Pulp supplies could be hit as timber strike moves closer in Canada

Loggers and sawmill workers in the Canadian province of British Columbia are preparing for a possible strike after talks broke down with between their union and the biggest employers' group.

United Steelworkers has told 8,000 workers to get ready for a strike, after Forest Industrial Relations (FIR), an employers' federation representing 31 companies, walked away from the negotiating table on Monday.

The union is also negotiating separately with three companies - Interfor, Island Timberlands and Timberwest Forest.

An FIR spokesman told printweek.com there was still hope of achieving a negotiated settlement before the contract expires later this week.

He added that if a strike went ahead, it would disrupt chip supplies to the pulp and paper industry.

Paper companies are already stockpiling wood chips ahead of any action. 

Negotiations for the new management-labour master agreement for unionised employees started in March and the current contract expires tomorrow (Friday 15 June).

The paper industry is struggling because paper prices are under pressure from oversupply while timber prices are rising.

Some 600 jobs are on the line since Finnish paper company UPM-Kymmene announcement its intention to close down its Canadian Miramichi plant for up to a year from August.