News

Joining the Jobless in Mackenzie

I chose not to work in the mills with my friends. I became a reporter. Now we're all in the same leaky boat.

By Joe Fries, 6 May 2009, TheTyee.ca

Mother and child in Mackenzie, B.C.

Lauren and Misty Bergquist in Mackenzie, B.C.

*Story updated on May 6, 2009 at 3:38 p.m.,

Lucky for her, eight-month-old Lauren Bergquist is too young to understand the turmoil surrounding her in her hometown of Mackenzie, B.C.

But it's all too understandable for her parents, Josh and Misty, who are just two of the approximately 1,500 people laid off from the three main mills in 2007 and 2008. The town of 4,000 still boasts an unemployment rate of around 70 per cent, according to the mayor.

Misty, 28, was a clerical worker at AbitibiBowater's sawmill and paper plant when layoffs began and put 700 people out of work. She is on an EI-sponsored maternity leave that ends this month. Josh, meanwhile, has already burned up a year of EI, and is into his second claim, which expires in September.

The Bergquists, like many other families here, are chained to a mortgage on an unsellable house and simply can't afford to leave for greener pastures.

Misty fills her days doting on Lauren, but says it's tough waiting for whatever may come next: "It's like a Sunday and it feels like we're just waiting for Monday."

Couldn't have put it better myself.

Crumpling newspapers

On April 3, I joined the ranks of B.C.'s unemployed, a group that, according to Statistics Canada, numbered about 123,000 in March.

I had been working as a reporter at the Penticton Herald. Times are also tough for newspapers, particularly so in Penticton where the daily Herald vies for advertising dollars with a twice-weekly competitor.

In the past six months, at some of the 40 papers across B.C. whose employees are represented by CEP Local 2000, up to 300 of my 2,800 former brothers and sisters have been laid off, bought out, cut back or retired early, says Rob Munro, a union executive who is particularly worried about hits to editorial departments.

"Quality of journalism and variety of voices is going down, and that's a concern," said Munro.

But the cuts have also touched those in other departments, moves made necessary, the companies claim, by the flagging economy, which has resulted in reduced demand for ads, especially from beleaguered automakers.

"There are already questions about the viability of newspapers, and to hit them this hard, you have wonder if they're ever going to recover," Munro said.

It defies logic to think a Herald reporting staff of now just two people and two stringers can adequately cover the entire South Okanagan seven days a week, particularly with a provincial election nearing that the premier claims is the most important in a generation.

Election blackout

I was supposed to be covering the election there, but instead, I'm 1,000 kilometres north in my hometown of Mackenzie interviewing former classmates, who, although our career paths diverged many years ago, I've joined in joblessness.

Like Misty Bergquist and I, Wendy Scammell-Peterson also graduated from Mackenzie Secondary School in 1998. Enrolment then was about 600, a number that dwindled to about 240 this year.

With so many folks out of work, Scammell-Peterson wonders why the election has been about John van Dongens's driving record instead of Mackenzie.

"Fifty people get laid off at a mortgage firm in Vancouver and it's on the news. What about a whole community?"

She was a financial accounts supervisor at AbitibiBowater before going on maternity leave last August. Because the company has now applied for bankruptcy protection, she's not sure if she'll have a job to go back to later this summer.

Despite the gloom, Scammell-Peterson doesn't hold a grudge against incumbent Liberal MLA Pat Bell, who's running for re-election in the new riding of Prince George-Mackenzie.

"I think Pat Bell, to give him credit, has been present," said the UVic economics grad. "But at the same time, he's one person. I don't think he has as much say as people would like to think."

Bell, also the forest minister, said last week during a campaign stop in Mackenzie that many people accept that his government has done what it can, while others "are just angry."

He says he committed 18 months ago to seeing the community through its darkest days, and has since worn a District of Mackenzie lapel pin to remind himself of his duty to people here.

"I would challenge you find a single picture of me (without the pin on) anywhere," he added.

But his challenger, NDP candidate Tobias Lawrence, said blame for the town's problems can be traced to the governing Liberals' loosening of forest policy. Lawrence claims that had her party been in power, "a huge portion" of the laid-off mill workers here would still be employed, even despite the recession.

For years, she continued, the North's resource wealth has supported the rest of B.C., and now, in the town's time of need, residents "have gotten nothing, zero, from the provincial government."

