Riley Creek lays off 14

MOYIE SPRINGS - Idaho Forest Group Springs laid off 14 full-time production workers on Friday, said plant manager Jesse Short.

The employees at the former Riley Creek are expected to be without work until May, Short said.

"We will re-evaluate (then)," he said.

Workers will be eligible for unemployment, but will not continue to receive health benefits.

The layoff, triggered by a nationwide slump in housing construction, leaves the mill with 93 workers. Idaho Forest Group manufactures studs for new homes and remodeling.

As of last month, the open market for stud prices was at $190 per thousand, and the 10-year average price for studs had been $330 per thousand. The price difference stems from a lack of demand.

Some of the laid-off workers have been with Idaho Forest Group for a short time and others a little longer, Short said.

"The mood (around the mill) was supportive, but somewhat somber," he said.

In related matters, plans for shutting down the mill from Dec. 20-Dec. 28 for Christmas have been suspended, Short said.

Employees will instead get Dec. 24 and 25 as paid holidays. The mill is closed on weekends, which will be Dec. 27 and 28.

Idaho Forest Group also discussed operating on Mondays only the last full weeks of January, February and March. Employees would take off Tuesday through Friday. That has been suspended, Short said. Employees will be working full time.

Riley Creek over the summer merged with Bennett Forest Industries to strengthen ties to large customers including Home Depot and Lowe's.

In their announcement for the merger, Bennett, which produces about 185 million board feet of wood annually, and Riley Creek, which is more than three times as big, said large home improvement retailers demand suppliers be large enough to guarantee delivery of lumber products.

Bennett and Riley Creek said their merger could eventually lead to expanding the combined 550-person workforce at four mills located in north-central and northern Idaho. Riley Creek brought to the merger facilities located in Chilco, Laclede and Moyie Springs, while Bennett finished work two years ago on its modern mill in Grangeville.