The Canadian Federation of Independent Business (CFIB) is calling on the federal government to prioritize supply chain stability and reduce compliance burdens on small businesses as consultations on potential reforms to the Canada Labour Code conclude. The organization argues that current labour rules have long tilted toward large unions, leaving small enterprises vulnerable during work stoppages.
Impact of Recent Strikes
Recent labour disruptions, including strikes at CN and CPKC railways, British Columbia and Montreal ports, and Canada Post, have cost small businesses a median of $10,000. Manufacturers, wholesalers, and producers were among the hardest hit. According to CFIB, nine in ten (92%) of those with a view support designating federally regulated workplaces critical to supply chains as essential service providers.
“Small businesses didn’t have a seat at the table during recent strikes, but they were the ones paying the price,” said Corinne Pohlmann, CFIB Executive Vice-President of Advocacy. “Even short disruptions have triggered lasting losses that rippled through the entire economy. The government needs to have the tools to intervene and prevent Canada’s supply chains from being held hostage every time there’s a disagreement with the unions.”
Proposed Reforms
CFIB is urging the government to protect its powers under section 107 of the Canada Labour Code to intervene when supply chains are at risk. The organization recommends including economic harm as a factor in maintenance of activities decisions. Specifically, CFIB suggests requiring a detailed cost analysis study to evaluate the impacts of a strike on the economy, SMEs, and Canadians before it is allowed to occur. If the projected harm is severe enough, a general strike should not be permitted. Additionally, the government should make the collective bargaining process more transparent by requiring all offers and counteroffers to be made public.
“Cancelled orders, delayed shipments, lost income: small businesses pay the price every time federally regulated supply chains grind to a halt,” said Jasmin Guenette, CFIB Vice-President of National Affairs. “The Canada Labour Code doesn’t consider the damages a work stoppage can cause to small businesses and the economy. That needs to change. The federal government must stop bending labor laws in favour of large unions. Economic stability and the protection of the supply chain must be the government’s top priority, not an afterthought.”
About CFIB
The Canadian Federation of Independent Business (CFIB) is Canada’s largest association of small and medium-sized businesses, with 103,000 members across every industry and region. CFIB is dedicated to increasing business owners’ chances of success by driving policy change at all levels of government, providing expert advice and tools, and negotiating exclusive savings. More information is available at cfib.ca.
