OTTAWA, Ontario, October 23, 2026 — Forest Products Association of Canada (FPAC) welcomes the federal government's announcement of new flexibilities to the Work-Sharing Program with measures intended to improve accessibility for employers facing tariff-related market disruptions and economic uncertainty.
Canada's forest sector employs nearly 200,000 people in hundreds of communities across the country. In periods of market disruption, retaining skilled workers and maintaining the connection between workers, employers, and communities is critical to supporting the long-term competitiveness and economic resilience of the sector.
FPAC has consistently maintained that Work-Sharing is the right tool in principle to help avoid layoffs while preserving critical workforce capacity, but forest sector employers faced barriers. By addressing flexibility in the equal work-sharing requirement, the government improves accessibility for unionized workplaces, enabling more forest-sector employers and employees to participate.
"We are encouraged by the federal government's willingness to make targeted improvements to the Work-Sharing Program and are grateful for the engagement of our union partners," said Derek Nighbor, President and CEO of FPAC. "We appreciate the constructive engagement from Minister Hajdu and her team, ESDC staff, and Canada's Commissioner for Employers. It’s been a great example of people coming together in an effort to make employee supports work better at the community level,” Nighbor added.
FPAC also welcomes the government's decision to:
- Extend tariff-related Work-Sharing measures through March 2028;
- Increase the maximum agreement duration to 152 weeks, while reducing the minimum duration from six to four weeks;
- Expand eligibility to employers undertaking business transitions that support diversification;
- Ensure flexible training pathways are eligible for the new $1,000 grant for eligible Work-Sharing employees, and;
- Reduce administrative requirements associated with program participation.
Together, these changes represent meaningful progress toward making the program more responsive to the realities faced by employers experiencing temporary economic disruption. FPAC will continue to engage closely with government officials to ensure the changes achieve their intended objectives and address practical barriers identified by employers.
"The goal now is to ensure employers understand the new flexibilities, can access the program if they need it, and have a direct channel to provide feedback on what is working and where further improvements are needed," Nighbor added. “Successful implementation will be critical. Details regarding the application of these changes will determine the extent to which employers can make effective use of the program."
FPAC remains committed to serving as a bridge between employers and government to support strong uptake and continuous improvement of this important workforce tool.
Read more:
• Unlocking a Future-Ready Workforce for Canada’s Forest Industries
About FPAC
FPAC provides a voice for Canada’s wood, pulp, and paper producers nationally and internationally in government, trade, and environmental affairs. As an industry, we contributed $19.9B in real GDP in 2025.
Canada's forest products sector is one of the country’s largest employers—providing nearly 200,000 direct jobs and operating in hundreds of communities across the country. Our members are committed to collaborating with Indigenous leaders, government bodies, and other key stakeholders to develop across-Canada action plan aimed at advancing forest health, while supporting workers, communities and our environment for the long term.
