Transition seamless in Canoe mill takeover

Gorman Bros. Lumber Ltd. of Westbank has completed its purchase of the Federated Co-operatives Ltd. forest products operation in Canoe.

The sale is final and, apparently, seamless.

With the announcement that Gorman Bros. Lumber Ltd. of Westbank has completed its purchase of the Federated Co-operatives Ltd. forest products operation in Canoe, comes little or no change.

“The purchase agreement provides that all employees will be offered employment by Gorman Bros. Lumber Ltd. on substantially the same terms and conditions as their present employment,” states the news release announcing the acquisition.

The sale includes Federated’s plywood plant, sawmill and log harvesting and forestry operations within the Okanagan Timber Supply Area surrounding Shuswap Lake.

Although rumours have circulated that the planer might re-open, Rick Scott, Gorman Bros.’ chief financial officer, says no.

“We’re not planning on expanding the operation. The planer will not be operated. Possibly the kilns will be used, but they only take one or two people.”

The sawmill hasn’t operated since Dec. 21, 2007, due to unfavourable market conditions.

Scott said the words ‘substantially the same’ in the news release referring to the terms of conditions of employment, means people are receiving the same wages as before.

“Yes, definitely. Things are 99 per cent the same.”

Gorman Bros. Lumber Ltd. operates lumber production facilities in Westbank and Revelstoke and a pole division in Lumby.

Scott says Gorman Bros. will be spending time making sure the Canoe operation is in synch with the way the other Gorman facilities run.

 

“It’s already very close to it,” he said of Federated in Canoe. “There are so many similarities to how we do things and how they’re done in Canoe. It’s going to be a joy.”

 

 

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