Striking port workers from the International Longshore and Warehouse Union Canada hold up their fists while attending a rally in Vancouver on July 9, 2023.ETHAN CAIRNS/The Canadian Press
Dan Kelly is the president of the Canadian Federation of Independent Business (CFIB). Milena Stanoeva is CFIB’s senior director of public affairs.
Unions appear to be having a big moment. After decades of battles between governments and organized labour, it appears all of Canada’s political parties have decided that giving in to the demands of union bosses is key to their electoral success – and the impacts on citizens and the economy are secondary issues.
As evidence, consider the curious path of Bill C-58, legislation that would remove the ability of employers to use replacement workers during a strike or lockout in federally regulated workplaces. While the NDP has historically supported this demand from union bosses, governments over many decades – both Liberal and Conservative – have rejected it given its massive implications for the economy.
As part of the Liberals’ agreement with the NDP, Labour Minister Seamus O’Regan put forward this bill on behalf of the Government of Canada. Since then, all the opposition parties – the Bloc Québécois, the Greens and, notably, the Conservatives – have supported this legislation. Not only is it precedent-setting for a Liberal government to introduce legislation on a file they’ve long rejected, it is a complete about-face for the Conservatives.
Beyond the naked politics of this pre-election strategy to court union votes and support, why should the public care? We don’t need to look too far back for examples.
In the first five months of 2024, small businesses have already faced serious threats to their supply chains and trading relationships owing to a potential Canada Border Services Agency strike, simultaneous rail strikes at CN and CPKC and a strike at the Port of Montreal. The union representing longshoremen at BC Ports is also threatening a strike, despite receiving a 19.2-per-cent wage increase offer for its members, with a 16-per-cent top-up to pensions. Unions representing federal government workers are now promising “a summer of discontent” over new hybrid work rules that would mandate three in-office days per week.
Small businesses are stuck in the middle with no recourse. They depend on borders, railways, airports and federal agencies to do their work – and suffer significant losses every time those services are interrupted. Without a stable and dependable supply of critical materials, businesses in manufacturing and construction have to delay or cancel projects. Retailers don’t receive seasonal stock on time and end up with dead inventory. Farmers watch their products sit rotting on immobilized railcars or in shipping containers.
The backlog from a single day’s disruption at railways or ports can take multiple days to clear, causing millions of dollars in losses to the economy. The looming strikes at CN and CPKC would be the first time both of Canada’s national railways are affected at the same time.
Our inability to maintain stable supply chains is also painting Canada as an unreliable trading partner on the global stage. Our productivity has dipped significantly below that of the U.S. and other OECD countries in recent years, in part thanks to overinflated growth in the public sector.
And despite these worries, Canada’s parliamentarians appear to feel that now is the time to give unions even more power than they already have.
Replacement workers are not often used by employers in strikes or lockouts and can never replace large-scale operational units, as we simply don’t have long lines of skilled workers sitting on the sidelines waiting for temporary work. But they can be used strategically to keep key functions going during a strike or lockout, helping to keep the lights on and ensuring employees have a job to return to after a job action is over. They also serve as one of the very few powers employers have to keep negotiations going, as Canada’s union legislation is already heavily tilted in favour of organized labour.
Given the taste of supply-chain disruptions we’ve experienced over the past few years, it seems very odd that the federal government and all opposition parties want to sign us up for more. While most small firms are provincially regulated, they and consumers will still be affected by Bill C-58, as most national transportation infrastructure and associated public services are governed by the federal labour code.
When work stoppages shut down these services, it’s businesses, their employees and Canadians who pay the price. While federal politicians have made clear that the interests of average Canadians are less important than pleasing union leaders, we hope the Senate will provide the sober second thought needed to steer the country away from this damaging direction.