Looming Tariffs, Economic Uncertainty, and the Cost of Cutting Health & Safety

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By Ben Snyman, Cofounder and CEO, AuditSoft

Ben holds a B.Comm, LLB, and MBA. He is a qualified attorney and is trained as an ISO 45001 Internal and Lead Auditor. With over 30 years of experience, Ben is recognized as an expert in operational, legal, and regulatory risk management. Connect with Ben on LinkedIn.

Looming Tariffs, Economic Uncertainty, and the Cost of Cutting Health & Safety

With the looming trade war between the U.S. and Canada, the introduction of tariffs on Canadian goods will have far-reaching consequences for both the American and Canadian economies. Canadian businesses that act as the Importer of Record for goods are already feeling the impact of U.S. tariffs and Canadian surtaxes. Eventually, the effects of tariffs will cut both ways, impacting not just importers but exporters as well.

However, as a nation facing economic uncertainty, one thing we cannot afford to compromise is how we protect our workers. As businesses come under financial strain, organizations in high-risk industries – including manufacturing, construction, oil & gas, mining, and transportation – will experience rising costs and increasing pressure to reduce expenses. Unfortunately, some may seek savings by cutting health and safety controls and scaling back their Occupational Health & Safety (OHS) program and management system. But history has shown that reducing OHS efforts is a false economy.

Workplace risks don’t disappear during a downturn. In fact, they often increase. Cost-cutting can lead to smaller crews, workforce turnover, increased mental health issues, and reduced oversight, all of which raise the likelihood of serious incidents. The financial and human costs of a single workplace incident far outweigh any short-term savings from cutting health and safety controls and assurance.

That’s why the Certificate of Recognition (COR®) – a workplace safety certification program established in Canada – remains crucial. More than just a compliance tool, COR® provides a structured and proactive approach to health and safety, reducing incidents and helping businesses maintain a competitive edge. COR®-certified companies consistently report:

  • Lower incident rates
  • Fewer operational disruptions
  • Insurance premium reductions

 

But beyond compliance, obtaining or maintaining COR® is a smart long-term decision and provides a significant business advantage. Not having COR® has real and measurable opportunity costs. Businesses that fail to obtain or maintain COR® certification may find themselves:

  • Ineligible for contracts with clients who require COR® as a prequalification standard
  • Losing bids to competitors who demonstrate stronger OHS management and due diligence
  • Facing higher operational costs from increased incidents, liability, and insurance premiums
  • Damaging their reputation and credibility in the industry

 

In contrast, companies with COR® certification are often the preferred choice for buyers, project owners, and clients because it provides assurance that they have done their due diligence in managing health and safety risks and ensuring operational efficiency. This competitive edge translates into more business opportunities, stronger partnerships, and long-term sustainability.

A downturn will pass, but the consequences of neglecting health and safety can last far longer. As businesses prepare for potential economic headwinds, the best investment remains the one that ensures every worker gets home safely—while also strengthening business trust, resilience, and credibility.

How is your organization ensuring health and safety remains a priority, even in uncertain times? Let’s discuss.

Ben Snyman

 

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