Building Futures: How Union Strength and Economic Resilience are Shaping 2026 and Beyond

The close of 2025 finds many reflecting on a year of both challenges and significant progress. Mike Gallagher’s Christmas message from Local 793 of the International Union of Operating Engineers paints a picture of a union not just surviving, but thriving – and offers valuable insights into broader economic and workforce trends we can expect to see unfold in the coming years.

The Rise of Skilled Trades in a Volatile Economy

Gallagher’s report highlights the success of collective bargaining and increased training opportunities. This isn’t an isolated event. Across North America, there’s a growing recognition of the critical importance of skilled trades. The looming retirement of Baby Boomers, coupled with a historical decline in vocational training, has created a significant skills gap. According to the U.S. Bureau of Labor Statistics, employment in skilled trades is projected to grow faster than the average for all occupations over the next decade.

This demand translates into increased bargaining power for unions like Local 793, securing better wages, benefits, and working conditions for their members. We’re likely to see this trend accelerate, with unions playing an increasingly vital role in advocating for fair labor practices and ensuring workers share in the benefits of economic growth.

Investing in Training: The Key to Future-Proofing

The construction of the new Union training centre in Oro-Medonte is a prime example of proactive investment in the future. This isn’t just about teaching traditional skills; it’s about adapting to the changing demands of the industry. Expect to see more unions and trade organizations investing in training programs focused on:

• Sustainable Building Practices: Demand for green building technologies and energy-efficient construction is soaring.
• Digital Literacy: Building Information Modeling (BIM), drone operation, and data analytics are becoming essential skills.
• Automation and Robotics: Learning to operate and maintain increasingly automated construction equipment.

Pension Fund Performance: A Model for Financial Security

The remarkable growth of Local 793’s pension fund – from $88 million in 1985 to $4.77 billion in 2025 – is a testament to sound financial management and a growing membership. This success story stands in stark contrast to the struggles of many private pension plans and the growing concerns about retirement security for Canadians.

The fund’s focus on low-risk investments is particularly noteworthy. In an era of economic uncertainty, prioritizing stability over high-risk, high-reward strategies is a prudent approach. This model could influence other pension funds to adopt more conservative investment strategies, ensuring long-term sustainability.

Canada’s Economic Independence: Navigating a Changing Global Landscape

Gallagher’s observation about the need for Canada to become less reliant on the U.S. is a crucial one. The recent tariffs and economic pressures highlight the vulnerability of an economy heavily integrated with a single trading partner. The Canadian government’s focus on infrastructure projects – ports, railroads, and mining operations – is a step in the right direction.

However, true economic independence requires diversification. Expect to see increased investment in:

• Critical Minerals: Canada possesses vast reserves of critical minerals essential for the green energy transition.
• Technology and Innovation: Supporting Canadian tech companies and fostering a culture of innovation.
• International Trade Agreements: Diversifying trade relationships beyond the U.S.

The rise of protectionist policies globally underscores the importance of building resilient supply chains and fostering domestic industries.

The Future of Work: Union Jobs in a Modern Economy

The emphasis on ensuring that new jobs created through infrastructure projects are “good Union jobs” is paramount. This isn’t just about wages and benefits; it’s about worker safety, training, and representation. Unions play a vital role in advocating for policies that protect workers’ rights and ensure fair labor standards.

As the economy evolves, the definition of a “Union job” may also expand. We could see unions representing workers in emerging industries, such as renewable energy and technology. The key will be adapting to the changing needs of the workforce and remaining relevant in a rapidly evolving landscape.

Did you know?

The International Union of Operating Engineers (IUOE) represents over 90,000 members across North America, making it one of the largest and most influential construction unions.

FAQ

• What is the biggest challenge facing skilled trades today? The skills gap created by retiring workers and a lack of vocational training.
• Why are pension funds focusing on low-risk investments? To ensure long-term sustainability and protect retirees’ benefits in an uncertain economic climate.
• How can Canada reduce its economic dependence on the U.S.? By diversifying its economy, investing in critical minerals and technology, and forging new international trade agreements.

The insights from Mike Gallagher’s message offer a compelling glimpse into the future of work and the Canadian economy. By prioritizing training, financial security, and economic independence, unions and governments can build a more prosperous and equitable future for all.

Explore further: Visit the IUOE Local 793 website to learn more about their training programs and advocacy efforts.

Share your thoughts: What are your predictions for the future of the skilled trades? Leave a comment below!