truck loggerbc, spring 2016 - volume 39, number 1

64
Spring 2016 Truck LoggerBC 1 www.tla.ca [ INSIDE ILA 58th Conference & Trade Show ] Spring 2016 PM # 40010419 History and Vision: A Historical Presidency for Jacqui Beban A Path to Mutual Successful Change: Contractor Sustainability & Industry Competitiveness The Ever Changing Goalposts of the Environmental Movement

Upload: truck-loggers-association

Post on 28-Jul-2016

215 views

Category:

Documents


2 download

DESCRIPTION

The voice of British Columbia's forest industry - forest policy, new technology and challenges facing the industry.

TRANSCRIPT

Page 1: Truck LoggerBC, Spring 2016 - Volume 39, Number 1

Spring 2016 Truck LoggerBC 1

ww

w.t

la.c

a[ INSIDE ILA 58th Conference & Trade Show ]

Spring 2016

PM #

4001

0419

History and Vision:A Historical Presidency for Jacqui Beban A Path to Mutual Successful Change: Contractor Sustainability & Industry Competitiveness

The Ever Changing Goalposts of the Environmental Movement

Page 2: Truck LoggerBC, Spring 2016 - Volume 39, Number 1

2 Truck LoggerBC Spring 2016

Page 3: Truck LoggerBC, Spring 2016 - Volume 39, Number 1

Spring 2016 Truck LoggerBC 3

SPRING 2016 Volume 39 Number 1 www.tla.ca CONTENTS

Columns & Departments7 President’s Message

Looking Forward: A Presidential Vision for the TLAJacqui Beban

8 Executive Director’s MessageBuild a Healthy Forest Industry, Build a Healthy Province David Elstone

10 Interior Logging Association’s MessageRevise Bill 13 and Create Jobs in BC’s Forest Industry Wayne Lintott

13 North West Loggers Association’s MessageFighting for Our Future: Supporting the Trans Pacific PartnershipBill Sauer

15 Market ReportBC Coast Industry Competitiveness: Good News and Bad NewsRuss Taylor

16 Safety ReportWorkSafeBC 2016 High Risk Strategy for Forest OverviewBjarne Nielsen

18 Legal ReportBill 13: What It Is and Why It MattersSteve Ross

20 Business MattersIncentive Programs: Innovation May Not Be As Costly As You ThinkChris Duncan

Cover photo: Hans Peter Meyer*The cover photo was not taken at an active worksite.

55

26 History and Vision:A Historical Presidency for Jacqui BebanBy Hans Peter Meyer

Cover

Features23 ILA 58th Annual Conference and Trade Show:

Be the Change for Forest SafetySteve Thomson, Minister of Forests, Lands and Natural Resource Operations

31 Round-Up: The 73rd Annual Truck LoggersAssociation Convention & Trade ShowTLA Editorial

38 First Nations & Forestry: Working in Industry TodayIan MacNeill

44 The Path to Mutual Successful Change:Contractor Sustainability &Industry CompetitivenessTLA Editorial

50 Embracing Change in First Nations RelationshipsRobin Brunet

55 The Ever Changing Goalposts of theEnvironmental MovementJim Girvan

26

Page 4: Truck LoggerBC, Spring 2016 - Volume 39, Number 1

4 Truck LoggerBC Spring 2016

President Jacqui Beban

Vice President Mike Richardson

Past President Don Banasky

Executive Director David Elstone

Industrial Directors Ted BeutlerHowie McKameyDave McNaughtClint ParcherMark PontingBarry SimpsonDoug SladeyMatt Wealick Adam Wunderlich

Associate Directors George LambertTim LloydBrian MulvihillCarl SweetAdam Pruss

Editorial Board Don BanaskyJacqui BebanJames ByrneGraham LasureWayne Lintott Brian MulvihillBill Sauer

SPRING 2016 / VOLUME 39 / NUMBER 1Editor Brenda Martin

Contributing Writers Jacqui Beban Robin Brunet Chris Duncan David Elstone Jim Girvan Wayne Lintott Ian McNeill

Chairman Reid Hedlund

First Vice Chairman Randy Spence

Second Vice Chairman Len Gudeit

Past Chairman Ed Smith

Directors Lee Callow Guido Claudepierre Dennis Cook John Drayton Randy Durante Matt Edmondson Frank Etchart Scott Horovatin Jeff Kineshanko Hedley Larsen Bill McDonald Tim Menning Ron Volansky

General Manager Wayne Lintott

Administration Nancy Hesketh

The Truck Loggers Association2016 Executive & Directors

Interior Logging Association2015-2016 Board of Directors

Interior Logging Association3204 - 39th AvenueVernon, BC V1T 3C8Tel: 250.503.2199 Fax: 250.503.2250E-mail: [email protected]: www.interiorlogging.org

Hans Peter Meyer Bjarne Nielsen Steve Ross Bill Sauer Russ Taylor Steve Thomson

For editorial information, please contact the Truck Loggers Association:Tel: 604.684.4291Email: [email protected]

For advertising, please contact Advertising In Print:Tel: 604.681.1811Email: [email protected]

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 Print200 - 896 Cambie Street, Vancouver, BC V6B 2P6 Tel: 604.681.1811. Fax: 604.681.0456

Publication Mailing Agreement No. 40010419. For subscriptions, contact [email protected] or 604.684.4291. Send change of address noticesand covers of undeliverable copies to:

The Truck Loggers AssociationSuite 725-815 West Hastings Street Tel: 604.684.4291Vancouver, BC V6C 1B4 Fax: 604.684.7134E-mail: [email protected] Website: www.tla.ca

Proven 30 year track record of maximizing timber valuesExperienced, qualified staff including 8 Registered Professional ForestersDevelopment capital at attractive ratesStrong customer base in domestic and export markets

VANCOUVER1210 - 1111 Melville StreetVancouver, BC V6E 3V6

T: 604-684-2107 F: 604-689-0977 E: [email protected]

CAMPBELL RIVER207 - 1100 Island HighwayCampbell River, BC V9W 8C6

T: 250-287-0143E: [email protected]

SECHELT5083 Bay RoadSechelt, BC V0N 3A2

T: 604-740-0603 F: 604-689-0977E: [email protected]

Accurate market price forecastingDetailed planning and budgeting process to ensure performanceAssisting First Nations develop successful forestry businesses for over 10 years

A&A TRADING LTD.Forestry Management and Marketing

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.

Page 5: Truck LoggerBC, Spring 2016 - Volume 39, Number 1

Spring 2016 Truck LoggerBC 5

Chairman Reid Hedlund

First Vice Chairman Randy Spence

Second Vice Chairman Len Gudeit

Past Chairman Ed Smith

Directors Lee Callow Guido Claudepierre Dennis Cook John Drayton Randy Durante Matt Edmondson Frank Etchart Scott Horovatin Jeff Kineshanko Hedley Larsen Bill McDonald Tim Menning Ron Volansky

General Manager Wayne Lintott

Administration Nancy Hesketh

from the editorial Board deSK...

Welcome to the Spring 2016 issue of Truck Log-gerBC. It was good to see so many people out

at the 73rd TLA Convention & Trade Show. Atten-dance at our skill development sessions on Wednes-day—where we dove deep into the mechanics of steep slope technology—was particularly impressive. Here is a special thanks to our sponsors, speakers, delegates and TLA staff for making this year’s convention such a wonderful success.

The Interior Logging Association’s 58th Annual Conference & Trade Show is taking place on May 5-7, 2016 in Vernon. The TLA is holding our own board meeting in conjunction with the Conference and we are all looking forward to meeting Minister Thomson and enjoying the excellent outdoor equipment show. We hope to see many of you there.

Two feature articles in this issue expand on three sessions that took place at the TLA Convention. This year, we offered real-time, online audience polling during the Minister of Forests Breakfast and the final panel session, “A Path to Mutual Successful Change.” We used these polling results and the panelists’ re-sponse from the final session to put together an excel-lent article that addresses both contactor sustainabil-

ity and industry competitiveness. The second article, “Embracing Change in First Nations Relationships,” reviews what each of the four speakers said during their presentations and then gets deeper into the is-sues. First Nations’ role in the forest industry is evolv-ing and these people have a vision for its future.

Continuing with our First Nation focus, the second part of our two-part series on elders and younger people working in BC’s forest industry is included in this issue. We were excited to read about the variety of jobs younger First Nations people are working at today and the hope they have for the forest industry.

This is a 64-page magazine—16 pages more than we planned for—so we can’t begin to comment on all the content. But please read our four reports—Market, Le-gal, Safety and Business—as well as our excellent fea-ture on environmental non-governmental organiza-tions (ENGOs) moving the goalposts after agreements are signed and industry has made their business plans.

As always, we hope you enjoy our magazine and that you find it informative. If you have any feedback or com-ments, please contact Brenda Martin, Director of Com-munications, at 604.684.4291 ext. 2 or [email protected].

- The Truck LoggerBC Editorial Board

RE: “Knowledge is Power: Understanding the 60 Day Compensation Window” – Truck LoggerBC, Fall 2015

I write to clarify what I think may be a misunderstanding of the application of the 60 day compensation rule in

the Forestry Service Providers Compensation Fund (FSPCF). There is a formula that allows compensation for the first unpaid invoice plus 30 days, to a combined maximum of 60 days of unpaid work. The formula sets the start date as the beginning of the period covered by the oldest unpaid invoice.

It is a rare contractor that has not had a slow paying licensee at least once. If the first time a contractor had to wait for payment ended up locking in a start date for the 60 day window, then it is likely few if any contractors would be eligible for FSPCF compensation. Therefore, if there is a late payment in the normal course of business that covers the old-est unpaid invoice, then the start date of the 60 day potential compensation window also moves forward.

A contractor that continues to work after there are 60 days of unpaid invoices outstanding does so at his own risk. However, he may choose to do so for any number of reasons. If late payments are received in the normal course of busi-ness they will be applied first to the oldest invoice. Once it is paid the start date of the first unpaid invoice will move ahead accordingly and more recent work will be included in the maximum 60 day compensation window.

If things go well, the contractor will be paid in full some-time after the end of the logging season, and compensation is no longer an issue. If there is an insolvency, the con-tractor can apply to the fund. The contractor can receive compensation of a maximum of 60 days’ worth of invoices, starting at the first unpaid invoice. In exchange he must as-sign all his receivables from that licensee to the FSPCF. The Authority will then attempt to realize on those receivables.

In the case where the licensee disappears or has no assets, the assigned receivable will likely be worthless. Other times the Authority might receive a few cents on the dollar. In the very unlikely event that the Authority is able to collect more than just the 60 days’ worth of receivables the excess, after collection costs, will be given to the contractor. I don’t expect that will ever happen.

I mentioned earlier the “receipt of payment in the normal course of business”. That is meant to contrast with payment as a result of a legal process such as a seizure of logs. The distinction is necessary because otherwise a contractor could, for instance, work unpaid for 120 days, seize logs worth 60 days’ work, apply that to what he is owed, and then claim for the second 60 days. Doing that would mean the FSPCF was essentially covering the last 60 days of invoices unpaid in the normal course of business, not the first 60 days. That was clearly not the intention of the legislation.

Contractors are reminded that the purpose of the FSPCF is to allow them to extend up to 60 days’ credit to a licensee knowing they can apply to the FSPCF if they are not paid. As soon as they are owed more than a maximum of 60 days, they will not be protected by the fund for the excess. Any con-tractors that are unsure about the application of the rules to their particular circumstances are invited to contact the Eric van Soeren, FSPCF Authority, at 250-537-1533 or by email at [email protected].

Yours truly,Eric van Soeren, FSPCF Administrative Authority

Page 6: Truck LoggerBC, Spring 2016 - Volume 39, Number 1

6 Truck LoggerBC Spring 2016

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.

WHEN PRODUCTIVITY MATTERS

WE’LL HELP YOU SEE THE FOREST FOR THE TREES.

Page 7: Truck LoggerBC, Spring 2016 - Volume 39, Number 1

Spring 2016 Truck LoggerBC 7

Reflecting on my term as vice-pres-ident, I realize the importance of

the TLA’s advocacy effort on behalf of our members. This advocacy supports the industry as a whole and the many rural communities where our members live and work. I am truly honored to represent the TLA as president and ap-preciate the support I receive from the TLA board, staff and membership.

As I look forward to my term as president, my goal is to continue on this path and to use the TLA 2015-2017 Strategic Plan as my guide. Fostering re-lationships that promote our vision and advocating for contractor sustainability will, I believe, benefit the industry as a whole. One only needs to look at the recent layoffs and mill disruption in Port Alberni caused by a contractor rate dispute to understand that we are all in this together. One member of the supply chain cannot benefit at the expense of the others because it puts communities at risk.

So what are the issues we need to keep working on?

Encouragement and support for supply chain development is critical. Healthy, strong and respectful relation-ships are another key step to the im-provement of the industry as a whole. Relationships with First Nations com-munities continue to be a TLA focus. We include First Nations editorial in each issue of our magazine to highlight and show our support for First Nations for-estry partnerships and success stories. We understand that change happens at a grassroots level and we need to educate the industry about the opportunities that are out there.

Building relationships with other asso-ciations also helps to create a unified voice when presenting issues to government. The TLA has been working with the ILA and NWLA and together we are meet-ing, strategizing and presenting a unified voice to government. Government has appreciated this approach because all

looKing forward: a PreSidential ViSion for the tla

Jacqui Beban TLA President’s MESSAGE

contractor associations are represented at each discussion and our message is clear. An improved working relationship with the Coast Forest Products Association (CFPA) has also helped on many files and although we have some differences of opinion on a few items, many of our objectives are similar.

As we look forward to the 2017 pro-vincial election, it is almost certain that log exports will be back in the media. Any business owner will tell you, one of the keys to success is having access to diverse markets and the coastal forest industry is no exception. And while log exports are part of that diversification, this does not mean that logs will not be available to our local mills. Diverse global markets help the industry harvest the full profile of the Allowable Annual Cut (AAC). This will allow us to better manage our forests on a sustainable basis and will actually result in more wood delivered to our local mills.

ers and organizers for another successful convention. The attendance was excel-lent and the feedback we received from the attendees was very positive. One of the most powerful talks I ever witnessed was given by Wiremu Edmonds from New Zealand at Wednesday’s keynote luncheon. The message was clear in his “Stand in the Gap” presentation: Everyone has someone who relies on them and cares about them and so our workers must come home safely to their loved ones every day. This overriding ob-jective is not negotiable in our industry.

I also welcome Mike Richardson of Tsibass Construction to the Executive as Vice President. Mike brings the unique perspectives of having been on both sides of the fence as logger and contract manager. Such insights will be valuable as we address the advocacy issues I iden-tified above.

Finally, I would personally like to thank Don Banasky for his strong

Jacqui Beban, President, TLATel: 250.951.1410 Email: [email protected]

I believe communicating, building trust and aligning our goals will be key for the success of the TLA.At the core of our association is

always a desire to advocate for contrac-tor sustainability for our members. To be able to harvest and haul logs; make enough to re-invest in equipment, safety and infrastructure; to be able to support local communities and, in the end, have a business that can attract new employ-ees is at the heart of a successful coastal forest industry. Given the wealth that is evident in the public forests that we all make our living from, it seems this goal makes sense for everyone.

During my ten years on the TLA Board, I’ve learned that for every ques-tion we ask, three more are asked of us. Advocacy is always a learning process. That said, I believe communicating, building trust, and aligning our goals will be key for the success of the TLA, the forest industry and BC as a whole.

I sincerely thank the TLA staff, speak-

leadership and professionalism while leading the TLA over the past two years. He has worked hard for the membership and has represented us well with gov-ernment, other associations and indus-try stakeholders. I was fortunate to have the opportunity to watch and learn from him while I was Vice President and ap-preciate that he will remain an integral part of the TLA Executive in his new role as the Immediate Past President.

Page 8: Truck LoggerBC, Spring 2016 - Volume 39, Number 1

8 Truck LoggerBC Spring 2016

David Elstone, RPF, Executive Director, TLATel: 604.684.4291 ext. 1Email: [email protected]

Build a healthy foreSt induStry, Build a healthy ProVince

What does the forest resource sector mean to the success of

the province of British Columbia? At first glance, the recently released annual budget for the provincial government shows that the answer to my question is not so apparent. Direct revenue from all natural resources (i.e., mining royalties or, in the case of forestry, stumpage) makes $2.3 billion for the province. For-est resources directly generate some $1.3 billion or almost 60 per cent of all natu-ral resources revenues—a fair size num-ber that has grown over the past few years. However, in comparison to overall revenues of $47 billion, which includes personal and corporate income taxes of $24 billion, our industry’s significance seems less when compared to the promi-nence of tax payers’ dollars.

A healthy forest industry is critical to the stability of our province’s overall economy. It’s what provides the tax reve-nues to finance the healthcare, education and social services that British Columbi-ans have all come to rely on. I guess-esti-mate that a minimum of 30 per cent of tax revenue comes from rural communities outside of cities based on the distribution of the population in cities vs. those who are not. Typically, rural communities rely on the natural sources sector—namely forestry—for economic activity. So while the forest resource’s direct contribution is about 2 per cent to 3 per cent of overall government revenues, the employment and well paying jobs that forestry gener-ates in rural communities, means the indirect contribution of the forest resource to our province is substantial.

Independent timber harvesting con-tractors and their suppliers are the eco-nomic backbone of BC’s rural communities. It is generally these busi-nesses that are generating employment in the woods near the rural communi-ties. However, it has been the TLA’s mes-sage that contractor sustainability, or in other words, the viability of contractors’ businesses has increasingly become a concern. And following the logic I have

drawn out, if the forest resource via log-ging contractors is at risk, so too is the tax generating ability of our rural communities.

