com Campbell River Phone: 250-286-0950 Fax: 250-286-0960

Prince George Phone: 877-561-2456 Fax: 250-562-6353

Fort St. John Phone: 250-787-1789 Fax: 250-787-1722

• PATENTED OVER CENTRE CAM

• HIGH STRENGTH SWEDISH STEEL Photo: Brenda Martin

Log Exports: Part of the Problem or Part of the Solution?

D

o log exports make it more difficult for BC’s non-tenured sawmills and wood remanufacturers to access supply? Quite the opposite, says Barry Simpson. In addition to keeping loggers working, says the TLA board member and President of Oceanview Forest Products, they enhance supply by making it economically feasible to log marginal stands of timber. “There are stands where if some of it isn’t exported people won’t be getting up and going to work,” he explains, adding that almost all highvalue timber from public lands is excluded from export anyway, including red and yellow cedar as well as high-quality spruce, fir and hemlock.

“The majority of the wood is held by companies like Interfor and Western Forest Products and they want to make use of it themselves and they don’t want to sell it to others. That’s the problem; control of the resource through tenure consolidation—not log exports.” One solution, he says, would be to take quota away from sawmills altogether. “Have a logging community and sawmilling community and don’t mix the two together.

You’d get the best return for the logs and you’ll get the best return for the lumber. That’s the way it is done in the US South, the epicentre for growth in forest products manufacturing in North America.”

• WEDGE LOCK STAKE POCKETS

Prince George

www.prolenc.com

877.563.8899 Fall 2016 Truck LoggerBC 31

Photo: Erin Wallis Photography

Growing Our Workforce

By Sandra Bishop

T

he BC Forest Sector Workforce Initiative recently launched three Labour Market Partnerships (LMPs) in conjunction with the Ministry of Jobs, Tourism and Skills Training. The LMPs are part of a broader strategy or Roadmap Forward to address the forest industry’s current and future workforce challenges.

“The main driver for action is the sector’s ageing workforce,” notes Mike Cass, Vice President of Timberlands, Western Forest Products and Chair of the Workforce Initiative. “In the absence of a targeted and sustained effort to rebuild our industry’s workforce, the forest industry is going to hit a crisis point.”

Over the past few years the forest industry has focused its attention on its

32 Truck LoggerBC Fall 2016

workforce needs, quantifying the skill shortages and identifying the challenges and strategies needed to address them.

Its findings include the need for more than 2,700 new hires each year and the cost of attracting, recruiting and training new hires is estimated at $220 million per year or about $3.10 per cubic metre harvested.

There are other findings of note in this comprehensive look at the current and forecasted needs of the BC forest industry through 2022. For example, over the next decade the sector’s aging workforce will lead to shortages in the professional, production management and skilled trade occupations, as well as a wide range of production workers who

harvest and transport products from the forest to the market. This is because the anticipated turnover rates over the next 10 years are 60 per cent for forestry and logging, and 40 per cent for the solid wood and pulp and paper sectors.

“The TLA was the lead organization that shepherded the early work in 2013 on behalf of industry, producing the report that substantiated the need to rejuvenate the labour force,” recalls Cass. “And the TLA was instrumental in encouraging industry to come together and approach our challenges from a provincial perspective. This is a legacy that should be acknowledged.”

The TLA has built its reputation on leadership, recently convening with the

Honourable Steve Thomson, Minister of Forests, Lands and Natural Resource Operations and a group of coastal mayors at UBCM to discuss findings from its most recent report, which surveyed 27 community leaders to produce Communities Perspectives on the BC Coastal Forest Industry. This study reported on the outcome of two surveys conducted by the TLA, one in 2004 and the other in 2015, benchmarking changes in attitude and expectation.

Not surprisingly, mayors are concerned about job loss and the economic impact on coastal towns and cities. It was evident from the survey that community leaders understand the value of the forest industry to their local com-

munities and to the provincial economy—an industry that today contributes approximately one job in every 16. They also recognize the need to improve the image of the forest industry in order to attract young people to it.

“Most young people believe there are no careers in forestry, but those who have joined the industry are astonished at what a good life they can create for their families and themselves. That story needs to get out!” said Mayor Bill McKay of Nanaimo.

The average skilled employee salary in the industry is about $75,000 annually.

However, Project Manager Kelly McCloskey notes, there are key recruitment challenges “including a lack of quali-

fied workers, significant education and training gaps, a lack of job and career information and inadequate financial support for on-the-job training.“ Community leaders acknowledge the forest industry provides well-paying local jobs, but say it suffers from “short-term contracts limiting long-term stability” and needs to introduce “stable shifts so young people can raise families.” Clearly, the mayors believe there is much more to be done with support for training, education and hiring locally.

They say everyone has a part to play in educating current and future generations about the benefits the forest industry has to offer. On top of offering “safe, dependable, high income jobs to

Fall 2016 Truck LoggerBC 33

support families,” the forest industry is “high tech, green and sustainable” and we should be working hard on “defining it as a renewable resource.”

The TLA continues to support the development of a provincial recruitment and training strategy to ensure there are enough skilled workers to meet the growing industry demand, but agrees there are challenges to overcome. There are 4,700 job openings projected in coastal forestry and timber harvesting operations between now and 2022, 95 per cent due to pending retirements.

“The biggest challenge we’ve had,” admits McCloskey, “relates to the size and complexity of the industry, the difficulty in determining what the ‘collective interest’ is, and moving forward on tangible solutions that address short-term needs. From an historical perspective, renewing and upgrading the labour force is not an area the sector has a lot of experience approaching collectively. The strategies that the Labour Market Partnerships will start to address are the first important steps.”

He notes that other industries like mining or oil and gas are more unified and better able to access government funding and resources for recruitment and training. “We’re competing with these industries for employees and we have a long way to go to catch up to them.”

As the BC Forest Sector Workforce Initiative reports, “Overall, many young people view the industry as low tech, environmentally unfriendly, seasonal and uncertain, and geographically remote.”

In contrast, the interest for “First Nations youth is increasing and more positive given the jobs are often local, however additional support may be required to upgrade, ladder and advance these candidates to the skilled jobs available.”

The three Labour Market Partnerships announced by the Ministry will help address these challenges and barriers with management provided by the Council of Forest Industries, the BC Forest Safety Council and the First Nations Forestry Council. McCloskey points out the objective of this industry-led initiative is to leverage existing industry resources and provide value by implementing the priorities industry has identified.