Growing up in a bubble

Eerily quiet at night and cradled by nature, Mackenzie, which lies about 180 kilometres north of Prince George, is the kind of place where many people don't lock their doors. There are just two stoplights on the main drag, each of which is pedestrian-controlled and a tad unnecessary. Residents are busy these days with yard work as the last of the snow melts away.

Homes here are modest, but comfortable, most of them built by the forest companies of the 1960s and 1970s, which needed a place to house their workers in this insta-town.

According to statistics provided last week by local realtor Lynda Moreland, about 10 per cent of the town's 1,700 dwelling units are up for sale, while an online real estate site listed 25 foreclosed houses on the market as of April 7. Sixteen homes have sold here since February, eight of them for under $100,000, according to Moreland. Some houses, meanwhile, can be rented for as little as $300 a month, or even for free if the tenant agrees to pay the utilities.

Just one gas station remains open and there are rumours that one of the two grocery stores will close soon. The town seems a shadow of its former self. There was a time when almost anyone who wanted to work here could. Home ownership was almost a given and a decent vehicle easily attainable. Then there were the toys like boats and ATVs.

"You grew up in a bubble," Mayor Stephanie Killam told me.

Like most others I spoke to, Killam appreciates what senior governments did to help her constituents make ends meet.

Many of the laid-off mill employees have been able to extend their EI claims by working on temporary make-work projects made possible by $2 million in federal funding. The province, meanwhile, helped the local college expand its programming to offer more retraining options.

The mayor points to the possible development of a bioenergy plant, nearby mines and tourism opportunities as ways to pull the town out of its funk. She's also optimistic that at least two of the three main mill sites will become operational again when the economy recovers. The third outfit, a pulp mill that employed her husband and two kids, is another matter altogether.

Pulp Fiction

Last operational in spring 2008, the pulp mill was owned by Pope and Talbot, which went belly up and stranded its 260 workers. The mill was purchased out of receivership for a song by Edmonton-based Worthington Industries. Worthington then announced plans to shut the mill down for the winter of 2009, a plan that was nixed by the province over fears it would lead to an environmental catastrophe should equipment containing volatile chemicals be left to freeze.

But the mill's owners, who now owe the town $4 million in taxes, were nowhere to be found and quit paying their workers in January, so the province was forced to assume control of the mill in January and has spent upwards of $1 million a month to keep the thing running, although non-productive.

One of the hired guns is Killam's husband, Donnie. He opened the mill in 1972 and will likely be on hand when it finally closes. The Killams' daughter, Kathleen, worked at the site until July 2008.

Kathleen, a childhood friend, admits it feels odd that her dad, a twice-retired electrician, is still working while she and her brother aren't.

"We all see some irony in that."

Kathleen never got her severance payment from Pope and Talbot and it's unlikely she'll ever see the roughly $5,000 she's owed for unpaid hours and vacation time. But she's not looking for pity. Sympathy, the mayor's daughter is fond of saying, can be found in the dictionary between shit and syphilis.

"I think now people are looking for action," she said. "We all need some help getting back on our feet. We're willing to work for it, we just need some help."

But other than suggesting the province help people with health-care costs or rework forest policy, she, like most everyone else, is out of ideas.

Some workers in Mackenzie, though, have demonstrated a desire to compromise and, in one case, it will probably get some of them back to work.

Earn less, or earn nothing

My old fishing buddy, Nick Babiak, was one of the roughly 200 unionized production workers employed at the Canfor sawmill before it shut down.

He was laid off in June 2008, then worked on a casual basis for the town and also briefly on one of the make-work projects. His EI claim ran out in March.

In late April, Babiak's union voted in favour of an across-the-board wage rollback of 18 per cent, plus other cost-saving tweaks to pension, medical and vacation benefits.

Under the new deal, the starting wage for a forklift operator like Babiak would drop from $27.09 to $22.21. However, the contract also brings in a form of profit sharing for that site only, so if the operation makes money, employees should eventually be able to claw back what they gave up.

"On paper it looks like (the deal) could be a good thing, but it goes against union philosophy," Babiak allowed. Then again, "We didn't go into (negotiations) in a position of strength."

He fears, though, that the drive to squeeze every penny possible out of the mill could turn some employees against their less-productive colleagues: "People that are having a bad day could potentially cost you money."

