Thank you, Mr. Chair.
On behalf of over 14,000 members of the United Steelworkers in the forest industry across the Canada, including over 80 members of my counterpart operation in NorSask Forest Products up in Meadow Lake, Saskatchewan, I thank the committee for the opportunity, for inviting us to contribute to your important work on the economic recovery of this critical and historic sector in Canada's economy.
My name is Jeff Bromley and I am the chair of the United Steelworkers Wood Council. It is a council of over 12 locals across the nation, representing, as I mentioned, 14,000 workers in the sector. I am a worker. I have been a representative of members, both in the Kootenays and now nationally with the United Steelworkers for the past eight years. The first 18 years, I was a worker within a sawmill in southeastern British Columbia that is still there to this day.
I have to say, though, that of the 26 years I've been in this industry, the last few have been some of the most turbulent to our industry and most impactful to workers in the forest industry.
The forest industry remains very important, obviously, to Canada's economy, the community it supports and the cultural fabric and history of our country. In total, it employs almost 210,000 Canadians across Canada. It directly contributed $23 billion to Canada's GDP in 2019. More than 600 communities rely on the forest industry. Of those, 300 communities rely on forestry for almost 50% of household income. About 160 communities are solely are reliant on forestry, and much of that in the more rural sectors of our country.
Our industry is increasingly under pressure from the U.S. softwood duties, forces of nature such as the pine beetle epidemic and the forest fires, fibre access issues and producer cash liquidity issues.
The sector exported over $36 billion in forest products globally. Of those exports, 68% are usually destined to the United States. To date, Canada has paid approximately $4.6 billion in softwood duties since 2017 when the devastating duties were implemented upon expiry of the last softwood lumber agreement. Of that $4.6 billion, $2.4 billion was from British Columbia, $500 million from Ontario, $800 million from Quebec, and the balance from the rest of the nation.
Since 2017, the job loss has been extensive. Almost 11,000 jobs have been lost industry-wide, over 1,000 USW jobs particularly at eight operations in British Columbia alone. There has been a 15% decrease in market access to the U.S. since the implementation of those duties. However, that gap has not gone away. It's not a vacuum. That gap has been filled, tariff free, by European nations.
Despite those challenges, the forest industry has a bright future in Canada. It just needs the federal government to help us get through this tough and difficult time. The world still needs wood products; we just need help to address these unfair duties that are reducing our competitiveness.
In terms of the future in the forest industry, products such as cross-laminated timbers, or CLT, and mass timbers have very good potential for value-added manufacturing. As opposed to concrete, construction with wood is a carbon net benefit to the planet, acting as a carbon sink, while forests are replenished following harvest by reforestation.
As the election results in the U.S. are finalized, it's time for Canada to focus on ending the softwood lumber dispute. Our Canadian industry needs a fair trade deal to provide certainty for industry and certainty for workers and the communities in which they live.
For different reasons than a change in U.S. administration, now is also the time to make permanent reforms to employment insurance, reforms for forestry workers and indeed all workers. Our written submission goes into much more detail, but the key points are that severance packages for those laid-off workers from closures and vacation entitlements for those who want to access their vacation pay during a layoff period should not impact or provide a barrier for their access to EI. Eligible hours must be lowered to allow for second EI claims in an industry that experiences extreme peaks and valleys. These initiatives, though approved by our current government on a temporary, one-year basis, need to be made permanent.
Canada also needs to be prepared to provide loan guarantees to companies that have paid duties. As part of a sustainable economic strategy, loan guarantees to forest companies must be made available equalling 75% of the amount they have have paid in duties. Despite recent increases and the success of larger forest product companies, many small mills are still suffering from weak cash flow.
However, I must clarify that any government support in this regard must be contingent upon supporting Canadian workers in Canadian communities. While the duties are earned from the lumber manufacturers and paid by the lumber manufacturers, support from the Canadian government in the interim must not enable multinational companies to invest any support anywhere else but in Canada and the provinces and communities they reside in.
That concludes my remarks, but I'm happy to answer any questions you have. I also encourage the members of the committee to visit our campaign website, forestryisforeveryone.ca.
Thank you.