My concern is based on survey results taken at the TLA Convention last January. The audience said 66.3 per cent felt that contractors were not sustainable. Another 60.9 per cent answered that they saw their business was at risk or were uncertain because of industry issues. And then only 10.4 per cent said that their relationship was good with their major licensees. A consequence of weakening contractor sustainability would be that the supply chain breaks, impacting the delivery of logs to sawmills.

David Elstone TLA Executive Director’s MESSAGE

ties of the original intent of Bill 13 was identified by then Forest Minister Dan Miller back in 1991. “The stability of many families and, indeed, many com-munities are dependent on contractors maintaining secure and fair contracts with holders of timber rights in their vicinity” (Hansard). The legislation that followed was Bill 13 and its purpose was, as Minister Miller stated, “to improve the balance in these contractual relationships. It will also provide a quick and inexpensive system for resolving contract disputes. This will ensure secu-rity and fairness for all parties in timber harvesting in British Columbia.”

The TLA’s advocacy message is this. It’s

It’s been 12 years since the last changes to Bill 13, so it would be prudent governance to review this legislation.And in fact, that prediction came true

with the situation in Port Alberni where part of Western’s ADP sawmill was closed in February due to a log shortage because of a contract dispute with the local con-tractor attempting to keep his business going. Not only were the mill workers temporarily laid-off, so too have been the many loggers, and forestry consultants and...the list goes on. All the while, West-ern records a 100 per cent improvement in Q4 EBITDA (operating earnings) over a year-ago. Clearly, Western can afford to run the mill. Contractors need to have a level playing field when it comes to nego-tiating contracts and business relation-ships with their major licensees that employ them. Otherwise, as we have seen in Port Alberni, we expect more instabil-ity and turmoil for communities in the future.

I think one of the solutions to contrac-tors’ and the industry’s problems rests with the current amendments of Bill 13. There is an article on page 18 that describes what Bill 13 does.

For the mayors and MLAs reading this letter, the value to their communi-

been 12 years since the last changes to Bill 13, so it would be prudent governance to review this legislation. Clearly it has not been an effective tool for contractors to utilize in its current form. With only a single successful arbitration in 12 years, how much more evidence is needed?

Bill 13 or replaceable contracts were put in place to act as a counterweight to the dominant influence of the major ten-ure holders over the forest resource, by helping re-distribute the prosperity that the publicly owned forests provide to the people that live and work in them. Replaceable contracts are not the most efficient form of supply chain manage-ment, but neither is the oligopolistic con-trol of the timber tenure rights in British Columbia. The cracks are forming, but hopefully change can occur before there is an irreversible impact on our tax payer base in rural BC communities.

Page 9: Truck LoggerBC, Spring 2016 - Volume 39, Number 1

Spring 2016 Truck LoggerBC 9

COME OUT SWINGING

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.

brandt.ca 1-888-227-2638

As the world’s largest privately held John Deere Construction and Forestry dealer, Brandt knows that forestry is one tough business. That’s why we offer our customers nothing but the toughest equipment. Like the John Deere 3754D Forestry Swing Machine. It features the proven technology of a powerful 271hp Tier 3 engine, delivering lower maintenance costs and lower exhaust heat. With Brandt’s 27 locations across Canada, and the world’s best after-sales support from our 24/7 Product Support Centre, you can trust Brandt to help keep you productive and profitable. That’s Powerful Value. Delivered.

SCHEDULE YOUR DEMO AT BRANDTPROMO.CADEMO CUSTOMIZED, FLEXIBLE OPTIONS

FIND OUT MORE 1-855-711-4545FINANCING

Page 10: Truck LoggerBC, Spring 2016 - Volume 39, Number 1

10 Truck LoggerBC Spring 2016

reViSe Bill 13 and create JoBS in Bc’S foreSt induStry

Wayne Lintott Interior Logging Association’s MESSAGE

Over the last year, I know there has been a lot of talk on the

coast about the need to review Bill 13. I’ve been part of those conversations as the ILA and TLA work together on vari-ous advocacy issues. As we move for-ward, we need to remember that Bill 13 isn’t just a coastal issue. It applies to the whole province and it impacts contrac-tors who belong to the ILA as well.

When you drill right down to it, Bill 13 isn’t even just a Bill 13 issue. Right now, it’s being used to grind contractors down and set a ‘market rate’ that doesn’t allow contractors to be sustainable. This ‘market rate’ spills over from Bill 13 con-tracts and affects the rates that all log-ging contractors are paid. Not only is it a provincial issue, it is industry wide too.

It’s been 12 years since Bill 13 was updated and these days it is clearly not serving the forest industry well. It’s time for change and the TLA and ILA are working together to make that happen.

While advocacy is an important part of a logging association’s mission, so is community building. With that in mind, be sure to attend the ILA’s 58th Annual Conference and Trade Show being held on May 5, 6 and 7th at the Vernon Atrium Hotel, previ-

ously known as the Vernon Lodge. The theme is “Be the Change for Forest Safety” and we are teaming up with the BC Forest Safety Council to provide a day of important safety sessions as part of the Interior Safety Conference being held in conjunction with the ILA An-nual Conference and Trade Show on Saturday, May 7th. Other big highlights of this event are the Friday Luncheon with guest speaker Minister Thomson and the Western Night Dinner & Dance featuring Lee Dinwoodie and Band. I hope to see many people there!

This ‘market rate’ spills over from Bill 13 contracts and affects the rates of all logging contractors.

Join the ILA again this year for their excellent trade show and BC Forest Safety Council’s Interior Safety Conference.

Finally, I’d like to update you on the ILA’s Forestry Heavy Equipment pro-gram. We had 16 students in the fall program and they have all graduated and are working in the Forest Indus-try operating equipment. Again we would like to acknowledge Amanda Black and her employer West Fraser Timber for their continued support to make our program operational. A special thanks also to the contractors, Aspell Contracting, Ken Ilnicki Devel-

opments, Essential Evergreen, Jordco Enterprises, Ilnicki Developments Ltd., M.W. Sharke, Newco Logging, Rolston Lakeside Services, Trev’s Contract-ing and Tsi Del Del Enterprises. These contractors all took on students which they supervised and trained to become knowledgeable in operating individual pieces of logging equipment.

On the Log Truck Driver program we had an intake of four students. Two students have graduated and are out driving under our mentorship program. Two more will be graduating shortly

and will be assigned to an experienced driver for the completion of the men-toring period. Again thanks to the fol-lowing companies for their interest in our program and mentoring the stu-dents, D&T Bonner Enterprises, Tyler Yuill Trucking, Ken Ilnicki Develop-ments Ltd. & RCL Contracting. A note of thanks must be passed on to Rocky Ashton of Rocky Forest Management Ltd., Gillian Watt of Holmwood Re-sources, Nancy Hesketh of the Interior Logging Association, Ray Trenholm and staff of TRU at Williams Lake and Kamloops for helping manage and keeping the administration on track.

The success of these classes clearly shows that people are interested in join-ing the forest industry and—even in these difficult times—we have contrac-tors stepping up to train new workers because they understand the impor-tance of a well trained workforce. Now we just need Bill 13 revised so it can level the playing field between contrac-tors and licensees. This will ensure con-tractor sustainability so our contractors can continue to create secure, well-paid jobs in their local communities and hire the students we’re training.

Page 11: Truck LoggerBC, Spring 2016 - Volume 39, Number 1

Spring 2016 Truck LoggerBC 11

Page 12: Truck LoggerBC, Spring 2016 - Volume 39, Number 1

12 Truck LoggerBC Spring 2016

THIS IS HITACHI TERRITORY Off the beaten trail, in the thick of it all, Hitachi forestry equipment thrives. Time-tested design, rugged structure and heavy-duty undercarriages—these machines tame timber with precision.

Join us at the ILA Conference in Vernon BC this May, 2016.

Page 13: Truck LoggerBC, Spring 2016 - Volume 39, Number 1

Spring 2016 Truck LoggerBC 13

I heard Ed Fast, a member of parlia-ment who recently served as the

Minister for International Trade and Minister for the Asia-Pacific Gateway, speak in March about his recent ac-complishments including the historic agreement of the Canada European Comprehensive Economic and Trade Agreement (CETA) in principle and the signing of the Trans Pacific Partnership (TPP). Both CETA and TPP are aimed at creating a more competitive Cana-dian economy by deepening Canada’s trade and investment ties in large, dy-namic and fast-growing economies around the world.

Fast iterated that Canada is long past the ‘drawers of water and hewers of wood’ category of trade in the global economy. In fact, Canada now ranks worldwide as fourth largest exporter of engineering services and first largest of mining services. That innovation and resourcefulness is also represented in our value-added forest industry.

As we know in British Columbia, our resources are an important aspect of our economy. For all of us in the forest and wood products industries, expand-ing markets for what we do best can only benefit our futures. Our individual businesses will be able to attract new employees when we offer long term, profitable horizons.

For example, with only one major pri-mary breakdown facility west of Smith-ers, the forest industry in the Pacific Northwest has relied heavily on foreign markets. When the export markets are healthy, the harvest sector in our area is also busy. But when export markets are bad, our area is deathly quiet.

Japan has tariffs of up to 10 percent on forestry and value-added wood prod-ucts. Vietnam applies tariffs of up to 31 percent, Malaysia of up to 40 percent, Australia and New Zealand of up to 5 percent and Brunei of up to 20 percent. The TPP will eliminate tariffs on forest-ry and value-added wood products and

create new opportunities in key markets such as Japan, Malaysia and Vietnam.

Under the TPP Agreement, Canada’s forestry and value-added wood prod-ucts industry will be able to capitalize on the business opportunities created by the growing needs of the Japanese mar-ket, including products such as lumber, oriented strand board, worked conifer-ous and non-coniferous wood, build-ers’ joinery, plywood and veneer panels. Canada’s exports in this sector will also now have an advantage over competitors outside of the TPP region (for example, the European Union, Russia and China).

By generating opportunities for Ca-nadian forestry and value-added wood products, the TPP will create advantages for Canadian businesses and workers.

There are always those that decry any—and in some cases every—new op-portunity to find markets for Canada’s resources. ‘We will lose sovereignty,’ ‘jobs will be shipped offshore’ and oth-er largely speculative and often ill-in-formed complaints fill the pages of some news services.

For too many years, Canada relied heavily on one market—the US—and, as so many of us know from painful expe-rience, the one basket approach doesn’t work well. The TPP will open up the potential purchasing power of over 800 million new customers. With those new customers, comes the equal potential for new value-added products that we may not have ever dreamed of to date—but may become the ‘next big thing.’

When Fast addressed concerns about the TPP, he explained “the Trans Pacific Partnership carries with it a six month termination clause.” In other words, if you don’t find benefit to nearly free trade with 11 more countries and all their potential consumers—one that doesn’t have to be re-negotiated and re-litigated every few years—you can shake the sawdust from your jeans and ride off into the sunset.

March headlines shouted “Chrystia

Freeland heralds ‘real breakthrough’ on softwood lumber negotiations.” Fur-ther quoting Minister Freeland, she states that “what we have committed to is to make significant, meaningful progress towards a deal—to have the structure, the key elements there a 100 days from now.”

Again we know from history, that un-til the ink is dry on the signature line, US lumber companies will oppose the import of softwood, claiming Canadian companies have an unfair advantage with their preferential access to Crown-owned lands with lower stumpage fees.

But the TPP may also just represent that surety and continuity we have all been dreaming of. While International Trade Minister Chrystia Freeland signed the Trans-Pacific Partnership trade deal in a ceremony in New Zealand on Feb-ruary 3 of this year, that signature repre-sents little more than an ‘agreement in principle’. The agreement may take up to two additional years to ratify and put into place.

Two years that the forest and wood products industries can lobby their Members of Parliament and help them understand the contribution our indus-try makes to the revenue stream. This government has promised billions in infrastructure spending—with the TPP, we can not only help underwrite that promise, but our own successful futures as well.

Finally, if you’re interested in learning more about the TTP, the government has some good, easy to understand informa-tion about it at international.gc.ca—just type TTP into the search engine once you get there.

fighting for our future: SuPPorting the tranS

Pacific PartnerShiP

Bill Sauer North West Loggers Association’s MESSAGE

Page 14: Truck LoggerBC, Spring 2016 - Volume 39, Number 1

14 Truck LoggerBC Spring 2016

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

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.

NOT ALL INSuRANCE pOLICIES ARE CREATED EquAL.

Peter PringleManaging DirectorT: +1 250 413 2712C: +1 250 361 5702E: [email protected]

Steve HicksSenior Vice presidentT: +1 250 413 2723C: +1 250 588 1410E: [email protected]

Ben FitzpatrickAccount ManagerT: +1 250 413 2725C: +1 778 679 9019E: [email protected]

Jardine Lloyd Thompson Canada Inc.Suite 350, 4396 West Saanich Road, Victoria, BC V8Z 3E9Toll Free: +1 888 216 8018 | p: +1 250 388 4416 | F: +1 250 388 9926www.jltcanada.com

Page 15: Truck LoggerBC, Spring 2016 - Volume 39, Number 1

Spring 2016 Truck LoggerBC 15

In assessing the BC coast’s deliv-ered log and sawmill competitive-

ness, the evidence is very clear on some of the longer term trends. Since 1987, about 50 sawmills have closed, where 27 of these closures occurred since 2004. BC coast lumber production has plunged from 4.7 billion board feet in 1987 to 1.4 billion board feet in 2015. With less than 30 sawmills left in op-eration, one may conclude that the BC coast has been a graveyard of sawmills over the last 30 years.

The good news is that all of the high cost mills have been closed. All of the remaining mills are survivors with bet-ter cost structures and increased output, where many have a reasonable chance of continuing on. Sawmills need ongo-ing capital spending to remain com-petitive and efficient and there is strong evidence of this occurring at some mills (such as in many Western Forest Prod-ucts mills), but other mills still may be running on borrowed time. As a result, the future of the BC coast’s sawmilling industry will be tied to those mill own-ers that see a future and are able to fur-ther invest in, or innovate with, their mills. And equally important is having access to predicable supply and cost of sawlogs—this has been made more dif-ficult with the increasing Asian (led by China) log export demand since 2009.

WOOD MARKETS has been assess-ing the competitiveness of BC delivered log costs, sawmill costs and margins and other elements in comparison to other competing regions since 2000. WOOD MARKETS’ most recent biennial Global Timber / Sawmill / Lumber Cost Bench-marking Report was produced late last year and covers logging and sawmilling costs in 29 countries and regions on five continents. The report focuses only on structural lumber mills and includes de-tailed costs for two categories of mills: “average” and “top-quartile” mills, in-cluding the BC coast.

To provide some perspective from this biennial report, various cost catego-

ries at “average” mills in 29 countries or regions were ranked: from 1 (best) to 29 (worst). The ranking for the BC coast was documented to show the position and trend in BC coast costs since 2002 and here is a summary of the results:

have been below average for North America and were negative in 2006 to 2010; despite this, it improved to reach its best ranking in 2014. The rankings only provide perspective

relative to other countries. For example,

Market REPORTRuss Taylor

Bc coaSt induStry comPetitiVeneSS: good newS and Bad newS

category 2002 2008 2014 2010 to 2014 rank trends

Delivered Log Costs 29 11 15 FLAT

Sawmill Costs 29 12 23 FLAT to WORSENING

Lumber Revenue 7 15 22 WORSENING

Earnings (EBITDA) 19 19 16 FLAT to IMPROVING

BC Coast “Average” Sawmill Ranking in Global Survey

Scale: 1 = BEST; 29 = WORSTSource: WOOD MARKETS’ Global Cost Benchmarking Report (2015)

The survey results show rankings only and many factors are in play. For ex-ample, currency exchange rate changes can increase or decrease the BC coast costs, and therefore the ranking is rela-tive to other regions—regardless of any real cost changes. Other factors at work include changes in lumber prices in key markets, in ocean freight rates, in gov-ernment policy, and other factors.

So, what conclusions or trends can be extracted about the BC coast “competi-tiveness ranking” in relation to other sawmill regions that produce structural lumber from the Global Benchmarking Report since 2002?

• Delivered Saw Log Costs: they are above the global average for “average” mills, but the overall trend has seen lower costs from 2002 to 2010, but they have been rising slightly (worsening) in the rankings since then. • Whitewood Sawmill Costs: they are

above the global average for “average” mills, but the overall trend has seen a steady rise (worsening) in the rankings since 2008.• Lumber Revenue: this has been quite

volatile in the rankings, but has generally been close to the global average but did rise (worsen) in 2014 to its highest rank.• Whitewood Sawmill Margins: they

have been near the global average, but

with Europe’s lumber market being weak since 2012 and North America’s being better, European mills have slipped in the rankings while North American re-gions have improved.

What is positive in the ranking trends is that delivered log costs have been heading in the right direction. Reduc-tions in the delivered log costs on the BC coast between 2002 and 2010 have been significant in Canadian dollars per cubic metre despite some small reduc-tions in the rankings. This is because there will always be countries or regions with lower log costs, such as in the BC Interior and the Prairies.

While the trend in the ranking of saw-mill margins at “average” BC coast mills have been improving, the actual earn-ings are still very low in Canadian dol-lars per cubic metre: the highest actual EBITDA earnings have not been higher than 5 per cent of lumber sales since 2000 in our surveys, with losses recorded in 2006 to 2010. This seems to tie into an erosion in the ranking of sawmill costs, where “average” BC coast sawmills still tend to have high costs with some mills less competitive. For the BC coast, it is important to realize that sawmill costs for processing larger old-growth timber

(Continued to page 48)

Page 16: Truck LoggerBC, Spring 2016 - Volume 39, Number 1

16 Truck LoggerBC Spring 2016

The 2016 Forestry High Risk Strat-egy (FHRS) was developed by

examining claims data and identifying work processes and activities to find out which had the highest potential for causing serious injury.

