Early federal election possible as NDP pulls out of supply and confidence deal with the Liberals

In a social media video posted Wednesday afternoon, NDP Leader Jagmeet Singh said he notified Prime Minister Justin Trudeau of the decision.

“Canadians are fighting a battle.  A battle for the future of the middle class.  Justin Trudeau has proven again and again he will always cave to corporate greed,” Singh said in the video directly addressing Canadians.

“The Liberals have let people down. They don’t deserve another chance from Canadians.”

Singh and Trudeau reached the agreement in March 2022, committing the Liberals to implement several NDP priorities such as dental care and pharmacare, in exchange for the NDP caucus supporting the Liberals on key votes like budgets.

The NDP had been re-evaluating the deal since Aug. 22, the day Labour Minister Steve MacKinnon asked the Canada Industrial Relations Board to impose binding arbitration to end a work stoppage at Canadian Pacific Kansas City and Canadian National Railway that paralyzed Canada’s transportation networks.

The request came just 24 hours after the two companies locked out their workers after failing to reach a contract deal at the bargaining table.

This week Singh called the government’s decision to intervene “a line in the sand that was crossed.”

NDP’s labour critic Matthew Green told The Canadian Press earlier this week that as Canada’s only labour party the NDP has a responsibility to take “bold steps” to ensure there’s support for workers and their families, and others who are “struggling in this economy.”

The decision doesn’t mean the government automatically falls at the next confidence vote. Rather, the NDP will determine how to vote on Liberal legislation on a case-by-case basis.

Singh said there is another “bigger battle ahead,” noting the threat of cuts from the Conservatives under their leader Pierre Poilievre if the party wins the next election.

“The fact is, the Liberals are too weak, too selfish and too beholden to corporate interests to fight for people. They cannot be change, they cannot restore the hope, they cannot stop the Conservatives,” he said.

“But we can.”

He said his party will deliver hope and relief, fix health care, build homes and stop price gouging.

Many of the affordability measures the Liberals have brought in over recent years, including dental-care benefits, one-time rental supplements for low-income tenants and a temporary doubling of the GST rebate, were NDP priorities. Some came about exclusively as a result of the deal.

New Democrats also used the deal to push forward a ban on replacement workers during a strike or lockout at federally regulated workplaces.

The two parties also negotiated a housing accelerator fund that allocated billions of dollars to help build more than 750,000 homes across Canada.

House Leader Karina Gould said Aug. 26 that she expected the deal to run until its end, which was to be June 2025. Her office reiterated those remarks Tuesday, after Green’s interview.

Poilievre held a press conference calling for Singh to break the deal. He blamed him for selling out workers by signing onto a “costly coalition” that he says puts Singh and Trudeau ahead of Canadians.

National opinion polls suggest Poilievre’s stance on workers rights and the economy is resonating with Canadians. He continues to hold a substantial lead in polls ahead of Liberals and New Democrats.

By Mickey Djuric and Laura Osman , The Canadian Press