Region Archives: Canada East

Louis Lafleur

…Louis Lafleur is the president of Les Boisés Lafleur, in Victoriaville, Quebec. They add wood veneers from maple, ash, and eucalyptus to plywood used for countertops and furniture. … He exports three-quarters of his finished product to the U.S. and was dreading duties. At first, his American clients, who were convinced tariffs wouldn’t stay in place long, said they’d pay a little more to help absorb the hit. The U.S. tariffs on his exports haven’t materialized, but in February, before he left office, Justin Trudeau announced a counter-tariff on $30 billion worth of goods entering Canada from the U.S. — including the category of wood Lafleur uses for his veneers. He imports all of his wood from the U.S., and he’s been paying a 25 per cent duty on those imports since March 4. “My clients are saying, ‘now you’re complaining because your government [adds] a tariff?’ We look a little stupid,” Lafleur says.

In April 2023, close to 600 USW activists, staff and retirees from across the country gathered in Toronto for the 55^th USW National Policy Conference, this central body that guides our union’s direction in Canada. Under the theme Engage, Mobilize, Organize, conference delegates debated dozens of policy resolutions submitted by USW locals from every region of the country. …Led by the USW Wood Council… Steelworkers continue to lobby the federal government to seek a fair and equitable resolution to the softwood lumber dispute with the US. The union also is advocating for the federal and provincial governments to develop a co-ordinated, intergovernmental strategy to reduce the export of raw logs, ban raw log exports from old-growth forests, impose progressively higher taxes on log exports from second-growth forests and provide incentives for the domestic manufacturing of raw logs into finished products. 

John Herron

New Brunswick might charge timber and paper companies less money for cutting trees on public land should the United States impose another round of punishing tariffs on the wood industry. Facing questions during main estimates on Tuesday, Natural Resources Minister John Herron told a legislative committee he was prepared to defend what he called New Brunswick’s principal economic engine, worth $3 billion a year in exports and employing close to 24,000 people. “We know if the wood stays in the forest, the sawmills don’t turn,” he said. “We’re paying very close attention to that.” There’s growing fear that U.S. President Donald Trump will announce additional tariffs on Canadian wood products on Wednesday. …Herron told the House on Tuesday he wants to protect the $2 billion in payroll the industry spends on its workers. …But lowering stumpage fees would also feed into the arguments made by the US for imposing countervailing duties. [to access the full story, a subscription may be required]

Ontario’s forestry sector is feeling the weight of ongoing trade disputes and potential new tariffs. In talks with the US and industry leaders, Ontario Forest Industries Association president Ian Dunn said the message is about collaboration. …“We met with the National Association of Home Builders. Obviously, they’re very concerned about the pricing of construction materials. They’re looking for free trade, and they are a very loud voice.” …“But at the end of the day, the Ontario industry is going to have very little sway or impact on the Trump administration. It’s going to require Americans talking to their administration.” …Given the heavy reliance on the U.S. market — where 97% of Ontario’s forestry exports go — Dunn sees diversification as a necessary step. …“I’m hopeful that there will be a settlement on a softwood lumber dispute. I’m hopeful that Canada and the US will find a path forward on tariffs in general,” he said.

ONTARIO — Canada’s next government needs to focus on developing the country’s natural resources as quickly as possible to ensure its economic future, according to the CEO of a pulp and paper company in northeastern Ontario. “As a country, we have such massive natural resource wealth. And over the last, I’m going to say two decades, this country has struggled to be able to, to capitalize on those resources so that we have more financial capacity as a nation to battle these sorts of trade situations,” said Kap Paper CEO Terry Skiffington. Skiffington said his own industry is already in a precarious position, and many pulp and paper mills would struggle to keep their doors open if Trump imposes broad tariffs on Canadian goods by April 2. The Kap Paper mill is the last remaining pulp and paper mill in northeastern Ontario.

