Federal budget takes steps on affordability but leaves major gaps in worker protections
Federal budget takes steps on affordability but leaves major gaps in worker protections
OTTAWA – Canada’s unions welcome measures in Budget 2026 to help Canadians with the cost of living but say the government must do more to protect workers facing job losses, mounting household debt, and economic uncertainty.
“If there’s one lesson from the elections south of the border, it’s that affordability cannot be treated as secondary to economic growth,” said CLC President Bea Bruske. “Today’s budget commits nearly $100 billion to business incentives and less than half of that to direct support for people. Canadians want a stronger economy, but they also want to know they can have good jobs, afford their groceries, pay their rent, and support their families.”
The budget also confirms the government is proceeding with Bill C-39, which would give ministers new powers to end legal strikes and weaken workers’ bargaining power, despite its stated commitment to protect the right to strike fully.
“A strong economy depends on strong workers’ rights,” said Bruske. “Workers need the ability to bargain for better wages and working conditions if they’re going to benefit from the investments this budget promises.”
The budget includes support for groceries, housing, and home energy costs, alongside major investments in mining, critical minerals, and strategic industries. But these investments lack clear commitments to union representation and enforceable labour standards, while the budget offers little protection for workers affected by AI and technological change.
The CLC is also calling for stronger Employment Insurance covering workers directly affected by trade-related layoffs and those indirectly affected through suppliers, local businesses, and surrounding communities.
“When a factory cuts production, the impact spreads throughout the local economy,” said Bruske. “Workers losing their livelihoods need the same support, whether their employer was directly hit by tariffs or caught in the fallout.”
The CLC warns that plans to slow federal spending growth risk weakening public services. It is calling for restored public-service capacity, adequate health care staffing, universal pharmacare and dental care, and expanded long-term and mental health care.
The budget also advances plans to privatize operations at Canada’s four largest airports. The CLC warns this could increase costs for travellers and put pressure on workers’ wages, working conditions, and bargaining power.
The CLC welcomes measures on workplace safety, wage theft, worker misclassification, and Canada Industrial Relations Board resources.
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