“We need to be able to communicate the opportunities forestry offers in a way

34 Truck LoggerBC Fall 2016

that attracts people to the industry,” says McCloskey. To this end, COFI will manage a six-month project assessing the forest sector’s current career information and recruitment materials and programs, identifying gaps and additional products required as well as the means to create, deliver, evaluate and sustain them. COFI will also develop a sector plan for recruitment materials with goals and tactics which will form the basis of a follow-up proposal in early 2017.

will not only support local communities, but will also help attract First Nations youth to the industry. It agrees with the Workforce Initiative that states, “The importance of boosting First Nations skills, capacity and engagement in the forest economy is instrumental to the success of the sector as a whole.”

Importantly, the TLA sees this solution can advance career opportunities for First Nations, helping to address underemployment while also tackling the

“What a great way to invest in our future—getting First Nations into the local workforce with careers that offer good salaries.”

Expanding on the work the BC Forest Safety Council has completed on faller training, over the next 18-months the organization will focus on establishing occupational skill and competency guidelines for 35 forestry and logging occupations, as well as the tools necessary to assess an individual’s ability to meet them. “It’s really defining what the skills are for each of these forestry and logging occupations to safely perform each job so trainers and instructors know what’s required and there’s uniformity in delivery,” explains McCloskey. The project will form the basis of a follow-up proposal to address other priority occupations and ensure alignment with education and training providers.

And lastly, a six-month project led by the First Nations Forestry Council will look at increasing First Nations participation in the industry by establishing the methodology to assess First Nation’s interest in and means to participate in a forestry career development effort. The organization will develop a list of interested First Nations and bands as well as related activities of local industry and government. Upon completion, this information will form the basis of a follow-up proposal to undertake the studies and in the longer term, help support and steer First Nation candidates into a forestry career path. “What a great way to invest in our future,” McCloskey adds, “by getting First Nations into the local workforce with careers that offer good salaries.”

The TLA believes strong, positive and lasting relationships with First Nations

shortage of skilled workers facing BC’s forest industry.

The TLA is committed to playing a greater role in raising awareness about the importance of the forest industry and the benefits it has to offer young people. “We have been listening to the voices of our community leaders and are acting on their responses to our survey,” emphasizes TLA Executive Director David Elstone. “It’s important for us to partner in this Initiative and support a broader industry approach to education and training that grows our future workforce.”

Along with these efforts, the TLA continues to support education programs that community leaders take pride in, such as the secondary school forestry programs in Port Alberni, Port Hardy and Campbell River and the forestry education programs in the BC Forestry Discovery Centre. And the TLA’s Forestry Education Fund continues to provide scholarships to students in the trades and universities, which has over the years contributed hundreds of thousands of dollars to the education and training of our future forestry workers.

The TLA stands with coastal community leaders, believing everyone has a role to play in attracting young people into the industry. “It’s a must!” concludes Mayor Mike Ruttan of Port Alberni.

Fall 2016 Truck LoggerBC 35

All photos: Brenda Martin

Market Logging: A Win-Win for Everyone?

By Jim Girvan

W

hen looking for solutions to address conflicts between the major tenure holders that need logging and road building to produce timber products and the harvesting and road building contractors who are trying to ensure their sustainability in the face of never ending rate pressure, sometimes one has to look outside the box.

For the major licensees, their right to harvest timber via tenure provides control and security of their log supply that has to be balanced with their delivered log costs and the costs of managing the forests on behalf of the Crown via their tenure obligations.

For contractors, the return from their business operations needs to be sufficient to support reinvestment in infrastructure, equipment and training while being able to satisfy their customers’ needs.

So how do we overcome the difficult rate discussion hurdle while ensuring a competitive industry? Market logging offers that chance. While not a new concept, as we collectively work to improve industry competitiveness, it once again may provide a solution for many.

Doug Sladey of Sladey Timber recalls market logging in the late 70s and early 80s for L&K Lumber on the Sunshine

36 Truck LoggerBC Fall 2016

Coast. His experience with market logging led to a similar arrangement with Doman Industries in the mid 80s. For his part, Sladey took responsibility for locating suitable timber on Doman’s tenure, development and engineering, securing cutting permits and doing all the logging and sorting. The responsibility for silviculture was retained by Doman. “It was great,” says Sladey. “We looked after every aspect of the operation and Herb Doman simply bought the logs we delivered. It was a very good relationship.”

To make the operation work for both parties, Doman retained a first right of refusal on all logs produced and Sladey paid Doman 4 per cent of the market value of all logs transacted to cover their tenure related costs. This ensured that his operation always made money for Doman, regardless of where the market was. If they could not agree on a market price, their agreement required Sladey to pay an additional 5 per cent in order to allow selling of the boom of logs himself. While this clause was in place, it was never used.

Over the years, Sladey Timber logged 100 per cent of their quota every year and Doman bought every log they

produced for either their own use or for subsequent sales or trades. At one point, Sladey had seven years of layout, five years of road construction and one year of logging completed. Despite having to finance this pre-development on his own, being that far ahead kept his crews working year-round and allowed Doman to react quickly to market opportunities which ensured maximum value creation for the wood supply they had. “This is something that is simply not happening today and often times creates havoc for contractors,” explains Sladey.

Doman eventually sold this particular tenure to Interfor and made Sladey a contractor on the tenure. While remembering his experience market logging, Sladey now questions the situation many contractors find themselves in today. “Why would anyone want to risk millions of dollars of investment in equipment, be at risk of being sued over safety issues, have no control over when they actually get to work and all the while make no money operating as a contractor? Market logging addressed all of these issues as we were accountable for ourselves and the mill still got the wood.”

In the late 90s, markets were weakening and Rob Wood of Alm-Wood Contracting was contract logging the offshore tenures previously held by West Fraser near Kitimat. The costs were high in these remote coastal areas and West Fraser was indicating a pending shut down of all operations due to diverging costs and market values.

To keep his crews working, Wood proposed a market logging program. Wood purchased cutting permit ready blocks from West Fraser, built all roads, harvested the timber and sold the logs into the open market. Wood paid a fee meant to cover the costs borne by West Fraser for management of the tenure. “West Fraser was very good to work with and were fair in the negotiations. In the end, it worked for both parties,” says Wood.

Marketing of coastal logs required a new skill set for Wood, so he partnered with Mike Creed. A colleague from the past, Creed started selling logs in Japan with some focus on China and Korea.

West Fraser did not require a first right of refusal to the volume. However, the export of logs from the North Coast was not possible at the time, so Wood ap-

proached the Jobs Protection Commissioner and advocated for a log export permit in order to make the program work.

