Prime Minister Mark Carney’s new economic plan doesn’t go far enough to bolster our economy. CUPE welcomes efforts to protect Canadian industries from Trump’s tariff chaos. But to build an economy that works for everyone, Carney’s Liberals must do more to invest in public infrastructure, protect public services, and support workers.
Focus funding on public infrastructure and services
The economic plan, known as an industrial strategy, earmarks billions of dollars in grants and loans for businesses. Much of the funding will go to private corporations building and maintaining infrastructure through P3s that governments could instead operate and maintain directly.
Business support should not come at the expense of investments in public infrastructure. When businesses “partner” with governments through public-private partnerships to build roads, bridges, and public transit, projects cost more and deliver less.
Carney’s plan does not protect and expand public services. Strong public services are vital during economic downturns. High-quality public health care, education, child care, and social services are a safety net for those hit hardest by recessions and inflation. These services also support local economies by keeping people employed in good, unionized jobs.
Instead of focusing on handouts for big business, Carney’s Liberals should invest in urgently needed infrastructure and services.
More EI improvements needed
Recognizing that the trade war is already costing workers their jobs, Carney announced Employment Insurance benefits for long-tenured workers will be extended to 65 weeks. The government is also extending existing temporary EI measures. The one week waiting period will continue to be waived so that workers can receive benefits from the first week of unemployment and workers can keep collecting EI even if they get severance and vacation pay.
CUPE has long called for improvements to EI. These latest measures don’t go far enough. Most workers won’t be eligible for the benefits extension because they haven’t worked long enough or earned enough hours to qualify. Benefit rates are still far too low for injured, sick, laid-off, and pregnant workers to live on. EI needs significant reform to improve access for all workers, but as an immediate move to that would support workers impacted by tariffs and boost economic activity, the government should introduce a minimum weekly benefit of at least $600.
CUPE is ready to work with the federal government on a comprehensive plan to protect Canada’s economy from global shocks and support workers through investments in public infrastructure and public services.