Work continues to support impacted workers and families and to stabilize the local economy following the closure of the Crofton pulp mill and the more recent curtailment of operations at the Chemainus sawmill through 2026. Last week, the Mill Closure Response Working Group met for the first time to discuss the needs and challenges and on options the local, provincial, and federal partners can action.
“Workers need clear and fair access to employment insurance. The stories we heard at the first working group meeting show how urgent this is,” said Mayor Rob Douglas “This is why we’re continuing to press the federal government to extend employment insurance supports for all impacted workers and to release the forestry industry support funding to the province announced last summer. People need income security while they plan their next steps.”
The update below shows recent steps taken to help people impacted by the disruptions in the local forest industry.
Worker supports:
- North Cowichan worked with the Province to extend Community Transition Table supports—already in place for Crofton workers—to support the 150 Chemainus sawmill employees. These supports include employment services, training opportunities, and help connecting workers with new job opportunities.
- The Community Transition Table hosted a second information session on January 27 at the Crofton Community Centre for affected workers and their families from both the Crofton and Chemainus sites.
- The information session included representatives from WorkBC, Service Canada, Vancouver Island University, the Northern Innovation Network, SkilledTradesBC and the Construction Foundation of BC. These organizations provided support with resume writing, job searches, retraining options, and Employment Insurance (EI) applications.
- The Community Transition Table will meet next on February 13 to discuss next steps for supporting impacted workers from both sites.
Meetings with Western Forest Products and Domtar:
- Following the announcement that the Chemainus sawmill would remain closed through 2026, Mayor Douglas and municipal staff met with Western Forest Products (WFP) CEO Steven Hofer to discuss the future of the site. WFP advised that they are actively exploring solutions to re-open the mill. The Mayor and staff stressed that North Cowichan’s desire for the company to maintain a presence in the municipality, and indicated the municipality is prepared to fast-track any required permits and will advocate to the provincial government for support.
- Mayor Douglas and staff also met with representatives from Domtar to discuss plans for the Crofton mill site and off-site infrastructure and services, including the Cowichan weir and drinking water supply to Crofton residents (the majority of Crofton’s water is supplied via the mill). Domtar is actively exploring opportunities for the site and has engaged a third party to support this process, but has not yet made a decision regarding sale or redevelopment. Domtar will continue operating the weir and supplying drinking water to Crofton residents through 2026; plans beyond that date have not yet been determined.
Mill Closure Response Working Group meeting:
- North Cowichan held the first meeting of the Mill Closure Response Working Group on January 30. This advisory group was established to provide guidance to the Mayor and Council on municipal, intergovernmental, and community responses to disruptions in the local forest industry. Membership includes representatives from Council, the federal and provincial government, industry and labour, including impacted workers from both the Crofton and Chemainus sites.
- The Working Group identified significant challenges related to workers’ access to EI benefits. Approximately 60 Crofton mill workers are unable to access enhanced EI benefits for forestry workers that were announced last summer. In addition, Chemainus sawmill workers are receiving inconsistent information from Service Canada, with some being advised that their benefits may end in March.
- The Working Group was also advised that $50 million in Labour Market Development Agreement funding announced by the federal government in summer 2025 for impacted forestry workers has not yet been transferred to B.C. This funding is intended to support upskilling and reskilling programs and provide income supports.
- As follow-up actions, Working Group members are reaching to contacts in both the federal and provincial governments to address EI access issues—including requesting the assignment of a dedicated Service Canada contact for impacted workers from both sites—and to finalize the transfer of Labour Market Development Agreement funding.
Advocacy to the federal government:
- On February 3, Gord Johns, Member of Parliament for Courtenay-Alberni, addressed the House of Commons to call for a comprehensive package of federal supports for impacted Crofton mill workers. He argued that B.C. forestry workers should receive supports comparable to those provided to workers in the auto and steel industries. His requests include increasing the EI replacement rate from 60% to 80%, extending EI duration to 104 weeks, waiving the EI waiting period and severance claw backs, providing bridging-to-retirement supports for workers aged 55 to 64, guaranteeing apprenticeship completions, offering long-term mental health supports, and providing mobility assistance for workers who relocate for employment.
- Mayor Douglas has written to the federal Minister of Jobs and Families, Patty Hajdu, outlining the challenges workers are facing in accessing EI benefits and urging the federal government to advance the package of supports proposed by MP Johns.
Background
In December 2025, Domtar announced the permanent closure of the Crofton pulp mill and the elimination of more than 350 jobs. The Crofton mill is currently North Cowichan’s largest taxpayer, contributing approximately $5 million in property taxes annually. Its closure will affect municipal revenues and local businesses that are directly or indirectly impacted by the closure. In January 2026, Western Forest Products announced an extended curtailment of operations at their Chemainus sawmill that began in July 2025 to the end of 2026, impacting roughly 120 workers. North Cowichan is committed to supporting the impacted workers and their families, mitigating impacts to municipal revenue, and supporting economic recovery.
For updates and resources for affected workers and businesses, visit northcowichan.ca/croftonmill