Wood’s efforts resulted in an Order in Council (OIC) for the export of a portion of their harvest, an initiative that was the precursor of the current North Coast OIC. It was this out-of-the-box thinking that made the whole program sustainable. “The Jobs Protection Commissioner cut through a lot of red tape quickly, got us the OIC and saved jobs

before any return on the sale of logs was realized.

“Market logging is not for everyone,” says Wood. “But for those who have the skills and financial stability, it is a great alternative to contracting. The TLA has been proposing market logging as a viable alternative to improve contractor relations since 2000.”

Mike Hamilton, through his company May Trucking entered into a five-year market logging agreement with Teal Jones in mid-2000 for 200,000 cubic

Market logging addressed all of these contractor concerns as we were accountable for ourselves and the mill still got the wood. and the economic activity needed in the community,” says Wood.

Over the next six years as they learned the markets, all engineering was reviewed and they shifted from optimizing volume to optimizing of log values on every permit which allowed for improved margins. This was important since at times, Alm-Wood had up to $3 million invested in development

metres annually. Ongoing disputes over their Bill 13 contract led to the agreement—May Trucking operated on the Teal-Jones tenure between Stave Lake and Lytton.

Hamilton explains how it worked.

“We were responsible for everything ourselves so there was no head butting over rates and terms. We agreed to the market logging contract and then hired

Market logging is not for everyone. But for those who have the skills and financial stability, it is a great alternative to contracting.

Fall 2016 Truck LoggerBC 37

some of the Teal Jones employees to support our engineering and development.

No one was looking over our shoulder and it worked well very quickly.”

May Trucking partnered with Probyn Log to provide log marketing support.

Teal Jones had a first right of refusal for all logs at the market price on a boomby-boom basis; however, they did not buy many of the logs.

Mike sold his interests in the company after the five-year term and believes the process worked for everyone. “Generally speaking, if you are market logging it is because the major tenure holder can’t make it work. The downside, however, is that once you demonstrate that even tough operating areas can work through the market cycles, they generally take it back and operate it on their own,” explains Hamilton. “While this alternative addressed the Bill 13 issues we had, exchange of Bill 13 for an equitable piece of tenure would have been my preferred option.”

Jacqui Beban partnered with A&A Trading to develop Nootka Sound Timber when the opportunity to undertake a forest licence utilization agreement

38 Truck LoggerBC Fall 2016

with Western Forest Products was presented in 2011.

Nootka Sound Timber is now responsible for all licence management including engineering, permitting, harvesting and log marketing. From Beban’s perspective, “market logging allowed for

After five years of operation, Beban prefers the challenges associated with the current business relationship. “We have had steady work for our crew which has allowed us to retain people and they all have a better understanding of our expectations in meeting our obligations.

Once you demonstrate that even a tough operating area can work through the market cycles, they generally take it back. an alignment of goals between us and Western Forest Products as well as developing a consistent flow of fibre and predictable revenue stream from the forest license.”

Nootka Sound Timber decides where to invest their capital, be it advanced road development, equipment or human resources because they can predict the benefits of their investments alongside their two, three and five-year development plans. “It gives us a better understanding of the management obstacles and competing interests licensees face in managing the land base as well as where the opportunities really are,” says Beban.

Everyone works as a real team. For their part, Western Forest Products no longer invests any capital in any of the forest licence development or infrastructure requirements but they also know they have a sustainably managed licence with a steady flow of wood. It is a real win for both parties.”

While market logging contracts may not work for everyone, the benefits for the parties who do adopt this practice are many. For the licensee, the cost of engineering and development is essentially transferred to the contractor. In addition, fees paid by the loggers for access to the timber ensures tenure man-

Market logging would have more logs bought and sold on the open market. agement costs are addressed. In return, licensees generally get full control to the logs generated from their tenure on a first right of refusal basis. This might be further extended to the opportunity to purchase other volume, such as that bid via BC Timber Sales, that the contractor

may also have available for sale.

Licensees have not embraced these concepts, many citing the apparent loss of control. However, these same companies that value the control they perceive within the BC tenure system, are investing greatly in their sawmills located

in the United States where privately owned timberland is prolific. Privately owned timber offers very little guarantee of log supply.

For the contractor, the security of work and a better likelihood of a sustainable return are the definite draws of market logging. On the other hand, they have to be in a strong enough financial position to support the costs of engineering, development and log sales which may come with the need to hire more staff. Most importantly, market logging eliminates the hurdle of rate negotiations along with the conflict it generates.

Looking at the industry more broadly, market logging would have more logs bought and sold on the open market and this could address a number of related issues such as sawmill competitiveness, trade and, of course, community stability. While tenure ownership is everyone’s first choice, market logging appears to be a win-win for everyone.

SERVICE EXCELLENCE SINCE 1993

READY TO FUEL YOUR BUSINESS Tank Rentals

Remote Deliveries

Lubricants

1-877-500-FUEL

ColumbiaFuels.com/Logging BELLA COOLA PITT MEADOWS

CAMPBELL RIVER

DUNCAN

KAMLOOPS

POWELL RIVER PRINCE GEORGE

NANAIMO

SECHELT

UCLUELET

VICTORIA

Fall 2016 Truck LoggerBC 39

Fighting for Fair: BC Forest Safety Ombudsman

By Roger Harris

T

he BC Forest Safety Ombudsman Office was established in 2006 by the BC Forest Safety Council. The Ombudsman Office has a mandate to investigate and provide recommendations on safety issues within the forest industry, and adheres to the following principles of operation: • Impartiality in all respects, both in practice and in perception of practice; • Fair and timely process; • Confidentiality for companies and workers in order to identify real safety problems and find workable solutions to these safety problems; and • Coordination of action given the number of other organizations involved in safety in British Columbia; in particular the Ombudsman will work closely with WorkSafeBC given its mandate to enhance safety in British Columbia.

The BC Forest Safety Council established the Ombudsman Office in re-

sponse to a record year of fatalities in the industry. In 2005, forty-three workers died in forest-related accidents. Industry workers, independent contractors, small firms, industry associations, and licensees were expressing concerns that raising safety issues might negatively impact their employment, small business, or ability to access permits. As well, the relative inequality of size and influence of parties within the sector made the raising and discussion of safety issues difficult. It was clear these were barriers to having frank, candid conversations about the operational and safety issues plaguing the industry. Whether these concerns were real or not, a code of silence existed about safety issues in the industry and there was a need to address this if real progress to improving safety was going to be achieved.

