Unions Fear Job Losses as Trade Barriers Fall, Sparking Concerns for Local Economy and Identity

Newfoundland Unions Fear Job Losses as Trade Barriers Fall

As Canada moves towards dismantling internal trade barriers, unions representing workers at two major Newfoundland breweries are sounding the alarm. They fear that easier beer sales between provinces could put hundreds of local jobs at risk.

Workers at the Molson Coors brewery in St. John's, Newfoundland and Labrador, have been on edge since US President Donald Trump's tariff threats sparked discussions about ending interprovincial trade barriers. James Farrell, solicitor and industrial director with FFAW-Unifor, the union representing over 50 workers at the brewery, believes opening up interprovincial alcohol trade would be detrimental to local breweries.

"There's no upside," Farrell stated. "You'd flood the market with trucked-in beer."

Alcohol regulations vary across provinces, with many having their own liquor boards and restrictions on personal transportation of alcohol. Newfoundland and Labrador's Liquor Corporation limits the amount of out-of-province beer sold in its stores to protect local jobs.

Tom Cooper, a business professor at Memorial University, believes that without these protections, Labatt and Molson Coors would likely shut down their St. John's breweries and ship products from larger mainland facilities.

"Honestly, a brewery in Ontario or even Quebec could easily serve all of Atlantic Canada," Cooper said.

The union representing workers at the St. John's Labatt brewery also expressed concerns about job losses. Alyse Stuart, a spokesperson for the Newfoundland and Labrador Association of Public and Private Employees, stated that reducing barriers would incentivize large multinational companies to operate outside the province, jeopardizing local facilities.

The provincial government, however, has assured workers and breweries of its commitment to protecting jobs and minimizing the impact on local producers and retailers. They also signed a pledge with the federal government to facilitate direct-to-consumer alcohol sales, allowing breweries to sell directly to consumers across provinces without relying on government-owned liquor stores.