Unifor calls for government action as forestry sector faces U.S. tariffs

Playing null of undefined

Company to buy idled Espanola mill

Forestry industry calling for Team Canada approach

A conversation with the mayor of Espanola

Unifor is urging all levels of government to develop a national industrial strategy for Canada’s forestry sector as rural communities grapple with mill closures and escalating U.S. trade pressures.

The union’s call follows the proposed sale of Domtar’s idled pulp and paper mill in Espanola, Ont., which ceased operations in November 2023, leaving more than 350 workers without jobs. The mill was the northern Ontario town’s largest employer.

“Workers and their families in Espanola have been bearing the brunt of uncertainty for too long,” said Unifor National President Lana Payne in a news release Friday.

“We need coordinated government action now to protect livelihoods and revitalize this critical sector.”

The demand comes amid heightened trade tensions with the U.S., where preliminary duties on Canadian softwood lumber are set to more than double to 34.35% by August 2025. U.S. President Donald Trump has also launched a national security investigation into imported wood products, threatening further tariffs.

Unifor, which represents 22,100 forestry workers nationwide, warns that without intervention, rural economies dependent on forestry will suffer – adding the sector contributes $33.7 billion annually to Canada’s GDP and supports 200,000 direct jobs, many in small communities.

“We can’t watch our industries be torn apart from within,” said Unifor Ontario Regional Director Samia Hashi, criticizing the lack of focus on workers in discussions around the Espanola mill’s potential sale.

The union is pushing for a “team Canada” approach, including:

• Federal and provincial income supports for laid-off workers,
• trade diversification to reduce reliance on U.S. markets, and
• a national housing strategy using Canadian mass timber to address affordability.

“The lumber is grown here – now we must process and build here,” said Unifor Quebec Director Daniel Cloutier, in a separate news release earlier in the week.

Unifor’s Forestry Council has vowed since February to fight job losses through lobbying, collective agreements, and government partnerships.

Payne stressed that long-term solutions are needed to stabilize the sector amid climate challenges, fibre shortages, and global trade disputes.