Portside

Canadian labour leaders are applauding the federal government’s Tuesday announcement of counter-tariffs on U.S. goods and extended Employment Insurance (EI) after trade negotiations broke down between Ottawa and Washington. However, they say even more must be done.

Trade negotiations between Canada and the U.S. broke down late Friday night. In a statement, Prime Minister Mark Carney said Canada chose to suspend negotiations because the U.S. had “asked too much and offered too little.” 

Major Canadian labour leaders were quick to commend this decision, saying that no deal was better than a bad one. Lana Payne, national president of Canada’s largest private sector union, Unifor, said it had become clear that the list of concession demands were untenable. 

Bea Bruske, president of the Canadian Labour Congress (CLC), and National Director of the United Steelworkers Marty Warren both expressed similar support for Carney’s decision.

The majority of Canadians also support walking away from the table, with 76 per cent seeing the suspension of talks as the “right” choice according to polling done by the Angus Reid Institute. At the same time, 89 per cent of Canadians are concerned about the looming impact on the cost of goods and services. 

On Tuesday, the federal government released more details of their tariff relief plans which included rate-for-rate counter-tariffs and a $3.5 billion support package which will help workers access income support through temporary employment insurance expansion. 

Warren, Bruske and Payne all applauded the plan as a “step in the right direction” but said the government ultimately needs to do more. 

EI still falls short of workers’ needs

“Too many workers still fall through the cracks of EI, and for many who qualify, the benefits aren’t enough when a good-paying job disappears,” said Bruske. “The government needs to be ready to go further, making EI easier to access, increase the amount workers receive, and ensuring workers have the support they need for as long as this trade war lasts.”

EI shortcomings have long been a topic of advocacy for organized labour in Canada. The Interprovincial EI Working Group, formed to campaign for EI reform and expansion, has been pushing the Canadian government to implement measures such as a minimum benefit and a lower hour threshold to qualify support. 

The working group, Unifor, the Canadian Union of Public Employees, and the Canadian Labour Congress collectively demanded for urgent EI reforms in Spring 2025, throwing the weight of millions of workers behind their calls. 

As the trade war intensifies, unions are highlighting how government measures still fall short of what workers need. 

“Workers are being asked to absorb the economic shock of a trade war they did not start and cannot control. These EI measures will provide some welcome relief, but they are temporary fixes to a much bigger problem,” said Unifor Quebec Director Daniel Cloutier. “Workers need income security they can count on, not a patchwork of measures that expires when the next deadline passes. As this trade war continues, the federal government must be ready to go further to protect workers, support communities and ensure people are not left carrying the cost of this escalating fight.”

Workers need a comprehensive plan

As the September 8 start date of counter-tariffs draws closer, anxieties are mounting. The Angus Reid Institute found that 66 per cent of Canadians believe the trade dispute will very badly or badly affect their province. 

Amid this, Canadian unions are calling for a comprehensive plan to protect workers. The CLC said this means it should include stronger EI with better access and higher benefits, measures to prevent layoffs, direct support for affected workers and communities, and investments that protect and create Canadian jobs.

“Canada must stand firm, use our leverage to force Trump to back down, and make protecting workers and communities our number-one priority,” said Bruske. 

“We have leverage in energy, critical minerals, lumber, potash and other resources the United States depends on. We should be prepared to use it."

Unions are also demanding that the $4 billion of public funds being allocated to support businesses are tied to protecting Canadian jobs. 

“Industry support matters, but public support for large companies must be tied to protecting Canadian jobs and production and advancing broader industrial goals,” said USW National director Marty Warren. 

Unifor, USW, and the CLC all noted that public investment should promote the purchase of, and by extension the production of, Canadian-made goods. But one analysis shows that a hands-off approach is not sufficient to achieve this. On Monday, the Canadian Centre for Policy Alternatives released a statement that noted the positive step of recent freight subsidies for moving heavy steel products between provinces. But said the approach must be more involved to encourage domestic use of domestic products. 

“Keeping people working should be the test,” said Bruske. “When public dollars are helping companies through this trade war, they should protect Canadian jobs and production and build the industries we need for the future.”

Gabriela “Gabby” Calugay-Casuga (she/they) is a writer and activist based in so-called “Ottawa.” They began writing for Migrante Ottawa’s radio show, Talakayang Bayan, in 2017. Since then, she has written for CHUO FM and The Canadian Press. From the start of her journalism career, Gabby has focused on justice and human rights reporting. Gabby has also organized for social and economic justice with groups such as ACORN Canada, Diversify Canterbury and Anakbayan. Gabby is set to graduate from Carleton University’s Journalism and Humanities program in 2024 and she hopes to one day freelance from her own alpaca farm.

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