It represents year three of a five-year strategic direction for prevention activi-ties. The hope is that the Forestry High Risk Strategy will help WorkSafeBC in-spections be as impactful as possible by focusing on those areas of timber har-vesting which represent exceptional risk to workers. We expect that consistent and resolute application of the Forestry High Risk Strategy over time will result in a measurable reduction in injuries, serious injuries, and fatalities. Good news for the whole industry.

Identified high-risk work activities

typically fall into the four areas of tim-ber harvesting as follows:

• Manual Tree Falling• Mechanized Harvesting• Cable Yarding• Log TransportationWithin these four areas, Forestry

High Risk Strategy inspections will fo-cus on the 11 classification units that have the highest rates of injury and seri-ous injury.

Primary Focus: • Cable or Hi-Lead Logging (703003)• Ground Skidding, Horse Logging, or Log Loading (703006)

• Integrated Forest Management (703008)

• Log Processing (703011)• Manual Tree Falling and Bucking (703013)

• Mechanized Tree Falling (703014)• Helicopter Logging (703019)• Log Hauling (732044)

Secondary Focus (seasonal/geographic considerations): • Brushing and Weeding or Tree Thinning or Spacing (703002)

• Forest Fire Fighting (703005)• Tree Planting or Cone Picking (703016)

The table below left, under Inspec-tion Focus, indicates the harvesting activities, as part of the 2016 FHRS, the prevention officer must inspect and evaluate to meet the requirements of the Workers Compensation Act and the Oc-cupational Health and Safety Regulation.

Although silviculture operations are not identified as one of the four main areas of the Forestry High Risk Strategy, this segment of the industry does gener-ate a high number of serious injuries. As a result, it’s included as a secondary (and seasonal) focus of the Forestry High Risk Strategy.

Another focus, over and above the four main areas, is Emergency Re-sponse Planning (ERP). It was identi-fied as a critical target area for the FHRS because of a number of serious ERP failures documented at forestry work-places through incident investigations. WorkSafeBC has developed a Forestry Emergency Response Plan video for employers to use when developing and evaluating Emergency Response Plan-ning (ERP). It’s called “Every Minute Counts: Emergency Response Planning in Forestry” and is available on our YouTube channel.

Prevention officers are also expected to conduct a review of workplace ac-countabilities to ensure that all employ-ers, prime contractors and owners are meeting their workplace responsibilities under Workers Compensation Act and Occupational Health and Safety Regula-tion. In addition, supervisors and work-ers responsibilities are also reviewed during inspections.

Safety REPORTBjarne Nielsen

worKSafeBc 2016 high riSK Strategy for foreStry oVerView

Harvesting Phase Mech. Injury/ Area of Risk Inspection Focus Manual Falling • Control of tree (falling

cuts) • Risk assessment (windfall,

danger tree, etc.) • Brushing

1. Falling cuts 2. Danger tree and

windfall assessment and plans

3. Unnecessary brushing practices

4. New faller training locations

Mechanized Harvesting • Maintenance work • Getting off and on

machinery • Equipment – loss of

stability • Congestion

1. Maintenance work plan and lockout

2. Three Point Contact procedures

3. Steep slope assessment plans

4. Site planning and layout

Cable Yarding Operations • Struck by Logs

• Slips and Falls • Congestion

1. Clearing the turn 2. Yarding angles 3. Landing the log 4. Site planning and

layout Log Transporting

• Motor vehicle accidents • Loading and unloading

activities • Maintenance Work • MSI shoulder injuries • Proper use and installation

of Binders

1. Driving and Road Assessment

2. Loading, off-loading and securing of load

3. Best practices for maintenance work (lock out, access and egress)

4. Cab Guards 5. Binder use and

installation

Although silviculture operations are not identified as one of the four main areas of the Forestry High Risk Strategy, this segment of the industry does generate a high number of serious injuries. As a result, it’s included as a secondary (and seasonal) focus of the Forestry High Risk Strategy.

Another focus, over and above the four main areas, is Emergency Response Planning (ERP). It was identified as a critical target area for the FHRS because of a number of serious ERP failures documented at forestry workplaces through incident investigations. WorkSafeBC has developed a Forestry Emergency Response Plan video for employers to use when developing and evaluating Emergency Response Planning (ERP). It’s called “Every Minute Counts: Emergency Response Planning in Forestry” and is available on our YouTube channel.

Formatted Table

Page 17: Truck LoggerBC, Spring 2016 - Volume 39, Number 1

Spring 2016 Truck LoggerBC 17

This is just a brief overview of the 2016 Forestry High Risk Strategy. If you would like more information, please contact your local Prevention Officer for more information. Prevention Officers are also available to attend employer’s workplace and educate and consult fur-ther with regards to the 2016 Forestry High Risk Strategy. For additional infor-mation employers and workers can also access the WorkSafeBC website www.worksafebc.com and the Prevention Information phone: 1-604-276-3100 or toll-free 1-888-621-7233.

Bjarne Nielsen is a Senior Regional Officer who focuses on the forest industry and works out of WorkSafeBC’s Courtenay office. He can be reached at 250-334-8733 or [email protected].

Prevention officers are also expected to conduct a review of workplace accountabilities to ensure that all employers, prime contractors and owners are meeting their workplace responsibilities under Workers Compensation Act and Occupational Health and Safety Regulation. In addition supervisors and workers responsibilities are also reviewed during inspections.

Other Phase Mech. Injury/Area of Risk Inspection Focus Silviculture • Motor Vehicle accidents

• Lack of adequate MSI risk assessment/Management Program

1. Planning and conducting operations

2. Driver training/policies 3. MSI Risk

All Phases Areas of Unmitigated High Risk Inspection Focus Emergency Response Plan • Lack of ERP or inadequate

ERP/potential for delayed medical treatment with potential catastrophic consequences for the worker

1. First aid assessment 2. Lack of ERP practice

and testing 3. Helicopter access only

daily plan

Integrated Responsibilities • Areas of High Risk Violations

• Site Congestion • Planning/inadequate • Communication/inadequate • Management of

Change/failure to consider

1. All levels of Management are accountable and responsibilities reviewed

This is just a brief overview of the 2016 Forestry High Risk Strategy. If you would like more information, please contact your local Prevention Officer for more information. Prevention Officers are also available to attend employer’s workplace and educate and consult further with regards to the 2016 Forestry High Risk Strategy. For additional information employers and workers can also access the WorkSafeBC website www.worksafebc and the Prevention Information phone: 1-604-276-3100 or toll-free 1-888-621-7233.

Formatted Table

Formatted: Indent: Left: 0.01 cm

Page 18: Truck LoggerBC, Spring 2016 - Volume 39, Number 1

18 Truck LoggerBC Spring 2016

You have all heard of Bill 13 and replaceable logging contracts.

As our industry evolves, timber tenure consolidates into the hands of fewer li-cence holders, and the push for global competitiveness remains paramount, it is clear that Bill 13 contracts remain a cornerstone to viability in the contract logging community today.

The Timber Harvesting Contract and Subcontract Regulation was introduced as “Bill 13” in 1991. When he intro-duced the bill that amended the Forest Act to create contract replaceability on June 21, 1991, the then Minister of For-ests stated (Hansard):

“The second purpose of this bill is to address logging contractors’ security in British Columbia. Independent con-tractors and subcontractors who harvest timber for larger forest companies are ex-tremely important to British Columbia’s forest sector. The stability of many fami-lies and, indeed, many communities are dependent on contractors maintaining secure and fair contracts with the hold-ers of timber rights in their vicinity. This amendment will enable us to improve the balance in these contractual relation-ships. It will also provide a quick and inexpensive system for resolving contract disputes. This will ensure security and fairness for all parties involved in timber harvesting in British Columbia.”

It was clear that the intent of Bill 13 was to “level the playing field” between licence holders who have the exclusive right to harvest and contractors who ac-tually do the work. Before 1991, many logging contracts were not even in writ-ing and the security of work was mini-mal. To resolve these deficiencies, Bill 13 requires logging contracts to be in writing, to detail the amount of work they represent, and to provide a dispute resolution process of mediation and ar-bitration and a rate dispute procedure.

Most significantly, Bill 13 introduced the concept of replaceability to contracts in order to make them comparable to the “evergreen” nature of forest tenure.

Subject to satisfactory performance by the contractor, the licence holder must offer a replacement contract on substan-tially the same terms and conditions pri-or to the expiry of the term of the con-tract. This key concept then provided contractors with some security that they had future work, subject to satisfactory performance, and as a result they could risk investing in equipment and training a secure workforce.

Another key aspect of the 1991 Bill 13 was the provision of a rate test requir-ing that rates paid were competitive by industry standards and would permit a contractor operating in a reasonably ef-ficient manner to earn a reasonable prof-it. This was important since the licence holders had the opportunity to profit through the market cycles, without hav-ing to pass profits along to the contract workforce. In 1996, Bill 13 made re-placeable contracts more sustainable by requiring them to specify the amount of work to be performed in each year as a percentage of the work required to facil-itate the operations of the licence holder over the cut control period.

Both license holders and contractors have obligations under replaceable con-tracts. Licence holders must allocate work to their replaceable contractors and the contractors must have the equip-ment and manpower available, when re-quired, to perform that work. Contrac-tors cannot stop work if they end up in a rate dispute, but rather must continue to work under provisional rates equal to the rates in effect for prior services un-less those provisional rates are varied by an arbitrator.

Licence holders must also allocate work to their replaceable contractors and negotiate rates for that work in good faith. They cannot require their contractors to bid or submit rates for work, then reject those rates and allo-cate the work to other contractors who offer lower rates.

In 2004, Bill 13 changed its rate test to require “fair market rates”, which do not allow for consideration of a contractor’s efficiency or costs and therefore make

their operations less financially stable and secure. Since the change, rates have deteriorated across BC and many con-tractors have sought insolvency protec-tion or have simply left the industry as a result of an inability to secure sustain-able rates. Given that over a decade has passed since implementation of the fair market rate test, perhaps it is time to re-view the effectiveness of the Regulation.

In order to provide harvesting servic-es, contractors must make significant personal investments in equipment, safety training and infrastructure, as well as making commitments to people in communities through the provision of employment. With so few oppor-tunities to market their services as a result of the licence holder tenure con-solidation however, Bill 13 provides an important measure of security that al-lows the contractor to maintain its lo-cal workforce and pay for equipment purchased.

From a community perspective, the original intent of Bill 13 was to balance the interests of rural community in-dependent contractors and the major licence holders who singularly control the right to harvest and when.

In an environment where demand for wood products is growing, but at the same time the industry is gener-ally struggling to attract workers and re-invest to remain competitive, it makes sense that tenure holders who employ Bill 13 contractors would see the ob-vious benefits of a secure, stable and safety trained contractor workforce and equipment complement to support their supply chain. And for communities, the knowledge that local logging contrac-tors who support the community and employ local people have security of work allows for a stable rural economy. Seems like a win-win for everyone.

Steve Ross Legal REPORT

Bill 13: what it iS & why it matterS

Stephen Ross is a Partner at Miller Thomson LLP and practises in the areas of commercial litigation, forestry law, and insolvency law. He can be reached at 604.643.1205 or [email protected].

Page 19: Truck LoggerBC, Spring 2016 - Volume 39, Number 1

Spring 2016 Truck LoggerBC 19

CAMPBELL rIVEr 2011 14th Avenue

Campbell River, B.C. V9W 4J2

WILLIAMs LAkE 4700 Collier Place Williams Lake, B.C.

V2G 5E9

PrInCE GEorGE 4759 Continental Way

Prince George, B.C. V2N 5S5

kAMLooPs 1200 Chief Louis Way

Kamloops, B.C. V2C 6M1

VErnon 1600 Kosmina Road

Vernon, B.C. V1T 8T2

Surrey - VancouVer 19067 94th Avenue

Surrey, B.C. V4N 3S1

nAnAIMo 2115 South Wellington Road

Nanaimo, B.C. V9X 1R5

Fort st. John 10816-89th Avenue Fort St. John, B.C.

V1J 6S8

tErrACE 3830 Sharples Road

Terrace, B.C. V8G 5P8

CrAnBrook 2401 Cranbrook Street, North

Cranbrook, B.C. V1C 3T3

WE BUILD RELIABILITY

“We’re very pleased with the new Series II machine. The cab is very quiet and the fuel economy is great.”

Shawn McIver, Lime Creek Logging

Page 20: Truck LoggerBC, Spring 2016 - Volume 39, Number 1

20 Truck LoggerBC Spring 2016

How much time have you spent in the shop, trying to build the next

best thing to harvest or haul logs cheap-er or faster? How many times have you come up with an innovative concept, but did not implement it because of devel-opment costs or fears that innovations would negatively impact your rates? In an industry focused on managing costs to improve profitability, many com-panies have learned to just stick to the tried and tested ways. However, there are financial incentive programs to help offset the costs of innovation you may be unaware of.

Scientific Research & Experimen-tal Development (SR&ED)

Every year the federal government awards approximately $4 billion to Ca-

nadian companies making Scientific Research & Experimental Development (SR&ED) claims. The SR&ED program (“shred”) is a great tax credit incentive for businesses that are actively working on innovations within Canada. Even a minimal improvement to an existing product or process can qualify for the credit, however the SR&ED program can also be complicated and confusing. As a result, many potential refunds and tax credits for qualifying innovations have gone unclaimed simply due to low levels of awareness of the program, or potential claimants being unsure of what qualifies or how to properly sub-mit a claim.

To be eligible for a SR&ED claim, your innovation must meet the follow-ing five criteria:

1. Was there a scientific or a techno-logical uncertainty—an uncert-ainty that could not be removed by standard practice?

2. Did the effort involve formulating hypotheses specifically aimed at reducing or eliminating that uncertainty?

3. Was the adopted procedure consistent with the total discipline of the scientific method, includingformulating, testing, and modifying the hypotheses?

4. Did the process result in a scientific or a technological advancement?

5. Was a record of the hypotheses tested and the results kept as the work progressed?

Questions 2 and 3 are probably the most intimidating since most industrial R&D does not formally structure their ex-perimental development with the formu-lation of a hypothesis. Such formalization exists primarily in research laboratories and academic research environments.

Canadian controlled private corpora-tions can receive a federal refundable credit of 35 per cent of the qualifying

TUG & BARGE

www.westcoasttug.ca

LAYOUT-1.indd 1 13-02-13 9:21 AM

Chris Duncan Business MATTERS

incentiVe ProgramS: innoVation may not Be aS coStly aS you thinK

• 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• A•Globalstar Satellite Phones

larms Sales & Service

1-877-977-9207www.nicomm.comPH: 250-287-9207

[email protected] Island Highway, Campbell River

24/7 SERVICES AVAILABLE

MEMBER OF

Page 21: Truck LoggerBC, Spring 2016 - Volume 39, Number 1

Spring 2016 Truck LoggerBC 21

SR&ED expenses, up to a maximum of $3 million in costs. For costs in excess of $3 million there are also non-refund-able credits available. Capital costs are no longer eligible for SR&ED claims.

In addition to the federal refundable credits, BC offers a provincial refund-able credit of 35 per cent of the qualify-ing SR&ED expenses, up to a maximum of $3 million in costs.

A SR&ED claim involves filing a num-ber of information forms with Canada Revenue Agency (CRA) within 18 months of your fiscal year end and then going through a one-hour interview for first-time claimants.

Grants / PartnershipsThere are a variety of grants avail-

able to companies with new innova-tive ideas. Grants are available for most stages of the design process through various government agencies and the private sector. These grants can cover a range of costs associated with research into innovation including consulting expenses, trial testing, wages and other costs. One such federal program is the Industrial Research Assistance Program

which is designed to help companies de-velop, adopt and adapt technology into competitive products or services for the market place. The program provides ad-visory services and funding to compa-nies working on innovative projects.

Another way to share the risks and costs of innovating is by finding a part-ner to collaborate with. Post-secondary institutes are a great place to find part-ners of innovation. Many research in-terns are looking for new exciting ideas to work on while fulfilling their educa-tion requirements. Partnering with an educational institute can also open the innovation up to additional sources of funding only available to research proj-ects such as the Collaborative Research and Development grants offered by the National Sciences and Engineering Re-search Council of Canada (NSERC).

Export Development Canada (EDC)EDC works with Canadian compa-

nies and their banks to help reduce financial risk associated with selling goods or services outside of Canada. They provide insurance and financial services, bonding products and small

business solutions to Canadian export-ers. Many of EDC’s small business solu-tions are designed to help free up work-ing capital so Canadian companies can grow their businesses.

What Other Incentives Does our Existing Tax System Offer to Pro-mote Innovation?

Besides the SR&ED programs men-tioned earlier in the article, most costs related to the development and imple-mentation of new innovations are de-ductible for tax purposes in the year they incur.

Innovation is something every indus-try needs to be able to maintain profit-ability in a global market. Businesses should focus on the benefits of imple-menting their innovations with the add-ed knowledge that there are programs and incentives to help them in their en-deavors to innovate.

Don’t wait for a real emergency to find out if your response plan works. View the emergency response plan video at worksafebc.com/forestry.

Emergency response plans save livesPractice your ERP today.Every minute counts.

Chris Duncan, CPA, CA is a Forestry Services Business Advisor for MNP LLP. He can be reached at 250.748.3761 or [email protected].

