Canada’s Shipbuilding Deal Strengthens Supply Chain Jobs
The Canadian government has signed its largest-ever shipbuilding contract with Irving Shipbuilding, commissioning River-class destroyers (RCD) at Halifax Shipyard.
The landmark agreement is part of the National Shipbuilding Strategy (NSS) and represents the biggest "Buy Canadian" procurement effort in history.
Unifor, the country’s largest private-sector union, hails the deal as a win for Canadian jobs and industry, reinforcing the domestic supply chain while ensuring stable, high-skilled employment.
“There is perhaps no moment more significant than the one we’re in right now to prove the value and importance of domestic procurement,” comments Unifor National President, Lana Payne.
A boost for Canada’s domestic supply chain
The RCD contract builds on over a decade of investment in Canada’s naval shipbuilding industry.
Halifax Shipyard, where the destroyers will be built, has undergone extensive modernisation under the NSS, making it one of the most advanced facilities in North America. This contract ensures that Canadian tax dollars remain within the country, supporting jobs and strengthening domestic supply networks.
At the heart of the supply chain is Unifor MWF Local 1, which represents 1,200 shipbuilders at Halifax Shipyard. The contract guarantees stable employment for these skilled workers and secures a critical role for Canadian suppliers in the multi-billion-dollar project.
With steel-cutting for the first three ships set to begin in April 2025, preparations are already in motion. Work on a test module started last year, allowing teams to refine construction techniques before full-scale production begins.
The project not only strengthens Canada’s defence capabilities but also supports a network of Canadian manufacturers supplying raw materials, high-tech components and specialised equipment.
Jennifer Murray, Unifor’s Atlantic Regional Director, recognises the significance of the agreement: “I send my congratulations to the shipbuilders at MWF Local 1 – this is a moment every Canadian should celebrate,” she says.
“Unifor members at the Halifax Shipyard take great pride in their work and are honoured to build what becomes a home away from home for members of the Royal Canadian Navy.”
A decade in the making
Irving Shipbuilding has been at the centre of Canada’s shipbuilding revival since 2011, when it was named the lead facility for the NSS combat package.
The strategy, introduced under then-Prime Minister Stephen Harper, was designed to modernise the Royal Canadian Navy while stabilising an industry historically prone to boom-and-bust cycles.
The design contract for the River-class destroyers was signed in 2019, marking a major milestone in Canada’s largest-ever government procurement initiative.
Since then, Unifor members at Halifax Shipyard have played a crucial role in shaping the programme, ensuring it delivers long-term benefits to Canadian workers and businesses.
“Today’s announcement is another step in fulfilling the promise of the National Shipbuilding Strategy fought for by our shipyard members and union – one where we move the shipbuilding industry away from its boom-bust cycles and provide sustainable employment to the skilled shipyard workers we represent,” Lana said at the time.
The strategy has also prioritised workforce diversity, encouraging greater participation from underrepresented groups to build a more inclusive and sustainable industry. This effort ensures that the shipbuilding sector remains competitive and capable of meeting Canada’s future naval needs.
Securing Canada’s industrial future
The new contract represents more than just shipbuilding—it’s a long-term investment in Canada’s economy and defence infrastructure.
By keeping production within Canada, the government is reinforcing a domestic supply chain that stretches from steel mills to high-tech manufacturing, ensuring that Canadian businesses and workers reap the benefits.
For shipbuilders at Halifax Shipyard, this agreement brings job security and industry stability. The project also creates additional opportunities for Canadian suppliers, as every component of the RCDs, from electronics to propulsion systems, will require domestic manufacturing and expertise.
“This is a good day for the 1,000 Unifor members who take such pride in their work building Canada’s ships. These jobs and this industry are of critical importance to the broader east coast economy,” Lana concludes.
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