[Ontario, March 19, 2025] – As trade tensions between Canada and the U.S. escalate, businesses are facing rising costs and mounting pressure to cut expenses. However, industry experts warn that reducing investments in occupational health and safety (OHS) is a false economy that could lead to devastating consequences.
With U.S. tariffs and Canadian surtaxes already squeezing businesses – and more trade restrictions looming – many may turn to cost-cutting measures. But history shows that economic downturns often lead to workforce reductions, higher turnover, and weaker oversight – factors that increase the risk of workplace incidents.
“The reality is that workplace risks don’t disappear during economic downturns; they actually increase,” said Ben Snyman, CEO of AuditSoft. “Organizations that scale back their investment in OHS programs not only put workers at risk but also expose themselves to long-term financial and reputational damage.”
Leaders at health and safety associations across Canada echoed this sentiment.
“Reducing investment in health and safety not only endangers workers by increasing the likelihood of accidents and injuries, but also undermines long-term productivity and efficiency,” said Ray Gaetz, CEO, Alberta Association for Safety Partnerships (AASP). “When employees feel unsafe or face higher risks of injury, it can lead to higher turnover, absenteeism, and a decrease in morale. Cost-cutting may offer short-term financial relief, but ultimately, it jeopardizes both employees and business sustainability in the long run.”
“Tariffs have introduced risk and uncertainty into every contract – challenges that can’t always be mitigated through contract clauses alone,” said Edward Pyle, Vice President, Saskatchewan Construction Safety Association (SCSA). “Some firms are choosing to ‘wait out the risk’ to avoid unsettling project owners, while others are ‘buying business’ to keep work flowing. Meanwhile, companies that take on higher-risk work and leverage strong management practices are seeing success in driving results and ongoing profitability.”
COR®: A Proven Advantage for Organizations
One of the most effective tools for mitigating workplace risk is the Certificate of Recognition (COR®). COR® provides a structured, proactive approach to health and safety management. It helps companies reduce incidents, maintain operational efficiency, and gain a competitive advantage as municipalities and buyers increasingly require COR® as a prequalification standard.
Obtaining and maintaining COR® comes with a cost, but COR®-certified companies are often the preferred choice for buyers, project owners, and clients, as it demonstrates due diligence in managing health and safety risks while ensuring operational efficiency.
“To navigate uncertainty, businesses should focus on what they can control: effective leadership and a robust safety program,” said Edward Pyle at SCSA. “COR® is a Canadian-developed safety system, backed by academic research, that has been proven to reduce both the cost and frequency of injuries. While political risk is unpredictable, a company’s approach to safety and management remains firmly within its control.”
Chris McKean, VP Programs and Strategic Development, Infrastructure Health & Safety Association (IHSA), agrees. “Resilience and sustainability go hand in hand, and the primary ingredient is your people. Putting the well-being of your people first has been demonstrated time and time again by over 10,000 COR®-certified construction companies across the nation.”
“In today’s uncertain economic climate, including threats of tariffs, maintaining a strong commitment to health and safety is more important than ever,” echoed Robert Harper, President, Alberta Motor Transport Association (AMTA). “COR® certification is a valuable tool for the commercial transportation industry, helping to reduce risks, costs, and downtime while ensuring long-term sustainability. COR® protects workers, your most valuable asset, and helps your business stay competitive. In these challenging times, COR® certification sustains safety culture, supports compliance, and drives resilience. It’s not just about meeting standards; it’s about safeguarding the future of your business and ensuring that those who keep it running return home safe every day.”
Chris McKean referenced IHSA COR® audit data and research from UBC, which found COR®-certified firms in Ontario had a 28% lower lost-time injury rate and 20% fewer high-impact injuries than non-COR® firms of similar size and sector.
These findings highlight the effectiveness of COR®, Chris noted. “Specifically, in Ontario, contractors have shown improved scores in their COR® certification audits year over year from 2020-2024. This continues to support their journey of putting their people first.”
As businesses prepare for potential economic headwinds, prioritizing workplace safety is key to maintaining business trust, resilience, credibility – and profitability.
“The bottom line is that investing in worker health, safety and well-being isn’t an expense – it’s a business strategy,” concluded Ben Snyman at AuditSoft. “Companies that prioritize health & safety through COR® certification are not only protecting their people but also positioning themselves for long-term success.”
Article originally published on AuditSoft.
About AuditSoft
AuditSoft is the industry leader in digital audit and compliance solutions, and Canada’s most trusted COR auditing software. Associations and Certifying Bodies partner with AuditSoft to equip members with powerful auditing tools and actionable insights. With over 6,500 audits performed annually, AuditSoft provides reliable data that drives safer workplaces.