A press conference was held on March 17 at Domtar’s Gatineau mill to provide an update on the project to convert the site into a container board production facility. This ambitious initiative aims not only to preserve over a hundred jobs, but also to create new jobs with growth in production and the emergence of new opportunities in the supply chain. The project represents a major step towards ensuring a sustainable future for the local manufacturing industry. The event was attended by the Minister of Jobs and Families, Steven MacKinnon, and Unifor Quebec Director, Daniel Cloutier. The discussion focused on financial support from the federal government, which could represent one of the largest investments ever made in the region to help fund the mill’s conversion. The goal is to ensure the long-term sustainability of the site by helping it adapt to new market realities and environmental requirements.

…Donald Trump is plunging North America into a trade war and clogging the flow of goods between Canada and the U.S. …Canada’s forestry industry is in the crosshairs, with a 25 per cent tariff on lumber and pulp and paper products. The likely result is higher prices on everything from the materials used to build homes to basic necessities like toilet paper. Quebec’s economy is deeply rooted in its forests… Toilet paper is a big part of that flow. Two years ago, Canada exported over $1.6 billion worth of TP, with the U.S. receiving almost all of it. …Even if American mills had the capacity to process more lumber, they’d still face a workforce problem. It’s ironic that the U.S. is penalizing Canada — a responsible steward of the trees — right after we delivered firefighters, equipment and water bombers to protect California’s trees. Canada offered its support to the U.S., but now we’re getting burned.

THUNDER BAY — Sawmills and other forestry sector plants that already have established and diversified operations will likely be spared the worst of any trade war fallout. That’s according to Stephen Boon, the northern area director for Unifor, the union that represents about 360 workers at sawmills in Ear Falls and Thunder Bay, as well as employees at a number of other forestry operations across the Northwest. For example, Boon said that the Interfor-owned mill in Ear Falls is “one of their better mills in eastern Canada.” …Same goes for the Domtar operation in Thunder Bay, he said. That’s all assuming that U.S. President Donald Trump and his regime don’t “drive the U.S. economy into a recession,” Boon said. …“Some of our operations are better situated, even some of our OSB plants in the area, they have a specialized product that’s hard to replace,” Boon said.

An arbitrator has dismissed a grievance by the International Brotherhood of Electrical Workers, Local 956, which alleged that Domtar violated minimum staffing provisions of its collective agreement after idling a pulp and paper mill in Espanola, Ontario. The ruling found that the agreement did not contain a minimum staffing requirement mandating two electricians on every shift. The dispute arose after Domtar, facing financial difficulties and requiring significant capital investment, idled its operations, leading to layoffs affecting 95% of the workforce. The union argued that Article 38 of the collective agreement required a minimum of two first-class electricians on-site at all times and that the employer had failed to adhere to this provision. The employer countered that Article 38 was not a true minimum staffing clause but part of a broader trades flexibility model. …Ultimately, the arbitrator ruled in favour of Domtar, concluding that the grievance failed to establish a violation of the collective agreement, OHSA regulations, or employer policies. 

HALIFAX — Northern Pulp, the company behind a Nova Scotia mill that shut down four years ago amid environmental shortcomings, says it will cost $2.5 billion to build a new, cutting-edge plant on the province’s southwest shore. But the company says the proposed project, which will require private and public funding, does not currently meet its required rate of profitability — and it wants until early May to secure financing. “The company will use the extension period to continue working to identify … potential financing opportunities,” the company said. “The company will begin steps to prepare for a sales process of Northern Pulp’s assets if a new mill is not feasible.” The insolvent company, owned by Paper Excellence Group also said it will be asking a BC judge to extend its court-ordered protection from creditors on Friday. The Nova Scotia government said that as a secured creditor, it would agree to a five-week extension.

• Chronicle Herald, by Aaron Beswick: New Queens County pulp mill would need government support: Northern Pulp

SAGUENAY, QUE. — Wood, as well as aluminum, are economic drivers in Quebec’s Saguenay-Lac-St-Jean region north of Quebec City. The … looming 25 per cent tariffs are leaving businesses in Saguenay-Lac-St-Jean bracing for impact. Inotech, a company that specializes in manufacturing equipment for the wood industry, said the economic disruption started in early February, when Trump had initially promised to impose tariffs, before delaying them. “In Quebec, the entire wood market was paralyzed,” said Michel Marceau, the company’s CEO. “People are waiting to see what will happen and during this time, no one is investing,” added Michael Dufour, Inotech’s sales director. A recent study from the Canadian Chamber of Commerce identified Saguenay and Drummondville — a city northeast of Montreal — among the Canadian cities most vulnerable to U.S. tariffs.

