Labour and First Nations say referendum talk and federal disputes could erode investor confidence
Alberta Premier Danielle Smith is pushing for legislative and constitutional changes that labour groups warn could undermine investor confidence and trigger long-term economic uncertainty.
She has escalated demands on the federal government in a bid to redefine Alberta’s place within Canada.
As per the Alberta Federation of Labour (AFL), Premier Smith’s address was “a politically motivated provocation against Ottawa that risks creating a climate of uncertainty and potentially even chaos.”
AFL president Gil McGowan said, “In labour circles we call this bad faith bargaining,” warning that “nothing kills investment like threats of separation.”
He added that “Albertans deserve better than this,” citing “a needless foray into sovereignty disputes that will do nothing to solve the day-to-day problems faced by workers and families.”
According to McGowan, AFL convention delegates “voted overwhelmingly for a resolution” urging Alberta’s leaders to demonstrate commitment to Canada and nation-building.
He argued, “The very threat of separatism is toxic to building lasting prosperity,” comparing the potential fallout to “the history of Quebec from the 1970s to the 1990s.”
In her 20-minute livestreamed speech, Smith stated that Alberta has faced an “onslaught of anti-energy, anti-agriculture and anti-resource development policies” from the federal government.
She said her government would appoint a negotiating team to seek repeal of federal restrictions on oil and gas pipelines, resource exports, and equalisation payments.
“Call it an Alberta Accord if you will,” Smith added.
According to The Globe and Mail, Smith said a new panel, “Alberta Next,” will host online and in-person town halls from May to October, likely culminating in a 2026 provincial referendum on “some of the more popular ideas discussed.”
Although she said her government would not place separation on the ballot, Smith stated that if a citizen-led petition met the signature threshold, the province would enable a 2026 referendum on the question.
As per Global News, Smith said these voices “are not fringe voices to be marginalized or vilified. They are loyal Albertans... who’ve just had enough of having their livelihoods and prosperity attacked by a hostile federal government.”
Following the Liberal election victory, Smith’s government introduced legislation to lower the petition threshold for triggering a provincial referendum from 20 percent to 10 percent of voters from the last general election and extended the signature collection period to 120 days.
Smith said the legislation aims to “respect the democratic process.”
According to the Toronto Star, Smith insisted that she does not have a mandate for separation.
“All I’ve said is I will honour the process, and the public very clearly knows that we are a party of direct democracy,” she said.
She also stated, “Any discussion that we’re having, including Alberta expressing its own constitutional sovereignty, is about Alberta’s relationship with Ottawa.”
However, Indigenous leaders across Alberta condemned the rhetoric. As reported by the Toronto Star, more than a dozen First Nations held an emergency meeting and warned that Alberta has no authority over treaties.
Piikani Nation Chief Troy Knowlton said, “The rhetoric and insanity of separation here in Alberta has united First Nations… We’re not going anywhere.”
Chief Allan Adam of the Athabasca Chipewyan First Nation added that “if Alberta wants to separate... you’re not allowed on our traditional territories anymore for exploration.”
Smith responded that “treaty rights can’t be voted away” and that any referendum question must “uphold and honour treaties 6, 7, and 8.”
Nationally, Smith’s comments have received mixed reactions.
According to the National Post, Parti Québécois leader Paul St-Pierre Plamondon called Smith’s threat of a referendum “a striking gesture” in defence of provincial autonomy. “I totally agree with provinces that stand up,” he said.
Ontario Premier Doug Ford responded differently, telling reporters, “This is a time to unite the country,” as per the Toronto Star.
Smith replied that she does not tell Ford how to run Ontario and expects the same in return.
Polling conducted by Nanos for The Globe and Mail after the election found that 64 percent of Albertans believe the province is better off as part of Canada—more than double the number who support separation or joining the US.
Smith has blamed past Liberal governments, including former Prime Minister Justin Trudeau and former environment minister Steven Guilbeault, for damaging Alberta’s economy and scaring off international investment.
She said, “None of us know what the future holds should Ottawa... continue to attack our province,” but promised to negotiate “a fair deal for Alberta.”
Her plans include securing guaranteed access to tidewater for exports of oil, gas, and critical minerals, and repealing federal laws on emissions, pipelines, tankers, and plastics.
Smith also said she would continue hosting town halls and might add some proposals to the 2026 referendum.
Meanwhile, as per The Globe and Mail, Prime Minister Mark Carney has not publicly responded to Smith’s latest remarks but previously said he and Smith are aligned on “bringing down the cost of living and increasing opportunities in the energy sector.”
Corey Hogan and Eleanor Olszewski, two of the three federal Liberals elected in Alberta, aid sthey expect Carney to respond to Smith’s concerns by easing regulatory barriers and reducing project review timelines.
“Mark Carney is committed to reducing red tape and reducing project review time,” said Olszewski.
Hogan added that courts will still require due process and consultation with First Nations, even if Ottawa streamlines approvals.
