Two-and-a-half weeks after the announcement of the closure of the Crofton pulp mill, a number of support services are now in place for impacted workers.
“Our top priority at North Cowichan right now is responding to the Crofton mill closure,” said Mayor Rob Douglas. “That means making sure workers get immediate supports for re-training, finding new jobs, accessing employment insurance, or bridging to retirement, while also advocating to the provincial and federal governments for transition funding for our municipality as we brace for a major reduction in our industrial tax base. At the same time, it means working with government and industry to explore future uses of the Crofton mill site, whether that’s producing pulp and paper products under a new owner or alternative industrial uses that will provide local jobs and reduce the burden on our taxpayers.”
Updates and actions this week:
Worker supports
- Following the initial meeting of the Community Transition Table - which the provincial government convened last week in response to the Crofton mill closure - staff from the Ministry of Jobs and Economic Growth worked with union leadership from the Private and Paper Workers of Canada (PPWC), to host an information session for workers on December 18 at the Crofton Community Centre. Approximately 40 mill workers took advantage of the session to learn more about employment counselling, employment insurance, academic advising, and entrepreneurship programs. Representatives from WorkBC, Service Canada, Vancouver Island University, Northern Innovation Network, and the Construction Foundation of B.C. were on hand. A job fair is scheduled for January 15, 2026.
- WorkBC’s Duncan office has expanded their service hours to evenings and weekends through to mid-January to support impacted mill workers and have a dedicated phone line for workers (778-731-2374).
Provincial engagement
- Earlier this week, Mayor Douglas wrote to Premier David Eby and Forests Minister Ravi Parmar to reaffirm requests made to the provincial government in multiple discussions during the past two weeks. These include additional financial supports for impacted workers, transition funding for the municipality to supplement lost tax revenue, expediting federal funding transfers, re-opening the Bridging to Retirement program and lowering the eligibility age to 50, involving North Cowichan in the Province’s efforts to find a new owner to continue industrial uses on the site, and infrastructure investments to help expand local industry.
- Mayor Douglas also met with Forests Minister Ravi Parmar, MLA Debra Toporowski, leadership from the United Steelworkers, and workers from the Chemainus Sawmill (Western Forest Products), which has been shut down since June, impacting 150 employees. While the discussion focused mainly on provincial actions to support the long-term future of the facility and its workers, it was also discussed how the health of our coastal sawmills - and their ability to produce residual wood chips - will have a significant impact on the viability of any future pulp and paper operations at the Crofton mill site.
Mill production extension - Domtar has announced production at the mill to extend to January 4, 2026. Originally it was announced the mill would cease production December 15, 2025. However, this change will not affect final staffing decisions. The majority of the mill workers will continue to be employed and on the site until February 2026, with some staying until April.
BC Assessment and property tax impacts
- This week North Cowichan staff met with BC Assessment to better understand the industrial land valuations, closure allowance protocols that reduce property value following a large industrial closure and the impact that will have on North Cowichan’s property tax revenue.
The municipality is anticipating property taxes paid by Domtar will be reduced by approximately $800,000 in 2026 due to the closure of the paper operations that occurred in 2024, with further reductions expected in future years due to the permanent closure of the pulp operations announced earlier this month.
Economic development actions
- North Cowichan is continuing to explore how to extend its water infrastructure to open up industrial zoned lands for development and have requested provincial funding to support these efforts. Mayor Douglas discussed this topic with Jobs and Economic Growth Minister Ravi Kalhon earlier this week - including the alignment between North Cowichan’s economic development priorities and Look West, the new provincial industrial strategy - and they will be meeting again early in the new year to further discuss opportunities for collaboration.
- A number of companies and individuals have reached out to North Cowichan expressing early interest in repurposing of the mill site. While these enquiries are very early and not fully developed business plans, the level of interest in developing industry in Crofton is encouraging.
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. North Cowichan is committed to maintaining essential services and supporting economic recovery.
For updates and resources for affected workers and businesses, visit northcowichan.ca/croftonmill