Page 22: Truck LoggerBC, Spring 2016 - Volume 39, Number 1

22 Truck LoggerBC Spring 2016

Page 23: Truck LoggerBC, Spring 2016 - Volume 39, Number 1

Spring 2016 Truck LoggerBC 23

In advance of this year’s ILA confer-ence, I’m excited to provide you an

update on the Ministry’s activities, espe-cially in light of the 2016 Budget—the fourth balanced budget in a row.

As part of Balanced Budget 2016, gov-ernment is committing $75 million over the next three years for the Rural Divi-dend. The allocation for 2016/17 is $25 million. Funds will be directed to assist communities with populations of 25,000 or fewer, to assist in reinvigorating and diversifying their economies. As many ILA, TLA, and NWLA member compa-nies are key economic contributors to rural communities, I hope the associa-tions help us spread the word about this program and how to apply. Details are online at www.gov.bc.ca/ruraldividend.

Another key initiative announced as part of Balanced Budget 2016, is the for-mation of the new Forest Enhancement Society of BC. Backed by $85 million, the new society will focus on wildfire fire risk reduction to complement the ministry’s existing forest stewardship programs and world-class wildfire sup-pression activities.

The Forest Enhancement Society of BC will help meet the goal of a sustain-able and reliable timber supply under the Forest Sector Competitiveness Strat-egy, and align with the ministry’s other programs designed to enhance BC’s for-ests, most notably the Strategic Wildfire Prevention Initiative, Forests for To-morrow, Land Based Investment Strate-gy and integrated silviculture strategies.

Including the $10 million announced as part of Budget 2016, this government has now committed $78 million to the Strategic Wildfire Prevention Initia-tive since 2004. As of December 2015, over 288 community wildfire protection plans have been completed and almost 80,000 hectares of land in and around communities that face a significant wildfire risk have been treated.

Budget 2016 also saw an uplift of $12

million to the Ministry’s land-based investment strategy, with the majority of the funding targeted to Forests for Tomorrow. Since 2005, we’ve invested over $400 million in Forests for Tomor-row, and have surveyed approximately 1.5 million hectares in mountain pine beetle affected areas and planted more than 175 million seedlings on over 128,000 hectares.

The new Forest Enhancement Soci-ety will concentrate its activities in four areas:

• Wildfire risk reduction: including fuel management act-ivities such as thinning, pruning and removing woody debris from forests (especially those impacted by the mountain pine beetle infest-ation). The recently updated Pro-vincial Strategic Threat Analyiswill provide guidance for potentialtreatments.

• Forest rehabilitation: clearing stands damaged by wildfire (or at high risk from wildfire) and reforesting them.

• Wildlife habitat restoration: de-signing fuel management and forest rehabilitation activities to promote desired wildlife habitat attributes.

• FireSmart program: raising awareness among local govern-ments and rural property owners about steps they can take to pro-tect their homes and properties from wildfire.

A benefit of the Society’s activities will be that local forest product businesses—mills, wood bioenergy, and value-added manufacturing facilities—will have op-portunities to purchase the resulting timber, roadside debris and other for-est fibre at market prices. This will help maintain and support jobs in rural ar-eas, including logging jobs.

The society’s inaugural board of di-rectors consists of five people with ex-

tensive experience in BC’s forest sec-tor, and includes: Wayne Clogg, retired vice-president, West Fraser; Chief Der-ek Orr, McLeod Lake Indian Band; Jim Snetsinger, retired BC chief forester; and Dave Peterson and Robert Turner, both Assistant Deputy Ministers with the Ministry.

The society will develop work plans, and consult with communities, stake-holders and industry, on using allocated resources in the most efficient way pos-sible to meet the overall objectives of healthy, resilient forests for future gen-erations to enjoy.

Given the theme of your convention is “Be the Change for Forest Safety,” and the partnership this year with the BC Forest Safety Council and concur-rent Interior Safety Conference, I’d be remiss if I didn’t remind you to be safe in the woods.

The Interior Logging Association has always played an important role in try-ing to recruit for the next generation of loggers. In attracting young people to forestry, we all need to do our part to ensure that we’re creating a safe work environment.

Best wishes for a successful conven-tion!

ila 58th annual conference and trade Show:

Be the change for foreSt SafetyBy Steve Thomson, Minister of Forests,

Lands and Natural Resource Operations

Page 24: Truck LoggerBC, Spring 2016 - Volume 39, Number 1

24 Truck LoggerBC Spring 2016

2016 CO-SPONSORS

Axis Insurance ManagersBC Forest Safety CouncilBrutus Truck BodiesCanadian Western BankCapri Insurance ServicesCheckmate Fire Prevention Inc.Cookson Motors Ltd.Cummins Western CanadaDynamic CapitalFinning (Canada)Fountain TireGorman Bros. Lumber Ltd.Great West EquipmentGudeit Bros. Contracting Ltd.Inland KenworthIRL International Truck Centres Ltd.Johnstone's BenefitsKineshanko Logging Ltd.Logging & Sawmilling JournalMorfco Supplies Ltd.Nor-Mar Industries Ltd.Parker PacificProfab Manufacturing Ltd.Quadco Equipment Inc.R.J. Schunter Contracting Ltd.R. James Western Star FreightlinerRitchie Bros. AuctioneersSMS Equipment Inc.Southstar Equipment Ltd.Sovereign General Insurance CompanyStamer Logging Ltd.Supply Post NewspaperTolko Industries Ltd.Wajax EquipmentWaratah Forestry CanadaWestern Financial GroupWeyerhaeuserWoodland Equipment Inc.WorkSafeBC

Interior Logging Association58th Annual Conference & Trade Show

combined with The 2nd Annual Interior Safety Conference

May 5th, 6th & 7th, 2016Vernon, BC

“Be the Change for Forestry Safety”

HOST HOTEL:Vernon Atrium Hotel & Conference Centre3914 - 32nd StreetVernon, BC, V1T 1P1Tel: 250-545-3385E-mail: [email protected]

EVENTS:May 6th & 7th: Inside & Outside Displays Kal Tire Place

May 5th: Thursday Evening, Meet & GreetMay 6th: Friday Luncheon, Dinner & DanceMay 7th: Interior Safety Conference Vernon Atrium Hotel & Conference Centre

For registration and further information, contact the ILA office.Tel: 1-250-503-2199 E-mail: [email protected]

For the Interior Safety Conference, contact Gerard MessierTel: 1-877-741-1060 E-mail: [email protected]

Page 25: Truck LoggerBC, Spring 2016 - Volume 39, Number 1

Spring 2016 Truck LoggerBC 25

AGENDA & EVENTS PRICING

THURSDAY, MAY 5, 2016TRUCK LOGGERS ASSOCIATION DIRECTOR’S MEETING

9:00 am – 3:00 pmVernon Atrium Hotel (Ballroom III, Mezzanine Floor)

ILA DIRECTOR’S MEETING4:00 pm – 5:30 pmVernon Atrium Hotel (Room #130)

MEET & GREET 6:00 pm - 10:00 pm Vernon Atrium Hotel

FRIDAY, MAY 6, 2016BREAKFAST

7:30 am – 9:30 am Vernon Atrium Hotel

INSIDE & OUTSIDE DISPLAYS 9:30 am – 4:30 pmKal Tire Place

ILA ANNUAL GENERAL MEETING 8:30 – 10:00 am (ILA Members Only)Vernon Atrium Hotel

ASSOCIATION’S MEETING 10:30 -11:30 am Vernon Atrium HotelILA, TLA and NWLA meet with Honourable Steve Thomson, Ministry of Forests, Lands and Natural Resource Operations

FRIDAY LUNCHEON11:30 am -1:30 pmVernon Atrium HotelGuest Speaker: HONOURABLE STEVE THOMSON, Ministry of Forests, Lands and Natural Resource Operations

WESTERN NIGHT DINNER & DANCEFEATURING LEE DINWOODIE & BAND6:00 pm to 12:00 am Vernon Atrium Hotel

SATURDAY MAY 7, 2016INSIDE & OUTSIDE DISPLAYS

9:30 am – 4:30 pmKal Tire Place

INTERIOR SAFETY CONFERENCE 8:00 am – 4:30 pmVernon Atrium Hotel & Conference Centre Pre-Registration Online Required(see page 49 for agenda details)

FOR FREE REGISTRATION AND FURTHER INFORMATION ON THE SAFETY CONFERENCE: http://www.bcforestsafe.org/ISC2016

TICKET & DISPLAY REGISTRATION

Description Qty. Price Subtotal

MEET & GREET X $50.00BREAKFAST X $25.00 ILA AGM (MEMBERS ONLY) N/C N/CFRIDAY LUNCHEON X $50.00 WESTERN NIGHT DINNER & DANCE X $55.00

Display Space Requested & Costs:10’ X 10’ INSIDE DISPLAY X $800.00 = $

15’ X 30’ OUTSIDE DISPLAY X $500.00 = $

Order Sub-total:

(Tax #107510125) 5% GST:

Total:

PAYMENT MAY BE PAID BY VISA, MASTERCARD, AMERICAN EXPRESS OR CHEQUE

Credit Card No:

Expiry Date: E-mail address for receipt:

Exhibitors must be Registered by April 29th.

Company Name

Contact

Address

City Province Postal Code

Phone

Name Tags: (please print neatly)

$25.00

$50.00

N/C

N/C

$50.00

$55.00

N/C

FREE REGISTRATION INFORMATION

MAIL/FAX OR EMAIL TO:INTERIOR LOGGING ASSOCIATION

Attention: Nancy Hesketh3204 – 39th Ave., Vernon, BC, V1T 3C8

Phone: 250-503-2199Fax: 250-503-2250

Email: [email protected]

Page 26: Truck LoggerBC, Spring 2016 - Volume 39, Number 1

26 Truck LoggerBC Spring 2016

Jacqui Beban is the TLA’s first fe-male president. She’s had various

roles and responsibilities in the 22 years that she has been in the industry. She’s passionate about BC’s coastal forest in-dustry. She’s proud of how the industry has changed and grown. And she’s con-fident that by “doing the right thing” this industry can meet the needs of a wide range of interests.

For Beban, doing the right thing means listening, learning and building relationships. That means better returns for contractors, licensees and First Na-tions communities. It also means bet-ter returns for those who don’t—yet—know the value this industry continues to bring to their communities and to BC in general.

Deep RootsFamily is one of the first things that

comes up when talking about Jacqui Beban. On the one side, the Beban fam-ily is a four generation dynasty of log-gers, all with larger-than-life personali-ties. Francis “Frank” Beban started as a “mule doctor” in the early 1900s. By 1926, he’d turned a sideline of supply-ing mines with timber into a major part of Nanaimo’s industrial development.

The house and ranch he built stands as a lasting legacy to the City of Nanaimo, providing the grounds for a host of civ-ic facilities that are active 60 years after his death.

His son, John “Jack” Beban, had log-ging operations stretching from Buckley Bay to the mid-coast in the 1950s. Jack’s son, the younger Frank Beban, was by the 1980s operating five camps between Vancouver Island, the mid-coast, and what was then the Queen Charlotte Is-lands, employing over 250 people. As TLA Immediate Past President Don Banasky says, “As a kid in Nanaimo, ev-eryone’s dad or grandpa worked for the Beban family.”

On the other side of the family tree are the Fedjes. Olaf Fedje arrived on the coast from the Prairies during the de-pression in the 1930s and “didn’t even know what a tree looked like,” says his wife Bea. That didn’t stop him from mastering the crosscut saw, then oper-ating—and selling and servicing—a new piece of forestry technology, the chain-saw. In time, the Fedje & Gundarsen outfit became the largest falling contrac-tor on the BC coast. When Frank Beban and Dolores Fedje tied the knot, they brought these logging families together

and produced a family of four girls, Jac-qui Beban being the youngest.

Big BootsFamily history can be an inspiration.

It can also cast a long shadow. Jacqui is not a larger-than-life character like either of the Franks or Jack before her. Few saw the Fedje or Beban drive for success in the younger Jacqui Beban.

Her mother tells a story from when Jacqui was 12 years old. It was a time of uncertainty about the future of Frank Beban Logging, shortly after Frank’s untimely death. Dolores wondered aloud to a friend, “Which of my girls is going to run the company?” Her friend had no doubts. “Jacqui,” she replied, with emphasis.

“That comment stuck in the back of my mind,” says Dolores Beban. It wasn’t a surprise to her when, at age 24, Jac-qui got serious about the family busi-ness. Seeing her daughter now step into the TLA presidency, Dolores says, “You know, my friend was right.”

Willingness to Learn to ChangeJacqui says her decision to get seri-

ous was her “opportunity to grow up.” It wasn’t easy. Learning how to succeed in

hiStory and ViSion: a hiStorical PreSidency for Jacqui BeBanBy Hans Peter Meyer

Photo: Nanaimo Com

munity Archives

Francis “Frank” Beban, Jacqui Beban’s great grandfather, started as a “mule doctor” in the early 1900s in Nanaimo and built a forestry legacy that continues today.

Page 27: Truck LoggerBC, Spring 2016 - Volume 39, Number 1

Spring 2016 Truck LoggerBC 27

logging was a challenge. Jacqui praises the teams of support at Frank Beban Logging, Nootka Sound Timber and in the TLA who have helped her learn how to become a leader. Those who’ve worked with her over the years turn the credit back to her.

“She brings something new to the TLA leadership,” says Matt Wealick, a TLA Director. “It’s not just a different perspective; it’s a willingness to look for guidance, even if it’s outside her com-fort zone.”

Wealick says Jacqui’s determination to learn is what makes her an impor-tant leader for the TLA and the in-dustry today. She and her family have experienced significant personal and business impacts from changes to the industry in the past 30 years. Yet her response is to be open—to ask ques-

tions, to learn, to put the hurt of the past behind her. To build relationships that look to the future.

“We need to find our common inter-est in this resource,” she says. “That’s bigger than our differences. Standing together, we can protect the forest, the working forest, and the communities who depend on forest industry jobs.”

“She’s always asking questions,” Wealick says, “And she’s got the knowl-edge, experience, and willingness to share her perspective.” As Don Banasky puts it, “We’re an industry that’s going through change. We need to change our thinking. We’re doing that, and Jacqui is a big part of that. It’s exciting!”

David Elstone, Executive Director of the TLA, adds that while Jacqui may “walk quietly, when she says something, you want to listen.”

Frank Beban, Jacqui Beban’s father, brought his children to his logging camps in the summers. That’s where Jacqui first learned about the forest industry.

All photos submitted by the Beban fam

ily

877.563.8899www.prolenc.com

• PATENTED OVER CENTRE CAM

• WEDGE LOCK STAKE POCKETS

Prince George

• HIGH STRENGTH SWEDISH STEEL

Page 28: Truck LoggerBC, Spring 2016 - Volume 39, Number 1

28 Truck LoggerBC Spring 2016

With six locations throughout British Columbia, GIVE US A CALL TODAY

KAMLOOPS(250) 372-2855

PRINCE GEORGE(250) 561-2456

VERNON(250) 542-2280

FORT ST. JOHN(250) 787-1789

CRANBROOK(250) 489-6131

CAMPBELL RIVER(250) 286-0950

Page 29: Truck LoggerBC, Spring 2016 - Volume 39, Number 1

Spring 2016 Truck LoggerBC 29

Priorities and ChallengesAs President, Jacqui Beban has two

years to make a mark on the TLA and on BC’s coastal forest industry. Her priori-ties start with working on behalf of TLA members, particularly with the Forest Service Providers Protection Act and Fund. “The TLA has done a lot of work on this,” she says. “We need to ensure there is an ongoing funding mechanism in place to protect contractors.”

She’s also determined that the TLA continue to push for contractor sus-tainability. “People need to be able to make a living. Contractors need to be getting paid a fair rate so they can pay good wages, pay their bills, invest in the future of their companies, and continue to support the communities that rely on them.”

Moving ahead, Beban notes that im-proving relationships between contrac-tors and licensees is critical. She’s also cognizant of the impact on contactors of the softwood lumber agreement, the health of the global economy and, par-ticularly, the challenge of protecting the working forest. “This is what makes our industry sustainable,” she says, “but no one wants logging in their backyard. That’s an issue in which the TLA can play a strong role and in which we all have to play a role.”

In the past the industry has too easily buckled when faced with threats, Beban says. Her response: build the relation-ships, find the common ground. She recognizes that the forest resource is big enough to serve many interests, if we work together and stand as one.

Elstone agrees. “We can’t operate in isolation. Building relationships now will help when we come to those times when we need to be in collaboration.”

“We can’t afford to be divided,” Beban agrees. “If it’s happening to someone else somewhere else, it’s coming to me at some point. Let’s all work together and stand up for ourselves.”

Passion For Place, Passion For The Industry

Jacqui Beban’s roots are deep on Van-couver Island and she’s a champion for protecting its natural beauty. As an ac-tive logger she’s also a champion for an industry that’s matured, one that prac-tices the most sustainable forestry on the planet. “I don’t want to see the Island or our coastal beauty destroyed. I think

we can have everything: parks, protect-ed areas for people to enjoy, and also a healthy working forest.”

Getting this message out and making it real will test Beban’s strengths. David Elstone says one of those strengths is her passion for this industry and doing what is necessary to make it sustainable. Don Banasky lauds the unique perspective she brings to the issues. Matt Wealick praises her willingness to learn. In sum, Jacqui Beban, the child of historic Island logging families and attitudes, brings a

fresh approach to the complexity of to-day’s BC coastal forest resource.

Characteristically, Beban downplays the novelty of her approach. “It’s really just about opening up communications,” she says. Even where it’s difficult—and she acknowledges that she’s stumped

at times—it begins with dialogue and “treating each other with respect. We have a lot of common ground. Where we’re not aligned, we need to find a way to work together in a respectful way, so we can all benefit from our industry.”

Jacqui at a logging camp on Lyell island in 1982.

