CFIB urges Ottawa to protect supply chains in labour code reforms

The Canadian Federation of Independent Business (CFIB) is urging the federal government to strengthen protections for supply chains and reduce the impact of labour disruptions on small businesses as Ottawa considers reforms to the Canada Labour Code.

The business group says recent strikes and labour disputes involving CN and CPKC railways, ports in British Columbia and Montreal and Canada Post have imposed significant costs on small businesses. According to CFIB, affected businesses reported median losses of $10,000, with manufacturers, wholesalers and producers among the hardest hit.

CFIB said 92 per cent of small business owners who expressed an opinion support designating federally regulated workplaces that are critical to supply chains as essential service providers.

“Small businesses didn’t have a seat at the table during recent strikes, but they were the ones paying the price. Even short disruptions have triggered lasting losses that rippled through the entire economy,” said Corinne Pohlmann, CFIB executive vice-president of advocacy. “The government needs to have the tools to intervene and prevent Canada’s supply chains from being held hostage every time there’s a disagreement with the unions.”

The organization is calling on Ottawa to maintain its powers under Section 107 of the Canada Labour Code, which allows the federal government to intervene when supply chains are threatened. It is also recommending that economic harm be considered in decisions regarding maintenance of activities during labour disputes.

Among its proposals, CFIB is suggesting mandatory economic impact studies before strikes occur to assess potential effects on the economy, small and medium-sized businesses, and consumers. The group also wants collective bargaining negotiations to be made more transparent through the public disclosure of offers and counteroffers.

“Cancelled orders, delayed shipments, lost income: small businesses pay the price every time federally regulated supply chains grind to a halt,” said Jasmin Guenette, CFIB’s vice-president of national affairs. “The Canada Labour Code doesn’t consider the damages a work stoppage can cause to small businesses and the economy. That needs to change. The federal government must stop bending labor laws in favour of large unions. Economic stability and the protection of the supply chain must be the government’s top priority, not an afterthought.”