Irving Paper lays off nearly half its employees, blames cost of electricity
CBC
J.D. Irving announced that it will permanently reduce operations at its Saint John paper plant, laying off 140 workers.
Workers at Irving Paper were informed Monday morning that the layoffs will take effect immediately, according to a release from the company, which listed the plant's total workforce at 310 employees.
The statement did not use the term "lay offs," but J.D. Irving spokesperson Anne McInerney confirmed the affected employees are losing their jobs.
The statement blamed the province'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," said Irving Pulp and Paper vice-president Mark Mosher in the statement.
The move comes after J.D. Irving Ltd. advocated last fall at the Electricity and Utilities Board hearing against changes to the way N.B. Power calculates charges.
At the hearing, N.B. Power argued the move was a self-serving attempt by JDI to escape expenses the company wants others to pay for.
N.B. Power also increased subsidies for pulp and paper mills, including three owned by JDI, to help them cope with rate increases.
McInerney said the company would not give any interviews about the announcement, but added in an email that the decision "is no way connected to possible future tariffs."
CBC News has reached out to Premier Susan Holt and Saint John Mayor Donna Reardon for comment.
In the statement, Mosher went on to say the company had been "working collaboratively" with the province for a solution but that there is "no viable alternative" to continuing operations in their current arrangements.
Mosher said Irving Paper would continue to work with the province to develop a plan to continue operating the remaining 50 per cent of operations.
The release said the Irving Paper plant on Bayside Drive in Saint John manufactures graphic paper for use in magazines, catalogs, newspapers and advertisement flyers.
In an emailed statement, N.B. Power spokesperson Dominique Couture said the utility will continue working with Irving Paper and the province to "explore options."
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