Layoffs risk long-term loss of benefits, pension credits, labour leader warns

'We always ask that benefits and pensions are bridged and people don't lose out. That can't be lost in this uncertain time,' says EVP at Canadian Labour Congress

Layoffs risk long-term loss of benefits, pension credits, labour leader warns

In Windsor, Ontario, a city synonymous with Canada’s auto manufacturing legacy, the recent shutdown of the Stellantis assembly plant has rattled more than just the shop floor.  

It has unearthed deep anxieties around job security, wages, and most critically, the future of pensions and benefits for unionized workers navigating the economic tremors caused by fluctuating trade policies and US tariffs. 

Siobhan Vipond, executive vice president at the Canadian Labour Congress (CLC), was quick to highlight the mood among workers.  

“It’s setting up for not knowing what’s coming next... What would you do with half your wages this month?” she said. “That’s what we’re paying attention to because folks are waiting and holding and hoping.” 

Vipond also raised alarms about how these disruptions affect access to workplace benefits and pension contributions. Missed hours or employment gaps can mean lost credits toward retirement, or lapses in health coverage.  

“We should always be concerned about that,” she said. “For our economy to be strong, we need workers in good jobs. Auto jobs have been good jobs because they're union jobs, and that's what we need to be supporting. This uncertainty is putting a lot of people in a precarious position.” 

While Vipond couldn’t speak to the specifics of collective agreements or commitments around pensions and benefits among employers, she emphasized the broader union position.  

“We always ask that benefits and pensions are bridged and that people don’t lose out. That can’t be lost in this uncertain time,” she asserted.  

The Stellantis closure, initially announced as a two-week halt, has left hundreds of workers in limbo. Vipond noted the ripple effects extend beyond the automaker’s gates as parts suppliers and ancillary industries are also bracing for cuts.  

Meanwhile, Bea Bruske, president of the CLC, agrees, but is quick to shift the focus from crisis to opportunity.  

“Workers are looking for a national response that’s as bold as the threat we face. It starts with defending Canadian jobs and ends with building a future where Canada is no longer vulnerable to the whims of foreign actors,” she said in a press conference in Windsor on Monday.  

Kristen Siapas, president of CUPE Local 1393 at the University of Windsor, connects the crisis in manufacturing to a broader erosion of public sector stability.  

“Cutbacks and changes to funding structure have brought an atmosphere of uncertainty for workers about their future. These layoffs are not just numbers on a spreadsheet. They are people and families who live and work right here in our community,” she said during the conference.  “People are waking up today not sure whether their job is going to exist tomorrow. We can’t afford to be complacent.” 

Both Vipond and Bruske both reject the notion that Canada narrowly avoided economic disaster on Trump’s “Liberation Day.”  

“We have lots of tariffs in place that were already announced. Steel, aluminium, forestry, and now auto. These are all good jobs at risk. That’s a million families and a million communities,” Bruske said. 

The labour leaders argue that the response from employers can’t stop at layoffs and austerity. Instead, they call for meaningful investments tied to good union jobs. Bruske laid out specific demands like expanded investment tax credits for green industries, enforceable quality job conditions, and reforms to the Employment Insurance (EI) system.  

The CLC’s “Workers Together” platform is their roadmap out of this crisis. Vipond describes it as a “worker-first” plan rooted in collaboration. Not just between government and labour but including employers.  

“The best approach is a tripartite approach. Employers, government and workers at the table. We do agree on a lot, like that the Canadian economy is worth supporting,” she said. 

Both Bruske and Vipond warn that failing to act decisively would leave Canada increasingly exposed to international instability.  

“This isn’t just about Windsor,” said Bruske. “I’m thinking about the steelworkers in Sault Ste. Marie, Hawkesbury, Hamilton, and Quebec. This is bigger than autos. If this government of Canada can move mountains in 2020 to save Bay Street, they sure as hell can save Main Street in 2025.”  

Siapas echoed the call to action.  

“We must stand in solidarity to defend our values... This is our time to show we will not be defined by these setbacks, but by the determination of our people to overcome them,” she said.  

“We need people who understand that the workers are the heart of our country. Workers built this country, and now more than ever, we must stand in solidarity to defend our values,” added Siapas.  

And for all the rhetoric, the stakes remain very real for workers affected across all industries.  

“We’re talking about what happens to your rent or mortgage, what happens to groceries. You lose your income, your benefits, your pension credits,” underscored Vipond. “We can’t sit on the sidelines. The damage is just potentially too big.”