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It’s just business Print E-mail
Written by -- Editor Dave Paulson   
Friday, 01 August 2008
Officials at Canfor and the company's shareholders must certainly see it as a blessing in disguise.
The spectacular, gut-wrenching fire that destroyed North Central Plywood on May 26 resulted in a net insurance payout of $36.3 million, new money that helped Canfor report a $64.2-million profit for the second quarter.
NCP had been a money-maker but the company said Thursday the mill was struggling recently and its future was bleak because of the declining supply of pine, courtesy of the beetle epidemic.
Realistically, one has to believe rebuilding the mill was never a serious consideration. The only nugget of optimism rested on the faint hope that an insurance payout was contingent on the company rebuilding the mill. We now know it wasn't.
Instead, Canfor is scooping up the remnants of NCP -- $36.3 million -- to improve efficiency at some of its other operations, including building a $13.5-million wood residue energy plant at its sawmill in Fort St. John.
Face it. Virtually any other company would have done the same. The name of the game is making money, not keeping communities and workers happy. When shareholders are involved, the fate of towns and employees is always eclipsed by what's on the bottom line.
It's far easier to be a good and visible corporate citizen when times are bright, but in this era Canfor appears to have shed even the habit of extending common courtesies.
Mayor Colin Kinsley told The Citizen he wouldn't recognize Canfor CEO Jim Shepard (not to be confused with his predecessor, Jim Shepherd) "if he walked through the door," in spite of Prince George being the single most important community in its operation.
In the past, Kinsley said Canfor would be in close and regular contact with the mayor's office on any new developments.
"We don't even get a courtesy call, and that's totally unacceptable," fumed Kinsley. "It just shows the changing attitude in their corporate management."
Don't expect the mayor's outrage to damage city hall's relationship with Canfor because, apparently, there isn't one.
The death knell for NCP is a bitter pill for the community to swallow. With 285 family-supporting jobs, the mill hadn't been on anyone's radar for closure. With the sawmilling industry continuing its bumpy ride to who-knows-where, workers are sweating as they contemplate a potential future of unemployment, relocation, education or career change.
Be angry at the giant, monolithic forest company if you like, but in these circumstances it's unlikely another company would have rebuilt NCP.
It's nothing personal, it's just business.
Personal went out of the equation a long time ago.
-- Editor Dave Paulson
Comments (6)add
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written by allniter , August 02, 2008 (02:43:57 AM)
It's hard for the workers not to be angry at Canfor considering that a short time ago, the Citizen printed a feature article about West Fraser's business and employee relations practices. Corporate responsiblility and good business can go hand in hand if the bigwigs respected their workers and showed a willingness to make it work.

It is because of the workers that Canfor is successful. Without the thousands of workers employed by the huge conglomerate that operates Canfor, the bigwigs would be nothing. I personally don't think it is too much for workers to expect something better than a brass handshake and a plastic watch.

I wish the NCP workers the best of luck. I've been down that road and know how hard it can be. Hang in there.
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Move into the 21st century.
written by Quool , August 05, 2008 (10:23:52 PM)
Just how large does a company need to be before they should be updating Kinsley on a regular basis? Should the bookkeeper down the street give him a call when they expand to 2 computers and upgrade to Vista? I know this is an exaggeration but where exactly is that line?

Kinsley should grow up and not play the "He didn't call me so I won't call him" game. Pick up the phone and call him, or better yet, join the 21st century and send an email. Here is a link to help him get started: http://www.canfor.com/contact/

This world needs companies that make decisions based on market conditions instead of tradition or personal desires, and a well educated, flexible workforce capable of changing to the needs of the market. Rebuilding an unneeded plywood plant would help no one.

Most people own shares in Canfor, or one of it's suppliers or customers, at least indirectly, even if just through the CPP Investment Board. Proper corporate governance demands that they keep an eye on the bottom line. Anything less would smell of corruption. This is probably the best decision for the community and the workers.

Other employers that are having trouble finding people will have an easier time, hiring the newly educated NCP workers, and other plants will have an easier time finding a material supply.

The last thing we need are multi million dollar decisions being made for personal reasons.
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bottom line
written by lost it all , August 07, 2008 (07:21:04 AM)
Quool, have you looked at Canfor on the TSX, this corporation does a relatively poor job looking after it's share holders. One only needs to compare it with another corporate giant in the forest industry that being West Fraser to see what can be done in these trying times. You then can see that Canfor does some things that make all the stakeholders wonder who's driveing the ship. If you look at another sector like the airline industry and compare to a company called West Jet, you will see that West Fraser is not a fluke. Both these companies prove that if you treat the people who built your company with dignity and respect, they will be very loyal and strengthen the corporations bottom line. This is very basic business that requires more than just a slogan [our roots are in this community], that Canfor has definatly lost sight of.
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21st century
written by siesta , August 08, 2008 (11:07:34 AM)
Hey Quool.... have you ever tried to contact anyone at www.canfor.com/contact ? I have, most of the people are no longer employed there (cut backs) and the ones that are on the list don't respond to emails, phone calls or letters.
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bottom line
written by siesta , August 08, 2008 (11:10:55 AM)
"our roots are in this community" is not just a corporate slogan but also a reflection of our commitment to the people and to the communities in which we operate. HA HA HA
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MORE BEER,,,,
written by Vogel , August 08, 2008 (11:24:59 AM)
I still say more micro breweries or a couple of big one here, then we can fly it it across the boarder direct via Seatle so Americans can taste what real beer taste like.Then they can fly directly to PG to go on brewery tours, yes more beer.
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