On March 4, 2025, the U.S. levied 25 percent tariffs on certain Canadian goods. In retaliation, Canada announced their own tariffs on U.S. imported goods that add up to approximately $30 billion annually. Now the U.S. has scheduled 25 percent tariffs on all steel and aluminum imports from Canada; a decision that will heavily disrupt Canadian supply chain. A full-scale trade war between Canada and the US would have a major impact on small and mid-size businesses. Canadian businesses must understand the risks they face and prepare proactively.

Impact on economy and employment. U.S. tariffs will have damaging effects on Canada’s economy and workforce. A CIBC report suggests Canada’s GDP could decline by as much as 3.25 percent, with industries such as automotive, energy, and manufacturing facing the brunt of the impact. In the realm of employment, this means having up to 1.5 million jobs at risk across different sectors, with Ontario’s automotive industry alone potentially losing 500,000 jobs.

Impact on Canadian employers. This economic disruption may force small and mid-size Canadian businesses to start laying off employees. The economic fallout from U.S. tariffs may increase litigation related to terminations and constructive dismissals in Canada’s courts.

Economic uncertainty created by tariffs can cause low employee morale and increased turnover as workers look for more stable opportunities. Canadian employers may have a hard time retaining skilled staff, thus further disrupting operations.

Terminating employees demands workforce planning and compliance with Employment Standards legislation. Not providing proper advance notice or recall an employee back to work could lead to a constructive dismissal claim.

Protect your business from risk of litigation by reviewing documentation and implement written contracts. Ensure your employees are under written contracts of employment. Review their job contracts to ensure they allow you to layoff an employee and that its termination clauses effectively limit an employee’s common law termination entitlements. If their termination clause is unenforceable, employers may incur higher termination costs (up to seven times more).

Well-drafted job contracts reduce such risks. An employment contract with language that authorizes temporarily laying off employees and termination clauses that comply with employment standards legislation will reduce the risks of wrongfully terminating an employee or constructive dismissal claims.

Workforce planning. Canadian employers should have emergency plans for workforce reductions, including criteria for selecting employees for layoffs or reduced hours. To avoid risks, it is best practice to document the reason for decisions to show fairness and avoid claims of discrimination or bad faith.

Good communication is important. Employers should provide advance notice of any alterations to hours, wages, or duties. Where possible, offering support services such as counselling or job placement assistance will help with a smooth transition.

Before terminating an employee or laying off staff, ensure your managers are trained on how to lay off an employee without violating employment standards laws.

Bilateral tariffs escalation present exceptional challenges for Canadian businesses, particularly in managing workforce impacts effectively and lawfully. By following proactive measures such as written work contracts, workforce planning, and clear communication, employers can reduce risks while maintaining compliance with employment laws.

A global leader in HR and health & safety consulting, Peninsula has been supporting small and medium businesses for 40 years. We are trusted by over 140,000 SMBs globally. In Canada, we helped over 6,500 SMBs with tailored HR documentation, 24/7 employer advice, and provide employment management software. We pride ourselves on delivering a service that mitigates risk, adds value, and allows businesses to focus their time on what matters most.

Nicole Gallucci is an author and business and life coach who helps leaders and entrepreneurs align business and life goals with coaching, proven frameworks, and strategies for lasting success.

In times of economic uncertainty and what it means for business owners and employees, Nicole Gallucci advises that managers and leaders must help their teams recognize that they’re valuable.

Given the opportunity to reflect on individual strengths and accomplishments, sometimes by looking within your own organization you can build on an employee’s strengths, which will in turn strengthen the organization’s viability, as well. “We’re finding that an employee can help with their own retention by actually acknowledging their accomplishments and their strengths for themselves,” she says.

If management recognizes employees’ strengths, there will be less need to utilize external resources such as freelancers or consultants, she adds.

Gallucci mentions a client, whose biggest supplier is Home Depot, that had its head carpenter express interest in another department of the business: gaming. “Interestingly enough, they’re now adapting some products. It’s interesting to see how you dial back, say six months ago. Would you have had this conversation in your office? Would you have had to say to the carpenter, ‘We’re going to lay you off because we’re not as busy.’ Whereas now, it’s no.”