On Friday, Canfor CEO Jim Shepard travelled to Mackenzie to deliver news that the mill would restart in July with one shift of 65 people; more shifts could be added once the mill is running smoothly. He said the union concessions, plus a reduced stumpage rate from the province and a tax break from the town all helped make the reopening possible.

Shepard made the announcement in the mill parking lot before about 100 workers. Although the meeting was advertised on local radio, he said he wanted to make the announcement with "just us, just family" present.

'There are still trees worth money'

While not a lost cause, Mackenzie and it's residents have endured far too much despair and heartache in the past few years, not that you've heard about it on the campaign trail. To borrow a phrase, Scammell-Peterson said, "We live above Hope."

But, she continued, it's not a ghost town here and likely won't be anytime soon.

"There are still trees and they're still worth money."

Like the forest industry, the business of print journalism will probably survive, too, as long as there is a penny to be made selling ad space.

As for me, maybe I should have avoided the newspaper business and just stayed home. I'd probably own a house at least.  [Tyee]

38  Comments:

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  • ME2

    3 years ago

    No hero to me

    Pat Bell may be a local hero, but as Forests Minister he's still part of the Neocon methodology of forest management that has - as long predicted - brought the industry to its knees and keeps it there.

    Even sadder is the fact that the NDP is just as wired on Mutinational forest ownership - on behalf of the unions - as are the Neocons, and so we see no resilience in the forest industry since we are totally dependant on primary manufacture with NO secondary wood industry.

  • Jeffrey J.

    3 years ago

    Campbell's Mismanagement of BC Economy

    A sad indictment of Campbell's 'business' acumen. While our urban elites thought all wealth came from stock trading and real estate speculation, the real economy was ignored. Now BC's once proud forest industry is in tatters, virtually bankrupt. Having dismantled every other social program, Campbell has no idea how to 'build' anything, let alone the forest industry. The neocon philosophy of 'less government' has finally reached its end. We really have to get rid of these guys. Excellent coverage of an event that is occurring province wide.

  • Skywalker

    3 years ago

    Oh but Jeffrey

    Did you hear the forest company spokesperson on CBC radio yesterday promoting Campbell and making excuses for the liberals. It was quite comical. I guess they want to keep riding the gravy train even if there are just a few of them around.

  • realisticman

    3 years ago

    Vote NDP

    and then see some really impressive layoffs!

  • G West

    3 years ago

    Finally fixed

    Eureka - All Comments is once again the default for readers who don't sign in and out of Tyee.

    Many Thanks David...I'd be interested to know how the interregnum (must have been a week) affected both traffic and posts.

    HI GWEST. Traffic was at an all time high Monday, and has been very high since Thursday evening when the glitch occurred. I see that as a testament to the tenacity of our commenting community. Thanks for not giving up on us! -- David

  • frenchy mcswede

    3 years ago

    Gosh, pat bell,

    I'm sure the picture of your pin keeps your constituents warm through the long winter nights, and I guess it IS a perfect symbol "of the way we (the bc liberals) do "business" in bc" -give away the province to their friends, and then wear a pin that's supposed to show how much they care about their constituents...do bad we don't have bc rail or teresen gas anymore, with the revenues from them we could some of the people in rural bc the liberals have shafted so badly -you know, the stake-through-the-heart-lands, stabbed in through the back of course...If there isn't a way to seize the assetts and pensions of everyone of these bc liberal parasites, let's change the laws, so that these right wing parasites will think twice if they ever get reelected...(in my opinion)

  • morechatter

    3 years ago

    Moving to the Big City

    I imagine as the small town jobs dry up many will be moving to the city in hoards.

  • Skywalker

    3 years ago

    Realisticman

    Do you know how many mills have shut down during the Campbell watch? Makes the NDP look pretty good.

  • realisticman

    3 years ago

    Skywalker

    What do you suggest? Invade the USA and force them to build houses and re-open newspapers that have shut down? Have the government give away wood-stoves to all and subsidize the cost of firewood?

    There is a world-wide slowdown going on. Did you not hear about it?

  • VivianLea Doubt

    3 years ago

    the particular

    "Joe Fries is a reporter living, for the moment, in Mackenzie, and he's looking for assignments."

