This is an update to our previous blog post on the House of Commons passes Bill C-58 to amend Canada Labour Code & ban replacement workers during strikes or lockouts.
Coming into force
Bill C-58 received royal assent on June 20, 2024. The amendments to the Canada Labour Code will come into force June 20, 2025, 12 months from the date of royal assent.
Prohibition regarding replacement workers
The Bill amends the Canada Labour Code to ban an employer or any individual acting on their behalf from replacing employees in the bargaining unit with the following persons during a strike or lockout:
- Any employee or any person who performs management functions or who is employed in a confidential capacity in matters related to industrial relations, if that employee or person is hired after the day on which notice to bargain collectively is given;
- Any contractor, other than a dependent contractor, or any employee of another employer (unless that person was performing the same or substantially similar services prior to the date that notice to bargain collectively was given, so long as they perform the services in the same manner, to the same extent, and in the same circumstances as they did before notice was given);
- Any employee whose normal workplace is a workplace other than that at which the strike or lockout is taking place or who was transferred to the workplace at which the strike or lockout is taking place after the day on which notice to bargain collectively is given; and
- Any volunteer, student or member of the public.
An exception can be made if there is an imminent or serious threat regarding a person, the employer’s property, or environmental damage that could affect the employer’s property, and the employer is unable to deal with the threat by any other means. However, the employer must give the employees on strike or lock out the opportunity to perform the necessary work before using the services of the replacement person.
Penalty for prohibited use of services during a strike or lockout
An employer who uses prohibited services, as described above, during a strike or lockout will be guilty of an offence and liable on summary conviction to a fine not exceeding $100,000 for each day the offence is committed or continued.
Process regarding the maintenance of activities
The Bill requires an employer and union to enter into an agreement regarding what activities will be maintained during a strike or lockout no later than 15 days after the notice to bargain collectively has been given. The agreement must be filed with the Canada Industrial Relations Board (the “Board”), and has the same weight as an order of the Board. If the employer and the union do not enter into an agreement, either party may apply to the Board to make a decision regarding the maintenance of activities. The Board must communicate its decision within 82 days of receiving the application.
Conclusion
Federally regulated employers should consider what implications these legislative amendments will have on labour disputes and collective bargaining within their sector to be prepared for the legislation to come into force on June 20, 2025. Failing to comply with the new amendments may result in significant penalties.
Questions? Please contact a member of our labour and employment team to discuss how these legislative amendments may impact your workplace and labour relations strategies.
Note: This article is of a general nature only and is not exhaustive of all possible legal rights or remedies. In addition, laws may change over time and should be interpreted only in the context of particular circumstances such that these materials are not intended to be relied upon or taken as legal advice or opinion. Readers should consult a legal professional for specific advice in any particular situation.