Unifor calls on federal government to punish corporations offshoring Canadian jobs

Cision Canada

20-05-2025

TORONTO, May 20, 2025 /CNW/ - Unifor, 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. trade measures. The union has presented a detailed proposal, including legislative amendments, outlining how the Foreign Extraterritorial Measures Act (FEMA) can be deployed to penalize corporations that offshore or outsource work to the detriment of Canada's national interest.
"Canadian workers should not pay the price for American trade aggression," said Unifor National President Lana Payne. "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."
While Canada has responded to unfair U.S. tariffs with retaliatory measures, these steps fall short when it comes to stopping companies from offshoring Canadian production to the U.S., resulting in devastating job losses. Unifor is calling on the federal government to immediately apply FEMA to penalize Canadian-based companies in the event they shift operations south of the border in compliance with U.S. pressures or incentives.
The case presented by Unifor can be read across varying levels of aggressiveness. FEMA, as it stands, can be used as a tool immediately—although penalties and remedies are currently limited. However, legislated amendments to FEMA (when Parliament returns), intersecting with existing powers under the Customs Tariff, present a suite of very aggressive—almost limitless—punitive measures, up to and including blocking or restricting the import of goods from companies that have offshored Canadian jobs.
Read Unifor's letter to Prime Minister Carney and pertinent cabinet ministers here.
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 or directives, with penalties currently reaching 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," added Payne. "By using FEMA, and strengthening it through legislative amendments, the government can send a clear message that offshoring Canadian jobs will not be tolerated."
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."
Unifor is Canada's largest union in the private sector, representing 320,000 workers in every major area of the economy. The union advocates for all working people and their rights, fights for equality and social justice in Canada and abroad, and strives to create progressive change for a better future.