    This is the most telling part of the piece, for me - the suffering of people who have tried to live by the rules.Think of the talent being wasted, lives blighted, goddamn misery. This is what I want politics to be about: hearing stories of what is happening to our neighbours.

    Thanks, Joe, for those particulars.

  • G West

    3 years ago

    Was that the world wide slowdown

    You were pooh-poohing roughly 12 months ago on these same pages R/MAN?

    I noticed you never did reply to the information about the bad times on the Asia flyway either.

    Or the fact that the Celtic Tiger has lost its hide.

    Did you pick up this story in the Times earlier this week?

    http://www.nytimes.com/2009/05/05/business/global/05rupee.html?_r=1&scp=1&sq=India%20%20investments%20go%20wanting&st=cse

  • Fiat lux

    3 years ago

    Some of the funniest

    Some of the funniest propaganda comes from the mining companies, demanding the return of the BCLibs as "friends of the mining industry ", not like the NDP, who are the "enemies" of mining.

    The last major mine that opened in BC was the Mt.Polley copper/gold mine, near Likely, under the NDP. It closed down after the Libs got into power, because the prices were low, then opened up again and still going, now with a reduced staff.

    To the best of my knowledge, not one single mine opened under their great friends, the Libs.

    Ed Deak
    .

  • eastvanchump

    3 years ago

    Pat Bell

    "He said he committed 18 months ago to seeing the community through its darkest days, and has since worn a District of Mackenzie pin to remind himself of his duty to the town's residents.

    "I would challenge you find a single picture of me (without the pin on) anywhere," he added."

    He wears a pin!? This guy is unbelieveable. While watching Frankengord's Liberals lay waste to small town BC, Bell wears a pin every day. What a hero. The Liberals have the nerve to talk about being good for the economy and yet we have a forest industry in tatters. It's time for a change.

  • Skywalker

    3 years ago

    Realisticman

    Your response to my question completely avoids the question I put to you. The decline in the number of mills in BC started well before any world economic meltdown and after 2001. Your comment is a smokescreen as most are. We are suffering more from a Liberal integrity meltdown than a world economic one.

  • freebear

    3 years ago

    The way forests are logged...

    Did anyone think these mills and towns would be around forever?

    I do not think the forests were being logged sustainably or they would still be some mills operating.

    Logging was done that maxumized profit over a short period of time and at some point it is more efficient to close and sell off the pieces.

    How come I am always reminded that nowadays you can not expect a career at any one company of place of work.

    Those 'one horse' towns and homeowner mortgages are always a risky investment if you do not get out before the crash.

    I suppose that is why many were originally company towns that the workers rented, rather than purchased.

    Unfortunately the other opportunities are elsewhere and you are stuck with an investment in a house that no one wants to buy; unless you are in a possible retirees location as Tumbler Ridge.

  • realisticman

    3 years ago

    Some close - Some open

    04 May 2009

    Union welcomes Canfor sawmill restart in Mackenzie

    DAVE SERIGHT

    Although reluctant to reveal exact details of their agreement that led to Canfor's plan to re-open a sawmill in Mackenzie, the Pulp, Paper and Woodworkers of Canada say the only way to view the restart is as a positive.
    "We're happy. Our membership has been outside our mill for over nine months now. It will be good to see people get back, and also for the town itself, because nothing has been running," PPWC local 18 president Dave Seright said today.
    Canfor announced last Friday that is will open one of its sawmills in Mackenzie in early July, returning 60 people to work on one shift."

    http://www.princegeorgecitizen.com

    Williams Lake Tribune - West Fraser mill re-opens today
    28 Mar 2009 ... The Williams Lake mill was one of seven in B.C. shut down March 16 for two weeks due to the weakening of demand caused by the decline in the ...

    http://www.bclocalnews.com/bc_cariboo/williamslaketribune/news/41983967.html

    Conifex opens Fort St. James mill by tying wages to market conditions

    Unusual union contract sealed the deal

    By Gordon Hamilton, Vancouver SunMarch 6, 2009

    In the midst of the worst lumber downturn in memory, new company Conifex reopened a Fort St. James sawmill this week after signing a unique labour agreement that put 135 people back to work.

    ""The biggest threat to any worker is if the investment community decides forestry is not the place to put their money," he said.

    Duncan Davies, CEO and president of Interfor, said the New Democrats could have avoided an election-eve confrontation had they spent more time talking to business.

