Canada Minute: Issue 41

Canada Minute - Your weekly one-minute summary of Canadian politics.

📅 This Week In Canada: 📅

• Canada is continuing "full steam ahead" with its F-35 fighter jet program, according to Deputy Defence Minister Stefani Beck, despite a government review ordered by Prime Minister Mark Carney earlier this year. The federal government is committed to acquiring at least 16 jets, with initial deliveries slated for next year to a US base for training. The Royal Canadian Air Force expects to operate the current CF-18s alongside the F-35s until the early 2030s, though maintaining two fleets would increase costs and complexity. Officials defended the program’s nearly 50% cost increase, citing US-mandated changes, construction delays, higher security standards, and foreign exchange fluctuations. Conservative MPs expressed support for the F-35, while the US ambassador has criticized the idea of a mixed fleet as a threat to NORAD interoperability. Military leaders stressed that adversaries like China and Russia operate advanced fifth-generation fighters, making a timely transition to the F-35 strategically important. Despite ongoing debate, no decision has been announced on whether Canada will proceed with the full purchase of 88 jets or pursue a smaller fleet.
  
  
• Five Premiers - from Ontario, Quebec, Alberta, Saskatchewan, and Nova Scotia - have urged Prime Minister Mark Carney to withdraw Ottawa’s recent Supreme Court submission that seeks to place limits on the use of the notwithstanding clause. In a joint letter, the Premiers argued that the federal government’s position undermines provincial sovereignty and represents a “complete disavowal” of the constitutional bargain that established the Charter of Rights and Freedoms. Ottawa’s submission contends that the clause cannot be used in ways that cause “irreparable impairment” of Charter rights and that courts should have the authority to review such uses. The premiers called this interpretation “unclear and unworkable,” warning it threatens federalism and democracy. Justice Minister Sean Fraser defended the intervention, saying the Supreme Court’s decision will shape how both federal and provincial governments use the clause in the future. Ontario Premier Doug Ford harshly criticized the move, calling it “the worst decision” Carney has ever made and insisting that legislatures, not judges, should have the final say.
  
  
• Canada Post announced that regular mail delivery will resume next week as postal workers shift from a nationwide strike to rotating strikes. The Canadian Union of Postal Workers (CUPW) said the change, beginning at 6:00 am Saturday, is intended to get mail and parcels moving again while continuing to push for new collective agreements. Canada Post stated it will welcome employees back and is preparing for a safe restart of national operations but warned that uncertainty will persist while rotating strikes continue. Service guarantees will remain suspended during this period. CUPW emphasized that postal workers prefer to be delivering mail rather than striking, but felt the action was necessary. The shift follows a meeting between the union and the federal minister responsible for Canada Post.
  
  
• Prime Minister Mark Carney announced that the federal government will roll out an automatic tax filing system for low-income Canadians and make the national school food program permanent. The automatic filing system, starting in 2027, aims to help those who often do not file taxes despite being eligible for benefits like the GST/HST credit, Canada Child Benefit, and Canada Workers Benefit, eventually reaching up to 5.5 million Canadians by 2029. The school food program, which currently provides meals to 400,000 children annually, will receive permanent funding of $216.6 million starting in 2029-30, ensuring children have access to meals during the school day. Carney also announced the extension of the Canada Strong Pass, which offers free or discounted access to national parks, museums, and rail travel, through the 2025-26 holiday season and summer 2026. The measures are part of a broader federal plan to support vulnerable Canadians and promote domestic tourism. Conservative critics, however, expressed disappointment over the multi-year timeline for implementing the tax filing system.
  
  
• Canada added 60,000 jobs in September, surpassing economists’ expectations, with the manufacturing sector leading gains by adding 28,000 positions - the first increase since January amid the US trade war. Most job growth occurred in Ontario and Alberta, partially offsetting losses earlier in the year, while full-time employment rose by 106,000 even as part-time work fell by 46,000. Other sectors showing growth included health care and social assistance (+14,000) and agriculture (+13,000), while wholesale and retail trade declined by 21,000 jobs. Alberta saw the largest provincial increase with 43,000 new positions, followed by New Brunswick and Manitoba. Despite these gains, the unemployment rate remained steady at 7.1% as more people entered the workforce. Average hourly wages rose 3.3% year-over-year to $36.78. Economists note that while the report is encouraging, overall employment has grown only 0.1% over the past eight months, reflecting ongoing trade uncertainty and influencing the Bank of Canada’s interest rate decisions.

🚨 This Week’s Action Item: 🚨