The Domtar saw mill, formerly Resolute, in Thunder Bay exports almost 90 per cent of its produced softwood lumber to the U.S., and like the many other Northwestern Ontario mills in the forestry sector, will likely not feel serious impacts from the U.S. government’s imposed 25 per cent tariffs, a local union official says. The impact is expected to be felt by the Americans. Stephen Boon, the northern area director for the Unifor union, called the pending 25 per cent tariff on softwood lumber a “double whammy” as lumber producers deal with existing tariffs. …”Trump has said he doesn’t need (Canada’s) lumber while we still provide the U.S. with 25 per cent of it…,” Boon said, calling Trump’s claims a “bluster.” “It’s not a factual statement. They do need our lumber, and even if he tries to open up federal forests for logging, it’s not something that’s going to happen overnight.”

A new-era pulp mill in Nova Scotia would be a game-changer, creating long-term export-focused good-paying jobs in the forestry sector and throughout the economy. That’s why, over the past nine months, our team has worked with Northern Pulp as they assess the business case to build and operate a new mill in Liverpool. Today, the company announced that it has not reached the financial threshold to support a project, as defined by the settlement agreement, and is looking for a five-week extension to review the financial model. The Province agrees to this extension and would welcome news of a change in circumstances that would positively affect the outcome. …If not this project … our doors are always open for other interesting projects that put our natural resources to work. …And we would continue to work alongside the forestry sector to find new ones. This file is not closed – it’s very much open and active.

• Aaron Beswick in the Chronicle Herald: New Queens County pulp mill would need government support: Northern Pulp

Nine months after Northern Pulp started examining the viability of a new mill in Queens County, Premier Tim Houston says the work continues. Houston announced last May that his government and officials with Northern Pulp’s parent company had reached a settlement agreement that ended years of legal wrangling, and would allow time to explore the viability of constructing a new mill at or around the site of the former Bowater mill near Liverpool. That work was expected to take about nine months. On Friday, the premier told reporters that he believes the company is still working to complete its feasibility study. …Natural Resources Minister Tory Rushton said the forestry sector needs a market for pulpwood and low-grade wood products to take the place of what Northern Pulp used to consume.  …Rushton noted that there could be other options, such as the creation of biofuels and aviation fuels using forestry byproducts.

Vincent Miville

U.S. President Donald Trump has announced an exemption from tariffs on Canadian goods covered by CUSMA. At the height of the trade war between the United States and Canada, Ottawa responds to U.S. tariffs by imposing its own counter-tariffs on various products. However, this approach is not the one favoured by former Quebec Premier Philippe Couillard, who discusses it with our host, Catherine Lafrance. We examine the potential impact of tariffs on the Canadian forestry industry with Vincent Miville, Director of the Fédération des producteurs forestiers du Québec. According to Régis Genté, author and correspondent in the Caucasus and Central Asia for Le Figaro, RFI, and France 24, there is nothing surprising about Donald Trump’s conciliatory attitude towards Russia, as Putin’s nation has been “cultivating” him for decades—a topic he explores in his recent essay, Our Man in Washington.

TORONTO – Kruger Products announced a new creative campaign, ‘Made by Canadians for Canadians,’ to remind consumers, now more than ever, to embrace their uniqueness and buy made-in-Canada tissue products. With over 2300 Canadian employees and nine manufacturing facilities strategically located nationally, Kruger Products is making it easier for Canadians to choose everyday quality tissue products made by, and in, their communities. Double-double ply Canadiana for the win. The new campaign leans into the nuances of Canadiana with humour to ensure consumers everywhere tip their toques (not hats), direct guests to the washroom (not restroom), embrace the extra eh-bsorbent and go the extra kilometre (not mile) for the environment with well-known brands. Made by Canadians for Canadians. Like Canadians, the campaign is a perfect combination of practical, humourous and helpful for those looking to identify and buy goods manufactured in Canada.

