Michael Taube: Unifor wants to turn Canada into a third-rate banana republic
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Lana Payne, Unifor's national president, wrote a letter to Prime Minister Mark Carney last month, relaying her union's concerns about Canadian manufacturers closing up shop and moving south to avoid U.S. tariffs. Payne urged Carney to take 'immediate and decisive action using 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.'
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Payne noted that FEMA 'allows the attorney general, with the support of the Minister of Foreign Affairs, to issue blocking orders prohibiting compliance with foreign laws or directives that are contrary to Canadian interests.' What would this entail, exactly? 'These orders can make it a federal offence to move production out of Canada in response to foreign trade measures, carrying penalties of up to $1.5 million for corporations and up to five years' imprisonment for individuals,' wrote Payne.
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Fines and incarceration for offshoring? Payne and Unifor must be out of their minds! Alas, this is the typical narrow-minded view that many union leaders and members have when it comes to understanding private enterprise and how most businesses operate. The basic concept of outsourcing has long been an important component of the free market economy. It enables companies to be more competitive and achieve greater financial potential, thus protecting workers and their jobs, by focusing on their core competencies.
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Entrepreneur Sam Darwish wrote in Forbes in 2021 that, 'Outsourcing is a great way to help your business as it progresses through its various growth stages.' He highlighted several economic benefits of outsourcing that companies should utilize. It can lead to steady growth 'because it's more affordable to outsource the work than it is to build your own in-house team, and because you can cancel an outsourcing contract without having to put people out of work.' Outsourcing gives a business the ability to retain additional flexibility since it can 'staff up before a busy season without the financial commitment of hiring in-house employees, the cost of which can take years to break even on.'
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Darwish also pointed out that outsourcing agencies 'are capable of attracting top talent to ensure customer satisfaction and competitive results.' Hiring the best-qualified candidates can help build a company's brand and enhance its reputation, which are both vital to success in a competitive marketplace. Outsourcing enables a company to 'provide your customers with consistent customer service,' and allows 'your internal team members to focus on their own tasks, helping your business run more efficiently and ultimately increasing your (return on investment).'
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