In the Face of Tariffs, Canada Must Retrain Workers

This blog post was provided by AtkinsRéalis.

Written by Joe St. Julien, President, Nuclear, AtkinsRéalis

Last month, the United States imposed 25 percent tariffs on all automobiles into the United States, including from Canada and Mexico. The levy is slated to be extended to some auto parts as of May 3. This comes after sweeping tariffs were levied on Canadian steel, aluminum and many other goods.

Automotive manufacturing contributes over $18 billion to the Canadian economy and is responsible for well over half a million direct and indirect jobs, according to the Canadian Vehicle Manufacturers’ Association.

Still according to the CVMA, up to 12,000 auto parts workers are already off the job because of the tariffs. For its part, the Conference Board has estimated that 160,000 jobs could be lost across the economy in the current quarter alone if US tariffs remain in place.

The federal government has retaliated against US tariffs with countermeasures of its own and has committed to providing immediate financial support to the automotive sector. The Government of Ontario also announced $11 billion in fiscal relief to help employers keep workers on the job.

I wholeheartedly support the steps that are being taken to protect Canadian workers from the immediate pain wrought by US trade action. Everything must be done to protect strategic, well-paid union jobs.

But the United States government has made clear its intent to repatriate automotive manufacturing jobs. Despite the strong political support we have seen, the possibility of Canada permanently shedding a portion of its automotive jobs cannot be discounted.

In the face of this threat, additional structural solutions must be considered to ensure Canadian workers are safeguarded well into the future, including private sector initiatives.

Beyond immediate retaliatory measures, I believe one element of Canada’s response must include efforts to retrain workers in sectors affected by US tariffs, so that they may pursue meaningful careers without the threat of disruption hanging over them like a sword of Damocles.

One opportunity lies in efforts to decarbonize global electricity grids and increase the supply of low carbon energy. As part of this effort, 31 nations have pledged to triple the production of emissions-free nuclear energy by 2050, according to World Nuclear News.

The drive to develop nuclear includes Canada, particularly in Ontario, where Bruce Power and Ontario Power Generation are together planning to add some 18,000 megawatts to their nuclear capacity.

The opportunity for Canada to become a global purveyor of nuclear engineering services is immense. The domestic nuclear ecosystem, anchored around homegrown CANDU nuclear technology, already supports over 89,000 stable and well-remunerated jobs across a wide variety of professional and skilled trades fields in Canada, according to the Canadian Nuclear Association.

But our supply chain is already maxed out. My company, AtkinsRéalis, added over 570 employees to our nuclear division last year alone, and will need more in the immediate future. As Canada looks to support the deployment of new nuclear capacity at home and abroad, the need for additional skilled labour will only continue to grow across the supply chain.

We must seize every opportunity to provide new livelihoods  for workers by developing sectors of the Canadian economy that are impervious to US trade actions. Millwrights, electricians, boilermakers, engineers and assembly-line workers. All could find a home in the nuclear sector with targeted retraining.

Some may view this initiative as an opportunistic gesture. I view it instead as making a virtue out of necessity. I take no pleasure in writing these words, and wish the circumstances were not so. But we are reminded daily that disruption and uncertainty are here to stay.

Government has an important role to play in marshalling the country’s resources to deal with economic uncertainty. I believe private sector business leaders must also take initiative, notably by considering how they might welcome dislocated workers into their ranks.

I look forward to engaging with governments, labour unions, and other business leaders in the weeks and months to come as we navigate these unprecedented times.