The Manitoba Government has announced a number of significant changes to labour and employment legislation that will impact provincially-regulated employers throughout Manitoba.
This article will provide an overview of changes that have become law and those being considered.
New provincial holiday
On December 7, 2023, Bill 4, The Employment Standards Code Amendment and Interpretation Amendment Act (Orange Shirt Day) received royal assent and became law. This Act adds a new general holiday under The Employment Standards Code for Orange Shirt Day (also known as National Day for Truth and Reconciliation), to be held on September 30 of each calendar year. This new holiday increases the number of general holidays in Manitoba from eight to nine.
Of note, Orange Shirt Day will be the only general holiday that cannot be substituted for another day by an employer. Generally, this means that employers who already offered nine or more holidays cannot substitute those additional holidays for Orange Shirt Day.
Minimum wage increase
As outlined in our past blog post, The Employment Standards Code generally provides that for each year since 2017, the minimum wage rate is to be increased on October 1. This is in accordance with the change in the Consumer Price Index for the preceding year. However, in 2022, the Manitoba Government altered the minimum wage increases to provide for two increases that exceeded the rate of inflation.
The provincial government has now confirmed that it will only apply the minimum wage increase based on the increase to the Consumer Price Index in accordance with The Employment Standards Code. Accordingly, the minimum wage rate will increase from $15.30 to $15.80, effective October 1, 2024.
Future minimum wage increases will continue to be determined based on changes in the Consumer Price Index and any discretionary additional amount announced by the provincial government.
Proposed extension to long-term leave for serious injury or illness
The Employment Standards Code currently provides an employee who has completed at least 90 days of service and who is seriously ill or injured with an unpaid leave of absence of 17 weeks in any 52-week period.
Bill 9, The Employment Standards Code Amendment Act, would increase the length of the leave of absence from 17 weeks to 27 weeks. This would entitle employees who require a longer leave of absence of between 17 to 27 weeks to statutory protections, including prohibitions on terminating their employment due to the leave.
It is important to note that human rights obligations must also be considered, including those that extend beyond 27 weeks.
Bill 9 has only been introduced at first reading and is subject to further deliberation before potentially becoming law.
Proposed repeal of The Public Sector Construction Projects (Tendering) Act
In 2021, the former Manitoba Government introduced and passed The Public Sector Construction Projects (Tendering) Act. This Act prohibited a public sector entity from issuing a tender for a construction project that included a requirement that the bidder become party to a collective agreement, employ members of a specified union, employ non-unionized employees or pay union dues on behalf of non-unionized employees or require such non-unionized employees to pay union dues.
Prior to the Act’s implementation, certain large public sector construction projects required that a contractor employ union labour only or else pay union dues in lieu of using union labour. The Act prohibited this prior practice and allowed both unionized and non-unionized employers to apply for tenders issued by public sector entities.
Bill 7, The Public Sector Construction Projects (Tendering) Repeal Act, would repeal the Act and allow public sector entities to again require that successful bidders on tenders become party to a collective agreement, exclusively use unionized employees or otherwise compensate a union as directed.
While Bill 7 is only at first reading, the Manitoba Government has publicly endorsed the Bill and it is expected to pass in the near future.
Potential proposals to ban replacement workers and re-introduce automatic certification
On March 19, 2024, the Manitoba Government announced that it intended to introduce legislation that would “be among the biggest changes to labour law in Manitoba in a generation.” In particular, the government announced that it intended to introduce legislation that would prohibit the use of replacement workers during a legal strike or lockout.
Currently, The Labour Relations Act does not prohibit an employer from hiring replacement workers during a legal strike or lockout. However, the Act does require that striking or locked out workers be rehired after a strike or lockout. It also prohibits the use of “professional strikebreakers” by an employer.
The provincial government also announced that it would amend The Labour Relations Act to provide for automatic certification of a bargaining unit if a union filed signed membership cards with the Manitoba Labour Board that resulted in a majority of employees in the workplace (50% plus one) supporting the union.
The Labour Relations Act previously provided for automatic certification if a union could establish that it had the support of at least 65% of employees in the workplace; a secret ballot vote would be ordered if support was between 40% and 65%.
In 2016, the previous Manitoba Government amended the Act to remove automatic certification and allow for a secret ballot vote if 40% support was established at the time of application filing. Currently, there is no ability under the Act for a union to become automatically certified without a secret ballot vote being conducted.
The proposed changes to the use of replacement workers and automatic certification were not introduced as a Bill at first reading on March 19. Since the bill has not yet been introduced, the government has not confirmed the specific details of their proposed changes.
As well, due to the legislative calendar, any bills that could be passed before the summer legislative break in June had to be introduced at first reading by no later than March 19. Accordingly, these proposed changes will likely not be implemented in the short-term. However, given the public announcements by the Manitoba Government, we expect that legislation will be introduced at the first available opportunity.
Our labour & employment team will continue to review upcoming changes that affect Manitoba employers and will provide any necessary updates. If you’re interested in learning more about these changes and how they may impact your operations, contact a member of our Manitoba Labour & Employment team to learn how we can help.
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.