The Ombudsman Office has been an attempt to reach that objective by encouraging the discussion of safety within the forest industry, placing a pre-

The Delo® family of lubricating products with ISOSYN® Technology and Delo® Extended Life Coolants help to: }

provide extended service protection

}

maximize engine durability

}

minimize operating costs

mium on confidentiality, and by ensuring that individuals or groups who come forward to raise issues are not exposed or penalized for their actions. The Forest Safety Ombudsman has a clear mandate to investigate safety issues and recommend the best means to address them.

The Ombudsman will use review, recommendation, mediation and conciliation where necessary and will also rely on international experience and leading examples of success to inform the process. Since 2006, more than 200 individuals and groups have contacted the Ombudsman Office with safety concerns.

The Ombudsman Office also takes an active role in BC Forest Safety Council initiatives such as the Faller Technical Advisory Committee, which is continuing to refine the training and certification requirements for both fallers and faller supervisors, and also conducts major reviews on identified issues. To date, the Office has published a number of reports:

working to maximize the value of your timber, logs & lumber TIMBER DEVELOPMENT LOG MARKETING FINANCING & ADMIN FORESTRY & ENGINEERING AREA REPRESENTATIVES Larry Spencer Terry Basso RPF John Iacoviello RPF Rod Powell

Port Alberni Campbell River Chilliwack Sechelt

250.720.6263 250.203.3414 604.540.5363 604.220.0581

LOG SALES

Call us 1-855-946-4226 / 604-946-4226 E-mail : sales@catalyslubricants.ca

Wayne Ouellette Everett Romain

FIRST NATIONS STRATEGIC ADVISORY Matt Wealick RPF

© 2016 Chevron Canada Limited. All rights reserved. All trademarks are the property of Chevron Intellectual Property LLC or their respective owners.

40 Truck LoggerBC Fall 2016

604.823.6891 604.540.5355 604.824.2686

Suite 350 - 601 Sixth Avenue, New Westminster, BC V3L 3C1 Telephone: 604.526.8545

• Not Out of the Woods: This report

takes a critical look at certification, recruitment and retention of workers in the forest sector.

• No Longer the Road Less Travelled: This report is a review of resource roads across the province and includes recommendations, which were subsequently endorsed by the Forest Practices Board, on the adoption of a new category of resource roads in BC. The report also provides some recommendations on how to deal with cycle times, which is an issue that continues to provide challenges for the industry.

• Review of Failures Leading to Khaira Incident: This report investigates safety in silviculture camps, and focuses in particular on the “Khaira incident”, a camp where workers—primarily new Canadians—were subjected to unsafe, substandard, and at times abusive BenProg Ad Nov2012-OUTLINED.pdf livingJB conditions.

The report fun-

1

damentally tries to address the following question, which is: “How, despite all of the evidence that appears to have existed and been documented by various regulatory bodies against Khaira, could a workplace contracted by government deteriorate to the point where workers needed to be rescued?”

• Report on SAFE Companies: At the request of the Forest Council’s Board of Directors, the Ombudsman Office undertook a review of the SAFE Companies program (SCP), after numerous issues were identified by contractors, sub-contractors and owner-operators that presented serious challenges to the implementation of the program.

The report includes seven recommendations aimed at strengthening the SCP, all of which were subsequently adopted by the BCFSC. I’ve been BC’s Forest Safety Ombuds12-11-08 PM man since 2:48 the position was created in

2006. I have experience in many areas of the forest sector. I have worked as a dishwasher in a logging camp, been a board member for a Local of the IWA, and owned and operated my own phase logging contract business. I know firsthand the importance of safety and the impact that injuries and fatalities can have on workers and their families. In 1986, while working as a falling contractor, my right hand was nearly severed when my chainsaw kicked back. My brother-in-law was killed in a forestry accident at age 18.

If you have a safety concern that you don’t feel comfortable addressing directly, please contact me here: Fax: 250-741-1068 Email: harris@bcforestsafe.org Toll Free: 1-877-577-7766

MARINE LIN K TRANSPORTATION

Full Service Marine Transportation Specialists

C

M

Y

CM

MY

CY

CMY

K

Creative, cost-effective, and efficient problem solving in Marine Transportation. dispatch@marinelink.ca

www.marinelink.ca

Fall 2016 Truck LoggerBC 41

MADE FOR THE WILD Extensive lifting capacity, refined engineering and heavy-duty structural design—Hitachi foresters raise productivity and cut back downtime.

There’s no mistaking it: these purposebuilt machines were made for the wild.

Visit us online to find your nearest Wajax dealer.

42 Truck LoggerBC Fall 2016

Logger Sports: Bringing Forestry and Community Together for Over 100 Years

By Brenda Martin

Photo: Brenda Martin

Powell River’s new amphitheatre was packed for the first logger sports in 11 years. Over 12,000 people came through the gates on Saturday! fter an 11-year hiatus, logger sports rose from the woodchips in Powell River, reminding us once again which industry built Powell River and remains its economic backbone.

Logger sports started as a form of entertainment at logging camps. The camps in the 19th century were a long distance from any town, almost exclusively male and usually dry. After a long day in the woods, what was there to do? Competition and gambling: It’s a match made in heaven. The men would compete against each other using the skills they honed each day: climbing a tree, handling an axe or a saw, and birling a log.

In the early 1900s, logger sports had come to the coast of BC. As you can see, the stands were pretty full during a Courtenay show in 1927 (see photo page 46). By the 1950s, logger sports had captured the hearts of many across North America. The rodeo style competition combined with forestry skills hit a nerve with the public. There were enough shows running to create a circuit and those with the strongest skills took their show on the road. The Canadian Logger Sports Association was founded in the

1960s and it created a set of rules and regulations to govern the competitions that is still in use today.

In Powell River, logger sports had been around since about 1910. But the first professional logger sports show that was part of a broader circuit was held in 1976. Seven years later, Bill Marquis won Novice All Around Logger. Tragically, Bill was killed in a falling accident in 1984. His brother, Bob Marquis—owner of TLA member company Bob Marquis Contracting—started a memorial logger sports show in 1985 that ran until 2005. Over the years, several other memorial awards have been added. At its peak, it was a huge event attracting international competitors and was broadcasted on TSN. The TLA was one of many organizations sponsoring the returning Powell River Logger Sports and there was clearly an appetite for the show amongst the local population. The stands were full all three days and there was standing room only at the show’s peak on Saturday. Show organizers estimate 12,800 people attended the opening ceremony on Saturday and 25,000 bodies came through the gates over the

Photo: Brenda Martin

A

Fall 2016 Truck LoggerBC 43

ing competition and a trade show filled with local businesses—the TLA shared a booth with Powell River Living magazine. TLA President, Jacqui Beban was part of the official opening ceremonies

Photo: Brenda Martin

Photo: Brenda Martin

Photo: Bob Marquis

three days. Considering the population of Powell River and the surrounding community is 20,000, it was clearly a popular event. Combined with the logging sports, there was also a wood carv-

on Saturday morning and gave a heartwarming speech about forestry and her own experience of its role in rural communities.

