On June 20, 2024, Canada took a significant step forward in labor relations with the passing of Bill C-58, an amendment to the Canada Labour Code. This legislation introduces robust anti-replacement-worker provisions, fundamentally altering the landscape for federal jurisdiction employers and unions. As businesses prepare for the bill's full implementation in June 2025, it’s crucial to understand the implications and prepare accordingly.
The Push for Change
The concept of anti-replacement-worker legislation isn’t new. Quebec has had such laws in place since 1977, providing unions with a strong shield during labour disputes. However, federal jurisdiction employers have operated under a different framework. Before Bill C-58, the Canada Labour Code only prevented the use of replacement workers if a union could prove that their employment was intended to undermine the union’s representational capacity. This requirement placed a heavy burden on unions, making it difficult to challenge employers effectively. Union activists have long called for more stringent protections, arguing that the existing legislation left them vulnerable during strikes and lockouts.
What Does Bill C-58 Change?
Bill C-58 introduces a significant amendment to section 94 of the Canada Labour Code, focusing on unfair labour practices and the use of replacement workers. The new provisions simplify the process for unions by eliminating the need to demonstrate an employer's intent to undermine the union. This shift places a greater responsibility on employers to justify their actions during labour disputes.
Under the new law, federal jurisdiction employers are prohibited from using certain individuals to perform the duties of employees who are on strike or locked out. These include:
New Hires: Any employee hired after the notice to bargain collectively was issued.
Confidential Employees: Individuals performing management functions or those employed in a confidential capacity related to industrial relations, hired after the notice.
External Contractors: Contractors or employees of other employers whose services were not utilized before the notice.
Transferred Employees: Employees whose regular workplace is different from the location of the strike or lockout, or who were transferred to the strike or lockout location after the notice.
Volunteers and Non-Employees: Volunteers, students, and members of the public.
Striking Employees: Any employee who is part of the bargaining unit on strike or locked out.
These provisions effectively close loopholes that employers might have used to mitigate the impact of a strike or lockout, thereby strengthening the bargaining power of unions.
Exceptions for Critical Situations
While Bill C-58 imposes strict limitations, it does recognize the need for flexibility in certain critical situations. Employers are permitted to use the services of the aforementioned individuals if their work is necessary to address imminent threats, such as:
Threats to Life, Health, or Safety: Situations that pose a serious risk to the well-being of any person.
Protection of Property: Threats of destruction or serious damage to the employer’s property or premises.
Environmental Concerns: Potential serious environmental damage affecting the employer's property.
Even in these cases, the use of replacement workers must be strictly for conservation purposes and not to continue regular operations. Furthermore, employers are required to offer these conservation duties to the striking or locked-out employees first.
Consequences of Non-Compliance
The penalties for violating these new provisions are severe. Employers found in breach of the anti-replacement-worker rules can face fines of up to $100,000 per day. To ensure compliance, the government is expected to establish an administrative framework that includes financial penalties. This signals the seriousness with which the new rules will be enforced, leaving little room for non-compliance.
Ensuring Continuity of Essential Services
In addition to the anti-replacement-worker provisions, Bill C-58 introduces requirements for maintaining essential services during labour disputes. Employers and unions must reach an agreement on which activities need to be maintained to prevent imminent and serious threats to public health and safety. This agreement must be finalized within 15 days of the notice to bargain collectively. If the parties cannot agree, the matter will be referred to the Canada Industrial Relations Board for resolution.
Preparing for the Future
With the full implementation of Bill C-58 on the horizon, federal jurisdiction employers must reassess their strategies for managing labor relations. The introduction of these anti-replacement-worker provisions is expected to shift the balance of power in favor of unions, making it more challenging for employers to navigate labor disputes.
As the full implementation of Bill C-58 approaches in June 2025, it's imperative for federal jurisdiction employers to reassess their labour relations strategies and ensure compliance with these new provisions. The introduction of anti-replacement-worker legislation marks a significant shift in Canadian labour law, potentially altering the balance of power in favour of unions during disputes. You can read the entire bill here.
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