Giving your team the opportunity to rise to the occasion and work together, as opposed to shuttering the business’s doors is “unbelievably inspiring, unbelievably motivating. We’re solving bigger problems.”

We often look to leadership to have all the answers, yet opening the door for conversation amongst your staff can result in new opportunities and other avenues for revenue. “The last time I checked, leadership is not superhuman, and the best leaders actually admit their vulnerabilities and humanity—and have the most loyal followings when they bring everybody together,” Gallucci says.

Plant the seed with your employees, present the challenge, and let everyone ruminate. “You can regroup individually or collectively.” Sometimes, by having gone through the process of helping people realize their own purpose and value beyond their function, she says, “that’s what inspires them to realize and have the confidence to now say, ‘What if we do this and go out of outside of their… prescribed box?’”

Hardlines recently interviewed Olivia Cicchini, an employment relations expert at HR consultancy Peninsula Canada. We asked Cicchini for her top 10 tips for hiring and firing. All 10 of them will be printed in the next issue of our magazine, Hardlines Home Improvement Quarterly. (If you’re not getting HHIQ, it’s free to dealers. Sign up here!)

Here’s a sneak peek at the top tip that Cicchini gave us.

Pay attention to human rights wording in your want ads. The term that is often used is “legally compliant job ads.” Ontario, for example, passed legislation in 2024 stating that employers cannot ask for “Canadian experience” in want ads. In general, ads should say that the employer welcomes applicants from all backgrounds, ethnicities, sexual orientations, gender identities, etc.

“A lot of employers don’t even know that their human rights obligations to their future employees, to applicants, starts right when you post a job ad. Some employers think that their human rights obligations don’t kick in until they hire someone,” Cicchini said. “But applicants want to know that their potential employer is committed to diversity, equity, and inclusion.”

The tariffs on Canadian products to the U.S. and counter-tariffs for goods landing here is bad news enough. But the full impact of these measures remains to be seen. The Canadian retail industry has long been in a post-Covid funk—well before the impact of tariffs. For example, Hudson’s Bay Co. has entered bankruptcy protection. And the demise of Peavey Mart—with all 90 stores slated to be shuttered by the end of April—was already in the works before the tariffs were imposed.

The stalling of the retail industry and the impact of tariffs is causing people to be concerned about their jobs in the near future.

Hardlines has services to help, whether you’re hiring or looking for work. Our free Resumé Posting Service is available to anyone. If you are looking for work or expect your situation to change, we invite you to use this free service. Simply post your resumé by clicking here.

And please note, if you are currently out of work, we will give you a free subscription to our sister publication, Hardlines Weekly Report. This e-newsletter has the inside track on latest news within the retail home improvement industry. It will keep you abreast of changes that could give you the lead for your next job. Contact Jillian MacLeod at Hardlines for more info about a complementary subscription.

If you are looking to hire, Hardlines has tools to help. Whether you are a dealer, retail head office, or a vendor, Hardlines Classifieds provide an affordable and targeted way to reach an audience of professionals and experts in the retail home improvement sector.

If you are a Hardlines Premium Member, you are entitled to one free Hardlines Classified ad each year, plus an additional discount on all your ads. Click here for more info about our Premium Membership, or contact Jillian MacLeod at Hardlines for more info.

Please tell your friends and colleagues about these services. We will get through these trying times, but we have to support each other!

Over the last couple of weeks, we’ve seen extreme winter conditions across the country. As these storms continue to affect roadways, transportation, and daily life, employers are being urged to prioritize the wellbeing and safety of their staff during these unprecedented weather events.

As these conditions make it challenging for many Canadians to commute safely or even work remotely, employers are being urged to take proactive steps to support their workforce.

It’s important that businesses offer accommodation and flexibility to ensure staff safety while maintaining operations. Employers should ensure that employees’ needs are met—whether through remote work options, adjusted schedules, or paid leave for those unable to safely commute.

Given that winter weather is far from over, employers should consider these key strategies:

Offer flexible work options. When possible, allow employees to work remotely to avoid the dangers of traveling in hazardous conditions. For roles requiring physical presence, consider offering flexible start and end times to bypass peak storm hours.

