Canadian Labour Congress president warns of early employer moves to cut benefits and pensions, calls for urgent, cross-border coordination ahead of Trump's 'Liberation Day'
The president of Canada’s largest labour organization is sounding the alarm for plan sponsors as US President Donald Trump teases the return of global tariffs on April 2, his so-called "Liberation Day".
Bea Bruske emphasized the ripple effects of tariff volatility on manufacturing are already visible. But what’s less discussed is how these trade pressures are squeezing long-term obligations like pensions and benefits.
“What we're hearing anecdotally from unions is that the employers are telling them that while there may not be layoffs yet, layoffs will most definitely happen if these more widespread tariffs come to be,” said Bruske, president of the Canadian Labour Congress.
She noted that employers are already reporting shrinking order books.
Moreover, when companies get hit with higher costs and unpredictable supply chains, Bruske explained, there’s a familiar pattern internally as one of the first places that they look to cut is long-term commitments like pensions and extended benefit costs.
In her view, benefits and pensions should not be treated as a financial pressure valve. In fact, cuts to pensions and benefits “shouldn’t be first on the chopping block.”
“These are negotiated, often by the union, and these are priorities that workers have placed on what their current benefit level needs to be, but also what their future benefit level needs to be. Focusing on benefits and pensions is not a good move,” she asserted.
“Now is the time to have a serious conversation around the fact that pensions are deferred wages for many workers,” added Bruske, noting that countless workers have exchanged pay raises for long-term retirement security.
She warned that employers under financial pressure often target long-term obligations first. That makes it essential to fortify benefit and pension commitments before cuts become a bargaining chip.
Instead, Bruske urged plan sponsors to get proactive. She stressed it's incumbent on unions and the various jointly trusted pension plans to stress test how pensions are funded, emphasizing that plan sponsors need to understand if their plans are in surplus. If not, they need to identify what it will take to fix that.
Additionally, preparation is also complicated by the fact that each jurisdiction handles pension legislation differently.
“Depending what province or territory you're in, that might be different depending on where [your members] are located across the country,” she said, underscoring plan sponsors take a detailed review of collective agreement language and regulatory protections.
But beyond technical assessments, Bruske emphasized the importance of communication, especially in an uncertain environment.
“There needs to be some really frank discussion about the funding model currently for the benefit plan and the pension plan that various different workplaces have,” said Bruske. “There needs to be some honest and frank discussions about what the worries and concerns are. If those pensions are fully funded, I think you're in a good place. If they’re not, then conversations need to happen about how to get that funding up, and what that's going to take.”
“The number one thing, no matter what obstacle we're facing, is to have clear and consistent communication to the union and to your members,” she added. “There's nothing worse than the unknown.”
Bruske also acknowledged honest discussions at the trustee level are essential to address funding gaps and explore ways to shore up contributions.
Cross-border bargaining
She believes collaboration across the bargaining table and across the border is essential, especially as many Canadian workers work for firms who are based in the US. Bruske noted that some of the most effective resistance to tariffs will come from coordinated voices in both countries.
“Adding a consistent and clear message that these tariffs hurt workers on both sides is critically important,” she said.
While she agrees that employers can’t afford to lean entirely on the federal government, they also need to act decisively in their own operations particularly if those workplaces are also US-based employers.
“They need to make sure that our US counterparts are absolutely speaking out against the tariffs,” she said.
Bruske is also watching Ottawa closely. While Bill C-228 aims to prioritize pensioners in insolvency proceedings, it won’t take effect until 2027, leaving current plans exposed if companies go under before then.
“If we end up having bankruptcies prior to 2027, people's pensions are at risk,” she said.
She sees this moment, particularly in the middle of a federal election cycle, as a critical time to put pension security on the political agenda.
“Our federal government has a huge role to play in terms of where workers are at, whether they're first in line or whether they're last in line after other financial obligations have been met,” she said.
Her ultimate message to plan sponsors is that this isn’t just a union issue, and it’s not a political one either.
“This is a time for us all to pull together,” she said. “To work across party lines, to work between employers, unions and levels of government. We need to find new markets, but right now is the time to also double down and buy Canadian, think Canadian, and support one another in every aspect.”
