Day One | August 18, 2025

Day One | August 18, 2025

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Air Canada Scraps Restart Plans as Flight Attendants Resist Back-to-Work Order

Air Canada cancelled its plans to resume limited operations after the union representing its 10,000 flight attendants announced it would defy a federal back-to-work order and continue its strike. The federal government, through Patty Hajdu, Minister of Jobs and Families, had intervened less than 12 hours into the work stoppage, ordering binding arbitration, a move the Canadian Union of Public Employees (CUPE) has called "unconstitutional." CUPE, whose key issues include wages and unpaid labour, is challenging the order and has invited Air Canada to return to the negotiating table.  

Carney Vows Support for Farmers as China Blocks Canadian Canola

Prime Minister Mark Carney announced that his government is in discussions to support Canadian farmers after China imposed steep new tariffs on canola products, a move that effectively blocks Canadian canola from the Chinese market. Carney’s statement came after Conservative Leader Pierre Poilievre criticized him for his silence on the issue, calling for stronger leadership in defending prairie producers. While the canola industry has requested that Ottawa limit imports of used vegetable oils, Carney did not address this specifically but affirmed that Canada does not dump canola and will pursue a constructive dialogue with China while supporting domestic producers. Poilievre urged the government to penalize Beijing by cancelling a $1-billion federal loan to BC Ferries for Chinese-made vessels and to use any revenue from the trade dispute to support the canola sector. 

PM Carney to Visit Mexico Amid U.S. Trade Tensions 

Prime Minister Mark Carney will visit Mexico on September 18 amidst ongoing trade tensions with the United States, as both countries navigate their relationship with the Trump administration. The visit comes after the U.S. raised tariffs on non-CUSMA-compliant Canadian goods to 35% while granting Mexico a 90-day extension for its trade talks, prompting a push for closer Canada-Mexico ties. This follows a recent visit by Canada’s foreign affairs and finance ministers, who aimed to reset the bilateral economic relationship as Canada seeks to diversify its trade and strengthen partnerships. The trip also comes as a review of the CUSMA trade deal approaches, with Conservative Leader Pierre Poilievre criticizing the government’s trade performance as a sign of weakness on the international stage. 

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Premier Smith's Alberta Next Panel Met with Heated Debate in Edmonton 

Premier Danielle Smith and her Alberta Next panel faced a large crowd of nearly 750 people at their Edmonton town hall on Thursday night, the third stop on their provincial tour. The event, intended to gather feedback on Alberta’s relationship with Ottawa, quickly became contentious, with attendees raising off-topic concerns about health care, government transparency, and COVID-19 vaccine costs. The meeting was marked by heckling and emotional exchanges, but straw polls showed a majority of the crowd still supported the panel's key proposals, including a provincial pension plan and police force. Premier Smith defended her government's approach, while the NDP has criticized the tour as a divisive political exercise. The panel is set to continue its tour with stops in Fort McMurray and Lloydminster. 

Alberta Vows to Reject Federal EV Mandate, Calling it Unrealistic and Harmful 

Alberta Environment Minister Rebecca Schulz has stated that the province will not accept the federal government’s electric vehicle (EV) mandate, which requires 20% of new vehicles sold next year and 100% by 2035 to be zero-emission. Minister Schulz called the targets unrealistic and impossible, citing a massive gap between Canada’s EV production and consumer demand. She also pointed to the negative impact of tariffs on Chinese-made EVs, which she says harm Alberta’s farmers and ranchers. Minister Schulz urged the federal government to listen to concerns from automakers, Ontario mayors, and a recent poll showing 71% of Canadians want the mandate rolled back, and to scrap the policy before it damages the economy and jobs. 

Judge Upholds Review of Proposed Alberta Separatist Referendum Question 

An Alberta judge has ruled that a constitutional review of a proposed separatist referendum question will proceed, despite an attempt by the Alberta Prosperity Project (APP) to block it. The ruling ensures the question, "Do you agree that the province of Alberta shall become a sovereign country and cease to be a province in Canada?” will be scrutinized by the court to determine its constitutionality before any signature gathering begins. The chief electoral officer had referred the question, citing potential conflicts with the Constitution and Charter rights. While the Alberta government and Premier Danielle Smith had opposed the referral, the court affirmed its importance for ensuring the legitimacy of the referendum process. First Nations and other groups plan to seek intervenor status in the upcoming hearings. 