Jacqui with her maternal grandfather, Olaf Fedje who co-owned Fedje & Gundarsen, the largest falling contractor on the coast at one time.

Indiana, Jacqui’s dog that recently passed away, had taken more helicopter rides than most people!

All photos submitted by the Beban fam

ily

Page 30: Truck LoggerBC, Spring 2016 - Volume 39, Number 1

30 Truck LoggerBC Spring 2016

The Barko® 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.

www.barko.com

CUTTING EDGE PERFORMANCE.BY YOUR DESIGN.

WOODLAND EQUIPMENT INC. www.woodlandequip.com

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

CranbrookPhone: 250-489-6131Cell: 250-919-2235

VernonPhone: 877-542-2280Fax: 250-542-2674

Campbell RiverPhone: 250-286-0950Fax: 250-286-0960

Prince GeorgePhone: 877-561-2456Fax: 250-562-6353

Fort St. JohnPhone: 250-787-1789Fax: 250-787-1722

Page 31: Truck LoggerBC, Spring 2016 - Volume 39, Number 1

Spring 2016 Truck LoggerBC 31

round-uP: the 73rd annual

trucK loggerS aSSociation conVention

& trade ShowTLA Editorial

The TLA’s 73rd Annual Conven-tion and Trade Show started with

a bang this year with our best-ever atten-dance for our skill development sessions on the first day. Our theme, “Adapting to Steep Change” was addressed from the technical perspective with three in-formative sessions from people working on-the-ground in forestry. Industry sup-pliers talked about innovation, licensees and consultants talked about the chal-lenges of operating on steep slopes and equipment operators rounded out the day talking about the machines they use on steep slopes. The audience was rapt and people were clearly taking notes to bring back to their businesses. Some of the key messages we heard included:

• Winch assist technology in itself is not a safety device.

• The rest of the world is not as heavily regulated as we are here.

• Safety regulations must align with steep slope practices.

• Triggers to invest include improved relationships with major customers and sharing of the risk to become more familiar with the technology.

• The coastal forestry “pie” must be shared and collaboration is a must in order to embrace technology.

• The steep slope technology is not for any operator and it takes many hours in the seat to learn to run it safely and efficiently.

• The BC coast operating conditions are different from New Zealand.

At lunch on Wednesday, the keynote speaker, Wiremu Edmonds, gave a bril-liant and inspiring presentation about “standing in the gap” when it comes to safety. Whether it is something as innate as machismo or “that is always the way it was done” type thinking, it takes cour-

age to stand up and say, “No, that is not safe.” Unfortunately that did not happen in the story Wiremu told of how his el-dest son died at a logging operation in New Zealand. Since that day, Wiremu and his wife have dedicated themselves to telling their heartfelt story and chang-ing the minds of forest workers across the globe. It was something to see even the biggest, toughest logger in the room, red-eyed with emotion from Wiremu’s powerful story.

In the final session on Wednesday, we were honoured to co-host the “Em-bracing Change in First Nations Rela-tionships,” panel with the BC First Na-tions Forestry Council. The four panel speakers were knowledgeable in dif-ferent aspects of Aboriginal control of and involvement in the forest industry and provided insight into relationship building and partnership development.

All photos in this article are by Brian Dennehy Photography.

Premier Christy Clark, a stalwart supporter of the forest industry, gave an energizing speech where she thanked the forest industry for both its major role in the building of BC and its continued, meaningful contribution today.

Spring 2016 Truck LoggerBC 31

Page 32: Truck LoggerBC, Spring 2016 - Volume 39, Number 1

32 Truck LoggerBC Spring 2016

The session was well received on the day and we have an article on page 50 of this issue that talks to each speaker and goes a bit more in-depth on what they said at the convention.

First thing Thursday morning, a land-mark moment occurred for the TLA. The membership elected their first female president, Jacqui Beban, dur-ing the TLA’s annual general meeting. Beban, who has sat on the TLA board since 2006 and spent the last two years serving as Vice President, was honoured and said as much at the AGM when she thanked the membership for their sup-port and trust. There is a wonderful ar-ticle on page 26 of this issue that profiles Beban—reflecting on her family’s his-tory in the industry and what she hopes to achieve during her presidency.

Another influential woman presided over luncheon on Thursday. Premier Christy Clark honoured the long-stand-ing tradition of hosting the Premier’s Luncheon at the TLA convention. Clark, a stalwart supporter of the forest indus-try, gave an energizing speech where she thanked the forest industry for both its major role in the building of BC and its continued, meaningful contribution today—both in GDP contributions and job creation—and announced $250,000 worth of funding for coastal timber har-vesting contractors to assist in training

needs and a further funding commit-ment with the same objective through BC – Canada Job Grant program for the fiscal year ahead. Clark also congratulat-ed the TLA on electing their first female president and welcomed Jacqui Beban as a fellow leader.

This year, the Minister of Forest Breakfast was reinvigorated with a new structure and new technology. Tracey Russell of Inland Group had a ‘fireside chat’ with Minister Thomson on stage. Russell asked the Minister questions submitted by TLA members about top-ics critical to logging contractors such as, “In what ways can your Ministry help to promote a more positive and collab-orative relationship between contractors and the major licence holders both on the BC coast and in the Interior?” Dur-ing this time with Minister Thomson, Russell also polled the audience so Min-ister Thomson could hear from contrac-tors in real-time and he heard loud and clear from contractors on several fronts. See the polling results incorporated into “A Path to Mutual Successful Change: Contractor Sustainability & Industry Competitiveness” on page 44.

Minister Thomson also congratu-lated the 19 recipients of TLA forestry and heavy duty equipment operator scholarships. This year $37,500 was Premier Christy Clark welcomed Jacqui Beban as a fellow leader during the Leaders’ Luncheon.

32 Truck LoggerBC Spring 2016

Page 33: Truck LoggerBC, Spring 2016 - Volume 39, Number 1

Spring 2016 Truck LoggerBC 33

awarded to students from BCIT, UBC and VIU. These students are the forest-ry workers of tomorrow and each year the thank-you letters we receive let us know what a big difference this fund-ing makes in these students lives. As

always, our thanks goes out to the TLA members who donate generously to the live and silent auctions and bring their cheque books to both auctions during Suppliers’ Night!

The informational sessions on Thursday

and Friday took a different angle on the “Adapting to Steep Change” theme by addressing the steep change that con-tractors, and the forest industry as a whole, are experiencing in BC. The first session discussed the BC government’s competitiveness strategy which dove-tailed nicely with the afternoon session’s focus on the hurdles industry needs to clear to achieve global competitiveness from an industry standpoint.

In the first Friday sesssion, FPInnova-tions listed the top ten issues/concerns identified by contractors and licensees

Wiremu Edmond’s “Stand In The Gap” presentation moved many in the room to tears.

David Elstone asked some hard questions over the course of the convention.

Spring 2016 Truck LoggerBC 33

Page 34: Truck LoggerBC, Spring 2016 - Volume 39, Number 1

34 Truck LoggerBC Spring 2016

Page 35: Truck LoggerBC, Spring 2016 - Volume 39, Number 1

Spring 2016 Truck LoggerBC 35

that could improve contractor sustain-ability and company competitiveness if addressed. This list came out of a workshop run as part of the TLA/CFPA Innovation Initiative Project. (See this top ten list bottom right.) The follow-ing presentation, in that same session, PNL Consulting brought critical infor-mation to the table regarding techni-cal innovation and coastal contractor

sustainability. As per the TimberTracks preliminary data, profitability trend-lines indicate margins are decreasing for contractors while major tenure holders have seen their profitability rise. (See the graph below.) Overall, we learned that change will be expensive and contractors need to know they will earn a fair return on their investment before they take the plunge.

The final Friday session saw contrac-tors and licensees sit down together in a panel session to provide insight and feedback on how contractor sustain-ability and industry competitiveness interact. Read the article, “A Path to Mutual Successful Change: Contractor Sustainability & Industry Competi-tiveness” on page 44 for a summary of what both contractors and licensees

Minister Thomson once again congratulated and posed for photos with the 19 TLA scholarship recipients. This year the TLA dispersed $37,500 to forestry and heavy equipment operator students.

Sustainable EBITA Trendlinestop ten issues facing contractors and licensees

1. Recruitment and training of forestry workers

2. Strengthen relationships be-tween contractors and forest companies

3. Sharing the risks, costs and benefits of innovation

4. More collaborative approaches to planning

5. Mechanized operation on steep slopes

6. Improved transportation systems7. Better communication of

research results to contractors8. Sustainable supply and access

to economic fibre9. Improve operational efficiency

10. Keep focused on improving safety

Spring 2016 Truck LoggerBC 35

Graph: TimberTracks, PNL Consulting Ltd.

Page 36: Truck LoggerBC, Spring 2016 - Volume 39, Number 1

36 Truck LoggerBC Spring 2016

had to say about “A Path to Mutual Successful Change” in light of con-cerns regarding contractor sustain-ability and industry competitiveness.

Looking back at the more social as-pects of the convention, the Ladies Luncheon this year hosted Nicole Ol-iver—a successful, Vancouver-based voice actor who works in cartoons, movies and video games. This year, the participants raised over $8,000 for the BC Children’s Hospital Foundation. That is a record high since 2008! Thank you to all the women who participated in this long-standing tradition.

packed as people networked, did busi-ness and caught up with old friends. This year we raised at total of $74,315 for the TLA Forestry Education Fund which will go toward student scholar-ships and forestry education programs.

Once again, we earned excellent me-dia coverage during the convention. Jacqui Beban’s becoming the first female president caught the media’s imagina-tion and Beban spoke on several radio news programs including CBC Radio One, 2DayFM Radio in Campbell River and C-FAX 1070. She was also profiled in Nanaimo Daily News, Business Exam-iner - Vancouver Island and The Toronto Star. Business in Vancouver covered the contractor sustainability angle of steep slope logging in their article, “Timber supply crunch drives loggers to more dangerous terrain.” Finally, one of our scholarship winners, Linden Feniak, was featured in The Coast Reporter. The convention is always a great opportunity to get our message out and this year was no exception.

Next year the convention will be in Vancouver again at the Westin Bayshore on January 18-20, 2017. We hope to see you there! See more of this year’s conven-tion images on page 62.

Big crowds danced the night away at The Loggers Banquet & Ball on Thursday night and the It’s a Wrap! After Party on Friday night. March Hare, the live band performing at the The Loggers Banquet & Ball did a fantastic job of covering ev-ery hit from 1960 onwards! And the It’s a Wrap! After Party offered multicolored hula-hoops and a David Bowie tribute at the end of the night.

This year’s trade show was a success once again! We had the bigger show that the extra space at the Westin Bayshore permits and strong attendance on both days. Suppliers’ Night on Friday was

The TLA board is made up of 17 directors, most of who run small to mid-sized companies based in BC’s rural, coastal communities. They create jobs and give communities long-term security.TLA Board for 2016: (left to right, back row) Tim Lloyd, Brian Mulvihill, Ted Beutler, George Lambert, Clint Parcher, Howie McKamey, Dave McNaught, Carl Sweet, Mark Ponting, Adam Wunderlich, Matt Wealick (front row) Barry Simpson, Doug Sladey, Don Banasky (Immediate Past President), Jacqui Beban (President), Mike Richardson (Vice President), David Elstone (Executive Director), Adam Pruss

Mayor of Campbell River, Andy Adams (far left) realizes the importance of forestry in his com-munity. Campbell River is home to more that 75 TLA member companies.

Page 37: Truck LoggerBC, Spring 2016 - Volume 39, Number 1

Spring 2016 Truck LoggerBC 37

Thank You To Our Generous Sponsors! GOLD

BRONZE

SILVER

• Advertising In Print

• Big & Little Soap Co.

• Bon Macaron Patisserie

• Holt Renfrew

• JLT Canada Inc.

• Johnstone’s Benefits

• Kajohl Management Ltd.

• Karameller Candy Shop Inc. • PI Financial Corp.

• Probyn Log Ltd.

• Rexall

• Royquip

• T-Mar Industries Ltd.

• Vida Spa, Vancouver

Our 2016 Ladies Luncheon Contributors

• Advertising In Print

• Aggressive Timber Falling

• Big & Little Soap Company

• Benwest Logging

• Carmana Plaza

• Holt Renfrew • Mike Hamilton Logging

• Orica Canada

• Strategic Natural Resource Consultants

• The Goat Lake Group

• Tsibass Construction

• Westerra Equipment

• Westland Insurance Group

• Woodland Equipment

Our 2016 Convention Contributors

• VIH Ltd.

• W & E Services Ltd.

• Westin Bayshore

• Woodland Equipment

Page 38: Truck LoggerBC, Spring 2016 - Volume 39, Number 1

38 Truck LoggerBC Spring 2016

Over the past 30 years Gerry Merkel has put a lot of effort into

encouraging young Canadians from First Nations to look to the woods as a career option—it’s good for the land and it’s good for the people. “I believe the standard and care of the land has im-proved significantly now that so many Aboriginals are involved in the process,” says Merkel, president and CEO of the Tahltan Nation Development Corpora-tion and one of Canada’s first aboriginal registered forest professionals.

Today, an increasing number of young people from First Nations are finding that working in the forest not only pro-vides them with good incomes, but re-connects them with their cultural heri-tage and values. For thousands of years the forest was not only home to Cana-da’s Aboriginal peoples, but a hunting ground and place of immense spiritual

VA N C O U V E R C A LG A R Y E D M O N TO N S A S K ATO O N R E G I N A LO N D O N

K I TC H E N E R -WAT E R LO O G U E L P H TO R O N TO M A R K H A M M O N T R É A L

Added experience. Added clarity. Added value.

Miller Thomson LLP

millerthomson.com

Our legal services include:

• Contractor logging disputes with licence holders

• Rate issues and amount of work issues

• Mediation and arbitration

• Contract negotiations

• Forest and Range Practices Act issues

• Contract and business sale and purchase

• Corporate structuring and financing

• Regulatory compliance

Stephen Ross [email protected] 604.643.1205

For more information, contact

ADVISORS TO BC’S FOREST INDUSTRY

Truck Logger Magazine Ad.indd 1 2/24/2015 2:04:54 PM

CWB Group

Bank Trust Wealth Management

CWB Equipment Financing gets what you do and what it takes to get things done. And because we’re local, we work when and where you do. Need equipment? Make us your call.

Part of your crew.

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

firSt nationS & foreStry: worKing in induStry todayBy Ian MacNeill

and ceremonial value. Its importance in sustaining communities helped develop an approach to land use that was thou-sands of years ahead of its time. As an editorial about the values Canada’s Ab-original people bring to forestry in the online publication Cultural Survival put it, “practices emanating from this belief embody respect for the elders and em-brace freedom of choice and strong re-lationships within the family and com-munity.” Aboriginals who work in the forest today, whether it be as loggers, foresters or policy makers, are bringing this ancient cultural land-use ethic to work with them every day and making a difference—a difference their communi-ties are recognizing and acknowledging. “It is really great when the elders look at you and say ‘good work,’” says Merkel.

In this issue of Truck LoggerBC we would like to acknowledge a few of them

as well. They represent a cross-section of ages and occupations, but all are part of the future of Aboriginal forestry in Brit-ish Columbia, and they hope others will join them as well.

Julius Leo, 21, Lil’Wat First Nation, Mt. Currie

Julius Leo wanted to be a welder but fate intervened when the welding course was full. Instead he attended a 15-day basic logging skills boot camp run by the College of the Rockies. “I always liked the idea of working outdoors and that’s what logging is all about,” says Leo, a member of the Lil’Wat Nation in the Mt. Currie area.

It was hard at first, he admits, but like most things it got easier as time went by and he honed his skills. Upon graduating from the course he imme-diately got a job with Lil’Wat Forestry

Page 39: Truck LoggerBC, Spring 2016 - Volume 39, Number 1

Spring 2016 Truck LoggerBC 39

Ventures. “I love it,” he says. “I love working outside, getting to know what’s around me in the environment, learn-ing to read and understand it, all the people I meet. It keeps me in shape and I get to stand on the top of mountains and look across the world.” A couple of other bonuses include “getting away from technology” and “better pay than a fast-food restaurant!”

He says he has no idea where the busi-ness will take him in the long run, but intends to stick with it—opportunities are already on the horizon. He’s sched-uled to take an assistant silviculture supervisor course this year which will teach him about surveying and give him a better understanding of the land and how it’s used.

If anything, he says, he’d like to have some more company in the woods and says he’s always trying to convince oth-

ers to take the course. “There are lots of opportunities to work, here and other places,” he says.

Marina Rayner, 33, Huu-ay-aht First Nation, Parksville

Taking up a career in forestry didn’t just allow Marina Rayner, 33, of Parks-ville to achieve her goals of getting out from behind the desk and working with nature, it allowed her to reconnect with her people, the Huu-ay-aht First Nation.

“I grew up in places like Parksville, which are the opposite side of the is-land from our traditional territory at Bamfield,” she explains. “Now I’m work-ing for Meridian Forest Services, a TLA member company, which contracts with HFN Forestry, the forestry arm of the Huu-ay-aht group of businesses. I feel I am more connected to my heritage be-cause I’m more involved in the Nation

and have a higher investment in how the land is treated.”

It almost didn’t happen. Rayner origi-nally attended the University of Van-couver Island in Nanaimo in pursuit of a business degree, but a chance elective changed the course of her life. “I con-vinced the forestry department to let me take botany and my love of forestry just grew from there,” she says. Her subse-quent experiences disproved the notion that forestry is just for men.