The TLA sponsored six logger sports

BAR WORKS LTD.

“The Best Bar - Bar None!”

c ” pit

uge 0 ga 8 / h

.404

3/4”

pitc

22 h/1

e gaug

Offering a Full Line of .404” and 3/4” Pitch Harvester Bars We Also Repair All Brands of Bars

e mad c in b

Dealerships Available 1-888-604-9990 | www.cannonbar.com | info@cannonbar.com

44 Truck LoggerBC Fall 2016

nomic backbone of BC’s coastal communities,” explained David Elstone, TLA Executive Director. “We support these shows through our TLA Forestry Education Fund because they bring

Your Custom Truck Body Building Specialist

Photo: Bob Marquis

Photo: Brenda Martin

Photo: Brenda Martin

this season in Powell River, Squamish, Port Alberni, Campbell River, Port McNeill and Sandspit. Clearly, the appetite for these shows still exists on BC’s coast. “TLA members are the eco-

forestry and the broader community together to celebrate something that is both our history and a big part of local economies today—logging!”

Terry Basso, a Campbell River resident,

Specializing in Conservative Investments

Brutus ETV2 Certified to meet Transport Canada and WCB requirements

Tubular aluminum structural framing for rollover protection

Designed to fit full size trucks with short or long boxes

Stretcher platform and attendant seat with certified restraints

Aluminum finish with optional powder coated or baked polyurethane coatings

Interior LED strip lighting and electric heater system

Two oxygen tank holders

BRUTUS TRUCK BODIES 682 Okanagan Ave. E Penticton, BC

Optional 95 IMP gallon diesel fuel system

4 rooftop lifting points and box quick mounting system

Toll Free: 1-866-344-6480 www.brutusbodies.com

Mutual Funds • Bonds • Blue Chip Stocks Managed Money • Income Trusts Dave Wheeldon, B.Sc.ED, M.A.ED Investment Advisor Tel: 250 703-5382 • Fax: 250 338-2320 Toll Free: 1 888 672-0922 dave.wheeldon@cibc.ca

CIBC Wood Gundy is a division of CIBC World Markets Inc., a subsidiary of CIBC and a Member of the Canadian Investor Protection Fund and Investment Industry Regulatory Organization of Canada. If you are currently a CIBC Wood Gundy client, please contact your Investment Advisor.

Fall 2016 Truck LoggerBC 45

Image F-08671 courtesy of the Royal BC Museum and Archives

Long before the logger sports official circuit started, competitions were held across BC’s coast. This logger sports competition took place in Courtenay, BC in 1927.

ATTEND A FREE ROAD SAFETY WORKSHOP BEFORE YOU HAVE TO VISIT A NOT-SO-FREE REPAIR SHOP.

Kamloops Oct 5 Kelowna Oct 6

Fort St. John Nov 9 Dawson Creek Nov 10

Nanaimo Nov 22 Victoria Nov 23

Terrace Dec 6 Prince Rupert Dec 7

TO REGISTER: 604-770-2500 www.RoadSafetyAtWork.ca

Road safety is smart business.

46 Truck LoggerBC Fall 2016

Photo: Brenda Martin

forest professional and Probyn Log employee, volunteered at Campbell River’s logger sports show this past summer. A past competitor with several Best in Canada titles under his belt, Basso hadn’t been involved in the last few years. But the atmosphere and camaraderie he experienced last summer has drawn him back in and he plans to train this winter and compete next year. “Logger sports is different than other sports. If my axe

breaks, someone will run out and give me another axe to use,” said Basso. “You’re there to compete but not at the expense of the other competitors.”

Bob Marquis echoes Basso’s sentiment. “I competed all over the world for 35 years and I love the camaraderie. Also, it’s a family event in every town—there’s something for everyone.”

And how did it feel to have the show back after an 11 year hiatus? “It felt great,” said Marquis. “We had some new blood in it this year and a really good executive. Next year, we’ll have the biggest show in the world and a new event!” Marquis can’t give details yet but the new event will tie back to Powell River’s rail logging days.

The TLA is a proud supporter of the six coastal logger sports shows. The TLA Forestry Education Fund, generously founded and supported by TLA members, is committed to encouraging the continued entrance of youth into the forest industry, to promoting the TLA and its members and to supporting good forest stewardship. “I’m glad we’re able to support logger sports on the coast,” said Dave McNaught, TLA Director and Chair of the TLA Education Committee. “It’s always difficult to decide what to support each year, but these events bring forestry into the community and inspire people.

That’s priceless.”

Photo: iStock

Photo:iStock

SLA: Understanding the Consequences of No Agreement

By Robin Brunet

I

f Justin Trudeau’s assurances carry any weight, there may be a chance of a happy ending to the softwood lumber issue by the end of this year: the Prime Minister’s Office said Canada and the US have recommitted to hammering out a new agreement, and progress has been made in negotiations—which will continue “at an intensive pace.”

But many factors prevent observers from sharing in the optimism, not the least of which is that regardless of which presidential candidate is elected in November, Donald Trump and Hillary Clinton are both perceived as embracing a wave of nationalism that will likely see a surge of protectionist measures aimed at bolstering anemic US economic

growth at the expense of everyone else.

So, what if the worst happens and countervailing duties are imposed against Canada?

That was the question Truck LoggerBC posed to key industry experts, with an emphasis on examining the impact the 2002 duties had on the BC industry and how to prepare for a return of them.

The question is especially salient to Susan Yurkovich, President and CEO of the Council of Forest Industries, who is also president of the BC Lumber Trade Council. “If we are not able to reach a new managed trade agreement with the US, then we will undoubtedly be facing litigation, with the US imposing countervailing and anti-dumping duties.

Naturally, this would create a financial burden for producers here, and companies need to be prepared.”

Bill Markvoort, retired Vice President of Probyn Log, points out that log export controls have been imposed since the early years of the 20th century, resulting in the discrepancy between domestic and export log prices and prompting the Americans, who view the Canadian industry as being subsidized, to seek punitive action. (Another key motivator is their displeasure of our stumpage system.)