    "If Carole had talked to any of us, we could have put her on the right track," he said. Ms. James is raising false hope among the province's 20,000 laid-off forest workers, he added. "It's great to say we'd like to get people back to work. But we are facing a biological disaster with the pine beetle in the Interior that is unprecedented and an economic crisis that we haven't seen the likes of in 80 years."

    The shots from the forest industry came at the same time that a broad coalition of small- and medium-sized business interests gathered in Vancouver yesterday to warn voters that an NDP government would trigger massive job losses. ..."

    http://www.theglobeandmail.com/servlet/story/LAC.20090506.BCELECTIONMAIN06ATLART2124/TPStory/National

  • freebear

    3 years ago

    Excuse to reduce wages!

    Watch how many mills come back online with reduced wage costs!

    Hopefully people can still pay the mortgage and msp premiums!

  • G West

    3 years ago

    I think I'll pay more attention to

    Jim Stanford...
    http://www.economicsforeveryone.ca/
    or, if you prefer..

    Bob Herbert:

    http://tinyurl.com/c6f84z

  • Fiat lux

    3 years ago

    Not only reduced wage costs,

    Not only reduced wage costs, but more overcapitalized automation, demanding more and bigger energy inputs to lay off a few.

    While calling it "efficiency".

    30 years ago Williams Lake had 5 privately owned major mills with twice of the present labour force, all making good wages. Also there were hundreds of contractors, three times the present number of loggers, plus hundreds of small mills all over the province.

    Now BC has about 6 major companies owning everything, including 2 of them owning the 5 mills in Williams Lake.

    The contractors, loggers and small mills have been wiped out and collectivized into the hands of the 6 bolshevik majors, employing a fraction, devastating and depolulating rural towns and communities.

    The beef market is controlled by 1 multinational, fixing prices to steal from the producers and consumers, driving farmers and ranchers off the land in the best of Soviet Kolkhoz fashion.

    And this is called "free market enterprise"

    What kind of economic system, apart from the old Soviet, demands people to move constantly and virtually live out of suitcases on the whim of a ruling class, whether the same crooks are calling themselves politbureaus or boards of directors.

    Ed Deak, Big Lake.

  • NDN_Coach

    3 years ago

    Prince George is next...

    Mackenzie is a preview of what will happen here in Prince George to. It just seems to be a matter of time until the forest industry downturn affects the Spruce Capital. Other mill towns, like Fort St. James which could be called a sister village to Mackenzie is dying as well.

    I grew up in FSJ and when I was a youngster, the logs being hauled through town, were cut in FSJ. Nowadays they get hauled through the middle of town for all to see, and then cut somewhere else. Why is my hometown dying? Who allowed this to happen? I guess we all did to a degree arrogantly thinking the lumber market would never crash, but why weren't people like Pat Bell planning for the "what if's"?

    Every good business has a crisis management plan. Why do the LIberals pretend they know business the best when they couldn't even plan for an economic crisis? Even first year business students know that you always have a plan. Gordo & Co. have decided to do touchy-feely actions like wear pins when we really need them to be courageous leaders.

  • freebear

    3 years ago

    Too bad the SYMBOLIC carbon tax can't fix this one eh David!

    What is the point of having an economy if no one is working in it!

  • realisticman

    3 years ago

    When the NDP gets in

    They'll stop the raw-log exports so that will cost a few jobs too.

    There will be a few thousand more unemployed after the oil and gas sector up north is shut down. Will they close down the coal mining too?

  • Skywalker

    3 years ago

    Hey realisticman.

    If you are going to come back here then answer the question I posed to you earlier. How many mills closed when the NDP were in power and dealt with the Asian Flu and how many were closed during the Liberal boom years 2002 - 2009. Never mind the recent Liberal integrity meltdown. All your smokescreen about raw log exports won't hide the fact that you just don't want to deal with the facts. If raw log exports stopped tomorrow there would be a short period of protest and a few logging job losses then more jobs in total would result. Most of these would be mill workers jobs which we had before. We'd finally get some jobs from our resources.

  • realisticman

    3 years ago

    Skywalker

    You tell us. How many mills closed during the NDP rule? I do remember Skeena Cellulose. Was that the one that closed and the NDP opened it up again?

