Case Study : Northwest Canadian Forest Products Limited Essay

808 Words Apr 15th, 2016 4 Pages
Summary:
Northwest Canadian Forest Products Limited owns and operates five sawmills in BC and Alberta. They produce high quality lumber for use in the manufacture of window frames, doors and moldings internationally and lower quality commodity type lumber for use in the Canadian construction industry. The president of the company is trying to decide whether or not to invest money into Jackson Sawmill for new plant and equipment, since it hasn’t been upgraded for twenty years. The alternative would be to reinvest and downsize by reducing production capacity and permanently laying off half of the 200 workforce and build a new mill in Alberta. To build the new plant would be more expensive but the president is also considering the fact that Jackson Sawmill has consistently been the poorest performer in terms of productivity and product quality. Despite having the legally required joint labour-management health and safety committee, they also have the worst safety record out of all of the company’s mills. The president attributes most, if not all of the problems at Jackson to its poor labor-management relations.

Symptoms and Implications:
One of the main symptoms that there is an existence of a problem is that Jackson has the poorest performance in productivity and product quality. This symptom has the implication of a potential downsizing of the mill and permanent layoffs of half the workforce. Another symptom is when there were strikes at all four mills in BC, Jackson’s…

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