Crofton Pulp Mill Closure: Your Complete Guide to Severance, EI, and BC Forestry Jobs
350 Crofton pulp mill workers face layoffs as Domtar shuts operations in mid-December. Here's your guide to severance, EI benefits, and transitioning to new opportunities in BC.
By Refdesk Team
What This Means for You
If you're among the approximately 350 workers at the Crofton pulp mill on Vancouver Island who learned this week that your jobs are ending, you're facing a challenging transition. The good news: you have time to prepare, and BC has resources specifically designed for forestry workers in your situation.
Here's everything you need to know about your rights, benefits, and next steps.
If You're a Crofton Mill Worker
Your timeline is important: Production halts in mid-December 2025, but Domtar has committed to keeping workers employed through February and April 2026 for wind-down activities. This gives you 2-4 months of continued income to prepare.
Week 1-2: Immediate Actions
- Get your layoff notice in writing - Request formal documentation with your exact last day, severance terms, and benefits continuation dates
- Contact your union representative - If you're a member of Unifor or another union, they can explain your collective agreement terms
- Review your pension and benefits - Understand what transfers with you and what ends
- Start documenting everything - Keep copies of pay stubs, employment records, and any communications
Before Production Stops (Mid-December):
- Attend any company transition sessions - Domtar may offer career transition support
- Update your resume - Highlight transferable skills (see list below)
- Register with WorkBC at workbc.ca
- Research retraining options - BC offers substantial funding for displaced forestry workers
Severance Pay: What BC Law Requires
Under BC's Employment Standards Act, you're entitled to severance (called "termination pay" in BC) based on your length of service:
Minimum termination pay requirements:
| Years of Service | Minimum Notice/Pay |
|---|---|
| 3 months - 1 year | 1 week |
| 1 - 3 years | 2 weeks |
| 3 - 4 years | 3 weeks |
| 4 - 5 years | 4 weeks |
| 5 - 6 years | 5 weeks |
| 6 - 7 years | 6 weeks |
| 7 - 8 years | 7 weeks |
| 8+ years | 8 weeks (maximum) |
Example calculations for Crofton workers:
| Years at Crofton | Hourly Rate | Weekly Pay | Minimum Termination Pay |
|---|---|---|---|
| 5 years | $38/hr | $1,520 | $7,600 (5 weeks) |
| 10 years | $42/hr | $1,680 | $13,440 (8 weeks max) |
| 20 years | $45/hr | $1,800 | $14,400 (8 weeks max) |
| 30 years | $48/hr | $1,920 | $15,360 (8 weeks max) |
Important notes:
- Your collective agreement may provide more than the legal minimum
- Group termination rules (50+ employees) may require additional notice
- Accrued vacation pay is owed separately
- Pension contributions and benefits may have different rules
Common-law severance may be higher:
Courts often award more than the statutory minimum, especially for long-service employees. Factors include:
- Length of service
- Age (older workers may get more)
- Position and skill level
- Availability of similar employment
A 55-year-old worker with 25 years at Crofton might receive 18-24 months' pay in a wrongful dismissal case. Consider consulting an employment lawyer before signing any release.
Employment Insurance: BC-Specific Information
When to apply: Apply for EI the day after your last day of work. Don't wait.
What you'll need:
- Social Insurance Number (SIN)
- Record of Employment (ROE) - Domtar must provide this within 5 days
- Banking information for direct deposit
- Details of any severance received
How much you'll receive:
EI regular benefits pay 55% of your average insurable weekly earnings, up to a maximum of $695 per week (2025 maximum).
| Your Weekly Earnings | EI Weekly Benefit | EI Monthly (approx) |
|---|---|---|
| $1,920 | $695 (max) | $3,015 |
| $1,680 | $695 (max) | $3,015 |
| $1,520 | $695 (max) | $3,015 |
| $1,200 | $660 | $2,860 |
How long you can collect:
Based on the unemployment rate in the Cowichan Valley region (typically 5-7%), you can likely receive 36-45 weeks of EI benefits.
