‘The Canada Labour Code doesn't consider the damages a work stoppage can cause to small businesses and the economy’
The Canadian Federation of Independent Business (CFIB) is calling on the federal government to prioritise supply chain stability in any reforms to the Canada Labour Code (CLC).
In a statement issued just as Ottawa concluded consultations on potential changes to the Code, the CFIB urged the government to reduce compliance burdens on small businesses and modernise federal labour rules it says have long been tilted toward large unions.
The federation argued that small employers bear the heaviest costs of federally regulated work stoppages while having no role in resolving them.
In April, Employment and Social Development Canada (ESDC) issued a consultation document outlining measures that could alter bargaining timelines, create a new mediation tool, strengthen protections against misclassification and wage theft, and modernise occupational health and safety standards.
Disruptions carried a median $10,000 cost
The CFIB said recent strikes and labour disruptions — including those at CN and CPKC railways, the British Columbia and Montreal ports, and Canada Post — cost small businesses a median of $10,000.
Manufacturers, wholesalers and producers were among those hit hardest.
The federation reported that 92% of small business owners with a view on the question 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. Even short disruptions have triggered lasting losses that rippled through the entire economy," said Corinne Pohlmann, CFIB executive vice-president of advocacy.
She added that 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."
Canada is moving to strengthen its own framework on forced labour in supply chains following a sweeping new tariff proposal from the United States. Recently, Prime Minister Mark Carney said his government will introduce legislation aimed at addressing forced labour, positioning Canada’s response early as Washington pushes forward with new trade penalties.
CFIB's proposed changes to the Code
The CFIB is urging the government to protect its powers under section 107 of the Canada Labour Code (CLC) to intervene when supply chains are at risk, and to include economic harm as a factor in maintenance of activities decisions.
The federation also wants a detailed cost analysis study required to evaluate the impact of a strike on the economy, small and medium-sized enterprises and Canadians before a stoppage is allowed to proceed.
If the projected harm is severe enough, the CFIB argued, a general strike should not be permitted to occur. The federation also called for greater transparency in collective bargaining, recommending that all offers and counteroffers be made public.
Federation presses case on union influence
Jasmin Guenette, CFIB's vice-president of national affairs, said the existing framework fails to account for the downstream damage of a work stoppage. "Cancelled orders, delayed shipments, lost income: small businesses pay the price every time federally regulated supply chains grind to a halt," he said.
"The Canada Labour Code doesn't consider the damages a work stoppage can cause to small businesses and the economy. That needs to change," Guenette said. He argued the government "must stop bending labor laws in favour of large unions."
Guenette said economic stability and the protection of the supply chain "must be the government's top priority, not an afterthought."
In a report on Bill C‑31, MLT Aikins lawyers Shandra Czarnecki, Amy Gibson, Megan Kheong and Lynsey Gaudin caution that organisations should begin preparing now as a proposed federal legislation to curb non-compete clauses moves through parliament.