The beginning of the modern softwood lumber trade dispute dates back to 1982; the US lumber industry unsuccessfully petitioned the Department of

Fall 2016 Truck LoggerBC 47

Commerce (DoC) to impose a countervailing duty. A second petition was launched in 1986, and this time, in lieu of a 15 percent duty proposed by the DoC, the US and Canada agreed to a phased tariff whereby Canada would levy a 15 per cent export tax on lumber traveling south across the border and provinces had the chance to reduce this tax if they performed any action (such as charging higher stumpage) intended to counterbalance their socalled subsidies. (The tax in BC was removed in 1987.)

In 1996, after further disputes, the US and Canada signed the five-year Softwood Lumber Agreement, which limited Canadian lumber exports to 14.7 billion board feet per year. But in April of 2001, with neither country able to reach consensus on a replacement agreement, the US industry again petitioned for countervailing duties, and one year later the DoC announced subsidy and antidumping rates of 18.79 percent and 8.43 percent respectively, for a combined 27.22 percent.

The impact was immediate, as Kevin Mason, Managing Director of ERA For-

est Products Research, vividly recalls.

“Everything happened very quickly, from the filing of the trade case to the events of June 2002, when six large com-

Companies shouldn’t overextend themselves, because inevitably there will be a pull-back in logging and lumber production. panies including Canfor announced production curtailments,” he says. “Slocan took downtime, and West Fraser and Weldwood took lumber out of production, as did several eastern mills.”

In August of that year came what Mason calls “the real hit, on cedar. Skana Industries shut down, and Doman curtailed its mills, as did Interfor and Weyerhaeuser, for the simple reason that about $500 per thousand board feet had been added onto their costs.”

The bad news continued that month, with Doman—having closed its Silvertree cedar mill—announcing it would lay off 1,000 loggers by September.

Then, in November, Weyerhaeuser Co. Ltd. said it would shut its k3 particleboard plant and its Canadian White

85 more units in stock at www.internationalmachinery.com Specializing in quality used heavy spec trucks.

Now offering truck & trailer painting, sandblasting, engine machine shop, Dynamometer facility, and heavy truck repairs.

1-844-460-9971 48 Truck LoggerBC Fall 2016

Pine sawmill the following year, which would cost 500 workers their jobs.

By that point, the cutbacks had thrown about 18,000 people out of work. “In

early 2001, the BC coast was producing 3.4 billion board feet annually, but by the end of 2002 it was down to around 2.5 billion board feet—a level it stayed around until the collapse of the US housing market after 2006. The countervailing duties and anti-dumping duties imposed by the US played the defining role in the downturn,” says Mason.

Mason remains guardedly optimistic that if new countervailing duties are imposed on Canada, “the hit might not be as big on some coastal producers because cedar prices are a bit better now, plus we’re a lot stronger as a global trader than we were in 2001-02.”

When pressed to give advice, Mason says, “Companies shouldn’t overextend themselves, because inevitably there will

be a pull-back in logging and lumber production. In looking out for major impacts amongst the public companies, some investors say Interfor is carrying a bit too much debt, although we aren’t that concerned given Interfor’s US exposure. As for the private sector, it’s difficult to determine if they’re overreaching or not. You’d think the banks would prevent them from doing so, but you never know.”

While Markvoort hopes the US/Canada negotiations will be successful, he takes a broader view of the situation.

“We can’t go backwards and put barriers around countries,” he argues. “We’re now more than ever in a global environment and therefore have to act on many fronts,” he says. “If we’re hit with tariffs, we should step up relations with other venues and continue to enhance our status as an exporter to Asia, Europe and other regions. Developments such as the expanded Panama Canal and larger container ships make transportation easier, cheaper and create opportunities for new markets.”

“We have a unique ability to grow and extract trees,” continues Markvoort.

“Milling can move based on costs but— bottom line—the trees can’t move. I believe we need to invest in our forests.

On the BC coast, we can grow high quality trees in a relatively short time so it’s important to make sure we’re growing healthy trees and have the right to harvest them. BC loggers are efficient, follow environmentally sound practices and are ready and willing to go to work as long as the trees are there and what they produce can be sold—be it lumber, pulp, logs, veneer, pellets, etc.”

Yurkovich provides a timeline of events, should negotiations break down.

“Litigation could commence after the October 12 expiry of the one year standstill period with a filing by the US industry, after which the US Department of Commerce and US International Trade Commission would make their preliminary determinations,” she says.

“A preliminary duty deposit rate could be imposed in March of 2017, and there is no way to accurately predict what the rate would be.”

Peter Clark, one of Canada’s leading international trade strategists, believes litigation is inevitable. Writing in the

iPolitics website he states, “There will be plenty of fencing and jousting on the way to common ground. But as Canada’s provinces struggle to get on the same page, it’s vital to remember that delays and uncertainty always favour the US Lumber Coalition. And because of this, notwithstanding the best efforts of both federal governments, Canadians need to brace themselves to deal with litigation before a settlement is reached.”

Yurkovich notes that, “over the last 30 years, we’ve either operated under a managed trade agreement or under litigation. If we do end up in litigation and face new duties, it will definitely impact our ability to invest in our plants and equipment. That’s obviously not great for our industry or other communities where we operate. But, we have faced this situation before and our industry and the people who support it have proved to be resilient.”

“We will see what the next few weeks bring. In the meantime, we’re all working hard to find a way forward.”

We’ve got your back.

ADVISORS TO BC’S FOREST INDUSTRY Our legal services include: • Contractor logging disputes with licence holders

• Forest and Range Practices Act issues

• Rate issues and amount of work issues

• Contract and business sale and purchase

• Mediation and arbitration

• Corporate structuring and financing

• Contract negotiations

• Regulatory compliance For more information, contact

You’re good at your job. So are we. CWB Equipment Financing can spot business owners who have what it takes to make it. We’ll work with you through good times and tough. We’re not just your banker – we’re part of your crew.

Call Hugh, our crew leader, at 250.319.2076. cwbef.com

Stephen Ross sross@millerthomson.com 604.643.1205

Added experience. Added clarity. Added value.

Miller Thomson LLP

millerthomson.com VA N C O U V E R

C ALGARY

K I T C H E N E R - W AT E R L O O

ED M O NTO N GUELPH

S A S K AT O O N

TO RO NTO

REGINA

MARKHAM

LO N DO N

MONTRÉAL

Fall 2016 Truck LoggerBC 49 Truck Logger Magazine Ad.indd 1

2/24/2015 2:04:54 PM

Near miss reports are gifts!

By Cherie Whelan

I

n safety, near misses, close calls, or squeakers all refer to an unplanned event that didn’t result in injury, illness or damage, but had the potential to do so. Each is also a gift!

Consider a long debated theory in the safety world—the Accident Triangle.

