Trade war layoffs ‘similar to COVID’: Employment lawyer with 580 CFRA

Interview Summary

Tariffs remain top of mind as the Canada-U.S. trade war rages on.

As a result, many Canadian businesses seem to be preparing for financial difficulties. Employers have begun to implement both temporary and permanent layoffs.

What can employers and employees do to protect their rights? Do employers have legal obligations to their staff despite increasingly difficult financial circumstances?

Mackenzie Irwin, an Ontario employment lawyer and Senior Associate at Samfiru Tumarkin LLP, joined Patricia Boal on Newstalk 580 CFRA to discuss employee rights.

Interview Notes

• Layoffs in a union environment: Irwin explained that there is a difference between the rights of union and non-unionized employees. “In a unionized environment, your entitlements are driven by what is outlined in the collective agreement.” Non-unionized employee’s rights would be governed by Ontario’s employment laws.
• Employer severance offers: “This is a scenario which is very similar to the start of COVID. Employers are unfortunately trying to get a deal and lay off their workforce as cheaply as possible,” Irwin stated. “Just because these are tough economic times, it does not mean employee rights have changed.”
• Temporary layoffs: Irwin reiterated the similarities of current layoffs to those implemented during the pandemic. “Lots of employees were placing their employees on temporary layoffs. But those layoffs are terminations,” said Irwin. “An employer in Ontario does not have the right to place employees on a temporary layoff. They have to have a specific term in an employment contract to implement temporary layoffs.”
• When to seek legal advice: “Lots of things we’re seeing employers trying to do, reducing pay and hours, placing employees on a temporary layoff…those are all red flags.” Irwin stated. “Those are situations where you should be reaching out to an employment lawyer.”

Related Resources

For further insights and discussions related to tariffs and ongoing layoffs, explore the following resources:

• Impact of U.S. tariffs on employees
• Canadians fear layoffs as a result of trade war