Market Campaigns
Grassy Narrows
Weyerhaeuser supports a governmental resolution of the Grassy Narrows dispute. We produce Timberstrand® engineered wood beams at our mill in Kenora, Ontario. The Kenora facility—a state-of-the-art engineered wood operation—was completed in 2002 at a cost of $300 million, the single largest forest industry investment in Ontario over the past 10 years. The facility was built in a co-operative manner with the Treaty 3 Working Group, and has provided significant opportunities to First Nations and others in the region. The facility has a broader impact of 1,500 direct and indirect jobs in the Kenora region, including Grassy Narrows First Nations.
Some of the wood to supply the plant is provided by Abitibi Bowater, a Canadian firm operating under a license by the province of Ontario to sustainably manage the Whiskey Jack Forest, the source of the wood for the mill. The province's right to award this license is being contested by the Grassy Narrows First Nation, one of 28 First Nation bands in Northwestern Ontario with a common treaty with the Crown, signed in 1873.
Some Grassy Narrows members brought a constitutional claim against the government in 2000. The court declined to decide the issues without a full trial, which is expected to take place in 2008. Weyerhaeuser is not involved in the lawsuit. In the meantime, the Grassy Narrows First Nation has mounted a protest against Weyerhaeuser and its subsidiaries for being a customer for the harvested logs.
Weyerhaeuser encourages the meaningful resolution of aboriginal claims. We believe that treaty claims must be addressed by the provincial and federal governments directly with First Nations' leaders. If necessary, these issues must be resolved by the courts. We have respectfully presented this position to the Grassy Narrows First Nation Band Council and to Ontario's Ministry of Natural Resources. Over the past few years, Weyerhaeuser has urged the province of Ontario to increase its efforts to resolve issues related to Grassy Narrows, and welcomed the appointment of Justice Frank Iacobucci in September 2007 to oversee discussions with the Grassy Narrows First Nation on forest-related issues. We remain committed to working collaboratively to find long-term solutions to these often complex issues.
We respect the rights of aboriginal peoples and are committed to building mutually beneficial relationships with aboriginal communities. Weyerhaeuser draws employees, suppliers and contractors from aboriginal communities in the areas where we operate. Weyerhaeuser involved First Nations extensively during construction of the Kenora mill, where approximately 25 percent of our workforce is aboriginal.
We also recognize that many First Nations and other members of the rural communities in which we operate participate in traditional activities including hunting, fishing and trapping. We cooperate within the terms of our licenses in Canada to support access to these traditional uses.
Weyerhaeuser believes the companies that supply wood to the Kenora mill operate in a responsible manner. Blockades erected by some Grassy Narrows members have been honored and industry has engaged in numerous efforts with the province to resolve the issues. Weyerhaeuser has also worked with environmental organizations on various aspects of the Whiskey Jack Forest, including an exhaustive review of alternative wood sourcing opportunities. It was determined that a sufficient volume of economically-accessible timber is not available for the Kenora mill outside of this forest.
The provincial government directly regulates activities on the Whiskey Jack Forest, which are also governed by public planning processes conducted in an open and consultative manner, with input from local citizens, First Nations and others. The province commissions independent audits to assess compliance with legal requirements, forest management plans and license conditions. The results, including those for the Whiskey Jack Forest, are reported to the legislature and publicly available. Abitibi's forest management is also independently certified to ISO 14001 and Canadian Standards Association Sustainable Forest Management standards. Canada ranks extremely high globally in leading forest practices, forest governance and the stringent enforcement of those regulations.
Rainforest Action Network
In 2004, Weyerhaeuser became the target of a market campaign led by the Rainforest Action Network primarily focused on forestry practices in Canada. This campaign continued during 2006. In regular discussions with RAN, we've identified common goals. These include protecting wildlife habitat, fighting illegal logging, and using independent certification to ensure wood products are produced in an environmentally responsible way. We've retained a professional facilitator, agreed to by both sides, and meet regularly with RAN to discuss their concerns, provide current information about Weyerhaeuser's forestry and environmental practices, and find common ground that will bring about a resolution.