Communicate regularly. Frequent updates are essential. Keep employees informed about real-time weather conditions, any potential disruptions to business, and tips for safe commuting. This helps reduce stress and ensures employees feel supported.

Prioritize employee safety. Safety should always come first. Employers should encourage staff to stay home if the weather makes commuting unsafe, offering paid time off or additional leave when necessary.

Incorporating leave programs, such as Ontario’s Personal and Family Responsibility Leave, is also an effective way to support staff during storm disruptions. Offering short-notice vacation or paid leave for those unable to attend work is another valuable option for employers to consider.

By adopting these strategies, employers can demonstrate a commitment to their employees’ safety and wellbeing.

A global leader in HR and health & safety consulting, Peninsula has been supporting small and medium businesses for 40 years. We are trusted by over 140,000 SMBs globally. In Canada, we helped over 6,500 SMBs with tailored HR documentation, 24/7 employer advice, and provide employment management software. We pride ourselves on delivering a service that mitigates risk, adds value, and allows businesses to focus their time on what matters most.

Pierre Battah is an Atlantic-based management consultant, HR guru, radio personality and award-winning author of the book, “Humanity at Work: Leading for Better Relationships and Results.” He is a regular guest on CBC Radio and Radio Canada, as well as a past presenter at the annual Hardlines Conference.

“My question is always the same one: why would somebody leave a good job?” says Pierre Battah, a workplace expert based in Moncton. “And it is striking to me how many people struggle with that question.”

In fact, new research from business consulting firm Robert Half reveals that 38 percent of professionals have either started or are planning to start searching for a new job in the first half of this year. While that’s down from half in July 2024, the survey reveals that an additional 39 percent say they are open to a new role if the right opportunity arises.

Salary was the main factor influencing job search plans. The other top reasons workers cited for wanting a new position are: higher salary (41 percent), better perks and benefits (31 percent), more remote flexibility than what their company offers (27 percent), and greater professional development opportunities (20 percent).

Engagement is critical, says Battah. He talks about high-engagement workplaces versus work environments that tolerate low engagement.

The new survey also stated that, when asked what influences their decision to stay with an employer, professionals pointed to a competitive salary with regular merit increases (74 percent), fair and reasonable workloads and expectations (70 percent), opportunities for career advancement and supportive managers (tied at 69 percent), and positive work and team cultures (68 percent). Two-thirds cited flexibility in when and where they work as the driving factors.

The benefits of a high-engagement workplace include “well-being, better citizenship and participation, plus better sales, better profitability, better productivity, and better customer loyalty,” Battah says.

And it’s up to management to foster that sense of engagement.

After a distinguished career in the building supply industry, most recently as president of Calgary’s The Cedar Shop, Mitch Wile has transitioned from his position to pursue an exciting new chapter. While his retirement marks the end of his corporate role, it also signals the beginning of a bold entrepreneurial journey.

Wile is now channeling his expertise into BRT (Business Round Table Leadership Inc.), a dynamic training initiative aimed at driving growth and excellence in the building materials sector. Having quietly piloted the program over the past three years in the Calgary market, he has plans to expand its reach across Canada in 2025.

With more than 30 years of management experience in the building materials and construction industries in both Western and Eastern Canada, Wile has worked with leading companies such as Kenroc Building Materials, Winroc/SPI, LMT Group, and Emco Waterworks. His tenure as president of The Cedar Shop earned significant recognition, including a 2023 Hardlines Outstanding Retailer Award for Best Contractor Specialist Store, and being named one of Calgary’s Top 20 Business Leaders by Business in Calgary magazine.

BRT’s unique training sessions are designed to go beyond traditional presentations. Delivered in a collaborative group setting, the program fosters open dialogue and idea-sharing among participants, focusing on best practices and fiscal responsibilities critical to managing or owning a business. Included are hands-on training practicums, offering in-depth operational analysis, and the development of tailored strategies for business growth.

In addition to group workshops, BRT also provides ongoing mentorship and practical support to participants in implementing strategies for their business. This includes financial reviews, as well as discussions on expanding vendor partnerships for mutual benefit.