Irving Paper says it doesn’t want a government subsidy to save jobs, but that the province does need to step in to find a solution to high electricity rates. That’s as the company is criticizing “management issues” at NB Power. The Saint John manufacturer announced that it is cutting 140 jobs at its Bayside Drive mill. ….But in a new letter, Irving Paper VP Mark Mosher said a subsidy won’t work as it’s a problem affecting all New Brunswick ratepayers. …“For all of New Brunswick’s energy intensive and trade exposed industries, the issues and repercussions of uncompetitive electricity rates are not new and continue to worsen.” …Natural Resources Minister John Herron recently said his department has been working with J.D. Irving to develop a “financially sustainable” solution that preserves jobs for New Brunswickers. [to access the full story a Telegraph-Journal subscription is required]

KP Tissue says it won’t provide guidance for its next quarter and has delayed a decision on a major capital investment because of US tariffs. The publicly traded Mississauga-based company, which owns 12.5% of Kruger Products and shares the same management team, typically provides earnings guidance when it reports earnings. But CFO Dino Bianco said that Kruger/KP would not provide profit guidance for Q1 “given the evolving news and volatility.” …Roughly one-third of Kruger’s revenues are exposed to tariffs, made at its nine Canadian plants and Canadian softwood pulp used by its one US facility, in Memphis. The company has also delayed a decision on where to locate a new US$600-million tissue manufacturing facility. Kruger has scouted locations in Canada and the US and had expected to make its pick in early 2025. …Further complicating the decision, he said, are the exchange rate, possible reciprocal tariffs, a potential recession and “collateral impacts around freight.” 

The CEO of the pulp and paper mill in Kapuskasing, Ontario, says he was not surprised, but is disappointed by US tariffs that are expected to have a big impact on Canada’s forestry sector. “The pulp and paper business is in a very difficult place in Ontario,” said Terry Skiffington, the CEO of Kap Paper. In January, the century-old mill, historically known as Spruce Falls, received a $10-million loan from the provincial government to help the business diversify… by building a biomass plant which would produce energy by burning wood that can’t be used for paper production. …”We can move products into Europe, into Asia and into India relatively competitively, which is odd intuitively when we’re sitting in the centre of Canada,” he said. …”I’m feeling like I’ve done a few rounds in the ring with Mike Tyson, but our intention is to remain on that course,” Skiffington said.

Like other New Brunswick forestry towns, the rural community of Kedgwick is on edge. The economy of the municipality relies on two major sawmills, J.D. Irving Ltd. and Groupe Savoie, and several smaller forest operations. …About 24,000 New Brunswickers work in the forestry sector, and 80 per cent of the industry’s output — softwood and hardwood lumber, pulp and paper, shingles, fibre and strand board — goes to the United States. …The market share for Canadian wood in the U.S. has dropped from 34 per cent in 2000 to 23 per cent last year because of multiple factors, including the duties, said Dustin Jalbert, a wood products economist with the U.S. price forecasting firm Fastmarkets. But there still isn’t enough American supply to completely replace Canadian wood, even at higher prices, and the U.S. industry couldn’t ramp up to meet that demand for three to five years, he added.

New Brunswick’s natural resources minister says he’s working closely with Irving Paper to ensure a durable solution is in place to save jobs at its Saint John mill. John Herron said the need to protect the plant on Bayside Drive on Saint John’s east side was urgent, given the number of high-paying jobs – 143 – and economic activity at stake. …“It’s certainly not lost on me that the plant is very important to the regional economy and the provincial economy. …J.D. Irving, Limited, the mill’s parent company, announced early last week that it would shut down one of its two machines at the old plant because it said NB Power’s high industrial rate for electricity was making it uncompetitive in the global paper industry. …The machine that’s being shut down is the most energy intensive of the two.

