RECESSION AND RESTRUCTURING IN PORT ALBERNI: CORPORATE, HOUSEHOLD AND COMMUNITY COPING STRATEGIES by Elizabeth Hay B.A., Carleton University THESIS SUBMllTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF ARTS in the Department 0 f Geography O Elizabeth Hay 1993 SIMON FRASER UNIVERSITY August 1993 All rights reserved. This work may not be reproduced in whole or in part, by photocopy or other means, without permission of the author. APPROVAL Name: Elizabeth Margaret Hay Degree: Master of Arts Title of Thesis: Recession And Restructuring In Port Alberni: Corporate Household And Community Coping Strategies Examining Committee: Chair: R.D. Moore, Assistant Professor R. Hayter Professor Senior Supervisor AM.s ill Associate Professor T.J. Barnes, Associate Professor Department of Geography, University of British Columbia External Examiner Date Approved: PARTIAL COPYRIGHT LICENSE I hereby grant to Simon Fraser University the right to lend my thesis, project or extended essay (the title of which is shown below) to users of the Simon Fraser University Library, and to make partial or single copies only for such users or in response to a request from the library of any other university, or other educational institution, on its own behalf or for one of its users. I further agree that permission for multiple copying of this work for scholarly purposes may be granted by me or the Dean of Graduate Studies. It is understood that copying or publication of this work for financial gain shall not be allowed without my written permission. Title of Thesis/Project/Extended Essay Recession And Restructuring In Port Alberni: CorporateHousehold And Community Coping Strategies Author: - (signature)) Elizabeth Margaret Hay (name) iii ABSTRACT This thesis examines the impact of restructuring and recession on the City of Port Alberni, a mill town on Vancouver Island. Within the context of multiperspectivism, the objectives of this research are first, to assess the relevance of contemporary restructuring literature to the experience of Canadian single-industry communities, and second, to evaluate the effectiveness of the coping strategies that were undertaken by the firm, by individuals and by the community. Both qualitative and quantitative data were gathered from laid-off employees, their spouses, and key informants within the community and MacMillan Bloedel. Findings indicate that the corporate strategies adopted at this time dealt a severe blow to the economic health of the city while achieving only modest success in stabilizing markets. At the level of the individual and household, laid- off employees experienced emotional distress; varied job search and job training processes; and modifications, that were usually temporary, in gender relations. No evidence of an informal economy emerged. At the level of the community, although some initiatives undertaken by local agencies were able to mitigate the negative effects of job loss in the short-term, the policies and programs implemented to reduce the level of dependence within the locality and diversify the economy were largely ineffective. It is suggested that more research effort be placed on understanding the need for economic development strategies that are pertinent to the particular experience of Canadian single- industry communities. ACKNOWLEDGEMENTS I would like to thank Dr. Roger Hayter for his advice and encouragement during the preparation of this thesis and Dr. Alison Gill for her constructive comments. I would also like to thank the Simons Foundation which, through the Centre for Community Economic Development at Simon Fraser University, awarded me a fellowship which enabled me to spend extended periods of time in Port Alberni, thereby facilitating my research. I am also grateful to the many people in Port Alberni who participated in this project. Their co-operation, generosity and enthusiasm were very helpful and very much appreciated. To Andy, Sarah, and Nicholai who, unlike me, never doubted that I would finish this thesis, I extend special thanks. I am particularly grateful to Andy for his infinite patience and support. TABLE OF CONTENTS CHAPTER ONE .RECESSION AND RESTRUCTURINGIN PORTALBERNI ........................ 1 Introduction ....................................................................................................................1 Restructuring and the Locality Approach .................................................................5 Research Objectives ....................................................................................................7 Research Design ..........................................................................................................8 Limitations and Constraints ........................................................................................15 CHAPTERTWO .RESTRUCTURING. LOCALITY STUDIES AND RESOURCE COMMUNITIES.................................................................................................................. 17 ..... Introduction ............................................................................................................... 17 Restructuring............................................................................................................... 1 9 Locality............................................................................................................................ 25 I Corporate Coping Strategies ............................................................................ 27 The Production Context of Employment Reorganization ....................27 Alternative Strategies................................................................................. 28 Individual and Family Coping Strategies ........................................................32 Towards the Informal Economy................................................................ 33 Changes in the Nature of Gender Relations .................................34 Community Coping Strategies.......................................................................... 37 The Local State as Entrepreneur............................................................. 38 In Search of Entrepreneurs....................................................................... 41 Single-Industry Communities ..................................................................................... 43 Summary Comments ...................................................................................................48 CHAPTERTHREE . COPING WITH RECESSIONAND RESTRUCTURING: JOB LOSS IN PORTALBERNI ............................................................................................................. 50 Introduction ....................................................................................................................50 Company Towns and the British Columbia Forest Sector ....................................51 Evolution of the British Columbia Forest Industry .......................................... 51 The Evolution of Port Alberni as a Company Town .......................................55 MacMillan Bloedel: British Columbia's Forest Giant ..............................................59 Foundations and Growth ....................................................................................59 The Early 1980s:MacMillan Bloedel in Crisis................................................. 61 Production and Employment Change in Port Alberni 1980-1984....................... 68 Rationalization. Technological Change and Intensification........................ 72 Alternative Strategies.......................................................................................... 76 Labour Relations.................................................................................................. 78 Employment/Environment Conflicts .................................................................79 Summary Comments ...................................................................................................81 CHAPTER FOUR .LAY-OFFS : HOUSEHOLD COPING STRATEGIES............................... 84 Introduction ....................................................................................................................84 The Survey..................................................................................................................... 85 Selected Characteristics of Laid-Off Workers.......................................................... 87 The Indignity of Job Loss..................................................................... ....................... 91 The Search for Work ....................................................................................................103 The Role of the Informal Economy............................................................................. 112 Changing Gender Roles and Gender Relations .....................................................113 Summary Comments ...................................................................................................116 Introduction ....................................................................................................................120 Impact of Restructuring on City of Port Alberni ........................................................122 Community Organizations Responding to Lay-offs ................................................125 Churches ...............................................................................................................127 The Organization of