Unifor is asking the federal government to provide financial support to Kap Paper in Kapuskasing, Ont., to prevent a permanent shutdown that the union says would eliminate jobs across Northeastern Ontario.
The mill has received provincial funding in recent years, including a $6 million loan extension from the Ontario government, according to the union. However, the company has not received similar federal support needed to restructure operations and maintain employment, Unifor said.
“The Kap Paper mill has received provincial support in recent years and had expected similar strategic funding from the federal government but nothing has materialized in time to allow them to restructure and maintain thousands of good rural jobs,” said Unifor National President Lana Payne.
Impact on regional economy
The potential closure would affect sawmills, contractors, truckers and other businesses that rely on the mill, according to Unifor. The union represents 170 workers at the facility through Unifor Local 89 and Local 256.
Unifor said the mill’s closure would demonstrate the need for strategic investment in Canada’s forestry sector. The union has called for a national industrial strategy to ensure Canada can supply its own lumber and wood products without relying on U.S. or other imports.
Housing supply concerns
The union cited housing construction targets as a reason to support the forestry sector. Ontario will need to build more than 2 million homes in the next decade, according to recent figures referenced by the union.
“Recent figures show that we will need to build more than 2 million homes in Ontario in the next decade — there is no way we can accomplish that without a robust lumber supply chain supported by mills like Kap Paper,” said Unifor Ontario Regional Director Samia Hashi.
Unifor represents 320,000 workers in the private sector across Canada.
