Manitoba small businesses sound the alarm over hasty labour reforms

Winnipeg, November 18^th, 2024 – Small business owners across Manitoba are raising the alarm about the provincial government’s recent labour reforms, which they say are creating significant and immediate challenges for their operations.

These changes, introduced with minimal consultation, are placing unsustainable financial and operational burdens on small businesses already contending with inflation, high interest rates, and labour shortages.

A Mounting Crisis for Small Businesses

Small businesses, which represent the backbone of Manitoba’s economy, are being hit hard by recent policy changes:

• Wage Costs: Seventy-five percent of small business owners cite rising wage costs as their biggest financial challenge. The inflation-linked minimum wage increase, while intended to support workers, has exacerbated financial pressures for employers who are already contending with rising costs for utilities and supplies.
• Apprenticeship Ratios: A move to a 1:1 apprentice-to-journeyperson ratio is adding strain to small businesses in the trades sector, many of which lack the resources to support additional apprentices while maintaining productivity.
• Unionization Pressures: The repeal of The Public Sector Construction Projects (Tendering) Act signals a preference for unionized contractors in public contracts. Small, non-unionized businesses fear they will be excluded from opportunities essential to their growth and survival.
• Labour Dispute Laws: Prohibiting replacement workers during strikes and reintroducing automatic union certification will create operational and legal uncertainties, leaving businesses with limited resources in labour disputes.
• Regulatory Overload: The repeal of The Regular Accountability Reporting Act removes a critical safeguard against excessive regulation, opening the door to increased compliance demands that disproportionately impact small businesses.

Policy changes like the banning of replacement workers and card-check were introduced through the Manitoba Budget Implementation and Tax Statutes Amendment (BITSA) bill back in March. By introducing these changes through BITSA, the government appears to be explicitly ignoring public feedback on these bills, as BITSA (unlike other bills) is not required to go before committee. This lack of transparency has left business owners feeling shut out of critical conversations about policies that directly affect their operations.

“We understand the intent to support workers, but these policies, as they stand, are unsustainable for small businesses,” said Tyler Slobogian, Senior Policy Analyst. “We need a more thoughtful and collaborative approach that balances the needs of workers and employers alike. Without that, these policies will only serve to weaken the very businesses that provide jobs and drive our local economy.”

Small businesses are urging the Manitoba government to engage with employers in crafting policies that address worker needs without jeopardizing business viability. This means slowing down the reform process and adopting measures that ensure Manitoba remains a competitive and sustainable place to do business.

For media enquiries or interviews, please contact: 

Dariya Baiguzhiyeva, CFIB 

647-464-2814 

Public.affairs@cfib.ca

About CFIB
The Canadian Federation of Independent Business (CFIB) is Canada’s largest association of small and medium-sized businesses with 97,000 members across every industry and region. CFIB is dedicated to increasing business owners’ chances of success by driving policy change at all levels of government, providing expert advice and tools, and negotiating exclusive savings. Learn more at cfib.ca.