Statement on the Idling of the Kapuskasing Paper Mill

Today, Mike Harris, Minister of Natural Resources, and Kevin Holland, Associate Minister of Forestry and Forest Products, issued the following statement:

“Our government has worked closely with Kap Paper to help protect jobs at the Kapuskasing Paper Mill, providing more than $50 million to help cover operating expenses and provide business supports to help the company establish a viable, long-term plan.

We have continuously pushed the federal government to come to the table as an equal partner, standing up for Canadian forestry jobs and treating Ontario forestry workers fairly. We are deeply disappointed that the federal government has failed to join us in providing the immediate support required to keep Kap Paper operating, as Ontario has done repeatedly to date.

Despite Ontario’s extensive support, Kap Paper has concluded there is no sustainable path to long-term viability without continuous significant financial assistance. Our government cannot indefinitely provide this assistance without the active support and engagement of the federal government.

Our government is focused on supporting impacted workers and their families, and will continue to work closely with Kap Paper, local unions and local governments to do so. Provincial programs and supports are ready to help affected workers and we have already activated the Rapid Re-employment and Training Service (RRTS) supports. We fully expect and will continue to advocate for the federal government to join us in supporting forestry sector workers.

Ontario’s supports include:

• Protect Ontario Workers Employment Response (POWER) Centres – Ontario has invested an additional $20 million this year to POWER Centres, which can be deployed in communities that face a confirmed closure. Funded by the province and set up by unions, employee or employer associations, or municipalities, these centres provide laid-off workers with wrap-around supports such as job search help, counselling, financial advice and referrals to local training and Employment Ontario programs.
• Better Jobs Ontario (BJO) – Ontario has invested an additional $50 million this year to expand Better Jobs Ontario (BJO) for a total of $137 million. The program helps individuals retrain for in-demand fields, with financial assistance to cover tuition, living expenses, childcare, disability supports and other expenses.
• Skills Development Fund (SDF) – Ontario has committed $2.5 billion to the Skills Development Fund, with over $1.3 billion already invested to train workers across the province. Since 2021, our government has provided Northern Ontario with over $131 million for training and upskilling projects available in the skilled trades, manufacturing, forestry and more.
• Employment Standards and Income Supports – Laid-off Kap Paper workers may be entitled to termination and severance pay under the Employment Standards Act. Workers can access information at Ontario.ca/ESAguide or through the Employment Standards Information Centre (1-800-531-5551). For those in financial hardship, additional support is available through Ontario Works, and Service Canada’s Kapuskasing office can help workers access Employment Insurance benefits.
• Employment Ontario – Delivered locally by Collège Boréal, Northeastern Ontario’s Service System Manager, Employment Ontario is available to support laid-off Kap Paper workers with job search assistance, training and employment opportunities.
• Ontario’s Trade Impacted Communities Program is available to help communities navigate significant economic challenges caused by U.S. trade disruptions. The $40 million program will support municipal governments, economic development organizations, business incubators and industry associations.

In the face of U.S. tariffs and increased softwood lumber duties, Ontario has repeatedly stepped up for forestry workers and businesses with record investments to help the sector diversify their operations and expand into new markets. This includes:

• A further $10 million investment to help sawmills compete in a changing global market
• Over $72 million through the Forest Sector Investment and Innovation Program to help Ontario forestry companies improve productivity, increase innovation, expand markets and strengthen regional economies and supply chains
• Nearly $50 million through the Forest Biomass Program in projects to increase wood harvest and find new uses and markets for Ontario wood
• An additional $20 million this year through the Provincial Forest Access Roads Funding Program, bringing the government’s total funding for the program to over $79 million this year
• Close to $3 million for wood-based construction education, research and training led by organizations such as the Canadian Wood Council and Canadian Wood Construction Research Network, to support building with wood
• Over $1.5 million towards the construction of educational buildings incorporating mass timber at George Brown College and the University of Toronto
• Over $750,000 to support FPInnovations’ research and testing of wood-based construction materials and development of technical resources
• Over $300,000 to help the University of Toronto’s Mass Timber Institute develop ways to use more underused wood for advanced wood construction and study modular housing deployment to maximize environmental and economic benefit
• Almost $35 million in electricity rate relief to forestry sector businesses in 2024-25 through the Northern Energy Advantage Program.

Ontario continues to step up with significant provincial support but cannot do so alone. We have repeatedly called on the federal government to take immediate action to support workers and businesses in this vital sector, and we will continue to do so.”