Profits, prices & productivity prove

Woodworkers need and
some of industry’s

By BRUCE YORKE
Negotiations are currently underway between the I.W.A.
and the province’s lumber barons. In the related pulp and
paper field talks will be starting soon. The outcome of these
negotiations will be crucial as far as this year’s wage

settlements are concerned in B.C.

It could very well be that in one
form or another the entire labor
movement will be compelled by
events to demonstrate its solidarity
behind the woodworkers.

The employers are talking and
acting tough. The southern interior
operators have sustained a 6 month
long strike in an attempt to deny
parity of wages with the coast.

Coast negotiators are demanding
the posting of $250,000 union bonds
for so-called violation of contract
provisions (wild-cat strikes
provoked by the companies). And

lurking ominously in the background
Bea V. Clyne inspired slave labor 1 proriTs AFTER TAXES: FOUR MAJOR FORESTRY
with its sweeping compulsory
arbitration features. INDUSTRY FIRMS
: 1960-1967
All the while the daily press and MacMillan Crown B.C. Forest Columbia —
employer controlled propaganda Bloedel Zellerbach Products Cellulose Total
mediums are crying the blues about 1960 $24,575,651 9,750,000 © 4,120,044 2,551,072 40,996,767
the so-called rough time experienced 1961 $27,395,968 10,148,000 4,181,244 659,430 42,384,642
last year in the industry. Profits are 1962 $36,081,809 14,238,000 4,812,500 4,679,799 59,812,108
down they complain, prices are 1963 $43,146,969 16,987,000 8,951,200 5,439,458 74,524,627
weak, productivity is lagging, and 1964 $46,999,662 17,656,000 11,393,300 6,204,378 82,253,340
the government has imposed some 1965 $52,801,275 15,664,000 10,728,500 4,028,363 83,222,137
new taxes. 1966 $62,542,030 15,330,000 10,203,500 2,512,332 - 90,587,862
1967 $43,800,000 11,800,000 +. 8,302,000 —_(7,321,024)* 56,580,976
PROFITS HIGH Total $33,343,364 111,573,000 62,692,288 18,753,807 530,362,459
Well, don’t you believe it. Profits *loss.
are gigantic, prices are rising SOURCE: Company Financial Reports.

rapidly, productivity is excellent,
and as far as taxes are concerned
there are many, many ways open for
the big shots to avoid payment as the
Carter Commission proved.

Let’s have a look at some of the
facts of the industry. To start with
take a look at the table on this page
showing the profits after taxes paid
of four of the big lumber firms for
the past 8 years.

In the case of the largest,-
MacMillan-and Bloedel, these
staggering profits are equivalent to

$1.15 PER EMPLOYEE PER
HOUR FOR THE WHOLE 8
YEARS, or a lump sum figure of
$27,994.

LEG |SLATUR RE

i
i

388

The after taxes paid figures used in
the table are the REAL ones, not the
phoney ones the company and press
like to talk about. They are
considerably higher than what most
people are familiar with, simply
because the companies, by book-
keeping definition, state them at
lower amounts.

To illustrate: In MacMillan’s
case, in 1966, the figure the com-
pany used was $42,460,618. How-
ever, they made little or no noise
about the $20,081,412 of so-called

bible, Madison’s Lumber Report:

Plywood up 12.4%
Fir lumber up 24.0%
Hemlock lumber up 24.0%
RedCedarlumber up 20.0%
Spruce lumber up 30.0%
No. 1 Shingles up 53.0%
MARKET GOOD

The lumber market is good and
could get much better. Here is a
significant quote from a February
1968 analysis produced by Burns,
Brothers and Denton, a major
investment firm with offices across
the country. ©

“Overall, 1968 seems likely to
see at least a moderate uptrend
established in demand,
particularly from export

“deferred income taxes,”’ which re-
mained with the company as a
result of 1966 operations.

This latter sum is the difference
between what the government allows
for depreciation in income-tax
purposes and what: MacMillan
carries on his books.

It is the kind of a “deferred tax”’
that will be deferred FOREVER.
This is proven by the fact that the
accumulated amount shown on
MacMillan’s books has grown, each
and every year, from the December
31, 1959 figure of $5,125,200 to the
December 31, 1967 figure of
$60,134,300!

