(North Cowichan, BC) – North Cowichan Council and staff are continuing to work with the provincial and federal governments to secure transition funding and support for the more than 350 workers impacted by Domtar’s permanent closure of the Crofton mill.
“Our focus continues to be on securing supports for the workers who have been directly impacted by the mill closure,” said Mayor Rob Douglas. “We are working closely with the province and the federal government on short-term supports, as well as longer-term plans that will provide new jobs going forward.”
Actions this week:
Community Transition Table
- This group met today (December 12) at North Cowichan Municipal Hall to identify immediate actions to connect with and support impacted workers. The table includes provincial representatives, service providers, and union representatives.
- The table is organized by the Ministry of Jobs and Economic Growth with an initial focus on providing immediate supports for impacted workers, including coordinating access to resources like employment services, career counselling, new job opportunities, and skills training —before broadening its focus to supporting local businesses and contractors and finally to long-term economic development priorities for the community, including diversification efforts.
- The provincial staff, union leadership and service providers are planning to organize an initial information session for affected workers and their families before Christmas.
Worker supports
- In addition to actions that will come through the community transition table, affected workers will require support beyond what is currently in place.
- North Cowichan has requested that the federal funding announced in August to support forestry workers with upskilling, reskilling and income supports be transferred to provincial governments through Labour Market Development Agreements to provide quick delivery to support Crofton workers.
- North Cowichan is also asking the Province to reopen the Bridging to Retirement Program and lower the eligibility age to 50 years, which would make a significant difference for many of the workers and families impacted by the Crofton closure. Launched in 2021, this program provided up to $75,000 to eligible forestry workers aged 55 and older to support their transition to retirement. Unfortunately, as of February 2025, the program is no longer accepting applications. Given the scale of the impact in Crofton, reinstating this program would be an important and meaningful step.
Meeting with Forests Minister
- On December 10, Ravi Parmar, Minister of Forests, met with North Cowichan Council to discuss the factors that contributed to the mill closure, supports for workers and the community, and next steps with the Crofton site.
- It was shared that the Province has retained an external consultant with expertise in the pulp and paper sector to assess options for the Crofton mill site. The minister also discussed the possibility of a new owner acquiring the property to resume pulp and paper production or repurpose the property for another industrial use. Given the significant implications for our community, we have requested that North Cowichan be actively involved at all stages of this work and in any discussions or decisions related to the future of the site.
Meeting with Member of Parliament
- Earlier this week, Mayor Douglas met with Cowichan-Malahat-Langford Member of Parliament Jeff Kibble and a representative from Domtar to discuss federal support for impacted workers and for transition funding for North Cowichan.
- Specifically, the focus was on working together to have the $50 million the federal government announced in August 2025 for reskilling and income supports transferred to provinces so that they can deliver programming to impacted workers, and securing transition funding for North Cowichan to soften the loss of a major part of our industrial tax base and gradually realign our tax structure rather than implementing any abrupt changes.
Transitional funding for lost tax revenue
- Premier Eby has indicated that the Ministry of Finance is exploring options to support B.C. municipalities – including North Cowichan – that have experienced recent mill closures and are now facing significant reductions in industrial tax bases.
- North Cowichan has suggested the Province consider a model similar to the COVID-19 Re-Start Grants provided to municipalities in 2020, which helped offset increased operating costs during a period of sharp revenue decline.
- North Cowichan staff have been in discussions with BC Assessment regarding the potential timing and impacts of future reduced assessed values for the mill site.
The Crofton mill has been 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