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Cutting 140 jobs effective immediately
SAINT JOHN, N.B. — Irving Paper Ltd. says it will permanently close half of its operations because New Brunswick’s industrial electricity rates are “uncompetitive.”
The Saint John manufacturer of paper used for magazines, catalogues and newsprint says it is cutting 140 jobs effective immediately.
Irving Pulp & Paper vice-president Mark Mosher says the decision to permanently downsize was difficult but necessary to ensure the company’s long-term sustainability.
He said the company has been working with the provincial government to find a solution but concluded there is no way to maintain full operation of both of its paper machines. “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,” he said, noting that a 10-per-cent electricity rate hike is set to take effect on April 1.
More than 95 per cent of Irving Paper’s annual manufacturing output — 400,000 tonnes — is exported to 65 countries.
New Brunswick Natural Resources Minister John Herron said his department has been working with J.D. Irving Ltd., the parent company of Irving Paper, in recent weeks to develop a “financially sustainable” solution that preserves jobs for New Brunswickers.
“We will continue to work with them as power rates shouldn’t be the reason for New Brunswickers losing their employment,” he said in a statement, calling Irving Paper vital to the province’s forestry sector.
Currently, NB Power large industrial rates are lower than Nova Scotia, Prince Edward Island, HydroOne and are on par with Saskatchewan, spokeswoman Dominique Couture said in an email.
It’s also important to note these rates do not factor in government’s Large Industrial Renewable Power Purchase program, that sees NB Power purchase qualifying renewable energy from qualifying large industrial customers to help maintain Canadian competitiveness in their power bills, she said.
“We are committed to doing everything we can to reduce the rate pressure on customers,” she said. “At the same time we have a responsibility to maintain and invest in our system to ensure all New Brunswickers have the power they need when they need it.”
Green Leader David Coon said he hopes the layoffs aren’t a case of “job blackmail.”
He said industrial electricity rates in New Brunswick are competitive with most of our surrounding jurisdictions, and that households and small business ratepayers subsidize industrial power rates in the province.
“I guess it would be good to be a fly on the wall in the premier’s office to hear what Jim Irving is really asking for,” Coon said, referring to the parent company’s president. “What is J.D. Irving really after here? … We certainly shouldn’t cave to them.”
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