“During the summer I worked for both Island Timberlands and Western Forest Products, and in both cases the number of females outnumbered the males,” she reports. “I think more young women are branching out and trying new things, and I can’t think of any job in forestry that women can’t do. I mean I’ve never heard of a woman faller, but that doesn’t mean it hasn’t happened, or

85 more units in stock atwww.internationalmachinery.com

Specializing in quality used heavy spec trucks.Now o�ering truck & trailer painting, sandblasting, engine machine shop,

Dynamometer facility, and heavy truck repairs.

1-844-460-9971

Page 40: Truck LoggerBC, Spring 2016 - Volume 39, Number 1

40 Truck LoggerBC Spring 2016

to operate an excavator and he’s never looked back.

Although there’s a learning curve when it comes to operating a big ma-chine—and there was plenty of pressure because he learned on the job—eventu-ally you get so comfortable with it all that the machine starts to feel like an extension of your own body. “You have to be able to envision what you’re do-ing, what you want to happen,” he says. And what’s a typical day like? “Well, I guess I’m doing a major in road main-tenance and minor in road building,” he says laughing.

It’s work he loves, partly because he just plain likes to work, partly because it provides the money he needs to sup-port his young family, but also because he feels there’s a future in it. “Through treaty we got tenure and it’s a renewable resource so I can see working for years to come and I’m only half way through my working life,” he says.

He thinks it’s a good idea for First Na-tions’ workers to be working the land, especially when those lands are part of their traditional territories. “Sure the law says you’re not supposed to damage streams, but you’re not careful because of the law, you’re careful because those streams are important to your people.”

Tyler Ferguson, 37, Métis, Campbell River

When asked how it is he ended being a logger Tyler Ferguson can only laugh, saying it probably has as much to do with his Métis heritage as his personal family history. “I think it’s in the blood,” he says. “My great-grandfather was a logger, my grandfather was a logger, and so was my dad, although I don’t know if we became loggers because we’re native or we’re native because we’re loggers.”

He started early; summers and holi-days when he was a boy and full time since the age of 17. “I was bucking on the landing to start and then moved on to running equipment pretty early, things like log loaders and skidders, some Cat work. I guess I’ve done a little bit of everything.”

He’s currently working for Homalco Forestry, a TLA member company, in Campbell River. His day starts with a pleasant boat ride from Menzies Bay to Sonora Island. “I like the traveling around part of it,” says Ferguson whose working life has almost been split in

that it won’t in the future.”One of the perks of her job—her of-

ficial title is Assistant Forester/HFN Liaison—is that no two days are ever the same. “It really varies,” she says. “I could be out doing safety or production inspections; seeing what’s going on in the tenure. I’m also taking care of the planting contracts, so I’m also dealing with silviculture surveys nowadays.”

She believes there’s immense value in more young First Nations men and women following her example. “It’s good that First Nations are becoming increasingly involved in what is going on with their lands,” she says. “I’ve also

found that when a First Nation’s person gets more educated they talk about go-ing back and helping out their commu-nities. That’s how I felt, that was my goal, and that’s what I’ve done.”

Andy Clappis, 37, Huu-ay-aht First Nation, Port Alberni

After a decade working for the Huu-ay-aht Nation examining trees and logs for signs of cultural modification by the ancestors, Andy Clappis got sideswiped by the recession in 2008 and started thinking about what to do next. With some encouragement from a band mentor he settled on learning

Marina Rayner and her daughters Sydney (L) and Taylor the day she graduated from Vancouver Island University with her newly minted Forest Resources Technology diploma. The robe is a family heirloom; her grandmother Dolly McRae wore it when she graduated from UBC with a degree in anthropology in 1988, and it is adorned with fireweed from McRae’s Gitxsan clan near Kitwanga.

Photo submitted by M

arina Rayner

Page 41: Truck LoggerBC, Spring 2016 - Volume 39, Number 1

Spring 2016 Truck LoggerBC 41

FIGHt ENGINE Wear.ARM YOURSELF WITH DURON.

DURON. Fight Soot. Save Money.

*Based on MACK T-11 Enhanced Soot Control Test results. DURON-E Synthetic 10W-40 performed 2.2x better than CJ-4 requirement, while maintaining viscosity level.

Petro-Canada is a Suncor Energy businessTMTrademark of Suncor Energy Inc. Used under licence.

Distributor Name:

Address: Phone:

DURONTM-E – the leading soot-� ghting formula in the industry.It seeks out soot particles and isolates them before they can join forces. And if they can’t cluster, your engine is defended from damage.

Today’s operating conditions can produce and retain more soot than ever before. But DURON-E, formulated with 99.9% pure base oils, is engineered to go above and beyond the call of duty.

It’s proven to handle up to 2x more soot* while maintaining its viscosity; protecting engines from wear, extending drain intervals, maintaining peak fuel economy, and reducing maintenance costs for � eets – even in the heaviest soot conditions.

That keeps costs down over the long haul and extends the life of your engines.Get the most from your � eet. Learn more at � ghtsoot.com

Coastal Mountain Fuels

Lower Mainland & Vancouver Island 1-800-798-FUEL (3835)

Page 42: Truck LoggerBC, Spring 2016 - Volume 39, Number 1

42 Truck LoggerBC Spring 2016

Ffifi 36 fifififififi fifififififififi Eqfififififififi fififi fifififi fifififififififififi fifififi fififififififi fififififififififififi fifififififififi fifi fififi fififi fifififi fifififififififi fififi fifififififififi fififififififififi fififi fififififi fifififififi fifififififififi

fifififififififififi fifififififififi fififi fifififififififififi fififi fififi fifififi fi fifififi fififififififi fifi fifififififififififififififi fififififi fififififi fifi fififififi fifififi fififi fififififififi fifi fififi fifififi fifi fififififi fifififi

fififififi fifi fififi fififififififififififi fifififififi fifififi fifi fi fifififi fifi fififi fififi fififififi  

Put WoodlandEquipment to Work!

Page 43: Truck LoggerBC, Spring 2016 - Volume 39, Number 1

Spring 2016 Truck LoggerBC 43

Once you understand it you may still have to throw stones, but at least you then know the spot you want to hit,” he says smiling.

There is not enough space here to list the wide range of jobs currently avail-able in forestry, but they range from logging to road building, first aid to for-estry, and a whole host of other things in between. And it’s no longer just a man’s world; an increasing number of young women like Marina Rayner and oth-ers are finding a place for themselves. Resources are available to assist young people in finding the job that’s right for them, and obtaining the training that will help them get it. A list of these re-sources is available on the Truck Logger website at www.tla.ca/training. Logging may not be for everybody, but there’s no denying that for those who feel the lure of the woods there really is no life like it—important work, good pay, and a working environment that includes some of the grandest scenery the world has to offer.

“The Best Bar - Bar None!” BAR WORKS LTD.

made

in bc

.404” pitch / 80 gauge3/4” pitch / 122 gauge

1-888-604-9990 | www.cannonbar.com | [email protected]

Offering a Full Line of .404” and 3/4” Pitch Harvester Bars

We Also Repair All Brands of Bars

Dealerships Available

half between the Interior where he grew up and the coast where he lives now. “I like all the different things there are to do—working the float camps, barging in equipment—you never get bored.”

It’s an occupation that suits both his temperament and his inherited strong-man physique. “I like the hard work and the pay is decent,” he says. “Log-gers are good, hard workers and I relate well to people like that. I don’t want it easy. Nothing’s ever been given to me. I’ve worked for everything I have and I wouldn’t want it any other way.”

Matt Wealick, 41, Sto:lo First Nation, Chilliwack

When you’re raised on beautiful northeast coast of Vancouver Island it’s pretty much a slam dunk that you go into the logging business. “If you grew up in Sayward like I did that’s what ev-erybody did,” says Matt Wealick, a Sto:lo from the Ts’elxwéyeqw tribe and a mem-ber of the Tzeachten band. “I dreamed of being a logger like my dad; it looked like a good career and a good way to make money.”

He did three years setting chokers

and learning about the business from the sharp end as it were before enrolling in forestry at the University of British Columbia. Today he’s a registered pro-fessional forester, currently working for Probyn Log, a TLA member company, as First Nations Strategic Advisor and sits on the TLA Board of Directors as Chair of the Aboriginal Affairs Committee. “I like it because of the planning aspect,” he says. “It’s like a big jigsaw puzzle and I get to put the pieces together.” He’s glad he started out on the logging end though. “I have a good understanding of how what I do affects the guys who actu-ally have to do the work.”

He thinks it crucial for First Nations people as a whole to become more en-gaged in forestry at all levels. Proper forest management is linked to the pres-ervation of First Nations culture, he says. It’s important for BC’s Aboriginal peoples to understand how government manages resources like forestry and then be a part of the process for finding ways to create a win-win-win situation between government, industry and First Nations. “You can’t just throw stones at something you just don’t understand.

Page 44: Truck LoggerBC, Spring 2016 - Volume 39, Number 1

44 Truck LoggerBC Spring 2016

Contractor sustainability has been a focal point of the TLA

advocacy effort over the past few years and the “Path to Mutual Successful Change” panel at the recent TLA con-vention brought together representa-tives from both the contractor com-munity and the major tenure holders to discuss the issue.

In his introduction to the panel, mod-erator David Elstone noted the need to change the focus to a value driven sup-ply chain in the BC forest industry, as opposed to the traditional cost driven approach that has been at the heart of contractor rate disputes for decades. He also noted that this type of venue, where participants in the supply chain get together and discuss their mutual needs is often time the best way to find mutual benefit.

Representing the contractors were Don Banasky of Western Canadian Timber Products, Mike Richardson of Tsibass Construction and Justin Rigsby of Holbrook Dyson Logging. The ma-

jors were represented by Ian Fillinger of Interfor, Mike Ward from Western For-est Products (WFP) and Brian Baarda of TimberWest.

The first question put to the panel was: What does contractor sustainabil-ity mean to you?

On the licensee side, Baarda com-mented that the key attributes of a good (sustainable) contractor included the fact that they run a safe operation, have a cost focus that challenges their compa-ny to eliminate waste in the supply chain and that they have an innovation focus. Words of advice for all contractors.

Ward noted that WFP harvests ap-proximately 70 per cent of its volume using contractors today. Based on a poll they did of their contractor work-force two years ago, they define “good or healthy contractors” as having an abil-ity to work safely, a strong management team, a strong balance sheet, a com-mitment to the long-term and a diverse customer base. Ward admitted WFP is not there yet with all of their contractors

and there are opportunities to reconfig-ure contractors to meet these objectives. WFP’s goal is to be a sustainable busi-ness through market cycles and Ward believes that contractors have to be able to do the same.

Fillinger noted that he is asked all the time about the sustainability of their business by customers and that the sus-tainability of their contractor base con-tributes to their overall sustainability. He believes that if Interfor can provide sufficient standing timber inventory ready to harvest, it can provide contrac-tors with security as they know the work is ahead. He admitted, however, that there was more work to be done by In-terfor here.

For the contractors, Rigsby defined sustainability as leading to a healthy re-tirement and he hoped, for his own sake, that his company is sustainable. Howev-er, he pointed to the fact that in a recent survey of the most profitable companies in BC, West Fraser was #12, Canfor #13, WFP #25 and Interfor was #37. As an

the Path to mutual SucceSSful change: contractor SuStainaBility & induStry comPetitiVeneSSTLA Editorial

Photo: Brian Dennehy Photography

Page 45: Truck LoggerBC, Spring 2016 - Volume 39, Number 1

Spring 2016 Truck LoggerBC 45

industry, this is good because there is money in the business. However, at the same time, news reported six contrac-tors as leaving the business due to finan-cial difficulty and challenging relation-ships. Licensee rates of return are going up while contractors are going down. It is scary and clearly not sustainable. This disparity in the allocation of pie today has to change.

a focus of the majors. Things included after the fact such as added safety re-quirements or more sorts are the types of changes in conditions that should support changes in agreed upon rates.

Ward noted that reductions in log costs could come with further optimiza-tion of contractors, matching of equip-ment complements to the harvest profile and WFP’s new lean log handling pro-cess. Another key is to reduce the indus-try regulatory burden, fundamentally a government initiative.

Justin Rigsby and Fillinger spoke to a common issue of logging development planning. For contractors, falling, bucking and loading on the same block happens way too often and is not always safe, noted Rigsby. For Interfor, it takes up to a year to move a log to the custom-er as a finished product and this can tie up some $100 million annually, capital that could be used for other investments if the planning process could be sped up and optimized.

With a focus on new steep slope tech-nology being developed globally at the convention, when asked if conditions on the coast are right to support innovation and investment, answers were mixed.

Baarda believes that there is a con-tractor base willing to support innova-tion and with manufacturers like T-Mar Industries Ltd. taking up the challenge and improving safety and productivity, he believes we are on the right track. Is the regulatory environment right? Perhaps not as WorkSafeBC is catching up and right now regulation remains a challenge on steep slopes. Ward noted on the other hand that WFP is making investments of strategic capital in man-ufacturing, investments that will give higher return to logs which will lead to higher free cash flow and eventually more capital for woodlands.

Speaking for his company (and con-tractors in general), Banasky noted that it was difficult to invest heavily as a result of trust issues with customers. Without improved trust, they cannot risk the vi-ability of the company on erratic work programs and schedules.

Fillinger commented that there is extreme competition for capital within the company and Interfor makes in-vestments where they see the greatest return for their shareholders. Of note, Interfor has invested in 13 mills in the United States.

Audience PollingDo you believe that the logging contractor base is sustainable? • No: 66%

Is your forestry industry related business sustainable over the next five years? • Yes 39% • At risk 36%• Don’t know 25%

On the topic of what are the key things that need to change in order to support a reduction in delivered log cost, Ban-asky spoke to the fact that bid rates are only sustainable if the conditions don’t change. The “ripples in the water” cost everybody money and they have to be

Page 46: Truck LoggerBC, Spring 2016 - Volume 39, Number 1

46 Truck LoggerBC Spring 2016

Both Banasky and Richardson ac-knowledged challenges in retaining employees once an investment in their training has been made. As Richardson noted, it takes a long time to teach skills and trades people especially don’t have loyalty—they tend to chase the bigger dollars in other industries.

Everyone agreed that recruitment and retention is an area where a collabora-tive approach is needed.

GeoPro is a complete work alone monitoring solution that increases their safety, and your peace of mind.

• Easy check-in from cellular or satellite devices

• SOS, man down, and missed check-in alert monitoring

• Journey monitoring

Free 30-day trial www.geoprosolutions.com/loggerBC

Protect Your Lone Workers

On the topic of First Nations involve-ment in the industry and how First Na-tions fit into their corporate position, responses were focused on raw material access. Ward noted WFP engages with 45 First Nations in their operations. They have joint ventures, limited part-nerships, contract logging and other types of arrangements given the expo-nential growth in First Nation engage-ment over the past 15 years. This growth is fundamentally driven by a need to ac-cess fibre which is key to WFP.

Fillinger notes that Interfor has good relationships with customers, but ad-mitted they have more work to do to

fully engage with First Nations on the fi-bre (raw material) side. For Interfor this is an evolving process.

Audience PollingHave you engaged with First Nations businesses or capacity building?• Yes 79% • No 11% • I plan to 10%

Audience PollingAre you concerned about future employee recruitment? • Yes 80%

With a focus on improved safety of the industry since 2003, when asked; within your company have you invested in safety and has it paid off, again, the answers were mixed.

Ward said WFP has a dedicated safety support team and noted that their MIR has gone from 3.5 to less than 1.0, a clear improvement. At the corporate weekly which includes the CEO, every single safety incident is reviewed. WFP is plan-ning more investments in the area of risk acceptance internally first and then expanding to contractors.

Fillinger, however, was more philo-sophical and wondered why some peo-ple don’t want to talk about safety. If it is a production and quality issue, they are typically dealt with immediately. But not always with a safety issue. From his per-spective, the conversation about safety is not changing quickly enough.

Fillinger went on to talk about the growing need for drug and alcohol test-ing in the industry as a whole. It’s com-ing to our industry because it is an issue, he noted.

Other improvements in overall safety performance were highlighted by Rigsby who noted they have invested heavily in a viable return to work program. While it is available in his company, he noted we now need the medical practitioners to buy into these types of programs to keep people working.

For Banasky, investments in a fatigue management system (changing work hours for example) in order to better address fatigue is currently being imple-mented. They are looking for significant results as it rolls out.

Photo: Brian Dennehy Photography

Audience PollingAre you investing in your business?• Yes 68%• No 24%• Downsizing 8%

Are you planning to invest in new or rebuilt equipment in the next few years?• Yes 69%• No 22%• Maybe 9%

The panel participants were united on the issue of recruitment and training in their companies fundamentally driven by the “grey wave”.

Ward noted that WFP has 500 em-ployee loggers with 52 per cent older than 55. For hand fallers, the average age is more like 59, noted Richardson. It suggests the need for up to about 25 re-placements annually in WFP company operations on average with an addition-al 75 contract employees in woodlands. WFP ran a logging fundamentals train-ing program, but discontinued it be-cause their graduates did not all choose to work for WFP—a challenge echoed by others.

Page 47: Truck LoggerBC, Spring 2016 - Volume 39, Number 1

Spring 2016 Truck LoggerBC 47

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

CT

250.951.1410778.441.1190

FE

[email protected]

JACQUI BEBAN VP Logging

Audience PollingHave your investments in safety help to change the culture in your business for the better?• Yes 95%

equipment and lumber prices are all market driven so we can’t have a fixed rate model. That said, we can’t rely on a model alone to ensure a sustainable contractor base. It was his view that the market swings both ways and that while rates were low during the recession, today that is not the case—rates have come back.

