Canada’s largest private-sector union welcomed federal measures announced last week to support workers hit by U.S. tariffs but said stronger action is still needed to protect jobs and build resilient industries.
Unifor praised several elements of the government’s $5-billion response package while pushing for more ambitious industrial strategies and permanent worker protections, according to a statement from the union representing 320,000 workers.
“Taken together, these measures show progress, but this is the time for bold action to make transformative change in our economy,” said Unifor National President Lana Payne. “Workers in auto, aluminum, steel, forestry, energy, and beyond need permanent protections, ambitious industrial strategies, and a sustained Buy Canadian approach that puts our jobs and communities first.”
Electric vehicle mandate changes welcomed
Unifor said the federal government’s adjustments to Canada’s Zero Emission Vehicle mandate, including removing the 20% sales requirement for 2026, provide necessary relief to an industry facing unprecedented challenges from Trump’s tariffs.
The union warned the change represents only one piece of a larger puzzle for the automotive sector.
“We cannot surrender the future of EV production to overseas automakers,” said Payne. “Canada needs consumer incentives, investments in domestic EV supply chains, and for automakers to start building affordable EVs here in Canada.”
Canadian Manufacturers & Exporters also welcomed the government’s decision to suspend the federal EV mandate for 2026, calling the policy “unrealistic and out of step with market realities.” The organization said it will engage in the government’s 60-day review and urge Ottawa to repeal the mandate altogether.
Buy Canadian policy needs details
Both organizations supported the government’s commitment to a comprehensive Canadian content policy but called for more specifics. Unifor expects an ambitious program extending beyond steel and lumber to include all goods and services where possible, applied consistently across federal agencies and Crown corporations.
CME said it has long urged the government to pursue a more robust Buy Canadian policy but noted significant barriers exist to creating a truly national procurement approach. The organization called for efficient rollout with minimal administrative burden.
Employment insurance improvements welcomed
Unifor called Employment Insurance improvements constructive but said they must become permanent. The union expressed concern the definition of “long-tenured” workers may exclude thousands of autoworkers affected by extended retooling and downtime periods.
The government announced long-tenured workers will receive 20 extra weeks of EI benefits, up to 65 weeks maximum, starting Oct. 12.
Skills training and strategic fund
Unifor said the $450 million skills package to retrain 50,000 workers includes financial support during training and job retention funds that align with long-standing union proposals.
The union said the government’s $382 million investment to create “Workforce Alliances” matches its call for sector-wide councils involving unions and focusing on industry development initiatives.
CME applauded the federal commitment to retrain 50,000 workers but said success requires employer-led, on-the-job training and reduced barriers for manufacturers seeking to retain and upskill workers.
Strategic Response Fund implementation concerns
While welcoming the $5-billion Strategic Response Fund, both organizations emphasized implementation concerns. Unifor pressed for clarity on Ottawa’s earlier $2-billion auto sector support fund commitment.
CME said the fund offers a promising mechanism to help manufacturers retool and stay competitive but warned success depends on speed and flexibility without red tape and lengthy approvals.
“This fund cannot be weighed down by red tape and lengthy approvals,” according to CME’s statement. “We call on the government to deliver fast, practical assistance that strengthens domestic production and supply chains.”
Unifor welcomed new biofuel incentives worth $370 million over two years as a win for Canadian producers in a sector long undermined by heavily subsidized U.S. imports.
