AV Terrace Bay Layoffs: 400 workers affected as pulp mill production halted

What’s happening at AV Terrace Bay?

AV Terrace Bay, part of the Aditya Birla Group, has announced a temporary halt to operations at its pulp mill in Terrace Bay, Ontario, impacting approximately 400 employees. The company states that the move is in response to current market conditions. The mill produces 320,000 metric tons of northern bleached softwood kraft pulp annually.

Additional details

• In a brief statement, the company described the shutdown as temporary and stated that the mill would be placed into a “warm idle” state to allow for a potential future restart. However, no timeline for resuming operations has been provided.
• Employees were informed of the decision earlier on Tuesday, and the company has declined to give further interviews.
• The mill, previously owned by the Buchanan Group, was acquired by Aditya Birla in 2012 after entering receivership.
• The Steelworkers union, which represents the majority of the workforce, has not yet issued a statement regarding the shutdown.

Official statements and context

• Jason Nesbitt, president of the Aguasabon Chamber of Commerce, expressed concern about the economic impact on the region, noting that the mill is a vital part of the local economy. “If it becomes necessary, it’s definitely in the government’s best interest to step in and help,” he said, emphasizing the mill’s contribution to Ontario’s economy.
• Nesbitt also highlighted opportunities for displaced workers to find employment in nearby industries, including at Greenstone Gold Mines.

Your rights

In Canada, non-unionized employees at AV Terrace Bay are owed full severance pay when they lose their jobs due to downsizing, corporate restructuring, or the closure of the business.

This applies to individuals working in any capacity — full-time, part-time, hourly, or potentially even independent contractors — in Ontario, Alberta, and British Columbia.

Severance is the compensation provided to non-unionized workers in Canada by their employer when they are terminated without cause, and can be as much as 24 months’ pay, depending on a number of factors.

WATCH: Employment lawyer Lior Samfiru explains why you are still owed severance if you have been downsized on an episode of the Employment Law Show.

Severance offers and deadlines

Before accepting a severance offer, double-check the amount using our firm’s free Severance Pay Calculator. It has helped millions of Canadians determine their entitlements.

In addition to your salary, make sure to factor in any other elements of your compensation (i.e. bonuses, commission, etc.).

If your employer’s offer falls short of what our Severance Pay Calculator says you are owed, it’s very likely that you have been wrongfully dismissed and should contact an experienced employment lawyer at Samfiru Tumarkin LLP.

Non-unionized employees in Canada have up to two years from the date of their dismissal to pursue proper severance pay. An employer’s deadline to sign back a severance offer is not legally enforceable or binding.

LEARN MORE
• Severance pay for provincially regulated employees
• Rights to severance during mass layoffs
• Severance entitlements in a recession

Major layoffs continue

The job cuts come amid a flurry of layoffs in 2024.

Big names, including Intuit, UiPath, Dyson, Vancity, Stifel, SAP Canada, Netflix, AmDocs, EXL Service, Best Buy, Relic Entertainment, Ubisoft, Intel, Amazon, and Telus, have pulled out the axe as they continue to navigate challenging economic conditions.

SEE ALSO
• Shell to lay off 20% of deals division, part of restructuring
• Walmart Canada cuts jobs amid restructuring, shift to Spark: Reports
• Where are layoffs happening in Canada?

Lost your job? Talk to an employment lawyer

If you have been fired or let go for any reason, contact the experienced employment law team at Samfiru Tumarkin LLP.

Our lawyers in Ontario, Alberta, and B.C. have successfully represented tens of thousands of non-unionized individuals.

In addition to severance package negotiations, we can assist you on a broad range of employment matters, including:

If you are a non-unionized employee who needs help with a workplace issue, contact us or call 1-855-821-5900 to get the advice you need and the compensation you deserve.

Disclaimer: The materials above are provided as general information about the rights of non-unionized employees in Canada. It is not specific to any one company and should not be read as suggesting any improper conduct on the part of any specific employer, or a relationship between Samfiru Tumarkin LLP and a specific employer.