Baarda believes that rate models based on productivity are where the discus-sions have to start, but then market con-ditions have to be considered. We also need longer-term contracts in order to

allow contractors the security to invest.Both Rigsby and Banasky agreed that

the market for contractors’ services is very small (due to licensee consolida-tion) and that this must be addressed in order to ensure contractors sustainabil-ity. As Rigsby noted, if the market rates suggest you cannot meet a minimum EBITDA, it is not sustainable.

In summary, Fillinger noted that the coastal industry is doing reasonably to-day given exchang e rates and lack of du-ties. However, he cautioned that changes in exchange rates and the potential for

Photo: Brian Dennehy Photography

Licensees and contractors dug into the concepts on contractor sustainability and industry competitiveness—and the audience chimed in too!

The hot button topic of rates was left to the end as Elstone asked the panel: What is the best way to ensure sustain-able rates for contract work?

Rigsby said that both parties need a model or guide as an aid to negotia-tion. But what the industry needs is a guideline for hourly equipment rates like the Blue Book Equipment Rent-al Rate Guide. It is an independent guide, developed by a third party that is used in other industries extensive-ly. He also noted that there is a need for collaboration with changing la-bour agreements. Currently, there are a lot of labour agreement costs being passed down to contractors with the recent pattern of agreements.

Ward countered that WFP uses rate models and benchmarks them to their own operations. He agreed, however, that what is needed is data that can be agreed to. He went on to say that log,

Page 48: Truck LoggerBC, Spring 2016 - Volume 39, Number 1

48 Truck LoggerBC Spring 2016

a new Softwood Lumber Agreement (SLA) is a huge risk to the coast with its higher value products. When consider-ing rates, the transactional point in time has to be considered.

As a place to start the discussion, it was agreed that the panel provided points of view that both sides of the dis-cussion could take away and consider. However, the fact that in an audience poll conducted during the Forest Minis-ter’s presentation earlier clearly pointed to ongoing angst between contractors and the majors.

Don’t Miss These Exciting Features:

• Professionally Judged Show & Shine• Safety Driven Educational Seminars• Live Entertainment

Speaker Series on Health & Safety For more information visit:

www.safetydriven.ca/speakerseries

will be much different than processing smaller second-growth logs. What is ul-timately important is sawmill margins, but higher cost sawmills have a history of disappearing on the BC coast.

To maintain competitiveness or to im-plement innovation, capital investments are required to reduce operating costs, increase flexibility, or to consider new products or markets. No matter what the rankings are, the real question is: who is prepared to invest in the BC coast saw-mills? There are always opportunities, but there is always risk, as evidenced by the steady erosion in the number of operating sawmills on the BC coast and the increase in log exports. There is no simple answer, especially when Crown timber is the base of timber supplies and government policies (both provincial and federal) are in effect and can change, not to mention the unknown details of the new Softwood Lumber Agreement that will emerge later this year.

Many of these elements, markets and competitive factors will be discussed at WOOD MARKETS’ 6th Annual Global Softwood Log & Lumber Conference May 5-6, 2016 in Vancouver, including in-depth discussions on the new dy-namics in China and Russia.

By Russ Taylor, President, International WOOD MARKETS Group, Van-couver BC Canadawww.woodmarket s.com

International WOOD MARKETS Group Inc. is Canada’s largest wood products consult-ing firm. Its consulting team has provided industry and market expertise in the solid wood products field to its clients since 1993. The company provides market research, new business development, business plan/strat-egy, as well as other consultative services to wood product companies in North America and around the world. The firm also pub-lishes a number of strategic industry multi-client reports including its landmark WOOD Markets Monthly International Report (since 1996) and monthly China Bulletin. Further information is available on www.woodmarkets.com.

(Continued from page 15)Audience PollingDescribe the nature of your rel-ationship with your employee licensees. • Very good 10% • Good with some, weak with others 50% • Troubled 40%

It is clear that these types of discus-sions need to continue and both sides need to consider the needs of the over-all supply chain if we are to be mutu-ally successful.

Page 49: Truck LoggerBC, Spring 2016 - Volume 39, Number 1

Spring 2016 Truck LoggerBC 49

May 7, 2016 “Choose to Save Lives—Actively Participate in a Safety Culture”

Vernon Atrium Hotel and Conference Center FOR FREE REGISTRATION AND FURTHER INFORMATION: http://www.bcforestsafe.org/ISC2016

Time Topic Presenter Co-Sponsor

8:00 – 9:00 Registration

9:00 – 9:05 Opening Remarks MC

9:05 – 9:10 First Nations Welcome TBD

9:10 – 9:30 Setting the Stage Rob Moonen – CEO BC Forest Safety Council

9:30 – 10:15 What do we need to do to be twice as safe by 2020?

Dave Fennell – Dave Fennell Safety Inc.

10:15 – 10:35 Coffee Break

10:35 – 11:20 Mike Tasker - WorkSafeBC

11:20 – 12:00

Peer Panel

Collaboration and Sharing Best Practices

Industry Representatives from Harvesting and Manufacturing

12:00 – 1:00 Lunch

1:00 – 2:00 Risk Tolerance Dave Fennell - Dave Fennell Safety Inc.

2:00 – 2:30 Log Truck Rollover and Seatbelt Safety Adrian Sunduk

2:30 – 2:50 Coffee Break

2:50 – 3:50

Break Out Sessions

Building a Road Safety Culture in Your Organization

Rick Walters – Road Safety at Work

Off the Job Safety – Safety in the home, on the road, in the outdoors.

Chief Keith Green – Vernon Fire Rescue Services

Coralie Nairn – Vernon Search and Rescue

3:50 – 4:10 Wrap Up Rob Moonen – CEO BC Forest Safety Council

4:10 – 4:20 Door Prizes

Effective Supervision

May 7, 2016 “Choose to Save Lives—Actively Participate in a Safety Culture”

Vernon Atrium Hotel and Conference Center FOR FREE REGISTRATION AND FURTHER INFORMATION: http://www.bcforestsafe.org/ISC2016

Time Topic Presenter Co-Sponsor

8:00 – 9:00 Registration

9:00 – 9:05 Opening Remarks MC

9:05 – 9:10 First Nations Welcome TBD

9:10 – 9:30 Setting the Stage Rob Moonen – CEO BC Forest Safety Council

9:30 – 10:15 What do we need to do to be twice as safe by 2020?

Dave Fennell – Dave Fennell Safety Inc.

10:15 – 10:35 Coffee Break

10:35 – 11:20 Mike Tasker - WorkSafeBC

11:20 – 12:00

Peer Panel

Collaboration and Sharing Best Practices

Industry Representatives from Harvesting and Manufacturing

12:00 – 1:00 Lunch

1:00 – 2:00 Risk Tolerance Dave Fennell - Dave Fennell Safety Inc.

2:00 – 2:30 Log Truck Rollover and Seatbelt Safety Adrian Sunduk

2:30 – 2:50 Coffee Break

2:50 – 3:50

Break Out Sessions

Building a Road Safety Culture in Your Organization

Rick Walters – Road Safety at Work

Off the Job Safety – Safety in the home, on the road, in the outdoors.

Chief Keith Green – Vernon Fire Rescue Services

Coralie Nairn – Vernon Search and Rescue

3:50 – 4:10 Wrap Up Rob Moonen – CEO BC Forest Safety Council

4:10 – 4:20 Door Prizes

Effective Supervision

Page 50: Truck LoggerBC, Spring 2016 - Volume 39, Number 1

50 Truck LoggerBC Spring 2016

If getting the message across means anything, then the “Embracing

Change in First Nations Relationships” panel at January’s TLA convention, co-hosted by the BC First Nations Forestry Council and featuring four speakers fa-miliar to the logging community, was an unqualified success.

The panel was of particular interest to those concerned about what direction forestry will take in the future, given the number of outstanding land claims as well as legal challenges stemming from the Supreme Court of Canada decision in 2014 declaring Aboriginal title to 1,700-square-kilometres of tra-ditional land outside of the Tsilhqot’in Nation reserve.

And yet, some of the speakers couldn’t shake the suspicion that their opinions, while embraced by the audience, are still considered idealistic in a province fo-cused on global trade and in an industry focused on economic revival.

Douglas White, Director, Centre for Pre-Confederation Treaties and Recon-ciliation at Vancouver Island University, explains, “Shortly after the convention, I was negotiating with a provincial forest-ry bureaucrat , who told me the province disagreed with my opinions expressed at the convention that the Tsilhqot’in deci-sion will fundamentally change the way business is conducted in BC—which was my main point as a panel speaker.”

White adds, “If Victoria continues to fail to recognize the impact of the Ab-original title decision, and begins to en-gage with First Nations and industry in a meaningful way to find solutions, we will inevitably find ourselves in patterns of deepening conflict and uncertainty.”

Matt Wealick, a forester for Probyn Log, a TLA member, and a TLA Direc-tor who chairs the Aboriginal Affairs Committee, agrees that delegates who attend the “Embracing Change” panel were very supportive of the message to

work together; but the fear associated with losing control of authority is still present amongst decison-makers.

Robert Phillips, task group member for the First Nations Summit, agrees that fear is the biggest hurdle in transition-ing from traditional tenure parameters to an industry where First Nations play a decision-making role. “I’ve been con-fronted with the emotion many times and have heard all the remarks about why the status quo will never change. Fortunately, I didn’t experience this at the TLA convention, but that’s an excep-tion to the rule.”

If there was an element of frustra-tion to ‘Embracing Change’, it was that the speakers, including British Colum-bia First Nations Forestry Council CEO Keith Atkinson, were in some ways preaching to the converted. Compared to other industries, forestry has dis-tinguished itself with sustained efforts made to employ and train Aboriginal

emBracing change in firSt nationS relationShiPSBy Robin Brunet

Photo: Brian Dennehy Photography

Page 51: Truck LoggerBC, Spring 2016 - Volume 39, Number 1

Spring 2016 Truck LoggerBC 51

people, partner in developing harvest-able lands and push the boundaries of the existing forestry model in prepara-tion for a possible recognition of Ab-original title.

Indeed, real-time online polling con-ducted during the TLA convention showed that of 136 delegates polled, 107 (79 per cent) had engaged with First Nations businesses or in First Na-tions capacity building over the past few years, and 13 (10 per cent) planned to. Atkinson remarks, “We enjoy a great partnership with the Truck Loggers and its members, and what I get from the logging community overall—from the boots on the ground, so to speak—is people want to see us gain true equal footing in all matters.

“So the situation is good on a grass roots level, which is where the TLA pre-sides. But the grass root level tends to get overlooked by government and cor-porations that are taking more and more of our resources away from us.”

Anyone fearing the prospect of First Nations authority in land matters might have been surprised by the upbeat tone expressed by Atkinson, Wealick, Phil-lips, and White during “Embracing

Photo: Brian Dennehy Photography

Several delegates asked questions to learn more about First Nations relations.

PORTLAND, OREGON JACKSON, MISSISSIPPI EDMONTON, ALBERTA

WWW.PIERCEPACIFIC.COM TOLL FREE: 800.760.3270

The Pierce Grapple Processor. It sorts, bundles and loads like a grapple. And delimbs, measures and cuts like a processor.

Six-plus functions. One game changing attachment. Ask your local Pierce rep to tell you more about the Pierce GP today.

It works twice as hard, so you don’t have to. MARK SHUKLA 250.826.5218 mshukla@piercepaci�c.com

GP ™

DO TWICE THE WORK IN HALF THE TIME.

Page 52: Truck LoggerBC, Spring 2016 - Volume 39, Number 1

52 Truck LoggerBC Spring 2016

Suite 350 - 601 Sixth Avenue, New Westminster, BC V3L 3C1Telephone: 604.526.8545

AREA REPRESENTATIVESLarry SpencerTerry Basso RPF

Rod Powell

FIRST NATIONS STRATEGIC ADVISORYMatt Wealick RPF

John Iacoviello RPF

LOG MARKETING

FINANCING & ADMIN

Port AlberniCampbell RiverChilliwackSechelt

250.720.6263250.203.3414604.540.5363604.220.0581

LOG SALESWayne OuelletteEverett Romain

working to maximize the value of

your timber, logs & lumber

TIMBER DEVELOPMENT

FORESTRY & ENGINEERING

604.823.6891604.540.5355

604.824.2686

Change.” Their core message was three-fold. One, shared decision-making is the key to industry recovery and economic prosperity. Two, the first step in achiev-ing this outcome is talking candidly with First Nations groups. Three, forging productive relationships might be easier

than expected, considering Aboriginals and non-Aboriginals both want to gen-erate revenue, develop capacity and ac-cess more forest tenure.

None of the speakers pretended that policy or mindset changes would hap-pen overnight. “We’ve had commit-

ments from the provincial government to discuss building capacity in the for-estry sector as far back as the 2005 New Relationship, repeated in the 2009 Roundtable Recommendations, and so far nothing substantial has happened,” Atkinson said, adding that his organiza-

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

Call us 1-855-946-4226 / 604-946-4226E-mail : [email protected]

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

Call us 1-855-946-4226 / 604-946-4226

Photo: Brian Dennehy Photography

The speakers (left to right) Douglas White, Matt Wealick, Robert Phillips and Keith Atkinson each gave their own perspective on what direction forestry will take in the future, given the number of outstanding land claims as well as legal challenges stemming from the Supreme Court of Canada decision in 2014.

Page 53: Truck LoggerBC, Spring 2016 - Volume 39, Number 1

Spring 2016 Truck LoggerBC 53

C

M

Y

CM

MY

CY

CMY

K

JB BenProg Ad Nov2012-OUTLINED.pdf 1 12-11-08 2:48 PM

Creative, cost-effective, and efficient problem solvingin Marine Transportation.

[email protected] www.marinelink.ca

ARINE LINM KTRANSPORTATION

Full Service Marine Transportation Specialists

tion has spent the last 10 years acting as a First Nations advisory to government, struggling to turn aboriginal values into best practices. “The input has not trans-formed the sector in a way that supports or acknowledges aboriginal governance or the basics that need to be acknowl-edged for a healthy relationship.”

Wealick addressed the problem of Aboriginal communities and industry

members not knowing what each oth-er wants by telling delegates his com-mittee’s newly-completed “Working Guidelines for Contractors To Use In Developing First Nations Relationships” could be an important guide to estab-lishing bonds between the two parties. (Amongst many other things, the docu-ment urges for common interests to be a key part of any relationship.)

Phillips expressed hope that the new federal government will be more pro-active in recognizing aboriginal author-ity than its predecessor. However, he stressed that individuals can best enact change and he urged delegates to “spread this message to schools and to newcom-ers to the province. It starts with us.”

Presumably, the speech that would have come closest to panicking defenders

Page 54: Truck LoggerBC, Spring 2016 - Volume 39, Number 1

54 Truck LoggerBC Spring 2016

of the status quo was delivered by White. After regaling the audience with an ac-count of his youthful clumsiness work-ing in the woods, he went on to state that despite what critics and even some of his colleagues believe, the Tsilhqot’in deci-sion will lead to Aboriginal title being recognized by all levels of government.

He said, “What was once Crown timber will no longer be Crown tim-ber when Aboriginal title is declared over major parts of BC…projects must get Aboriginal consent once title is de-clared, and therefore we must rethink our entire forestry regime.”

Although White noted that Aborigi-nal people “won’t settle for anything less than this” (a view shared by At-kinson, who told delegates that “we have to acknowledge title if we’re go-ing to have relationships”), he later told Truck LoggerBC that he is pressing for collaboration, not confrontation. “We don’t want blockades or lawsuits. We simply want economic prosperity and the mechanisms to control our own destiny. Frankly, I see tremendous op-portunities arising from collaboration. Our industry is already very attuned to local realities and this is a big benefit moving forward.”

It may seem simplistic. Could talk-ing candidly to one another be the trig-ger for equality between all parties? But Wealick points to evidence of it already happening. “The company I work for, Probyn Log Ltd., earned its trustworthy reputation about 10 years ago when it acknowledged the concerns of Aborigi-nals concerns and gave back a timber sale located in one of our spiritual areas near Chilliwack,” he says. “Since then, there has been a great relationship be-tween the company and First Nations, and a true sense that one is looking out for the other.”

Wealick adds, “A lot of people tell me they’ve communicated with First Nations groups until they’re blue in the face, only to work together on one project and then nothing after that. But that’s because these people bring to the talks an agenda they don’t deviate from.”

As feel-good as these sentiments may be, an air of intangibility underscores any discussion about First Nations au-thority over land matters, with more questions than answers coming to mind. How would government be restructured to accommodate Aboriginal author-

ity? How would First Nations reconcile preserving the land base with the reali-ties of international competition? What would the decision-making processes consist of?

White replies, “These are all hugely important questions. This is precisely why we have to get talking, and now.”

Pressed to predict what will happen in the coming years, White remarked that “in the short term, I think natives and non-natives are going to have to work around the province in order to make headway. But that still leaves Crown is-sues to be sorted out.”

For his part, Phillips thinks the first tangible indicator of moving forward will be Victoria and industry adopting a working plan currently being fine-tuned by the First Nations Forestry Council, in conjunction with the province. “This joint review of existing policy, shared decision-making, revenue-sharing, and other matters may be adopted as early as this fall,” he says. “This would be a huge step forward, and perhaps it could be used in some way to kick start discus-sions on the larger Crown issues.”

Last fall, a BC forest policy analyst requesting anonymity told Truck Log-gerBC that while the Tsilhqot’in decision isn’t a clear win for Aboriginals because they still have to demonstrate use of land and prove exclusive use of land in order to gain title, which “will be very hard to do,” the decision has opened the door to a lot of potential give and take: “Frankly, I believe Aboriginal peoples want to give resource investors certainty just as much as we do, simply because as land owners they’ll be beneficiaries to any business activity.”

