Canadian Sottwood Giants To Merge

Quebec-based softwood giants Domtar Inc. and Tembec Inc. agreed to merge their timber and softwood operations in Quebec and Ontario into a new company equally owned by both firms.

The new company's name and headquarters will be announced when the deal closes, anticipated by the end of September. With combined assets of $850 million. the firm will rank as Canada's second biggest solid wood products company and North

RSG Settles Federal Suit

RSG Forest Products. Kalama"

Wa., recently paid $200,000 to settle a federal lawsuit on behalf of five male mill workers who alleged their male boss sexually harassed them.

In the U.S. Equal Employment

America's fourth largest It will have un -nuui manufacturing capacity of 2.1 billion bd. ft. and a sales capacity of 2.6 billion bd. ft., since the company also will market softwood lumber produced by Tembec's British Columbia sawmill operations and Domtar's Lebel-surQu6villon mill.

Tembec's president and c.e.o., Frank Dottori, will serve as chairman and Domtar's senior v.p. of forest products, Richard Garneau, as c.e.o.

Opportunity Commission lawsuit, a male employee accused the company of subjecting workers to a sexually hostile environment at a sawmill in Estacada, Or.

Jeanette Leino of the EEOC said the agency's suit against RSG focused

Inc.

on a supervisor who allegedly uttered vulgar comments toward his employees, made thrusting motions around them and grabbed their private areas between 1997 and2OO1.

The workers stated that theY reported the behavior to company management and an investigation ensued, but ultimately company leaders failed to stop the behavior.

According to the consent decree, RSG agreed to pay $20,000 in compensatory and punitive damages to the man who initially complained and $45,000 to each of four other male workers.

The company will also create a written anti-discrimination policy and an internal complaint procedure for workers to report suspected discrimination.

Managers will also receive annual training on sexual harassment and display notices suliporting federal antidiscrimination laws.

Weyco Cuts Back ln B.C.

Weyerhaeuser Co. Ltd. is temporarily closing most of its milling and timber harvesting operations in British Columbia due to a weak lumber market, U.S. softwood duties, and the rising Canadian dollar.

The Vancouver-based division of Weyerhaeuser Co.. Federal WaY, Wa., is curtailing production at five B.C. sawmills for one to four weeks during July and has closed all five of its Crown land logging operations on the coast for the entire month.

About 807o of coastal B.C.'s logging operations and 6O% of its sawmill capacity are currently shut down, according to Brian Zak, presi' dent of the Coast Forest and Lumber Association in Vancouver.