The Snowcap Lumber plywood and veneer mill in Abbotsford, British Columbia, is to close after the labour union turned down wage concessions in a management buy-out proposal, reports The Abbotsford News.

Thirty-five employees will be without work after the company, which started manufacturing in 1993, closed its doors on June 29.

The mill has been up for sale, and with no buyers coming forward, management was offered the chance to the purchase the plant. General manager Glen Van Egdom said he was willing to take over the company and operating it, if there were some concessions from employees.

However, Mr Van Egdom said the IWA union members had voted to turn down an offer that would have seen wages cut from about C$19 to C$17 per hour. Then the decision was made to close the plant.

Employee Darren Knight, angry at the union for voting down the concessions knowing that people’s jobs were at stake, blamed labour disruption for costing the company customers and said employees should get another vote on Mr Van Egdom’s proposal.