Unions welcome Budget 2026 affordability help but slam strike powers and gaps for laid-off workers
The Canadian Labour Congress says Budget 2026 does some of what working people need on the cost of living. But it says the budget falls short on protecting workers from layoffs, debt and technological change, and pushes ahead with a bill unions say would weaken the right to strike.
The CLC, which represents more than three million workers, responded Friday to the federal budget, titled “Masters of our destiny.”
“If there’s one lesson from the elections south of the border, it’s that affordability cannot be treated as secondary to economic growth,” CLC President Bea Bruske said. “Today’s budget commits nearly $100 billion to business incentives and less than half of that to direct support for people.”
What the budget offers
According to the government’s budget speech, Budget 2026 includes more than $22 billion over five years in new measures aimed at day-to-day costs. Among them:
- A new Canada Groceries and Essentials Benefit Supplement, which the government says will give more than 12 million people a 50 per cent boost to their benefit, worth $4.1 billion in 2027.
- A new Build Canada Workers Benefit for 1.9 million low-income workers, including 180,000 who don’t currently qualify.
- Help for more than a million households to retrofit their homes and cut energy bills, and up to $50,000 in savings for first-time buyers of new homes.
The budget also leans heavily on what it calls an “investment supercycle,” with major spending on energy, critical minerals, defence and other strategic industries. The government says it has provided $44 billion so far to help workers and businesses hit by U.S. tariffs.
The CLC welcomed the grocery, housing and energy support, along with measures on workplace safety, wage theft, the misclassification of employees as contractors, and more resources for the Canada Industrial Relations Board.
The right to strike
The union federation’s sharpest criticism is over Bill C-39. The CLC says the budget confirms the government is going ahead with the bill, which the CLC says would give ministers new powers to end legal strikes and weaken workers’ bargaining power, despite the government’s stated commitment to fully protect the right to strike.
“A strong economy depends on strong workers’ rights,” Bruske said. “Workers need the ability to bargain for better wages and working conditions if they’re going to benefit from the investments this budget promises.”
The CLC also says the budget’s investments in mining, critical minerals and strategic industries lack clear commitments to union representation and enforceable labour standards. It says the budget does little to protect workers affected by AI and technological change.
EI, public services and airports
The CLC wants Employment Insurance strengthened to cover workers laid off because of the trade war, including those who lose work indirectly at suppliers, local businesses and in surrounding communities.
“When a factory cuts production, the impact spreads throughout the local economy,” Bruske said. “Workers losing their livelihoods need the same support, whether their employer was directly hit by tariffs or caught in the fallout.”
It also warns that plans to slow growth in federal spending could weaken public services. The CLC is calling for restored public-service capacity, better health-care staffing, universal pharmacare and dental care, and expanded long-term and mental health care.
The CLC also objects to plans in the budget to privatize operations at Canada’s four largest airports. It warns this could raise costs for travellers and put pressure on airport workers’ wages, working conditions and bargaining power.
Sources: Canadian Labour Congress, “Federal budget takes steps on affordability but leaves major gaps in worker protections,” news release, Nov. 6, 2026; Government of Canada, Budget 2026 budget speech.
