While New Brunswick's industrial sector braces for yet another crushing blow to its workforce, Irving Paper Mill's decision to lay off 140 employees lands with all the grace of a lead balloon in a province already struggling to keep its economic head above water.
You'd think after avoiding layoffs since 1991, Irving Paper might've developed some sort of immunity to economic turbulence, but apparently, the skyrocketing cost of electricity proved to be their kryptonite. The mill's projected power bill for 2025 sits at a jaw-dropping $100 million – up from $60 million in 2023, because who doesn't love watching their utility costs nearly double in two years?
In a plot twist that surprises absolutely no one, the company's announcing a permanent 50% shutdown of operations, following what was optimistically termed a "temporary" closure in December 2024. The affected workers, members of Unifor Locals 601N and 907, are presumably thrilled to join the ranks of the unemployed just in time for next year's spring cleaning.
NB Power, meanwhile, continues defending its industrial rates of 9.7¢/kWh with all the conviction of a cat claiming innocence next to a shattered vase. Sure, they're technically lower than rates in Nova Scotia, PEI, and Ontario, but that's small comfort to the 140 workers who'll be updating their LinkedIn profiles. The mill's impressive record of exporting 400,000 tonnes annually to 65 countries worldwide makes this shutdown even more significant.
Adding insult to injury, there's a fresh 10% rate hike lurking around the corner for April 2025, because apparently, the current rates weren't quite painful enough. Natural Resources Minister Herron's muttering about "financially sustainable solutions" feels about as reassuring as a chocolate teapot.
The company claims it tried everything – energy efficiency measures, alternative energy solutions, possibly sacrificing a rubber plant to the electricity gods – but nothing could offset the impact of those astronomical power bills.
With Point Lepreau's ongoing delays serving as the cherry on top of this energy-crisis sundae, it seems Irving Paper's workforce reduction is less a strategy and more a surrender to the inevitable march of rising costs.
References
- https://globalnews.ca/news/11032515/irving-paper-shut-down-new-brunswick/
- https://www.coastreporter.net/the-mix/irving-paper-closing-half-of-operations-over-nbs-uncompetitive-electricity-rates-10279122
- https://www.newswire.ca/news-releases/unifor-will-fight-to-prevent-job-losses-at-irving-paper-in-saint-john-889679382.html
- https://www.paperadvance.com/news/industry-news/irving-paper-announces-further-production-cuts-due-to-high-electricity-costs.html
- https://www.ctvnews.ca/atlantic/new-brunswick/article/irving-paper-laying-off-140-employees-as-it-shuts-down-half-its-operations/
