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Stimson employees ready for layoffs in Idaho

COEUR d’ALENE — Employees at the Stimson Lumber Company Atlas sawmill are gearing up for the layoffs coming in December when the plant shuts down the evening shift.

By RICK THOMAS
Staff writer

More than a third of the company’s 161 workers will be unemployed when 67 are permanently laid off Dec. 5. On Monday, groups met to discuss insurance, retraining and other problems related to the layoff.

"It’s always scary when a large employer lays off a large part of its staff," said Kathryn Tacke, labor economist with the Job Services. "This is a hard time of year to be laid off."

The layoffs were announced by Stimson late last week and employees were given 60 days notice. Difficulty in obtaining enough pine logs at a price that makes it profitable to process them was the primary reason given.

"There’s lots of it," said Stefany Bales, vice president of communications for the Intermountain Forest Industry Association. "Actually getting it — the Forest Service is not providing a sustainable source."

The association represents the industry in Idaho and western Montana

Bales said some Montana mills have only a few days of logs in inventory, and temporary shutdowns are common when mills can’t get wood to process.

"If you can’t find a supply of wood you can’t run," said Bales.

The Coeur d’Alene mill will continue to process some pine, but it will only be 25-30 percent of output. The rest will be cedar.

Production, anticipated at 83-85 million board feet this year, will drop to about 45 million next year, said Jeff Webber, vice president of manufacturing for Stimson in Eugene, Ore.

Stimson operates 14 plants in the Northwest. The company purchased the Atlas and DeArmond mills from Idaho Forest Industries in November 2000.

They’ve struggled to be profitable and have looked at their options for the past two years, he said.

"The issue is substitute product, whether from Europe or the southern hemisphere," said Webber. "The market is good. Supply is tight."

The jobs pay $15-$16 per hour plus benefits, said Ed Roberts, human resources manager for the Coeur d’Alene plant, said the company will save about $3 million per year with the layoffs.

Tacke said there will be assistance for the laid-off employees under a dislocated worker program. She expects to begin working with some of them immediately, others when they’re off work.

She’s concerned it will be hard for them to find work immediately after the layoffs.

"There are fewer job opportunities January through April," she said.

The latest announcement comes on the heels of a September layoff when the Bonners Ferry Louisiana Pacific mill closed. LP was purchased by Riley Creek Lumber on Oct. 1.

Improved productivity through technology has helped that company remain profitable, said Bob Boeh, vice president of resources for Riley Creek.

He said the market has been depressed for more than three years, but their operations are not affected by the shortage of pine logs.

"We don’t cut pine," said Boeh.

Stimson’s stud mill is also unaffected, as prices remain strong enough in that market to keep two shifts running.

"The market is good and the supply is tight," said Webber.

http://www.cdapress.com/articles/2003/10/07/business/bus01.txt

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