The federal government has eliminated the Canada Public Transit Fund and replaced it with a competitive funding model that requires transit projects to compete with other municipal initiatives for federal dollars.
The Canada Public Transit Fund, launched in 2024, had promised $3 billion annually in predictable funding for public transportation starting in 2026. The current federal budget redirects those resources into the new Building Communities Strong Fund, according to Unifor.
“Public transit is a public good and there is no better time to invest in both the services and the manufacturing of strong public transit in cities across Canada,” said Lana Payne, Unifor national president.
Impact on municipalities and workers
The funding change forces municipalities to choose between cutting service, raising fares, or increasing property taxes, according to the union.
Unifor warns that reduced funding intensifies workload pressures on transit workers, increases their risk of abuse and harassment, and delays needed maintenance and upgrades.
“Transit workers keep cities moving, yet they are increasingly asked to do more with less,” Payne said.
Recent labour disruptions
British Columbia has experienced four extended transit strikes in three years, including a seven-month dispute with Transdev in the Cowichan Valley in 2024. The union attributes these labour disruptions to the B.C. government and BC Transit’s use of private contractors and resulting pay gaps.
Union response
Unifor is calling on the government to reverse the funding changes and commit to long-term, dedicated investment in public transit.
“These cuts are part of a broader austerity agenda that treats essential services as expendable,” Payne said. “Undermining this puts people at risk and moves us backward. We need dedicated, stable funding for public transit.”
Unifor represents over 6,500 urban transit operators, mechanics, and skilled trades staff across Canada, and 320,000 workers in total.