Step-by-step EI application:
- Go to canada.ca/ei
- Click "Apply for EI benefits"
- Sign in with GCKey or Sign-In Partner
- Complete the online application (30-60 minutes)
- Submit and note your confirmation number
- Check status at MSCA after 28 days
BC Forestry Worker Transition Programs
WorkBC Forestry Worker Transition Program
BC has specific programs for displaced forestry workers. Through WorkBC, you may access:
- Skills training funding - Up to $10,000+ for retraining
- Job search support - Resume writing, interview prep, job matching
- Wage subsidies - Employers may get subsidies to hire you
- Self-employment training - If you want to start a business
How to access:
- Visit your nearest WorkBC Centre (closest to Crofton is Duncan)
- Complete an intake assessment
- Work with a case manager to develop your employment plan
- Access funded training and job search support
BC Forestry Transition Trust
This program specifically helps forestry workers affected by mill closures. Benefits may include:
- Tuition for college or trades training
- Living allowances during training
- Travel costs to training locations
- Career counseling and guidance
Transferable Skills: Where Pulp Mill Experience Leads
Your skills from Crofton are valuable in many industries. Here's how they translate:
| Pulp Mill Role | Transferable Skills | Target Industries |
|---|---|---|
| Process Operator | Equipment operation, monitoring, troubleshooting | Mining, power generation, water treatment |
| Maintenance Technician | Mechanical repair, preventive maintenance | Manufacturing, marine, construction |
| Electrician | Electrical systems, instrumentation | Any industry (high demand everywhere) |
| Millwright | Heavy machinery, precision alignment | Mining, shipbuilding, energy |
| Lab Technician | Quality control, testing, analysis | Pharmaceutical, food processing, environmental |
| Supervisor/Foreman | Leadership, scheduling, safety | Any supervisory role |
Job Opportunities for Displaced Forestry Workers
Other BC Pulp and Paper Mills Still Operating:
| Mill | Location | Distance from Crofton | Notes |
|---|---|---|---|
| Paper Excellence Crofton | Port Alberni | 2 hrs | Domtar operates this mill |
| Catalyst Paper | Powell River | 4 hrs (ferry) | May have openings |
| Mercer Celgar | Castlegar | 8 hrs | Interior BC |
| Canfor | Prince George | 10 hrs | Multiple facilities |
Growing Industries on Vancouver Island:
| Industry | Employers | Starting Wages | Skills Match |
|---|---|---|---|
| Shipbuilding | Seaspan Victoria, Point Hope | $35-55/hr | High (welding, fabrication) |
| Mining | Various exploration companies | $40-60/hr | High (operations) |
| Power Generation | BC Hydro | $45-65/hr | High (electrical, mechanical) |
| Water/Wastewater | CRD, municipalities | $35-50/hr | High (process operations) |
| Construction | Various | $35-55/hr | Medium-high |
How to apply:
- BC Hydro Careers
- Seaspan Careers
- Indeed BC - Search "millwright" or "process operator"
- Job Bank - Filter by Cowichan Valley
Financial Survival Checklist
Before your last paycheque:
- Build emergency fund to 3-6 months of expenses
- Pay down high-interest debt (credit cards first)
- Review all subscriptions and cut unnecessary expenses
- Check your credit report at Equifax or TransUnion
- Consider refinancing mortgage if you can get a lower rate
Managing severance wisely:
- Don't spend the lump sum immediately
- Consider spreading it over your expected job search period
- Maximize RRSP contributions if you expect lower income next year
- Keep records for tax purposes (severance is taxable)
If money gets tight:
- BC Housing - Rental assistance programs
- BC211 - Connect to local community resources
- Food banks - No shame in using during transition
- Property tax deferment - Available for those facing financial hardship
If You're a Spouse or Family Member
Supporting someone through job loss:
- Help review paperwork and attend meetings
- Research job opportunities together
- Manage household budget adjustments
- Connect with family counseling if stress becomes overwhelming
Resources:
- WorkBC Family Services - Some programs extend to family members
- BC Mental Health Support - Free counseling services
The News: What Happened
Domtar announced on December 2, 2025 that it will permanently close its Crofton pulp mill on Vancouver Island, according to BNN Bloomberg. The closure will result in approximately 350 workers losing their jobs.