    Why are raw-logs exported?

  • Skywalker

    3 years ago

    Realisticman, let's suppose I spot you one...

    ...even though the liberals closed SCI in 2001. How many others closed under Liberal rule? I'm just trying to see if you are honest enough to rely on a fact, just once on this issue. Otherwise ..

  • realisticman

    3 years ago

    Neither party...

    .. would want the goodwill and the loss of revenue that any job brings.

    The fact is the world markets have crashed:

    http://futures.tradingcharts.com/old_hist_LU.html

  • Skywalker

    3 years ago

    Crashed only lately Realisticman

    Let's just talk about before the crash.. I'll even spot you an Asian Flu for a economic meltdown created by the same financial wonders who think they know how to run a country and a province. You can't can you? The Liberal record is worse!!

  • realisticman

    3 years ago

    Mills

    The government doesn't own any mills, do they?

    I presume that the costs are too high or the market has gone.

    What do you want the government to do that would avoid another softwood problem with the US?

  • Frank

    3 years ago

    Skywalker

    You didn't seriously believe realisticman would ever engage in a factual discussion did you?

    Liberals don't like facts, they will say and do anything to avoid them.

  • Skywalker

    3 years ago

    How many closed under Liberals, Realisticman?

    We were not discussing how many mills are owned by government. Where did that come from? The number of mills shut down under Liberals had nothing to do with softwood lumber. Softwood lumber tariffs were a problem under the NDP as well. Just answer the question Unrealisticman!!!

  • realisticman

    3 years ago

    skywalker

    It was a question I, perhaps incorrectly assumed, you know the answer to.

    You seem to suggest, as have done other people, that the Liberals have some control over who opens a mill and when a mill closes. I expect the market has something to do with it.

    Fortunately, the Conservatives have settled the softwood deal with the US. I expect the US housing market will recover in a few months. The Conservatives are negotiating a trade deal with Europe, perhaps there will be opportunities.

    Did you see that KTLA video where they're bulldozing 'new' houses that haven't sold. Could be BC wood being pulverized there.

  • Frank

    3 years ago

    Oh please

    The Libs gave all the logs to big corporations, local mills couldn't get logs and the value-added industry went down the tube.

    Campbell put all his eggs in the exporting of raw logs basket in order to move BC jobs to the US.

    As for the Conservatives, they didn't settle with the US, they unconditionally surrendered in spite of the fact Canada was winning the legal war. Germany got a better deal at Versailles.

  • G West

    3 years ago

    And then

    Coleman gave them the land too...a deal the NDP has promised to revisit...

  • Skywalker

    3 years ago

    Boy realisticman..

    ..your rope-a-dope gymnastics really does rival Mohammed Ali's. The previous two posts are dead on. Except that he occasionally landed a punch. Thank you for providing a bit of humor. In case you forgot, the liberals have some control over what happens top our logs (read resources). That is what government is suppose to do. They are suppose to create jobs out of those resources. Only fools sell them off thereby selling our kids futures. I think this exchange pretty much tells all of us what we need to know about you. If you want to know what the limits to sustainable economic development for BC are, have a good look in the mirror.

  • realisticman

    3 years ago

    "They are suppose to create jobs out of those resources. "

    There's an subject for comment!

  • Skywalker

    3 years ago

    Don't be so damn obtuse.

    Governments set policies which place conditions on the access to resources. If the government is gutless then the resources don't create jobs. Got it now!!

  • Fii

    3 years ago

    That's absurd...!!

    "Some houses, meanwhile, can be rented for as little as $300 a month, or even for free if the tenant agrees to pay the utilities."

  • realisticman

    3 years ago

    Frank

    Okay Frank, if the Conservative's 'deal' on softwood with the USA was worse than unconditional surrender why doesn't your Queen want to trash the agreement completely?

    "The B.C. Liberals say a New Democrat government would kill the hard-fought softwood lumber agreement with the United States.

    Bell said the NDP leader stated last year that scuttling the agreement was an option, which would provoke a trade war with the U.S. at a time when stability is needed.

    NDP Leader Carole James said the deal does need fixing, but within the terms of the international agreement.

    She said Thursday that reforms are needed that include preventing unprocessed logs from being exported from B.C. and changing forest company tenures.

    But she said she doesn't want to scrap the softwood lumber deal altogether."

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