NASHVILLE, Tenn., Jan. 27 /PRNewswire/ -- The following statement is from the Communication, Energy and Paperworkers-Canada; Industrial Wood and Allied Workers of Canada; Canadian Labour Congress; the International Association of Machinists and Aerospace Workers; the Paper, Allied-Industrial, Chemical & Energy Workers (PACE) International Union; and the American Federation of Labor-Congress of Industrial Organizations (AFL-CIO):þþFour labor unions and two labor federations from the U.S. and Canada developed a plan to help resolve the Softwood Lumber dispute.þþRepresenting tens of thousands of workers in logging and lumber mills in Canada and the U.S., the unions and their national federations developed a Joint Labor Proposal that presented a clear set of principles on which to resolve this dispute. It represents the only multi-party, cross-border agreement on a solution by any of the principal parties to the dispute.þþThe unions and labor federations that developed the proposal were the Communication, Energy and Paperworkers-Canada; Industrial Wood and Allied Workers of Canada; Canadian Labour Congress; the International Association of Machinists and Aerospace Workers; the Paper, Allied-Industrial, Chemical & Energy Workers (PACE) International Union; and the American Federation of Labor-Congress of Industrial Organizations (AFL-CIO).þþIn the eight months since the U.S. imposed subsidy and dumping duties against Canadian lumber, none of the federal or provincial governments nor the industry representatives have yet found a way to resolve the Softwood Lumber dispute, and hundreds of workers -- union and non-union -- have continued to lose their jobs on both sides of the border. The duties are not working to anyone's benefit. Workers are being asked to sacrifice jobs at one plant to save jobs at another -- a beggar-thy-neighbor process that is inflicting hardship on workers, their families, their communities and the companies they work for.þþNot all of the members of these unions and their leaders agree on the appropriateness of the subsidy cases, or whether the duties were right or wrong. However, they agree the dispute is costing jobs on both sides, that the debate over who is right and wrong must end, and that the job losses must be stopped and stabilized before more harm is done. Foreign countries are moving in to take advantage of this impasse and to increase their exports to the U.S., which will take more jobs away from North American workers. Action must be taken quickly.þþThe objective of the Joint Labor Proposal is to stabilize the North American timber market with graduated export taxes to increase production when lumber prices get too high and reduce it when prices get too low. Provinces may, at their option, modify timber fees as a substitute for all or part of the export tax. This should reduce volatility and stabilize jobs in both Canada and the U.S.þþThe Joint Labor Proposal allows each Canadian province the option to make changes or not in its timber programs, so long as there is a mandatory graduated Canadian federal export tax that replaces the U.S. duties, or a voluntary provincial timber fee put in place that would have the equivalent effect of the tax. This will allow the provinces to manage their timber resources to meet social as well as economic objectives as they choose, and allow Canadian and U.S. companies to compete fairly on lumber sales.þþAs proposed by Under Secretary of Commerce Grant Aldonas, the only way to end U.S. duties is to require Canadian provinces to hold substantial timber auctions and export logs. The Aldonas proposal is textbook free-market theory, but is not a realistic solution to this trade dilemma. It could take years at best to achieve. Mr. Aldonas stated to the press that the U.S. is willing to accept an export tax as a substitute for the subsidy duties, until the provinces comply with the required changes in their timber programs.þþThe U.S. offer to terminate the duties if the provinces make all of these changes may take years to achieve politically, if ever. The appeals by Canada to the WTO and NAFTA panels will take another year or more to reach a decision, and then the decision may offer no real solution. This is a dispute that has been going on for over 20 years.þþThe unions believe the Joint Labor Proposal offers a way to reach a lasting solution and stop the pain of job loss now. The proposal expands on the export tax approach and offers more flexible and realistic options to the Canadian provinces to resolve the dispute and end the duties. The provinces may voluntarily change the timber fees or the fee structures which would be a basis for replacement, modification or termination of the export tax. For example, one option might be to increase timber fees and reduce the export tax rate, providing a combination that would produce the equivalent result. The unions believe this sort of flexibility, and concessions by each side, are necessary to resolve this dispute fairly and permanently.þþThe unions recognize that the governments must negotiate the exact range of tax rates and brackets for the export tax. The parties are not so far apart on the numbers, and if the principles in the Joint Labor Proposal are adopted, labor believes an agreement could be reached rather quickly. The unions have not tried to set those numbers in advance. They also propose a bilateral commission of government, industry and labor representatives to develop joint marketing proposals for North American wood products to increase North American markets and develop new markets overseas. This commission could address other issues as well.þþIf these Canadian and U.S. unions can set aside their differences to come together to develop a realistic solution, surely the governments and industry interests can do the same. Labor believes most of the parties truly want a solution. The unions are prepared to work with the governments and industry groups from both countries to find a fair and prompt solution to this dispute, and they believe the Joint Labor Proposal provides a strong base to start that process. þþUNION CONTACTS:þCEP - Fred Wilson 613-230-5200 IAMAW - Rod Kelty 301-967-4555þIWA - Scott Lunny 604-683-1117 PACE - Keith Romig 615-834-8590þCLC - Cliff Andstein 613-526-7405 AFL-CIO - Thea Lee 202-637-3907þ Principles for Joint Labor Proposal toþ Resolve the Softwood Lumber Disputeþþ * The current softwood lumber duties and the previous softwood lumberþ quota agreement, do not provide a satisfactory long-term solution forþ workers on either side of the border;þþ * The workers, consumers and the communities dependent on these jobs, haveþ a strong interest in reaching a mutually agreeable long-term solution;þþ * The undersigned unions from the U.S. and Canada, whose members' jobs areþ being lost due to this trade dispute, propose that the respectiveþ governments negotiate an agreement based on the following measures:þþ 1. A mandatory, graduated export tax, collected by Canada, thatþ decreases as the price of lumber increases, in lieu of currentþ subsidy and anti-dumping duties assessed by the United States. Inþ the event of significant changes in currency values, the export taxþ would be modified to incorporate these value shifts.þþ 2. The tax would remain in place unless or until modified or terminatedþ by mutual agreement of the United States and Canada. In the eventþ that Canadian provinces determine, at their option and by their ownþ decisions, to change timber fees and/or timber fee structures toþ develop a more stable and sustainable North American market, thisþ would be a basis for replacement, modification or termination of theþ tax.þþ 3. Creation of a U.S. - Canada bilateral panel consisting ofþ representatives of governments, industry and labour with the purposeþ of developing plans to jointly market North American wood productsþ to:þþ a) Increase the size of the North American market for wood products,þ and;þ b) Increase exports and develop new markets for North American woodþ product exports.þþþ Communications, Energy and Paperworkersþ Union of Canadaþþ Industrial, Wood and Allied Workersþ Union of Canadaþþ Canadian Labour Congressþþ International Association of Machinists andþ Aerospace Workersþþ PACE International Union (Paper, Allied-þ Industrial, Chemical and Energy Workers)þþ American Federation of Labor-Congress ofþ Industrial Organizationsþþþþ
