Businesses across the country, including in Manitoba, are facing challenges and uncertainty in the face of U.S. tariffs on Canadian goods, especially as we approach the new March 4 anticipated start date. We’ve been reaching out to our members across the province, and we know many are nervous about the impact on their business and their labour pool.
In response to this uncertainty, Steven MacKinnon, Canada’s Minister of Employment, Workforce Development and Labour, encouraged Canadian businesses this week to consider the Government of Canada’s Work-Sharing Program as a possible tool to help navigate potential economic disruptions and protect their employees.
Avoiding Layoffs
Nearly 100,000 layoffs across Canada are estimated to have been avoided since 2019 through Work-Sharing, an Employment and Social Development Canada (ESDC) and Service Canada program designed to respond to changing labour market conditions, MacKinnon’s message said.
Work-Sharing temporary special measures were put in place between 2017 and 2021 – beginning during President Trump’s first term – for firms affected by tariffs imposed in the forestry sector and steel and aluminum industries. More than 2,000 forestry layoffs and nearly 2,900 steel/aluminum sector layoffs were avoided during this time through work sharing.
How does it work?
- Work-Sharing helps reduce layoffs in the face of a temporary decrease in the normal level of business activity that is beyond an employer’s control.
- The program brings together an employer, their employees (and union, if applicable) and Service Canada in an agreement to share the available work among employees.
- Workers who are eligible for Employment Insurance (EI) work a temporarily reduced schedule – essentially sharing a job with another employee – while the employer recovers.
- While working fewer hours, the employees receive EI benefits to partially replace their lost income (up to 55% of average weekly insurable earnings) over the timeframe of the agreement.
Could this program help your staff and your business during these uncertain times? Learn more about the Work-Sharing Program.
Share your Feedback via our Trade Portal
Let us know what you think about this – and other trade and tariff-related concerns you may have – by connecting with us through our online Trade Portal. We launched the Trade Portal to help your business navigate these challenges, providing a go-to resource for the latest updates, insights, and tools on tariffs and trade policies. Sharing your experiences with us will help strengthen our advocacy efforts at the highest levels, including the Premier’s U.S. Trade Council. Share your story on the Trade Portal and be part of the push for meaningful change.
