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Letter to the editor – Gene Mundy

by Gene Mundy
in Local News
November 3, 2025
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Dear fellow citizens of the Alleghany Highlands, 

As Election Day approaches, I want to encourage every citizen in Covington and Alleghany County to exercise their fundamental right to vote. Our republic depends on informed citizens making their voices heard at the ballot box, regardless of party affiliation. This election matters deeply, and each of us has a responsibility to understand what’s at stake for our community.

With that in mind, I believe voters deserve a clear-eyed look at how the gubernatorial candidates’ policies could impact our town’s economic future—particularly the Smurfit Westrock mill, which has been the backbone of Covington’s economy for over a century.

The Environmental Challenge

The Smurfit Westrock mill has recently faced national scrutiny over emissions. We all want clean air and a healthy environment—that’s not partisan. But we also need policies that balance environmental improvements with economic reality.

Democratic nominee Abigail Spanberger has pledged to rejoin the Regional Greenhouse Gas Initiative (RGGI), which Governor Youngkin withdrew Virginia from in 2023. According to analysis from the Thomas Jefferson Institute, RGGI participation could add approximately $500 million annually to Virginia’s electricity costs. For an energy-intensive operation like our paper mill, this represents a significant cost increase that would be passed through utility bills.

Recent reports show the mill already faces pressure to upgrade aging equipment and reduce emissions. Adding RGGI’s carbon pricing on top of necessary infrastructure investments could create a perfect storm of compliance costs. While Spanberger argues these funds support flood mitigation and clean energy, conservative analyses suggest the program actually increased Virginia’s carbon emissions by shifting power generation to out-of-state coal facilities.

The Labor Cost Question

Spanberger has promised to raise Virginia’s minimum wage to $15 per hour and supports paid family and medical leave mandates. While the mill likely pays above minimum wage, these policies create ripple effects throughout the wage scale and add new benefit costs.

More concerning is the ambiguity around Virginia’s right-to-work law. While Spanberger says she won’t support “full repeal,” she’s left the door open for “reforms”—without defining what those reforms might entail. Her congressional record shows she twice voted for the PRO Act, which would have eliminated right-to-work protections nationwide. This creates uncertainty for businesses trying to plan for the future.

The mill is already unionized through AWPPW Local 675, but strengthened union bargaining power combined with new benefit mandates could significantly increase labor costs.

The Economic Squeeze

Here’s what concerns me: our community’s largest employer faces simultaneous pressure from two directions. Environmental regulations will require substantial capital investment in new equipment and ongoing RGGI compliance costs. Labor policy changes will increase operating expenses through wages, benefits, and potentially stronger union leverage.

Both individually are manageable challenges. Together, they create a competitive disadvantage compared to paper mills in states with lower energy costs and different labor frameworks. When mills face this kind of cost squeeze, they make difficult decisions about long-term viability and investment.

What’s at Stake

I don’t raise these concerns lightly. Many of our neighbors work at the mill. Our local businesses depend on those paychecks. Our tax base relies on the mill’s continued operation. As residents noted after the recent pollution report, “without the paper mill, a lot of people would be out of work, and this would be a ghost town.”

We absolutely need the mill to be a better environmental steward. We want workers treated fairly with good wages and benefits. But we also need the mill to remain economically competitive so it can continue operating in Covington for another century.

An Informed Choice

I’m not telling anyone how to vote—that’s the beauty of our democratic system. But I am asking voters to consider the full picture of how state policies impact our local economy. Environmental protection and worker benefits are worthy goals, but they must be balanced against the economic realities facing industrial employers in competitive markets.

Lt. Governor Winsome Earle-Sears has taken different positions on these issues—opposing RGGI, supporting right-to-work protections, and taking a more cautious approach to mandated wage and benefit increases. Voters should evaluate whether her approach or Spanberger’s better serves our community’s long-term interests.

Whatever you decide, please vote. Study the candidates’ actual policy positions, not just their campaign slogans. Ask yourself which approach gives Covington the best chance to maintain our economic foundation while making necessary environmental improvements.

Our community’s future depends on informed citizens making thoughtful choices. That’s how democracy is supposed to work.

Sincerely, 
Gene Mundy

 

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Gene Mundy

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Published on November 3, 2025 and Last Updated on November 3, 2025 by Gene Mundy