A general consensus is for every serious incident that occurs there is consistently a much greater number of near miss incidents, hazards and substandard conditions in the workplace.

I’m from Newfoundland, so I like to use the it’s only the tip of the iceberg analogy in reference to seeing a small part of a bigger issue. The tip of the iceberg represents the serious incidents such as fatalities, lost time injuries and disabling injuries. When we only react to these incidents, our safety systems miss out on the wealth of potential knowledge that exists unseen under the water.

Photo:iStock

Fatalities, Lost Time Injuries and other disabling incidents

Minor Injuries Near Misses Hazards Unsafe Conditions/ Behaviors

50 Truck LoggerBC Fall 2016

How do we tap into this potential knowledge? The first way is to view this potential knowledge as a gift. When we are given a glimpse into a deficiency in our systems that doesn’t injure our people or harm our equipment, it’s an opportunity for improvement and has the potential to prevent a more serious incident from occurring. That’s a gift!

Reporting near misses and hazards is key to building a proactive safety culture. Workers must feel able to report near misses and hazards openly and honestly. This means not playing the blame game. If workers are concerned about being blamed for near misses and possible repercussions, these “gifts” will quickly be driven underground. We can’t do anything about things we don’t know about. So how do we encourage a culture of reporting? We develop a culture where everyone is looking out for each other and uses near miss and hazard reporting as a learning tool.

Leadership sponsorship:

We’ll have a hard time building a reporting culture if leadership does not support reporting. Reinforcing near miss and hazard reporting as an opportunity to reduce risk and prevent harmful incidents is the first step. Too often we become complacent to hazards and near misses that surround us to the point that we no longer see the potential risk.

Reporting and tracking:

Workers need to know what to do after they’ve recognized a hazard or experienced a near miss. This doesn’t have to be fancy and it doesn’t require investing in complex and expensive information systems. The important thing is to have a means to track the where, what and why of the incident and ensure someone in your business is notified. KISS (keep it simple and straightforward!) applies here. Make it really easy for your workers to report near misses. Many companies have developed small cards that can be completed as events happen.

At the last company I worked with, we were implementing a reporting system on a phone app where a worker could take a picture with a phone and make a quick note. It automatically went to his

supervisor and this started the incident record. Employers need to remove barriers to reporting and make it as easy as possible.

Investigate:

If the hazard or near miss had potential to cause serious injury, investigating the causes, identifying and implementing corrective actions will help to prevent similar or more serious incidents from happening in the future. Many companies are managing near misses that could cause significant loss with the same diligence they would those incidents that result in actual loss.

Learn from it:

Sam Levenson said, “You must learn from the mistakes of others. You can’t possibly live long enough to make them all yourself.” Sharing near miss and close calls with others who work in similar environments with similar equipment/ processes helps others to identify potential hazards in their own workplace.

Sharing also lets the person who made the report see that something is being done about it and feel good about taking action to report it. (BCFSC has shared almost 1,200 industry alerts here: http:// www.bcforestsafe.org/node/2690)

Communicate back to the worker:

Nothing is more deflating to a worker than raising a safety concern, not seeing anything done about it and not knowing why. If a worker takes the time to report a hazard or near miss, follow up with them on what is being done about it.

Cherie Whelan, CRSP, joined the BC Forest Safety Council in June 2016 as Director, SAFE Companies, bringing more than 20 years of diverse health and safety experience to her new role. She most recently worked for Suncor Energy and TransAlta and is a former lead OHS investigator for the Government of Alberta.

Market Report (Continued from page 15) growing aggregate demand at “normal” levels: the US South. While we always have ups-and-downs in month-to-month lumber volumes, long-term growth will come from the US South to compensate for the physical log constraints and shrunken capacities in the Pacific Northwest and Western Canada.

Brooks Mendell is president of Forisk Consulting. This article includes data from Forisk’s Q3 2016 Forisk Research Quarterly (FRQ), which includes forest industry analysis and timber price forecasts for North America. Forisk clients own and manage over 100 million acres of timberland and consume over 150 millions tons of wood annually at manufacturing facilities in North America.

Safety Report (Continued from page 17) Safety Ombudsman. Always, the overriding rule and understanding for all parties must be: safety comes first, no matter what.

Looking forward, general log truck driver safety, along with education and awareness, incident data analysis, weights, cycle times, speed and improving operational practices will continue to be areas of focus for TAG and LTTAC. The groups will also look increasingly at driver health and wellness, fatigue, load securement, resource road radio channels, and any other emerging safety issues to ensure industry is engaged and responsive.

While the log hauling sector has a better than average safety performance when compared to other areas of commercial trucking, we know more work is needed to further reduce incidents. Industry can only be assured of the right outcomes when it continues to have an unwavering commitment to safety with each and every load.

Dustin Meierhofer, RPF, is the Director of Transportation Safety for the BC Forest Safety Council. He can be reached at dmeierhofer@bcforestsafe.org.

THEIR LANDING.

OUR LANDING. SIX FUNCTIONS. ONE MACHINE.

GP

™

The Pierce GP is the only machine you need on your work site. Because only the Pierce GP grapples, moves and sorts like a loader—and delimbs, measures and cuts like a processor. All in one hard-working machine.

That’s the difference between working more efficiently while saving on equipment costs—and crowding the market with poor imitations.

MARK SHUKLA 250.826.5218 mshukla@piercepacific.com WWW.PIERCEPACIFIC.COM PORTLAND, OREGON ALBERTA TOLL FREE: 800.760.3270 EDMONTON, JACKSON, MISSISSIPPI Fall 2016 Truck LoggerBC 51

At Your Service

Jardine Lloyd Thompson Canada Inc. As the primary equipment and liability insurance provider to the TLA, JLT are the ones to call for all your business and commercial insurance questions and inquiries Peter Pringle Steve Hicks Direct 250 413 2712 Direct 250 413 2723 www.jltcanada.com

STUMP TO DUMP

LOGGING CONTRACTOR Sunshine Coast-based

Proudly Supporting the TLA

SLADEY TIMBER LTD.

Email: dsladey@telus.net Shop: (604) 883-1166

Office: (604) 883-2435 Fax: (604) 883-2426

Heavy Equipment Parts & Sales FREE SATELLITE PHONE

KEEP YOUR BUSINESS CONNECTED

www.globalstar.com/BCTLoggerFREE

Tel: (855) 559-9995 (250) 468-1000 Fax: (250 468-1001 Email: joe@viequipmentltd.com craig@viequipmentltd.com Specializing In:

www.viequipmentltd.com

New/Used/Exchange Hydraulic Excavator Parts Over 400 Hitachi/John Deere Excavators parted out

Office: 604-530-5758 Fax: 604-530-3554 Toll Free: 888-530-5444 www.langleyexcavator.com

TEL: 250-969-4222 52 Truck LoggerBC Fall 2016

WWW.WDMOORE.CA

TM LASK ENTERPRISES LTD.