NEW BRUNSWICK — J.D. Irving Ltd.’s claim that “uncompetitive” electricity prices charged by N.B. Power is exclusively responsible for forcing it to close a production line at its east side Saint John paper mill has pushed the provincial utility and its rates into the spotlight. And N.B. Power is not taking the criticism quietly. …Dominique Couture said, “N.B. Power large industrial rates are lower than Nova Scotia, P.E.I., HydroOne (in Ontario), Alberta and are on par with Saskatchewan.” N.B. Power did raise industrial and residential rates 13% in the past year and has plans to raise them more than 9% again this year, beginning on April 1. Still N.B. Power disputes that has made electricity pricing uncompetitive in New Brunswick. …Quebec and British Columbia have substantial hydroelectric production and offer industrial power rates to mills between 10 and 28 per cent below N.B. Power’s subsidized rate.

Related coverage by the Telegraph-Journal Editorial Board: Power rates are a real problem. An Irving subsidy isn’t the solution

ESPANOLA, Ontario — Resource towns dot the Canadian landscape; they blossomed during the boom times of the last century. Lumber mills, plywood factories, and plants producing rolls of newsprint – with their signature aromatic plumes of smoke – defined many places on the Highway 11 or 17 corridor. …In the 21st century, no municipality relying on one industry can think itself safe from global change or distant corporate headquarters driven by the bottom line. Espanola, located about 71 km west of Sudbury, is another northeastern Ontario community where a mill closing sent ripples through the local economy. On Sept. 6, 2023, Domtar announced it would “indefinitely idle” its pulp and paper operations. …In a town of 3,986 (as of 2021), about 450 workers were affected almost overnight.. …”We are launching a process to establish an economic diversification strategy for the region. …It is only a matter of time before something establishes itself there.”

Unifor says it won’t stop fighting for unionized paper mill workers receiving layoff notices this week from J.D. Irving Ltd. Jennifer Murray, Atlantic regional director of Unifor, said 100 of the 140 people laid off from Irving’s Saint John paper mill workforce are Unifor members. …Workers of these specialized jobs were notified Monday they would be laid off officially within 45 days, said Murray. …Murray said JDI was in discussion with Unifor regarding rising energy costs. Unifor had several meetings with the provincial government to find strategies to protect these jobs. …So far, JDI has said there may be opportunities for some of these workers to be put in positions elsewhere within the company. …Unifor had a meeting with Natural Resources Minister John Herron Tuesday on strategies to bolster the forestry industry in the province.

It was only a matter of time before the folly of NB Power’s mismanagement would hit New Brunswickers where it hurts the most: their jobs. Irving Paper announced layoffs for about half its employees, 140 people, on Monday. The company was frank about the reason: uncompetitive power rates. There is no reason to think this is some kind of corporate bluster. New Brunswickers have seen for themselves what’s happened to their power bills. …Since the turn of the century, it has been clear NB Power was on a very bad financial path. That’s principally the fault of the utility executives and the board. …As NB Power tries to squeeze the lemon even tighter, it will drive more companies to either downsize, leave the province, or shut down altogether. J.D. Irving, Limited, the parent company of Irving Paper, understands this well.

J.D. Irving announced that it will permanently reduce operations at its Saint John paper plant, laying off 140 workers. Workers at Irving Paper were informed Monday morning that the layoffs will take effect immediately, according to a release from the company, which listed the plant’s total workforce at 310 employees. …”As New Brunswick manufacturers face more and more significant headwinds, it is becoming increasingly difficult to shoulder the impact of soaring electricity costs and remain competitive in an international market,” said Irving Pulp and Paper VP Mark Mosher in a statement. The move comes after J.D. Irving advocated last fall at the Electricity and Utilities Board hearing against changes to the way N.B. Power calculates charges. At the hearing, N.B. Power argued the move was a self-serving attempt by JDI to escape expenses the company wants others to pay for.

In related coverage:

• CBC News: Residents urged not to despair after Irving cuts Saint John workforce
• Telegraph-Journal: Irving mill lays off nearly half its workers, blames NB Power rates