Forest Products Association of Canada (FPAC) has welcomed new federal measures designed to make the Work-Sharing Program more accessible to employers facing tariff-related market disruptions and economic uncertainty.
The association particularly supports changes to the equal work-sharing requirement, which has presented challenges for forest-sector employers, especially in unionized workplaces.
Announced October 22 by federal Jobs and Families Minister Patty Hajdu, the measures form part of the new Workforce Retention and Retraining Program. The initiative combines Work-Sharing with training support to help businesses retain employees while adapting to changing market conditions.
Greater flexibility for forest-sector employers
One of the most significant changes is the temporary removal of the requirement to distribute available work hours equally among participating employees.
According to FPAC, this flexibility should make the program more accessible to unionized workplaces, where operational requirements and collective agreements can complicate compliance with existing rules.
The federal government has also extended tariff-related Work-Sharing measures through March 31, 2028. Agreements can now run for a minimum of four weeks, down from six, and may be extended to a maximum of 152 cumulative weeks.
Eligibility has also been expanded to businesses that need to transform, retool or diversify their operations, even if they have not yet experienced a reduction in business activity.
Training support and workforce retention
The program provides eligible employers with up to $1,000 per participating employee to help cover training and associated administrative costs.
Employers can select training suited to their operational needs, including technical and digital skills development, peer-to-peer learning and on-the-job training.
Eligible employees working reduced hours can receive Employment Insurance Work-Sharing benefits, along with an income top-up linked to participation in employer-provided training.
For Canada's forest products sector, which supports nearly 200,000 direct jobs, these measures could help limit temporary layoffs and preserve the specialized skills needed when production conditions improve.
FPAC emphasizes effective implementation
FPAC President and CEO Derek Nighbor welcomed the federal government's willingness to introduce targeted changes, acknowledging the collaboration of union representatives and government officials in addressing longstanding barriers.
However, the association emphasized that the effectiveness of the revised program will depend on how the new rules are implemented and how easily employers can access the available support.
"Successful implementation will be critical," Nighbor said.
FPAC plans to continue working with federal officials to help employers understand the revised requirements and identify any remaining administrative or operational obstacles.
Amid ongoing trade pressures and market uncertainty, the broader objective is to give forest products manufacturers greater flexibility to retain skilled employees and maintain their operational capabilities during temporary downturns, rather than relying on layoffs.
