Union calling for Canada to ‘punish’ corporations who move jobs out of the country because of tariffs

Canada’s largest private sector union is calling on the federal government to take “immediate and aggressive action” against corporations that move jobs out of Canada in response to U.S. tariffs.

“This is not a call for new legislation, but rather a call for government to demonstrate its political will,” Unifor President Lana Payne said in a letter to Prime Minister Mark Carney.

Payne congratulated Carney for a “swift and aggressive” response to the tariffs announced by U.S. President Donald Trump last month but said there are other measures that can and should be implemented.

Payne urged the federal government use the Foreign Extraterritorial Measures Act (FEMA) to prevent corporations operating in Canada from offshoring jobs in response to foreign trade policies – particularly those originating from the United States.

Under FEMA, the Attorney General – backed by the Minister of Foreign Affairs – has the authority to issue orders that block compliance with foreign measures that harm Canadian interests. These blocking orders would make it a federal offence for companies to move production out of Canada in response to U.S. tariffs, with penalties up to $1.5 million for corporations and up to five years’ imprisonment for individuals.

“This is existing legislation that can be activated today. No new law is needed – just political will to protect Canadian workers and prevent further job losses in vital manufacturing sectors,” Payne explained. “By using FEMA, and strengthening it through legislative amendments, the government can send a clear message that offshoring Canadian jobs will not be tolerated.”

Prime Minister Mark Carney

“It’s time for the federal government to draw a clear line: if you do business here, you don’t get to pack up and leave to avoid tariffs without consequences.”

Retaliatory measures taken by Ottawa so far in the trade war “fall short” when it comes to stopping companies from offshoring Canadian production to the U.S., resulting in “devastating” job losses, Payne added.

Unifor is also calling for stronger penalties, including asset seizures for companies that violate blocking orders, and for FEMA compliance to be a condition for any company seeking relief from Canada’s own retaliatory tariffs.

“We need to stop rewarding companies that gut our communities and undermine our economy,” said Payne. “This is about protecting good Canadian jobs and defending our sovereignty.”

The union said Canadian workers are concerned that an “intensifying and unjust” trade war provoked by the United States will cause job loss, income security and economic hardship. She noted that some Canadian manufacturing facilities have closed and relocated production to avoid U.S. tariffs and there are investment delays and temporary layoffs plaguing the Canadian auto, steel, aluminum and forestry industries.

More than 30,000 job losses happened in Canada last month as a result of the tariffs and the removal of a shift at the Oshawa Assembly Plant this fall will result in 700 more. Payne said she was “good and angry” with GM over the job cuts and said it was “exactly what we saw coming” when the tariffs were announced. As well, 500 job losses are expected at the CAMI assembly plant in Ingersoll and Honda has delayed a planned EV battery plant in Alliston.

“Canadian workers should not pay the price for American trade aggression.”

“Corporations that benefit from doing business in Canada must not be allowed to abandon their responsibilities to our workforce and communities when it is convenient. The consequences for offshoring jobs must be real, enforceable, and immediate.”