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Qualifying workers apply for a provincial early retirement

Qualifying workers affected by Canfor’s impending closure of its sawmill can apply for a provincial early retirement program, indicates information from the provincial jobs ministry.
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Qualifying workers affected by Canfor’s impending closure of its sawmill can apply for a provincial early retirement program, indicates information from the provincial jobs ministry.

Workers who are 55 years or older, if they meet certain criteria, will receive an income intended to tide them over until such time that union or other pension programs begin.

Formally called Bridging to Retirement, a first program of this type emerged in 2019 when fibre shortages, logging costs and other factors began making sawmills uneconomical, leading to temporary or permanent mill closures.

Depending upon a worker’s individual situation, up to $75,000 was made available if the worker decided to retire earlier than otherwise planned.

A worker who decided to retire early must have been at least 55 years of age and have worked in a B.C. mill for the last two consecutive years and have been affected by closures since May 2019.

The worker must have also agreed to permanently vacate his or her position, give up seniority and not return to work in a B.C. forestry job for at least 18 months.

So far, Canfor says it is closing its mill in April but a decision as to whether a new one will be built won’t be made until June. And if that decision to rebuild is made, construction would take an estimated two years.

The retirement bridging program was expanded in 2021 to include workers affected by the provincial government’s plan to exclude old growth forests from logging.

Forest-dependent contractors and their employees are also eligible to apply.

The 2019 to 2021 version of the early retirement bridging program saw 60 workers in Fort St. James, Vanderhoof and Houston leave their jobs. The cost was $2,638,413.

“Demand has been high for the retirement bridging funding. In over 100 communities in B.C.’s Interior and coastal regions, this program has helped 700 people retire early through $30 million in benefits and created 400 forestry jobs for younger workers in communities since the program started in 2019,” said Harry Bains who was the provincial labour minister in 2021 of results from the year before.

Aside from the provincial money, employers of workers who did retire early also contributed financially to their departure.

Provincial officials confirmed last week that employers are still required to contribute to the early retirement bridging program and that there are talks underway with Canfor about exactly that.

The expanded version of the 2021 program opened up 200 spaces for people who wished to take advantage of its provisions.

Any further involvement by the jobs ministry is not yet known.

“With the mill’s future undetermined at this time, due to possible rebuilding mentioned by Canfor, we are waiting for more information on the long-term outlook to best coordinate the level of supports for the affected workers and the community,” a ministry statement indicated.

The Ministry of Jobs, Economic Development and Innovation reached out to Houston to offer support after Canfor’s announcement last week. With the mill’s future undetermined at this time, due to possible rebuilding mentioned by Canfor, we are waiting for more information on the long-term outlook to best coordinate the level of supports for the affected workers and the community.