Alberta Federation of Labour warns separation would devastate workers, citing job losses and pension risk
A new report argues Alberta separation would trigger a severe recession, job losses and threats to labour protections while leaving workers paying more for less.
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The Alberta Federation of Labour released a report Monday arguing that Alberta separation would be "disastrous" for workers, warning of significant economic costs and threats to protections and benefits that Albertans currently rely on as Canadians.
Titled "False Promises, Big Dangers: How Separation Would Hurt Alberta Workers," the report was prepared by economist Jim Stanford of the Centre for Future Work in partnership with the AFL. The AFL argues the report demonstrates that separation would create sweeping economic uncertainty while leaving workers paying more for less.
According to the report, separation would expose Alberta to a severe recession marked by capital flight, reduced investment, trade disruption and massive job losses. The analysis warns of "staggering costs" associated with building a new country, including spending on defence, currency and banking systems, tax collection and social programs.
The report specifically warns workers that separation would jeopardize protections, benefits and programs they currently rely on as Canadians — including Employment Insurance, the Canada Pension Plan, federal labour standards and protection under the Charter of Rights and Freedoms.
"Alberta workers are one of the key targets for separatist appeals, but they have the most to lose and the least to gain from Danielle Smith's separatist referendum," said Gil McGowan, President of the Alberta Federation of Labour. "The fantasy being sold by separatists is that Alberta can somehow split away and become richer overnight. The reality is that workers would face lost jobs, higher taxes, weaker rights, and deep uncertainty over pensions, benefits, trade, and the future of their communities."
Cori Longo, Secretary Treasurer of the AFL, noted that while workers are "understandably frustrated" with rising costs, falling wages and deteriorating public services, the report attributes the roots of many of those concerns to decisions made by the provincial government, not Ottawa.
"Separation would not improve things — it would make a bad situation worse," Longo said in a statement.
Economist Jim Stanford argued that working Albertans are being asked to carry the risk of the UCP government using separation for political purposes. "This report makes clear that the path to a stronger Alberta is not separation. Instead, it is higher wages, stronger labour rights, better public services, and a renewed commitment to building a fairer province within Canada," Stanford said.
AFL representatives and Stanford spoke at a press conference Monday, coinciding with the report's official release. The warning comes as Albertans prepare for an October 19 referendum on whether the government should pursue separation from Canada.
What do Alberta businesses and economists outside the labour movement say about the separation scenario and its economic impacts?
How do workers in Alberta currently view the separation question, and has the AFL's position shifted worker sentiment since the referendum was called?
We'll update this story as answers emerge.
The facts
Who prepared the separation report?
Economist Jim Stanford of the Centre for Future Work prepared the report in partnership with the Alberta Federation of Labour.
When is the separation referendum scheduled?
The referendum on whether the government should pursue separation from Canada is scheduled for October 19.
What economic harms does the report predict from separation?
The report warns separation would expose Alberta to a severe recession marked by capital flight, reduced investment, trade disruption and massive job losses, along with staggering costs for building a new country including defence, currency and banking systems, tax collection and social programs.
