Deputies are preparing to vote to the federal budgetthose who are in automotive sector they say they are concerned that it does not meet the needs of industry workers.
The budget did include some aspects that auto sector officials said could be helpful, such as a productivity superdeduction to make it cheaper for businesses to invest in equipment, but they said it did not sufficiently target industries hit hard by U.S. tariffs.
“The budget includes very large projects and really lacks direct support for auto workers who are impacted by these tariffs,” said Jeff Gray, president of Unifor Local 222, which represents more than 8,000 active workers, including those who work at the General Motors plant in Oshawa.
Gray said he was pleased with a recent federal decision that saw Ottawa cut the number of U.S. vehicles that Stellantis and GM could import duty-free, but he said he wants to see more direct support for laid-off auto workers.
Prime Minister Mark Carney's budget included the previously announced Strategic Response Fund, which aims to give sectors affected by tariffs access to funding that will enable them to adapt to new markets. The fund also says it will support affected workers through “major retraining efforts.”
But that worries Gray, who told Global News the “last thing” he wants to see is auto workers being retrained, saying direct financial support is what's really needed.
“Once you leave this sector, many of our members will not have transferable skills to other sectors,” he said. “So we don't want to see a focus on retraining or action centers, but rather direct financial support for workers if they do get laid off, to help them survive the layoff to the point where we can get manufacturing and the auto sector back on its feet and it's back to hiring again.”
He added that the support is needed because about 700 employees at GM's Oshawa plant will be laid off when the company cuts a third shift in January.
Auto industry officials say targeted support could be helpful, but with the ongoing trade war with the U.S. and Canada's dependence on its southern neighbor, the conflict needs to end.
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“There really isn't a level of targeted support that can compensate for the fact that this industry is completely dependent on trade with the United States,” said Brian Kingston, president of the Canadian Automobile Manufacturers Association.
“Introducing programs to support the sector, while helpful, ultimately we will have to get these tariffs removed.”
Kingston, whose organization represents GM, Stellantis and Ford in Canada, said in an interview that there are things the government could do “right now” that weren't in the budget.
Those include ending the federal electric vehicle mandate, which he said is “extremely costly” for manufacturers, and taking steps to make Canada more competitive in auto manufacturing.
“We have been reacting to U.S. policy for decades,” Kingston said. “Comprehensive tax reform, real regulatory reform that gets us rid of duplicative rules like the electric vehicle mandate, and that insulates us from changes in U.S. policy, making Canada a place where people want to come and build cars.”
Some in the auto sector say they are waiting for more details on aspects of the budget that they believe could still help the sector, even if the word “auto” is not explicitly mentioned.
Flavio Volpe, president of the Automotive Parts Manufacturers Association, said he wants to see more details on the Strategic Response Fund, tax changes to make Canada more competitive and language related to defense investment, which could also include manufacturing.
“All of Canada is suffering from higher cost burdens and greater commercial anxiety,” Volpe said. “The best we could hope for was the challenge and the means available if you accepted it. So we're happy, that's true.”
MPs will vote on the budget Monday night, but it remains to be seen whether it will pass or whether Canadians will be able to return to the polls for their second election in seven months.
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