Two of Canada’s largest unions are urging the federal and Ontario governments to act now as sawmill and pulp mill closures sweep across northern Ontario. In a joint letter sent to ministers this week, the unions representing the forestry and steel industries, Unifor and the United Steelworkers, along with two northern Ontario MPPs connected to the pulp and timber supply chain, called for immediate intervention to prevent Domtar’s Ignace sawmill from closing in March and to restart the shuttered mills in Ear Falls and Terrace Bay.
The plea comes as local manufacturers absorb blow after blow, with Canada’s national broadcaster, the CBC reporting that Interfor’s Ear Falls mill has been offline since October; AV Group’s Terrace Bay pulp mill has been idle since January 2024, prompting concerns about how prolonged cold weather may be affecting the facility; while Thunder Bay Pulp and Paper has most recently announced the end of its newsprint operations amid collapsing demand.
“Forestry is not just an industry in northern Ontario — it is a way of life,” the letter warns. “The indefinite closure of the Ignace, Ear Falls, and Terrace Bay mills threatens not only the livelihoods of workers but the future of sustainable forestry in our region.”
The letter, signed by United Steelworkers Local 1‑2010 president Jacques Jean, Mushkegowuk—James Bay MPP Guy Bourgouin, Thunder Bay—Superior North MPP Lise Vaugeois, and Unifor regional director Samia Hashi, calls on governments to develop a coordinated industrial strategy, defend against economic threats such as soaring U.S. softwood lumber duties now at 45 per cent, and modernise the sector.
It also urges governments to explore worker equity stakes in mill operations, arguing that employees who have endured decades of boom‑and‑bust cycles “deserve a stake in the future they help build.” So far, more than 250 stakeholders have signed an accompanying petition, with the group pushing for a formal response by February 13.
According to Kevin Holland, Ontario’s associate minister of forestry and forest products, the province is “actively working with local leaders and industry partners” and has allocated CA$150 million to support the industry. Holland said the Ministry of Labour has also initiated Rapid Re‑employment and Training Services, including the establishment of a POWER Centre for affected workers at the Domtar and Interfor sites.
Whilst at the federal level, CBC News received an emailed response on Friday from a spokesperson for Employment and Social Development Canada, Mila Roy. Roy said the department held joint information sessions at the end of October for employees at the Ear Falls sawmill, where they “were provided with information on how to complete Employment Insurance applications.”
“A meeting is currently being organized with the Ignace Sawmill and Service Canada representatives to determine the most effective approach to support the affected employees,” Roy added. “Employment and Social Development Canada will continue to monitor and provide support as needed for the impacted communities.”
