The early Christmas gift Canadian small business could have done without

Last November, during work stoppages at federally regulated workplaces, like ports, airports and railways. This was an early Christmas gift that Canadian small businesses could have lived without. According to the government, the goal of this legislation is to bring more stability and certainty during collective agreement negotiations.

But it is more likely this legislation will encourage more frequent and longer strikes. British Columbia and Quebec already have similar provisions in place, and they have experienced more strikes than most other provinces. Similar legislation has been introduced several times at the federal level but was always defeated.

For example, in 2016 and 2019, replacement worker bills were brought forward, and in both cases, most Liberal and Conservative MPs voted against them. Today, while no one knows how the Conservatives will vote, we know Liberal MPs will vote for this legislation. that requires such legislation be introduced before the end of the year for the NDP to continue to support the Liberals on other bills.

This bill is not the result of a long consultation with employers and unions and it does not reflect any kind of consensus, or a need expressed by a wide group of stakeholders. This bill responds to the demands of the NDP and large labour unions. Period. We know labour unions would be the winners here, but who are the losers? Among them are small businesses that rely on a fluid supply chain for their operations.

Prolonged strikes at ports and rail companies, for example, can be crippling for many small businesses as their impacts spread far beyond the operations of that one company. Many small businesses do not have the resources to withstand the financial shocks of these types of strikes and finding alternative modes of moving goods around is practically impossible.

A fluid supply chain is crucial for the movement and exchange of critical goods such as food, medicine and manufactured products. It’s critical for the entire economy. Recent strikes at the St. Lawrence Seaway, B.C. ports and the Port of Montreal had a massive impact on the bottom line of many small businesses.

The strikes at the Port of Montreal are good examples of how such strikes can disrupt the supply chain and hurt businesses’ finances and operations. The Government of Canada estimated that a full shutdown of the Port of Montreal would cost the Canadian economy between $40 million and $100 million a week.

In addition, it takes time for the entire supply chain to get back on its feet after a work stoppage at a federally regulated employer adding costs to small businesses. Maritime Magazine after a 19 day strike at the Port of Montreal in the summer of 2020. Recent strikes impacted many small businesses like retailers waiting on their shipment, construction businesses experiencing delays to complete projects on time, manufacturers incurring storage charges from the backlogs in the ports, or train yards and agriculture businesses losing inventory and sales because perishable goods were not unloaded or brought to market quickly.

The role of the minister of labour should be as an arbitrator, balancing the interests of worker representatives and employers. Minister O’Regan must be neutral and decide for the good of the country, not for the good of any particular group. But when he is joined at a press conference by past and current union leaders, when he launches a union led advisory table on Canada’s workforce future, when he uses social media to promote his bill with big labour unions, it gives the impression that he is more interested in securing the support of large unions than working to ensure a balanced relationship between employees and employers.

A strong majority of CFIB members don’t support a ban on the use of replacement workers, and 92% of our members say that those who are instrumental to the supply chain should be considered essential service providers. Minister O’Regan should not simply cater to the unions but must find ways to address the concerns of other important players in our economy like small businesses..