According to the Nanaimo News Bulletin, Domtar made "the difficult decision to close the mill in Crofton, B.C., due to persistently poor market conditions." Steve Henry, Domtar's president of paper and packaging, stated that "continued poor pricing for pulp and lack of access to affordable fiber in B.C. necessitates the closure."
The mill, which has operated since 1957, will halt production in mid-December 2025. However, according to multiple BC news sources, Domtar will keep workers employed until February and April 2026 to handle wind-down activities, giving them time to explore whether other operators might be interested in the facility.
Analysis: Why This Matters
BC's Forestry Sector Crisis
Based on our analysis, the Crofton closure is part of a broader pattern affecting BC's forestry industry. Key factors:
- Global pulp prices: International markets have seen sustained low prices
- Fiber costs: Access to affordable wood fiber in BC has become increasingly difficult
- Environmental regulations: Higher compliance costs compared to competitors
- Trade tensions: US tariffs affecting some Canadian forest products
What This Means for Vancouver Island
The Crofton mill closure represents a significant economic blow to the Cowichan Valley:
- 350 direct jobs lost - Representing millions in annual wages
- Indirect job losses - Suppliers, truckers, and service businesses affected
- Tax base erosion - Municipal and provincial revenues decline
- Community identity - A 68-year institution closing
The Bigger Picture
Kim Haakstad, president and CEO of the BC Council of Forest Industries, stated that "for too many people across the province, the consequences of inaction for the struggling forestry sector are no longer theoretical; they are happening in real time."
The BC Conservative Party called the closure "a clear sign that the province's forestry sector is collapsing due to government mismanagement."
Other Perspectives
Company Position
Domtar emphasized that workers made "extraordinary gains" in reducing operational costs over the past 18 months, but it wasn't enough to offset market conditions. The company is exploring whether other parties might be interested in the facility.
Industry Association
The BC Council of Forest Industries expressed concern for workers and families affected, emphasizing that the sector needs policy action to remain competitive globally.
Political Response
The BC Conservative Party blamed provincial government policies for the sector's decline, calling for regulatory reform and increased support for forestry communities.
Union Response
Workers' unions are focused on ensuring members receive all entitled benefits and are working with WorkBC to facilitate transitions to new employment.
Your Action Plan
This Week:
- Get layoff details in writing from HR
- Contact your union representative
- Register with WorkBC online or visit Duncan centre
- Start updating your resume
This Month:
- Apply for EI immediately after last day of work
- Explore retraining options through WorkBC
- Research job opportunities in target industries
- Review and adjust household budget
Before April 2026:
- Complete any funded training programs
- Apply for at least 10 jobs per week
- Network with industry contacts
- Consider relocation if opportunities exist elsewhere
Related Topics
- WorkBC: Employment services and training funding
- BC Employment Standards: Your rights as a BC worker
- Service Canada EI: Employment Insurance information
Corrections Policy
We strive for accuracy. If you find an error in this analysis, please contact us through our contact page. We will promptly investigate and correct any factual inaccuracies.
Updates:
- No corrections to date (as of December 3, 2025)
Sources
- BNN Bloomberg, "B.C. pulp mill closure to leave 350 out of work, company says," December 3, 2025
- Nanaimo News Bulletin, "Crofton pulp mill on Vancouver Island to close permanently this month; 350 workers out of a job," December 2, 2025
- Parksville Qualicum News, "Crofton pulp mill on Vancouver Island to close permanently this month," December 2, 2025
- BC Council of Forest Industries, Statement on Crofton mill closure, December 2025
- BC Employment Standards Act, RSBC 1996, c 113