TORONTO– Federal government measures announced today to support workers and sectors hit hardest by U.S. tariffs and trade disruptions include positive steps, but stronger action is still needed to protect workers and build resilient industries says Unifor.
“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.”
Unifor says the federal government’s adjustments to Canada’s Zero Emission Vehicle (ZEV) mandate, including the removal of the 20% sales requirement for 2026, are necessary given unprecedented challenges facing the domestic industry. This move provides temporary relief to an industry reeling from Trump’s tariffs, but Unifor warns the change is only one piece of a much larger puzzle.
“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. A mandate alone won’t secure a Canadian EV industry—we need a full industrial strategy that ensures we both make and sell EVs in this country.”
Other measures announced today also reflect long-standing Unifor proposals, outlined in Unifor’s vision document Charting a New Path for Canada’s Economy.
The federal government’s commitment to a comprehensive Canadian content policy is a move in the right direction, but specific details are still lacking. Unifor expects a truly ambitious ‘Buy Canadian’ program that extends beyond steel and lumber to include all goods and services procured, where possible, applied consistently across all federal agencies and Crown corporations. This includes vehicles, rolling stock, buses, trucks and ships and must ensure that national infrastructure includes telecommunications and public services.
Employment Insurance improvements such as extending benefits for some long-tenured workers and waiving separation payments and waiting periods are constructive changes, but they must be made permanent. Unifor is also concerned the definition of “long-tenured” may exclude workers, including thousands of autoworkers, affected by extended periods of retooling and downtime in recent years.
The government’s commitment to invest $382 million investment over five years to create so-called “Workforce Alliances” aligns with Unifor’s call to establish sector-wide councils, involving unions among other stakeholders focusing on industry development initiatives. Unifor encourages government to broaden its focus beyond narrow labour market projects toward wide-scale industrial development and investment planning.
The newly announced $5 billion Strategic Response Fund will support trade-exposed industries to adapt and diversify. While welcome, Unifor is pressing for clarity on Ottawa’s earlier $2 billion auto sector support fund commitment.
The $450 million skills package to retrain 50,000 workers includes financial support during training and funds for job retention—both long-standing Unifor proposals. This is an important action to help workers upgrade skills while staying connected to the job market.
Finally, new biofuel incentives worth $370 million over two years are a win for Canadian producers, helping a sector long undermined by heavily subsidized U.S. imports. This support can support jobs in a growing energy industry.