The desire for certainty strikes a deep chord with Phillips. In summarizing the “Embracing Change” panel and look-ing to the future, he says, “Maybe fear of losing control isn’t the right phrase to describe the resistance to what we want. It’s really fear of uncertainty, which all of us understand.”

He continues, “Uncertainty and the unknown are difficult fears to surmount. We get that. But we also can’t stop the future from happening. By develop-ing timely and respectful collaboration, we’ll end the acrimony of the past and get on with making this industry the best it can be.”

CALL 1.800.810.8933WWW.WESTCOASTRESORTS.COM

BOOK NOW FOR 2016

LEGENDARY FISHING.BREATHTAKING WILDERNESS.

HAIDA GWAII | CENTRAL COAST

WCR2016_TruckLoggersMagAd_April_2.0.indd 1 2016-02-23 10:23 AM

Page 55: Truck LoggerBC, Spring 2016 - Volume 39, Number 1

Spring 2016 Truck LoggerBC 55

the eVer changing goalPoStS of the enVironmental moVement

By Jim Girvan

In 1997, a large area of the central BC coast was circled and named

“The Great Bear Rainforest” by ENGOs (environmental non-governmental or-ganizations) hoping to draw attention and funding to their campaign to stop logging in the area. They pioneered a strategy of organizing consumer market boycotts to pressure forest companies to stop logging old-growth trees. The catchy new name for the area generally covered by the North and Mid-Coast TSA (timber supply area) along with the mystical image of the “spirit bear” was

sure to draw global attention to their campaign (and it did).

For years following, stakeholders tried to find a way to balance the needs of all parties. It was with significant media fanfare then that the signing of the Great Bear Rainforest Agreement was announced in early February 2016. After almost two decades, stakehold-ers and First Nations ultimately found resolution to the conflicts between the environmental groups, government, First Nations and the forest industry in the area.

As reported in Victoria’s Times Colo-nist, the agreement was actually devel-oped over a decade ago, but took ten years to get the final signature of stake-holders and First Nations. It’s an over-whelming victory for preservationists that dramatically hikes the amount of wilderness protected from logging.

The final plan puts 70 per cent of the land base area (and 85 per cent of the actual forested land base) off-limits to logging. Despite all the lost opportu-nity, the forest industry (i.e. major ten-ure holders) is still counting the deal as

Page 56: Truck LoggerBC, Spring 2016 - Volume 39, Number 1

56 Truck LoggerBC Spring 2016

LegendConservancies

Parks and Protected Areas

Biodiversty, Min ing and Tourism Areas

Specia l Forest M anagement Areas

Great Bear Rainforest Boundary

0 30 60 90 12015

Kilometers

Great Bear RainforestLanduse Zones

a win as it takes the heat off them from international customers worried about environmental practices and sustain-ability of the resources. Ironically, over the decade it took to finalize the deal, forest certification systems, such as SFI (Sustainable Forestry Initiative) and FSC (Forest Stewardship Council), be-came common place.

As noted by Coast Forest Conserva-tion Initiative (CFCI)—a collaboration between industry and the environ-mental groups advocating for protec-

tion—the joint recommendations from industry and environmentalists formed the basis for one of the world’s highest profile conservation and logging agree-ments. It will conserve significant areas of temperate rainforests while support-ing logging of old and second-growth in 15 per cent of the forest. All logging will also be according to new rules—ecosystem-based management—which was designed specifically for the Great Bear Rainforest.

“It is collaboration, not conflict that

ultimately drove this unique solution designed specifically for the Great Bear Rainforest,” notes Rick Jeffery of the Coast Forest Conservation Initiative and President and CEO of the Coast Forest Products Association. “It will deliver certainty for coastal forests, local com-munities and jobs for years to come. For the BC coast, including the Great Bear Rainforest agreement, some 4.5 million hectares (of the temperate rainforest) are now protected or about 55 per cent.”

And, commented Jeffery, “the areas that have been designated as working forest that will support the reduced AAC of 2.5 million cubic metres will be subject to world leading forest practices based upon ecosystem management to-gether with continuous improvement and research into best practices.”

Another area that contributes to the 4.5 million hectares of protected tem-perate rainforest on the BC coast is the Carmanah Walbran.

The Carmanah Walbran Provincial Park is a remote wilderness park located inside traditional Ditidaht First Nation ancestral territory. The park covers a land area of 16,365 hectare immedi-ately adjacent to Pacific Rim National Park Reserve’s West Coast Trail along the west coast of Vancouver Island. The park comprises the entire drainage of Carmanah Creek and a good portion of the lower Walbran River drainage.

In an area that was once all consid-ered part of the working forest land base, protests to protect this area began in 1988. The protesters worked to garner public support and fought to gain pro-vincial funding that would enable the area to become a park. It was the start of the “War in the Woods.”

In early 1990, the province conceded and bought the TFLs (tree farm licens-es) covering the area from MacMillan Bloedel and created Carmanah Pacific Provincial Park. The remainder of the Carmanah Valley and the lower part of the area drained by Walbran River were added in 1995 to form the current park area.

However, not all of Carmanah and Walbran drainages were included in the park as some of the area was left in the working forest as the provincial government balanced the interests of the industry and the environmental groups. This balancing act is much the

Map courtesy of M

inistry of Forests, Lands and Natural Resource Operations.

Page 57: Truck LoggerBC, Spring 2016 - Volume 39, Number 1

Spring 2016 Truck LoggerBC 57

Specializing in Conservative Investments

Mutual Funds • Bonds • Blue Chip Stocks Managed Money • Income Trusts

Dave Wheeldon, B.Sc.ED, M.A.EDInvestment AdvisorTel: 250 703-5382 • Fax: 250 338-2320Toll Free: 1 888 [email protected]

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.

sure practices are consistent with main-taining the intent of the zone. In this case, the designation calls for specific protection of old-growth areas, wildlife habitat areas and recreation features in-cluding trails and riparian zones.

Despite the restrictions and funda-mentally different approach to logging

vironmentalists attack. Torrence Coste of the Western Wilderness Committee, an ENGO noted for their environmen-tal activity but general reluctance to ne-gotiate in any meaningful stakeholder engagement, said that in a compromise that environmentalists have long regret-ted, a piece of the old-growth forest was left out of the protected area. “If Teal-Jones tries to log there, environmental-ists will flood into the area”.

In The Tyee in November, Coste was further quoted as saying. “There’s a role for forestry in the economy, but not cut-ting the last remaining old growth,” he said. “Any way you slice it, that’s coming to an end on Vancouver Island.”

This comes on the heels of the an-nouncement that we had just protected a sensitive old growth area covering 85 per cent of the central coast and a to-tal of 55 per cent of the entire coastal temperate rainforest. How can this small area of working forest that is lo-cated adjacent to a protected area of over 16,000 hectares that is adjacent to the Pacific Rim National Park Reserve’s West Coast Trail be “the last remaining old-growth?” It is simply not true and

same as we are seeing in the Great Bear Rainforest today.

A decade later, Teal Jones, who’s TFL 46 includes a small portion of the Up-per Walbran area referred to by envi-ronmentalists as “the Bite”, made plans to log on their tenure adjacent to the protected park.

How can this small area of working forest, adjacent to a protected area of over 16,000 hectares that is adjacent the Pacific Rim National Park be “the last of the remaining old growth”?

For its part Teal Jones is obligated to conduct forest and logging operations in “the Bite” consistent with the Special Management Zone (SMZ) in accordance to the area’s designation in the Vancou-ver Island Land Use Plan (VILUP). The VILUP has been in place since 1994 and the SMZ designation in the area pro-posed for logging provides that timber harvest is a “conditional opportunity.” What this means is that while logging is acceptable within the zone, special op-erational conditions are imposed to en-

dictated by the VILUP, the ENGO reac-tion to halt logging operations was swift despite being outside the protected area.

“Plan to log centuries-old cedar trees in southern Vancouver Island’s Walbran Valley cuts into the heart of one of Can-ada’s most ecologically sensitive forests,” read one headline. “Globally important old-growth rainforest in the Walbran Valley is at risk, and we need urgent ac-tion to protect it,” noted another.

The Globe and Mail reported in June of last year the re-engagement of the en-

Page 58: Truck LoggerBC, Spring 2016 - Volume 39, Number 1

58 Truck LoggerBC Spring 2016

For more information and to secure your exhibit space at this premier event, please contact:

Mark CusaCk, National Show [email protected] • Toll Free: 1.888.454.7469

Plan your Trip to DEMO International® Early!

LIVE EQUIPMENT DEMOS, IN-WOODS

& IN ACTION!

Page 59: Truck LoggerBC, Spring 2016 - Volume 39, Number 1

Spring 2016 Truck LoggerBC 59

this type of misinformation is at the heart of the credibility of the ongoing ENGO campaigns.

So what can we read into this? It is simple. When compromise is sought and agreements result in protected areas and working forest being created that notionally provide a balance between stakeholders in BC that rely on our nat-ural resources, the implication is these agreements are temporary and subject to change. It is this moving of the goal-posts within ENGO campaigns over time that leads to cynicism in some and fear in others.

No better example of this was Ian McAllister of the conservation group Pacific Wild, who acknowledged “the [Great Bear Rainforest] deal’s positive aspects”, in The Vancouver Sun on Feb-ruary 3, but then went on to say, “he found it hard to describe the destruc-tion of 2.5 million cubic metres per year of coastal forests a conservation success,” in reference to the AAC of the remaining 15 per cent.

It is this perspective that will continue to undermine business certainty in BC brought about by land use agreements reached by virtually all other interests including industry, First Nations, gov-ernment and a cross-section of engaged environmentalists in BC.

For its part, the forest industry will continue to find a balance between re-source focused stakeholders. When given the social licence to operate on that part of the forest dedicated to their industry, they will continue to evolve practices to meet the expectations of the public.

How long will it take to once again see protests in the Great Bear Rainfor-est when harvesting operations start in the 15 per cent set aside as a working forest land base? It took a decade in the Carmanah Walbran until once again the industry is being forced to defend its sustainability and world class prac-tices. Only time will tell in the Great Bear Rainforest.

www.ioscnc.caEmail: [email protected] Tel: 604-513-1563 l Fax: 604-513-1562

Unit #104, 9706 188 StreetSurrey, BC V4N 3M2

Servicing Sawmill and Logging Companies

• PR66, Air Tracs Factory Replacement & Drilling Parts• Rolls, spikes and guides for sawmills

CALL OR EMAIL KEVIN FOR PRICING

Page 60: Truck LoggerBC, Spring 2016 - Volume 39, Number 1

60 Truck LoggerBC Spring 2016

Heavy Equipment Parts & Sales

Tel: (855) 559-9995 (250) 468-1000Fax: (250 468-1001Email:[email protected]@viequipmentltd.com

Specializing In:

www.viequipmentltd.com

WWW.WDMOORE.CATEL: 250-969-4222

New/Used/Exchange Hydraulic Excavator PartsOver 350 Hitachi/John Deere excavators parted out ZX120 to EX3500

Office: 604-530-5758

Fax: 604-530-3554

Toll Free: 888-530-5444

www.langleyexcavator.com

At Yo

ur Se

rvice

Jardine Lloyd ThompsonCanada Inc.

As the primary equipment and liability insuranceprovider to the TLA, JLT are the ones to call

for all your business and commercialinsurance questions and inquiries

Peter PringleDirect 250 413 2712

Steve HicksDirect 250 413 2723

www.jltcanada.com

Sunshine Coast-basedSunshine Coast-based

STUMP TO DUMP LOGGING CONTRACTOR

Proudly Supporting

the TLA

SLADEY TIMBER LTD. Email: [email protected]: (604) 883-1166

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

Let us do all the hard lifting. You’ve done enough.

3914-32nd St, Vernon, BC 250.545.3385 1.800.663.4422 www.vernonatriumhotel.com [email protected]

OLYMPIC FOREST PRODUCTS LTD.Tel: 604-685-6164Fax: 604-681-8906www.olympicforest.com

Brian: 604-240-1167 or Glen: 604-314-2080

CHECK OUT OUR INVENTORY OF EQUIPMENT FOR SALE AT

www.olympicforest.com

604-240-1167 or CONTACT

Page 61: Truck LoggerBC, Spring 2016 - Volume 39, Number 1

Spring 2016 Truck LoggerBC 61

Providing safe, top quality falling & bucking services

that exceed our customer's expectations since 1996.

T: 250-596-9488 [email protected] www.sibolamountainfalling.com

SOLUTIONS. INNOVATION.EXPERTISE.

1-888-finning | finning.ca (346-6464)

KEEP YOUR

CONNECTEDBUSINESS

FREE SATELLITE PHONE

www.globalstar.com/BCTLoggerFREE

A&A Trading Ltd.BC Forest Safety CouncilBrandt Tractor Ltd.Brutus Truck BodiesCanadian Western BankCannon Bar Works Ltd.Catalys LubricantsCIBC Wood GundyCoastal Camp Solutions / Ole’s Hakai PassDemo International / Canadian Woodlands ForumFinningGlobalstar CanadaGreat West EquipmentInland Kenworth/Parker PacificILA ConventionInterior Safety ConferenceInternational Machinery SalesIOS EnterprisesIsland Spring Ltd.Jardine Lloyd ThompsonJohnstone's Benefits

Advertiser Index:

Kineshanko Logging Ltd.Langley Excavator Parts ExchangeMarine Link Transportation GroupMiller Thomson LLPNootka Sound Timber Co. Ltd.North Island CommunicationsOlympic Forest ProductsPacific Blue CrossPierce Pacific ManufacturingPetro-Canada/Coastal Mountain FuelsProbyn Log Ltd.Prolenc Manufacturing Inc.Roadpost Inc. / Inreach CanadaSibola Mountain Falling Ltd.Sladey Timber Ltd.Southstar Equipment Ltd.Truxpo / BCTAVernon Atrium HotelV.I. Equipment Ltd.W.D. Moore Logging Co. Ltd.Wajax EquipmentWaratah DistributionWest Coast Tug & Barge

Westcoast Resorts / Taan ForestWesterra Equipment - DoosanWesterra Equipment - VermeerWoodland Equipment Ltd. -BarkoWoodland Equipment Ltd. -GehlWoodland Equipment Ltd. -HyundaiWoodland Equipment Ltd. -PetersonWorkSafeBC

Page #

4179 & 605738435257

39

586 & 6161 & 6319224 & 254439595914 & 6053

596053384720604514152274661603448606060126420

5411

45

30

28

22

4221

Page # Page #

At Your Service

KEEP YOUR COMPANY NAME

your space in the Summer 2016

issue of TRUCK LOGGERBC

Call today to reserve

Issue close date: May 27th Ad material deadline: Jun 3rd

FRONT AND CENTRE IN TRUCK LOGGERBC

ADVERTISING IN PRINT200 - 896 Cambie StreetVancouver, BC V6B 2P6Tel: 604-681-1811Fax: 604-681-0456Email: [email protected]

Page 62: Truck LoggerBC, Spring 2016 - Volume 39, Number 1

62 Truck LoggerBC Spring 2016

62 Truck LoggerBC Spring 2016

73rd Annual TLA Convention & Trade Show

Page 63: Truck LoggerBC, Spring 2016 - Volume 39, Number 1

Spring 2016 Truck LoggerBC 63

*

Contact your Authorized Globalstar Dealer Below to Take Advantage of the FREE Satellite Phone Offer. Mention this ad and also receive 1 month of FREE airtime.

PETRON COMMUNICATIONS11315 ALASKA ROAD

FORT ST JOHN, BC250.785.3333

WALCO RADIO707 SARCEE STREET EAST

KAMLOOPS, BC250.372.0054

STRYKER ELECTRONICS6710 HARDY BAY ROAD

PORT HARDY, BC 250.949.8022

METRO MOBILE RADIO20252 98 AVENUE

LANGLEY, BC604.888.5100

CP ELECTRONICS298 SECOND AVENUE NORTH

WILLIAMS LAKE, BC 250.392.5583

CP/HP COMMUNICATIONS1018 GREAT STREETPRINCE GEORGE, BC

250.562.5877

ISLAND COMMUNICATIONS2540 BOWEN ROAD

NANAIMO, BC250.758.7301

NORTH ISLAND COMMUNICATIONS1690 ISLAND HIGHWAYCAMPBELL RIVER, BC

250.287.9207

COAST MOUNTAIN WIRELESS3650 RIVER DRIVE

TERRACE, BC250.638.0577

TOM HARRIS (BANKS CENTRE)2447 HIGHWAY 97 NORTH

KELOWNA, BC250.861.8848

$499 SAT PHONE

FREE *Terms and conditions apply.

Manage your business from remote worksites that are beyond cellular service. Coordinate operations and remain connected to co-workers and family without breaking the bank.

The most affordable satellite voice and data solution for your business.

FREE SATELLITE PHONE

KEEP YOUR

CONNECTEDBUSINESS

GLOB16_8.25x10.75_CA_BC Trucker.indd 1 2/29/16 9:07 AM

Page 64: Truck LoggerBC, Spring 2016 - Volume 39, Number 1

64 Truck LoggerBC Spring 2016

WaratahMateTM

One-Touch Data Transfer. Seamless Productivity.

Download the WaratahMate app today on the App Store.

Boost productivity and e�ciency with the new WaratahMate smartphone app. This new app makes it faster, easier and more reliable than ever to send measuring system data to your forestry company.

Developed exclusively for Waratah customers, the WaratahMate app transfers data directly from the TimberRite™ measuring and control system via WiFi to your phone. The app then reliably sends the data �les through the cellular network to assigned email accounts.

The WaratahMate app is available for free on the App Store (iOS) –download it today for one-touch data transfer and seamless productivity.

Waratah Canadawww.Waratah.com

Like us on Facebook800-959-3799