Opinion calls for swift action to expand democratic workplaces and protect Canadian communities
Canada must rethink and prepare to reorient its economy, according to an opinion piece in the Vancouver Sun, as the US government escalates its trade war.
The opinion stated that while the country needs new export markets and must reduce barriers to interprovincial trade, more can still be done.
According to the opinion, “our economy must be better for workers, small businesses, families and communities.” It called for creative and tested ideas that gain support across the political spectrum.
It pointed to existing policies that could achieve these goals, highlighting federal legislation passed last year that created Employee Ownership Trusts (EOTs), describing them as “a promising new vehicle to make workplaces more democratic, giving workers more ownership and control.”
Democratic employee-owned firms, as explained in the opinion, involve employees collectively owning a majority of the company, having meaningful rights to help shape decisions, and broadly and equitably sharing profits.
Although such firms exist in Canada, they remain few in number. Most are located in Quebec, but examples can be found elsewhere.
The opinion mentioned several examples. Friesens in Manitoba, one of Canada's leading book printers, is employee-owned and democratic.
Shift Delivery, a worker cooperative in Vancouver, provides bike-powered delivery services. Construction companies PCL Construction and Chandos Construction are both 100 percent employee-owned.
The opinion noted that EOTs simplify the process for business owners to sell their firms to employees by allowing the purchase price to be paid from the firm's profits over several years, requiring no out-of-pocket costs for employees.
It cited Grantbook, a company advising philanthropic foundations, as the first Canadian business to convert to an EOT in January 2025.
Federal and provincial leaders, according to the opinion, should adopt policies that strengthen economic resilience.
It argued that democratic employee-owned firms are more likely to remain rooted in their communities, as employee-owners are less inclined to relocate businesses in reaction to tariffs or economic disruptions, or to seek out the cheapest labour force globally.
The opinion further explained that democratic employee-owned firms tend to weather economic adversity better and face challenges with creativity.
They are less likely to fail during recessions and more likely to maintain employment and wages, which helps sustain macroeconomic stability.
Research cited in the opinion showed that democratic employee-owned firms could be just as competitive and profitable as conventional businesses and are more likely to distribute wealth more equitably, thus reducing inequality within firms and society.
As Canada faces the growing impact of labour-saving AI technologies, the opinion suggested that employee-owners would be better positioned to share in profits and benefits from efficiencies.
Without worker control, it warned, AI systems could result in job losses and worsen economic inequality.
Governments, the opinion proposed, have several ways to support the democratization of the economy. One approach is to provide seed grants for regional employee ownership centres, a model that has seen success elsewhere.
Another proposal is to create a public investment bank to nurture democratic employee-owned firms and to encourage conventional banks to lend to them.
The opinion recommended that governments ensure democratic employee-owned firms are eligible for — and prioritized in — existing public investment funds and business support programs.
It also proposed that workers be granted a right of first refusal when businesses are sold or shuttered.
Additional measures suggested in the opinion include tax incentives for democratic employee ownership, such as lower corporate income tax rates for these firms and personal income tax deductions for workers who invest their savings in forming new worker co-operatives.
The opinion concluded that “Canada is facing an unprecedented threat from an unpredictable and hostile US administration and we need to do something new and different, fast.”
It stressed that although global economic trends and external shocks will continue to affect Canada, better protections are achievable. A Canadian economy with more democratic workplaces would be “a more equitable, empowered and resilient economy,” and the time to act is now.
