‘That was not good news’: Saint John mayor, MLA disappointed by Irving Paper layoffs

Union and government officials reacted to Irving Paper’s layoffs in New Brunswick.

A day after Irving Paper announced it is shutting down 50 per cent of its operations, putting 140 people out of work, the mayor of Saint John, N.B., says any job loss for the city is not good news.

“That was not good news for the City of Saint John [Tuesday],” said Mayor Donna Reardon.

“One-hundred-forty is a significant number of jobs.”

While the mayor admits she heard rumors of potential layoffs at Irving Paper’s Bayside Drive facility, she was hoping no jobs would be lost in her community.

The facility manufactures graphic paper for use in magazines, catalogs, newspapers and advertising flyers.

“It’s the evolution of the times,” said Reardon. “I lived in a time when the arrival of the catalog was an event, but I don’t even know if anyone produces a catalog anymore.”

Unifor, which represents 104 of the workers, says the news was unexpected and the union has been helping those affected by the layoffs.

“Mr. Irving has been very clear that there is 45 days between now and the termination of this work,” said Jennifer Murray, the Atlantic regional director for Unifor.

“So we know we have 45 days to make any change if we can.”

Murray said Unifor plans to look at other opportunities within the company to see if some members may be able to keep their jobs by switching to a different role.

Company cites electricity rates

In a news release Monday, Irving Paper said the decision to reduce operations was a “direct result of New Brunswick’s uncompetitive industrial electricity rates.”

“As New Brunswick manufacturers face more and more significant headwinds, it is becoming increasingly difficult to shoulder the impact of soaring electricity costs and remain competitive in an international market,” Irving Pulp and Paper Vice President Mark Mosher said in the release.

“We have been working collaboratively with the current Government of New Brunswick toward a solution, but presently there is no viable alternative for full operation of both paper machines.”

In a statement emailed to CTV News, NB Power says it understands rising rates are hard for customers and the company is facing them every day as a utility.

“These are challenging times that can mean tough decisions, and no one wants to see a New Brunswick business close or a New Brunswicker lose their job,” the statement reads.

“As a cost-of-service utility, NB Power’s rates are based on the cost of providing electricity to our residential and industrial customers. We are committed to doing everything we can to reduce the rate pressure on customers; at the same time we have a responsibility to maintain and invest in our system to ensure all New Brunswickers have the power they need when they need it.

“Our team works closely with our industrial customers to understand their challenges and work on solutions. We are fully committed to continuing to work with Irving Paper Limited and government to explore options.”

Last December Irving Paper reduced operations by 50 per cent for a week in response to what it called “record high” industrial electricity rates.

It made a similar reduction for an undefined period in January.

MLA disappointed by government response

Glen Savoie, the leader of the Progressive Conservative Party of New Brunswick and the MLA for Saint John East, says the main focus now should be on ensuring those who lost their jobs are being supported.

He is calling on NB Power and the current government to look at ways to ensure the city’s other industrial operations don’t suffer a similar fate.

“Back in the David Alward years we came up with the large industrial renewable energy program,” recalled Savoie.

“That was intended to try to encourage large energy producers to increase their renewable energy percentages, and so therefore that would help them with their energy costs.”

CTV News reached out Premier Susan Holt’s office Monday and Tuesday and has yet to receive a response.

“They promised New Brunswickers that they had this under control,” said Savoie. “That if they were elected that they would be able to handle the situation that existed in the province at the time and that they could handle whatever was coming.

“To see that neither her nor her energy minister is answering to this is very disappointing. We’ll be back in the house in a few weeks, and you can be guaranteed that we will be asking why this government is so slow to react to the needs of 140 people in my riding that have just lost their jobs.”

More than 95 per cent of Irving Paper’s annual manufacturing output of 400,000 tonnes of paper is exported to 65 countries.

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