Logging is a strange business. Many think of it more as a part of our state’s heritage, rather than as a way of life. Logging is a thriving business in Maine, but foreign competition is challenging the ability of Maine loggers to earn a living.
News articles about free trade agreements often focus on out-sourcing jobs, but the problem Maine loggers face is the in-sourcing of Canadian labor, which is still cheaper for large landowners. By using bonded laborers from another country, landowners can maximize profits by driving down logging rates. Americans are discouraged from earning an honest wage, when Canadian workers who own their equipment can work cheaper because their equipment is subsidized and because of the Canadian exchange rate.
Often, it is unclear whether a foreign worker actually owns the equipment, further undercutting American job opportunities. I submitted legislation that would require proof of ownership, and believe this will go a long way towards leveling the playing field. However, a recent Bangor Daily News editorial stated the Legislature should not encourage my proposal.
Apparently, the forest products industry and the BDN feel this legislation would result in higher wood prices and cost Americans jobs. But the issue is more complicated than that. It is already a violation to let Canadian businesses with their own equipment work in Maine when there is no established prevailing wage rate to protect American businesses.
The H2-B laws, which govern the use of foreign labor, are very clear that no American workers’ wages or working conditions will be adversely affected by the use of foreign labor, but that’s exactly what’s been happening in the Maine woods for years.
Last year, fewer visas were issued for bonded labor and logger wages rose slightly. People who had left the industry decided to return to logging. Still for all the talk of a shortage, Maine loggers were refused work because the industry was trying to get their Canadian workers back.
Sixty percent of contractors applying for bonded labor businesses that are based in Canada. Maine workers would have to go to Canada to apply for a job in Maine. Bonded labor is cheaper with the exchange rate and these contractors are more likely to hire
their own countrymen first, all things being equal In October, when the H2-B’s were allowed back into Maine, wages fell, contracts were cut back, and some Americans were laid off to make room for cheaper labor, although there is an alleged shortage of loggers in the Maine woods. It is interesting to note that even with Canadian labor, prices the mills pay for wood continue to be high.
Between the lack of jobs and decent wages, Maine loggers are struggling and it’s difficult to find some recourse. The Maine Department of Labor says they can’t accept complaints because they only certify the worker, not the equipment. If you ask our Congressional delegation, they say it’s a state issue, referring you to the Maine DOL to file a complaint.
This is the treadmill Maine loggers have been on for at least 30 years. Maine DOL studies show that over that period, land-owner profits rose 169 percent, and although over that time worker productivity rose 74 percent, loggers’ wages fell 32 percent. By keeping American wages low, it is harder for Maine loggers to earn enough to purchase their own equipment. And when you can get work from a Canadian company, you can’t afford to do it.
Loggers have no organization working to promote American worker efforts. I proposed my legislation to rectify this David versus Goliath situation. My bill doesn’t ask for better wages, just for documentation that a foreign worker actually owns the equipment being used, in the form of current property tax on the piece of equipment. Avoiding property taxes in Maine is another advantage Canadian loggers have over Americans.
Industry will tell you jobs will be lost without Canadian owner-operators, and for the sake of a billion dollar industry, Maine loggers will just have to suffer. The real bottom line is that jobs have been lost for years with the use of Canadian labor, and we are legally and morally bound to protect opportunities for qualified Maine loggers. This isn’t about the forest products industry and Maine loggers not being able to communicate with each other. They want you to believe there is a shortage of people willing to work in logging. There is a long and proud tradition of generations of Maine loggers spanning many years trying to earn a living wage on which to support a family. But as time goes on, the exploitation of cheap Canadian labor to work the Maine woods has been taking that away from Maine workers.
There is only a shortage of people willing to work for low wages. For financial gain, one side isn’t telling the truth. You will have to decide who is more willing to do that.
Troy D. Jackson is a logger and a Democratic state representative from Fort Kent.
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