Wile envisions BRT playing a pivotal role in advancing independent businesses within the industry across Canada. The BRT website will feature an interactive Learning Management System (LMS) which will enable companies in remote areas to participate in the program.

In an effort to foster the development of employees and provide them with the tools they need to grow, RONA has recently launched a Leadership Experience program for store managers, created by the company’s Training Team.

RONA’s Leadership Experience program is a 2.5-day learning journey for managers to develop management skills, explore different aspects of leadership, share their experiences, and gain access to practical tools they can use every day.

The program addresses key personal, team and corporate skills that every manager should develop to ensure their successful development as well as that of their team. “We have decided to offer this program to our store managers in priority, as they are the ones with the highest and most direct impact on our store associates and customers. The aim is then for all managers within the organization to benefit from this program to establish a common leadership culture,” says Kim Forgues, chief human resources officer at RONA inc.

Five groups, including two pilots and three cohorts, have already benefited from this training adapted to their reality, and other cohorts will soon have the chance to take this course.

The first manager cohorts to participate were from Ontario, Quebec, and Western Canada.

Seasonal changes, particularly the darker, colder months, can have a significant impact on employees’ mental well-being. The phenomenon often referred to as “seasonal blues” can lead to decreased motivation, lower productivity, and a sense of isolation. For employers, supporting staff through these challenges is vital for maintaining a healthy, engaged workforce.

It’s important to acknowledge the impact of seasonal changes on mental health. Creating an open environment where employees feel comfortable discussing their feelings is key. Encouraging open dialogue about well-being can help de-stigmatize mental health issues and show employees that their concerns are taken seriously.

Employers can also offer flexible working arrangements. The darker days can make commuting more difficult, and the added flexibility of working from home or adjusting work hours can help to relieve stress. Providing employees with flexibility over their schedules promotes a better work-life balance, helping them cope with the seasonal shift.

Another way to support staff is by creating a sense of community in the workplace. Winter can be isolating, and team-building activities can combat loneliness and boost morale. Offering social events, such as winter outings or virtual coffee breaks, can strengthen connections among employees and create a sense of belonging.

Additionally, employers can encourage physical activity. Exercise is proven to improve mental health, so providing gym memberships or organizing wellness challenges can motivate employees to stay active during the colder months. Furthermore, offering resources like counseling or employee assistance programs gives staff access to professional support if they need it.

By recognizing the signs of seasonal blues and offering tangible solutions, employers can create a supportive environment that helps employees stay mentally and physically healthy, regardless of the season.

A global leader in HR and health & safety consulting, Peninsula has been supporting small and medium businesses for 40 years. We are trusted by over 140,000 SMBs globally. In Canada, we helped over 6,500 SMBs with tailored HR documentation, 24/7 employer advice, and provide employment management software. We pride ourselves on delivering a service that mitigates risk, adds value, and allows businesses to focus their time on what matters most.

Donald Cooper is a Canadian based international business speaker and coach specializing in effective management, delivering extraordinary customer value and experiences, and innovative marketing. He assists companies throughout the world to add more real value to their customers’ lives and is a member of the Canadian Speaking Hall of Fame.

Every industry and every market is over-served and under-differentiated. Whatever product or service you sell, there are others that sell the same items, and everyone charges approximately the same price. The challenge is to differentiate yourself in a way that matters to your target customers.

One of the biggest complaints from businesses around the world is that there’s no such thing as customer loyalty anymore.

People are loyal to what’s best for them, or what they assume is best for them. This simple truth helps transform business from weak whiners to powerful, proactive value creators and market leaders.

Are you the clear and compelling wise choice for your target customers? Are you best for them? If not, do the work.

What compelling functional, emotional and financial value will you create and commit to consistently deliver that will grab your target customers, clearly differentiate you from your competitors, make you famous and grow your bottom line? That’s what it takes to deserve loyalty.

Then, when you’re doing the ongoing work, you need to effectively and consistently communicate your compelling value story in everything you do.

What do you need to do or improve, or stop doing, starting now, to be the clear wise choice for your target customers? What decisive action will you take? Get specific about what will be done, by whom, by when, at what expense, with what measurable outcomes, measured how and rewarded how to become the clear wise choice?