Fighting Trump Tariffs Takes Entire B.C. Construction Workforce

Author: Dan Baxter

Across the country, there’s a renewed sense of purpose to protect Canada’s economy against the threat of hefty U.S. tariffs. In B.C., efforts are underway to get big projects built sooner. While it’s a solid plan to bolster the economy, it does have its challenges. It’s going take every available contractor and construction worker to pull it off.  

We’re in a fighting mood. U.S. President Donald Trump’s tariffs have mobilized elected officials at every level to defend Canada against a potential trade war that could cripple our economy, and plunge us into a recession. Trump’s threats of 25 percent tariffs on Canadian imports, plus an additional 25 percent on our steel and aluminium, and 10 percent on our energy resources has governments working to cushion Canadians during these uncertain times, and put the national and provincial economies on more stable ground.

Premier Eby, who has been in Washington campaigning against tariffs, knows that Canada will have to become less reliant on trade with the U.S. That will not be an easy transition for B.C. According to the Canadian Chamber of Commerce, nearly 6,500 B.C. companies export products to the U.S., from minerals and base metals to wood and cork. That amounts to over $50 billion in trade annually, which sustains more than 270,000 B.C. jobs. Fortunately, B.C. is already forging new trading partnerships. The first cargos of liquified natural gas from Kitimat are set to arrive in Asia later this year.

Diversifying trading markets is only part of B.C.’s plan to help protect the public from economic fallout. The other, is maximizing our most valuable asset: natural resources. The B.C government is aiming to expedite 10 resource projects worth $20 billion in investment, concentrating on projects in remote and rural communities.  

The projects, from critical mineral to energy, such as LNG, wind and solar, will require approximately 8,000 construction workers. That could be a challenge given today’s labour shortage. Right now, many B.C. companies are struggling to find enough workers for current projects, and it’s not about to get any easier. BuildForce Canada estimates that industry will have to recruit an additional 54,000 construction workers this decade to offset retirements and keep pace with new projects.

Compounding the labour shortage is a B.C. policy that restricts the pool of available workers and contractors. The policy allows only contractors whose workers belong to building trades unions to bid on and build many taxpayer-funded projects. This means 85 percent of B.C. construction workers are shut out of big public projects like the Pattullo Bridge replacement and Trans-Canada Highway widening, because they choose to affiliate with other unions, or none at all.

This restrictive labour policy makes today’s economic turmoil even worse. Restricting bids on major public projects has led to skyrocketing construction costs, the most notable of which is the Cowichan District Hospital. It’s a whopping 63 percent, or $559 million over original budget estimates. Add to that the potential for Trump tariffs. The construction industry would be grappling with supply chain issues, even higher material costs, and project delays or cancellations.

At the Progressive Contractors Association of Canada (PCA) our member companies and their workers are ready and eager to help the B.C. government and the private sector build a more resilient economy by getting crucial energy projects underway as quickly as possible. It’s a humungous effort that requires all hands-on-deck.

This is not the time to tell talented contractors and their skilled construction workers that they cannot be enlisted to fight against Trump’s economic shakedown. Government policies that create division have no place. What’s needed now is a more pragmatic approach to building, that encourages the entire B.C. construction industry to unite.