PRICES UP TOO

As far ag prices are concerned the
following increases for March of this

year compared to March last year.

were reported by the industry’s

markets. Beyond 1968, rising
housing starts in the U.S. and
Canada as well as other markets,
particularly Japan, seem likely
to sustain at least a reasonable
uptrend in demand for Canadian
lumber. Latent demand for
housing is so great that an end to
the Vietnam war or anything else
that would improve the supply
and reduce the cost of housing
funds would almost certainly
produce a boom in U.S. and
Canadian housebuilding to
possibly 1,800,000 and 200,000
annual starts respectively, witha
consequent substantial effect on
- lumber demand.”’

WAGES FAR BEHIND

And what about the woodworkers.
How have they fared? The average
30 cent increase negotiated in the
last 2 year contract, has been at least
50% eroded by the effect of increases
in the cost of living, increased tax
deductions and increases in income
tax rates.

deserv
millions

“Now, IF YOu dusT SIT
THERE For A MINUTE,
THE WHOLE THING WILL
BECOME PERFECTLY
CLEAR To,

To illustrate how deep the cuts
have been consider the statistics in
the case of pulpworkers, who not
only got the aforementioned 30 cent

average increase over the 2 years,.

but journeymen in the industry got
another 10 cents as well. Here are
the figures up to January 1, 1968,

‘(first 18 months of the 2 year

contract), showing the slashing
effect of price and tax increases.

‘CREASE FOR

Lumber Worker

1960, THEN IT IS A FACT THAT
AN 84.7¢ PER HOUR WAGE IN-
1968 ALONE,
WOULD BE REQUIRED JUST TO
MATCH THE PRODUCTIVITY

GAINS!

Hence the woodworkers demands
for 50¢ per hour are thoroughly
justified, even on the basis of the

Percent of
Theoretical gain Actual Actual to
in first 18 months gain Theoretical
Laborer, single 26.67¢ 12.45¢ 46.67%
Laborer, married & 2 dependents 26.67¢ 14.00¢ 52.48%
Journeyman, single 36.67¢ 14.42¢ 39.33%
Journeyman, married & 2 dependents 36.67¢ 16.17¢ . 44.10%

PRODUCTIVITY HOAX

The employers try to suggest that
labor isn’t pulling its weight. Nothing
could be further from the truth. The
most careful examination and
calculation of productivity trends
possible from the limited
information made available in the
financial reports of both MacMillan
and Bloedel and B.C. Forest
Products show that productivity per
person was up 43% in 8 years starting
in 1960. This is a 5.2% increase
compounded every year.

IF ONE TAKES THE 1960 BASE
RATE IN THE LUMBER
INDUSTRY AND APPLIES THE
AFOREMENTIONED PRODUC-
TIVITY INCREASE TO IT AND
MAKES SUITABLE ADJUST-

establishment’s arguments about
productivity.

It is no wonder the forest
monopolies refused to allow their
books to be opened to careful
examination. They know all too well
that they could not stand the light of
publicity.

MENT FOR THE 16.4% RISE IN *Mosr HoRougs EFFICIENCY EXPERT WEVE PAD,

CONSUMER - =~ PRICES

SINCE ~.py 1b TEST EVERY MACHINE, PERSONALLY

eee CK W X 10:10P.m.
a 1130K.c. SUNDAYS
COMMUNIST PARTY'S
WEEKLY RADIO
COMMENTARY

Anti-Bill 33 rally

At press time the big anti-Bill 33 rally set for Sunday, April 7 at
Vancouver Exhibition Forum at 2 p.m. under the joint auspices of the B.C.
Federation of Labor, the New Westminster Labor Council and the Vancouver
and District Labor Council appears to be building up into a monster event.

No list of the prominent guest speakers planned by the sponsoring bodies
is as yet available, but it is expected will be announced later this week.

All trade unionists and other citizens’ organizations and individuals
interested in the defeat of anti-labor Bill 33, are urged to attend this
important rally.

PSII ECON EE

MARCH 29, 1968—PACIFIC TRIBUNE—Page 12

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