Irving Paper is laying off 140 employees as the company shuts down 50 per cent of operations at its Saint John mill.
The company blames the province’s uncompetitive industrial electricity as the reason for the permanent shutdown, announced on Monday.
Mark Mosher, the vice-president of Irving Pulp & Paper, said the move is “necessary to ensure the company’s long-term sustainability.”
As NB Power’s largest electricity consumer, Irving Paper said it has repeatedly asked that the utility review its rates, which are 22 per cent higher than the Canadian average.
Annual costs for electricity have averaged around $60 million in the past, according to the company. That figure surpassed $83 million last year and is expected to reach $100 million this year, even with “significant downtime” factored in.
“We have been working collaboratively with the current Government of New Brunswick toward a solution, but presently there is no viable alternative for full operation of both paper machines,” Mosher said in a news release.
“Over the next number of weeks, we will continue to work with the provincial government to try to develop a plan to allow the continued operation of the remaining 50 per cent of the mill, prior to the additional 10 per cent electricity rate increase on April 1, 2025.”
Union vows to fight for workers’ jobs
Unifor, which represents workers at the mill, said it is “disappointed and frustrated” by the layoffs — the first at Irving Paper since 1991.
The union said it was informed Monday that 104 workers would be laid off in 45 days.
“New Brunswick is an innovator in forestry and I know we can find ways to work together to strengthen the forestry sector so it is more resistant to stresses and changes in the market,” Atlantic Regional Director Jennifer Murray said in a news release.
“We will continue our discussions with the company and the New Brunswick government and exhaust any and all options available to fight for these workers’ jobs.”
Irving Paper shut down 50 per cent of its operations temporarily in early December and again in late January, citing high electricity rates in both instances.
The mill on Bayside Drive currently directly employs 310 people and exports about 95 per cent of its annual manufacturing output of 400,000 tonnes of paper to 65 countries.