Let us do all the hard lifting.

You’ve done enough.

OEM DISTRIBUTOR FOR THE WRI & WCR LOG BUNDLING CRIMPERS

Laurier L’Abbe

C: 778-878-7399 E: tmlask@telus.net OFFICE PHONE & FAX: 604-592-9198 MAILING ADDRESS: P.O. Box 88692, Surrey, BC V3W 0X1 CAMPBELL RIVER CONTACT

Wayne Williams

C: 604-364-3805 E: crimperboy@hotmail.ca

www.tmlask.ca

3914-32nd St, Vernon, BC 250.545.3385 1.800.663.4422 www.vernonatriumhotel.com atrium@rphotels.com

SOLUTIONS. INNOVATION. EXPERTISE.

Providing safe, top quality falling & bucking services that exceed our customer's expectations since 1996.

1-888-finning | finning.ca

T: 250-596-9488

(346-6464)

info@sibolamountainfalling.com www.sibolamountainfalling.com

Advertiser Index: Page # A&A Trading Ltd. BC Forest Safety Council Brandt Tractor Ltd. Brutus Truck Bodies Canadian Western Bank Cannon Bar Works Ltd. Catalys Lubricants CIBC Wood Gundy Coastal Camp Solutions / Ole’s Hakai Pass Columbia Fuels Enex Fuels Finning Ford Motor Company of Canada Gibraltar Law Group Globalstar Canada Inland Group -Link-Belt International Machinery Sales Island Pacific Equipment Ltd. -ROB-Remote Operated Bulldozer Island Spring Ltd.

Jardine Lloyd Thompson Canada Inc. Johnstone’s Benefits Justice Instittue of BC -Road Safety at Work Workshop Campaign Kineshanko Logging Ltd. Langley Excavator Parts Exchange Marine Link Transportation Group Miller Thomson, LLP Nootka Sound Timber Co. Ltd. North Island Communications 48 Pacific Blue Cross 39 Pierce Pacific Manufacturing 29 6 & 53 Probyn Log Ltd. Prolenc Manufacturing Inc. 19 Sibola Mountain Falling Ltd. 52 52 & 55 Sladey Timber Ltd. TM Lask Enterprises Ltd. 2 V.I. Equipment Ltd. 48 Vernon Atrium Hotel And Conference Centre 21 W.D. Moore Logging Co. Ltd. 26 4 16 9 & 52 45 49 44 40 45

Page #

Page # 42 14 & 52 Wajax Equipment 56 Waratah Distribution 41 20 West Coast Tug & Barge Westerra Equipment - Doosan11 46 Westerra Equipment 51 38 - Vermeer 52 Woodland Equipment Ltd. 41 30 - Barko 49 Woodland Equipment Ltd. 26 27 & 35 - Hyundai 20 Woodland Equipment Ltd. 4 12 - Peterson 51 17 WorkSafeBC 40 31 53 52 53 52 53 52

Fall 2016 Truck LoggerBC 53

A Mexican Fiesta at the TLA Golf Tournament!

Photo: TLA staff

T

he TLA 20th annual golf tournament was a fun-filled day full of golf, networking and prizes. The sun shone and the Crown Isle golf course was at its best. As always, TLA members enjoyed the great forestry history Crown Isle displays throughout the venue.

In celebration of the golf tournament’s twentieth anniversary, we threw a Mexican fiesta themed party afterwards. One team in particular took the theme to heart and won the “Best Dressed” prize—congratulations to Kajohl Management team.

This year at the tournament we raised $8,107.05 for the TLA Forestry Education Fund which included $1,164.05 raised at the Nootka Timber shooter bar and $6,943 raised at the dinner auctions. New this year, we auctioned off first chance at the buffet tables and several Mexican fiesta themed gift baskets during the dinner.

We’ll be back at Crown Isle again next year for our 21st annual members’ tournament! If you weren’t able to get a foursome registered this year, we hope to see you in June 2017.

Finally, thank you to all our generous sponsors. We appreciate it!

This year’s tournament winner was the Finning Canada team (left to right): Bill Baumel, Don Rintala, Ben Lattanzi and Matt Laing.

STEVE MARSHALL

SALES SERVICE SUPPORT

ANNUAL SPONSORS Premier 54 Truck LoggerBC Fall 2016

Diamond

Strategic

Strategic

SAVE UP TO $700 THE MOST AFFORDABLE

SATELLITE COMMUNICATION SOLUTIONS

FOR YOUR BUSINESS

Manage your business from remote areas with affordable, easy to use and versatile satellite communication solutions from Globalstar. High value service plans keep you connected to co-workers and staff without breaking the bank.

TO SAVE UP TO $700 ON A GLOBALSTAR SATELLITE COMMUNICATION SOLUTION, CONTACT YOUR GLOBALSTAR DEALER BELOW AND MENTION THIS AD. STRYKER ELECTRONICS 6710 HARDY BAY ROAD PORT HARDY, BC 250.949.8022

NORTH ISLAND COMMUNICATIONS 1690 ISLAND HIGHWAY CAMPBELL RIVER, BC 250.287.9207

CP/HP COMMUNICATIONS 1018 GREAT STREET PRINCE GEORGE, BC 250.562.5877

ISLAND COMMUNICATIONS 2540 BOWEN ROAD NANAIMO, BC 250.758.7301

CP ELECTRONICS 298 SECOND AVENUE NORTH WILLIAMS LAKE, BC 250.392.5583

METRO MOBILE RADIO 20252 98 AVENUE LANGLEY, BC 604.888.5100

WALCO RADIO 707 SARCEE STREET EAST KAMLOOPS, BC 250.372.0054

COAST MOUNTAIN WIRELESS 3650 RIVER DRIVE TERRACE, BC 250.638.0577

TOM HARRIS (BANKS CENTRE) 2447 HIGHWAY 97 NORTH KELOWNA, BC 250.861.8848

PETRON COMMUNICATIONS 11315 ALASKA ROAD FORT ST JOHN, BC 250.785.3333

VMR COMMUNICATIONS 740 WADDINGTON DRIVE VERNON, BC 250.545.4073

Fall 2016 Truck LoggerBC 55

56 Truck LoggerBC Fall 2016