The Trump Tariffs & Economics
This could have a profound impact on all Union negotiations, on the cost of living, and on your life!
The affordability crisis in Canada has continued to harden, and to take a real toll on each and every one of you. All working people are, in fact, suffering. We’ve all heard the phrase:“the rich get rich and the poor get poorer.”In our current environment, it rings truer than ever.
Canada’s economy has been tied up with the US’ economy for at least nine decades. Ever since the Great Depression, we have seen a trend of increased trade. The US is our biggest trading partner, and obviously any sudden and dramatic change to that relationship could have shocking and dire consequences.
Of particular concern is inflation. Tariffs on goods and services will have to be paid by someone, and there would be no surprise if that someone was you. Tariffs could cripple the economy in other ways, leading to recession and a rise in unemployment. They could lead to a decline in GDP, and a rise in government deficits.
When governments have less money, there is less revenue available for things like your healthcare and your pension. CPP and old age security could be under pressure.
WHAT IT MEANS AT THE BARGAINING TABLE
We have already seen anxiety about the cost of living playing out in labour negotiations. The affordability crisis has led to tensions at every UFCW bargaining table from Safeway to Sofina, with workers asking for more because they simply need to survive.
We are at bargaining in other workplaces as well: at Quest School and the Gerard Raymond Center, where employees perform special altruistic and caregiving work, the need and demand for higher wages is also front at center. At JBS, Olymel and Cargill, Local 401 is demanding an immediate bump in pay for workers who are struggling to pay their bills. Frankly, all 32,000 of our members are experiencing this, as are at least a quarter of a million other workers who are unionized and confronting bargaining this year with their employers.
Now, employers like Sobey’s are acting just like Donald Trump, who says he won’t negotiate on tariffs and urges Canada to be a 51st state. In similar hardline fashion, Sobey’s said “accept a shaky contract for four years or we’ll punish you by reducing your wage.” It was “take it or leave it” for them.
“This environment is unprecedented,” says President Thomas Hesse of UFCW Local 401. “It means that we need to think hard before we speak. We need to think hard before we act. Panic and turning on each other is what the billionaires want to see.”
“Any offers by employers at the bargaining table need to be very carefully considered,” agrees Secretary-Treasurer Richelle Stewart. “You need to look hard at what they could mean for you in a rapidly-changing world.”
“It is clear that employers who propose long collective agreements need to be questioned,” adds President Hesse. “They often want to lock you into something that isn’t good for you. Before you sign on the dotted line, it’s important to consider whether employer offers are reasonable, and make some sense for you.”
There is a risk in everything, but these are very risky times. To have a sense of those risks and what they mean for you, it’s important to stay informed. For example, the CBC has reported on the tariffs that are supposed to be taking effect today.
It’s also important to remember the power of your collective voice. Your Union is committed to providing a strong voice for you and with you. You need your collective voice and your Union now more than ever. As individuals you are infinitely vulnerable; if you stand strong together the direction that the billionaires are taking will bend and can be altered.
In solidarity,
Your Union
UFCW Local 401
Click here for a printable copy of this update.
Posted on: February 01,2025