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Newfoundland and Labrador Urges Ottawa to Recognize Its National Contributions

Former premier Dwight Ball says Newfoundland and Labrador is ready to support federal nation-building projects, but Ottawa undervalues the province’s contributions. A 2025 IRPP study found the province is the most “resentful” in Canada, citing perceived mismanagement of fisheries, limited influence in federal decisions, and historical grievances like the Churchill Falls hydro deal. Ball highlighted the province’s oil production and rare earth resources as key assets for Canada’s economic growth, stressing that greater recognition from the federal government could reduce local frustration while maintaining strong support for the country.

NB Government Reaches Deal with CUPE Local 1251

New Brunswick has signed a new collective agreement with CUPE Local 1251, representing more than 750 workers including correctional officers, custodial staff, and human services counsellors. The four-year deal, retroactive to June 2022, provides a $5 hourly wage increase, phased in annually, alongside new incentives to improve retention and recognition. The agreement also boosts premiums for evening and weekend shifts, raises the safety boot allowance, and expands vacation entitlements. Finance Minister René Legacy thanked both sides for their efforts in reaching the settlement.

Province Rejects Halifax Regional Plan Over Wetland Setbacks

Nova Scotia has rejected Halifax’s updated regional plan, citing rules it says hinder housing development. Municipal Affairs Minister John Lohr opposed new requirements, including 30-metre wetland setbacks and mandatory EV-charging outlets, arguing they increase costs and restrict growth. Deputy Mayor Tony Mancini and environmental advocates defended the setbacks as vital for protecting lakes and wetlands. Mayor Andy Fillmore acknowledged industry concerns about added costs but noted Halifax has already expanded housing through zoning reforms. The province will now work with HRM to draft a revised, “citizen-focused” plan, with council set to debate the rejection on August 19.

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Top Canadian Shipyard Says B.C. Ferries Contract Was Unwinnable

Canada’s largest shipyard, Davie, alleges it was shut out of the bidding process to build four new vessels for B.C. Ferries, claiming the procurement process was biased towards the lowest price. This, they argue, inherently favoured Chinese state-owned shipyards with lower labour and environmental standards. B.C. Ferries contests this, asserting that technical capability, not price, was the primary evaluation criterion. The decision has drawn widespread condemnation from politicians and the ferry workers' union, who are calling for the contract to be cancelled, particularly in light of new Chinese tariffs on Canadian goods. There are also demands to rescind a $1-billion federal infrastructure loan financing the deal.

Vancouver's Land Development Plan Aims to Fund Half of City Budget

The City of Vancouver is launching a new strategy to develop market-rate rental apartments on city-owned land, a significant departure from its focus on social housing. The city aims to eventually generate revenue covering nearly half of its operating budget. The plan will launch with a 4,300-unit pilot project targeting middle-to-high income households. However, the initiative faces considerable risks, including a slowing rental market and potential difficulties in securing federal financing without including below-market units. Critics argue the city is abandoning its commitment to affordable housing by becoming a for-profit landlord, while industry experts caution about market absorption rates.

Uber Wins Legal Battle as B.C. Court Voids Vancouver's Ride-Hailing Fees

Following a legal challenge by Uber, the B.C. Supreme Court has invalidated a City of Vancouver bylaw that imposed peak-hour fees on ride-hailing companies. The court ruled the city overstepped its authority, affirming that the provincial Passenger Transportation Board holds exclusive jurisdiction to regulate such services. The judge found the bylaw was an unreasonable attempt to control the number of ride-hailing vehicles under the guise of managing traffic congestion, which undermined provincial legislation. The City of Vancouver has acknowledged the ruling and is considering its next steps.

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Ontario Launches Protect Ontario Financing Program for Sectors Affected by U.S. Tariffs

Ontario is launching the $1 billion Protect Ontario Financing Program to provide businesses impacted by higher (section 232) tariff rates with emergency loans. These loans extend to steel, aluminum and auto companies that have at least 10 employees and generate $2 million in revenue. Ontario-based businesses facing tariff-related challenges for payroll, lease payments and utility payments will be able to access $250,000 to $40 million in emergency loans. A third-party financial agent will be procured to process applications, with disbursement expected within days to weeks.

Ontario Releases 2025-26 First Quarter Finances

The Ontario government released the 2025-26 First Quarter Finances report, the province’s first update on its economic and fiscal outlook since the release of the 2025 Budget. In the first quarter of 2025, Ontario’s real gross domestic product grew by 0.6 per cent, driven by higher exports and household spending. The province’s 2025-26 deficit is forecast at $14.6 billion, with government revenues projected to be $219.9 billion. Ontario remains on track to achieve a balanced budget by 2027-28, with a comprehensive multi-year fiscal outlook to be released later this year.

