Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Paul Quinn - RBC Capital Markets.
Paul Quinn - RBC Capital Markets
A couple of questions; one, just on cost improvement, especially in the wood product side seen a very impressive cost reductions as far as back I’ve got the records. I guess the question is, you’ve seen some drop in log cost and you’ve seen probably the benefit of closures from higher cost facilities. What do you think the underlying cost reduction in your course at mills that you’re running now has been sort of year-over-year?
Jim Shepard
I don’t think that we wanted get into that detail, Paul in all fairness.
Paul Quinn - RBC Capital Markets
Okay, then how about an easier one then?
Jim Shepard
Yeah. Try an easier one.
Paul Quinn - RBC Capital Markets
Labor strategy going forward, you’ve mentioned that directors have taken cuts, executive staffs have taken cuts and some of your contractors have taken cuts. I know you don’t want to negotiate in the public with your labor force in the upcoming contract. What are sort of the strategic directions that Canfor wants to see as our labor force move to over the next number of years? Is that more like that a Clear Lake contract, is it more like a Conifex type contract that we’ve seen, is it something like McKenzie, what is it?
Jim Shepard
Well, first of all, we’ve given our position to the [Union Lake] and their positions. So we’re just commencing negotiations, quite frankly we just can never comment on that aspect of it.
Let me just give you a little bit of a background to your like I’ve just said to you, right from the beginning of at least my tenure here, in the last two and a half years, we have seen the directors, we’ve seen the executive, we’ve seen management, we’ve seen the staff, we’ve seen our contractor, suppliers and recently as I mentioned in my comments here we’ve seen McKenzie and Clear Lake which is a non-union mill, a step forward and become in line with the direction we’re going in.
So quite frankly, when results hadn’t done, which we are looking for alignment and our purpose is here is to be a survivor and a competitive mill which is going to provide quality products for customers going forward.
Operator
(Operator Instructions) We have no more questions at this time. I will like to return the meeting over to Mr. Shepard.
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