Canada’s largest private sector union has asked the federal government to impose sanctions on corporations that relocate jobs to the United States in response to American trade measures.
Unifor presented a proposal to the government outlining how the Foreign Extraterritorial Measures Act (FEMA) could be used to penalize companies that offshore work.
“Canadian workers should not pay the price for American trade aggression,” said Unifor National President Lana Payne. “It’s time for the federal government to draw a clear line: if you do business here, you don’t get to pack up and leave to avoid tariffs without consequences.”
The union argues that while Canada has implemented retaliatory measures against unfair U.S. tariffs, these actions haven’t prevented companies from moving Canadian production south of the border.
Using existing legislation
Unifor’s proposal suggests FEMA can be deployed immediately in its current form, though the union acknowledges that penalties are currently limited.
The union is also advocating for legislative amendments to FEMA that, combined with powers under the Customs Tariff, would create stronger punitive options. These could include restricting imports of goods from companies that have moved Canadian jobs offshore.
Under FEMA, the Attorney General, with support from the Minister of Foreign Affairs, can issue orders preventing compliance with foreign measures deemed harmful to Canadian interests. Companies violating these orders could face penalties up to $1.5 million, while individuals could face up to five years imprisonment.
Calls for stronger measures
Payne emphasized that no new legislation is needed to begin addressing the problem.
“This is existing legislation that can be activated today. No new law is needed — just political will to protect Canadian workers and prevent further job losses in vital manufacturing sectors,” said Payne.
The union is also proposing stronger penalties, including asset seizures for companies violating blocking orders. Additionally, Unifor wants FEMA compliance to be mandatory for any company seeking relief from Canada’s retaliatory tariffs.
Unifor represents 320,000 workers across major sectors of the Canadian economy.