Ontario Begins Construction on Second Ontario Line Tunnel 

Ontario has broken ground on the second tunnel launch shaft near the future Gerrard Station on the Ontario line. The Ontario Line will provide transit to the Gerrard and Carlow community and surrounding neighborhoods, as part of a $70 billion investment to bring the largest transit expansion in North America. The Gerrard Station will put nearly 12,000 people within walking distance of the Ontario Line, with about 3,000 people expected to use the station each day.

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TTC to Award Sole-Source Contract to Ontario-Based Company for New Subway Trains

The TTC will cancel its competitive bidding process and award a major contract for 70 new subway trains directly to Alstom Transport Canada. This decision, a joint effort by the municipal, provincial, and federal governments, aims to protect domestic manufacturing jobs in response to U.S. tariffs. The Ontario-based company will build 55 trains for the Bloor-Danforth line and 15 for future extensions. The TTC and Alstom will now enter negotiations, with a final agreement expected by the end of 2025.

Hamilton Approves Recommendation to Update Climate Action Strategy

Hamilton City Council has approved an update to its Climate Action Strategy to accelerate the reduction of carbon emissions. With an initial funding approved by council of up to $100,000, the city will update its "Low Carbon Scenario," a 2019 plan aiming for Net Zero emissions by 2050. The updated strategy will focus on high-impact opportunities such as transitioning to electric vehicles, building more bike lanes and trails, and helping the local steel industry reduce its greenhouse gas emissions. It also aims to promote clean energy sources and encourage the use of public transit.

City of Toronto to Increase Housing Density Near 120 Transit Stations 

The Ontario government and the City of Toronto have agreed on a plan to significantly increase housing density near 120 transit stations. This agreement amends Toronto's official plan to allow for taller buildings, up to 30 storeys, and greater density, potentially unlocking 1.5 million new homes over the next 25 years. The changes also permit four-storey multiplexes in many residential areas near transit. While the province has approved the plan, it must still be passed by Toronto's city council before it can be implemented.

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Parti Québécois Wins Key By-Election in Arthabaska

The Parti Québécois (PQ) has won a significant by-election in the riding of Arthabaska, a former Coalition Avenir Québec (CAQ) stronghold. PQ candidate Alex Boissonneault secured a decisive victory with 46.3% of the vote. The result marks a major defeat for Premier François Legault’s CAQ, whose candidate plummeted to just 7.2% of the vote. Legault accepted responsibility, citing public disappointment and promising changes to his government. The election also thwarted the ambitions of Conservative Party leader Éric Duhaime, who finished second with 35.1% and failed in his bid to enter the National Assembly. He lamented the outcome as a "democratic distortion." This is the PQ's third consecutive by-election win in a CAQ-held riding, solidifying its momentum as a principal contender ahead of the 2026 general election. The election was notable for its high voter turnout of 59.5%.

More Similarities Than Differences in Montreal's Two-Way Mayoral Race

The upcoming Montreal mayoral election is being framed as a simple binary choice: Soraya Martinez Ferrada (Ensemble Montréal) as the “anti-bike” candidate versus Luc Rabouin (Projet Montréal) as the “pro-bike” candidate. However, this view is a caricature. While Martinez Ferrada’s call to audit the bike lane network has drawn criticism, her platform on key issues like housing, municipal efficiency, and economic development is strikingly similar to Rabouin’s. The author points out that ideological lines are further blurred by candidates who have switched between the two main parties. Both leaders must now distinguish themselves from their predecessors (Denis Coderre and Valérie Plante) and build their name recognition. With many local races expected to be tight and a third party, Transition Montréal, in the mix, the election will likely be decided by on-the-ground campaigning rather than by polarizing themes.

Québec Businesses Demand More Than 100,000 Immigrant Workers Annually

The Fédération des chambres de commerce du Québec (FCCQ) is urging the Québec government to welcome 106,000 new immigrant workers annually to address a severe labour shortage, warning of “catastrophic” economic consequences otherwise. This figure is more than double the Legault government’s proposed cap of 45,000 new permanent residents and its plan to significantly reduce temporary immigration. FCCQ President Véronique Proulx states the government's plan is completely disconnected from the reality of the 1.4 million jobs that need to be filled by 2033. While the government aims to reduce immigration to ease pressure on public services, housing, and the French language, the FCCQ argues that without more workers, businesses will be forced to close. The federation, representing 40,000 companies, insists that technology alone cannot solve the labour gap and that businesses are willing to help with integration challenges.

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