Summary#

Bill C-58 changes the Canada Labour Code for federally regulated workplaces. It bans most use of replacement workers during legal strikes and lockouts, adds narrow safety exceptions, and sets fines up to $100,000 per day. It also speeds up “maintenance of activities” decisions (work that must continue to protect public safety) and strengthens rules on reinstating workers after a dispute.

• Bans employers from using most replacement workers during a legal strike or lockout, with limited exceptions (Bill s.94(4)–(8)).
• Bars using employees in the striking unit during an all-out strike, except for safety-related maintenance of activities (Bill s.94(6)).
• Sets fines up to $100,000 per day for violations; allows an administrative penalties scheme by regulation (Bill s.100.1, s.111.01).
• Requires unions and employers to agree on maintenance of activities within 15 days after notice to bargain, or get a fast ruling from the Board (82-day limit) (Bill s.87.4(2)–(6.1)).
• Requires reinstatement of striking/locked-out employees in preference to others when the dispute ends (Bill s.87.6).
• In force 12 months after Royal Assent; Royal Assent was on June 20, 2024, so most provisions take effect June 20, 2025 (Coming-into-force clause).

What it means for you#

• Households and service users

  • Essential safety-related services must continue during strikes or lockouts, either by agreement or Board order (Bill s.87.4(1)–(6.1)).
  • You may see service disruptions in federally regulated sectors (e.g., air, rail, ports, telecom, banking, postal). The law seeks to protect health and safety, not to keep full service operating (Canada Labour Program sector list; Bill s.87.4, s.94(7)).
  • When disputes end, normal staffing should resume faster because workers have reinstatement priority (Bill s.87.6).

• Workers (federally regulated, unionized)

  • Your employer cannot use most replacement workers (new hires after notice to bargain, outside contractors, volunteers, students, or employees moved in after notice) to do your duties during a legal strike or lockout, with narrow safety exceptions (Bill s.94(4), s.94(7)–(8)).
  • In an all-out strike, the employer cannot assign your bargaining-unit colleagues to do struck work except for maintenance of activities required by the Code (Bill s.94(6), s.87.4).
  • If you were on legal strike or locked out, you must be reinstated ahead of any other person when the dispute ends (Bill s.87.6).
  • Timing: Rules apply starting June 20, 2025. The maintenance-of-activities rules apply to bargaining where notice to bargain is given on or after that date (Transitional, Bill).

• Employers and managers (federally regulated)

  • Within 15 days after notice to bargain, you and the union must file a maintenance-of-activities agreement; if not, either side can apply to the Board, which must decide within 82 days (Bill s.87.4(2)–(6.1)).
  • During a legal strike/lockout, you cannot use:
    • Employees or managers hired after notice to bargain,
    • Contractors or other employers’ employees,
    • Employees transferred in or working at other locations,
    • Volunteers, students, or the public, except for narrow safety, property, or environmental threats and only if specific conditions are met (Bill s.94(4), s.94(7)).
  • You may continue using pre-existing contractors who were already doing substantially the same work before notice to bargain, but only in the same manner, extent, and circumstances as before (Bill s.94(5)).
  • Violations can draw Board orders and fines up to $100,000 per day; an administrative monetary penalties scheme may also apply once regulations are made (Bill s.99(1)(b.3)-(b.4), s.99.01, s.100.1, s.111.01).
  • Strike/lockout notices can only be given after the maintenance-of-activities agreement is filed or the Board has ruled (Bill s.87.2(4)).

• Unions

  • You gain a clearer anti-replacement rule (purpose test removed) and can seek quick Board action on complaints tied to replacement-worker bans (Bill s.94(4)–(6), s.99.01).
  • You must negotiate and file a maintenance-of-activities agreement within 15 days after notice to bargain or apply to the Board (Bill s.87.4(2)–(6.1)).
  • Board decisions and orders are final, with narrow grounds for court review under the Federal Courts Act (Bill s.22(1)).

Expenses#

• Estimated net cost: Data unavailable.

• Key fiscal elements in the bill text:

  • No explicit appropriations or spending authorizations (Bill, passim).
  • Creates an offence with fines up to CAD $100,000 per day for each day of violation; actual revenues depend on enforcement outcomes (Bill s.100.1).
  • Authorizes an administrative monetary penalties scheme by regulation; penalty ranges and administration costs will depend on future regulations (Bill s.111.01).
  • Board process changes (time limits, powers) may affect administrative workloads; no official costing identified. Data unavailable.

Proponents' View#

• Limits strikebreaking, which they argue makes bargaining more balanced and can push parties to settle at the table rather than prolong disputes (Bill s.94(4)–(6)).
• Removes the prior “purpose” test, closing a loophole that made enforcement difficult; focuses on the act of using replacements rather than proving intent (Bill s.94(4); repeal of s.94(2.1)).
• Protects public safety with strict maintenance-of-activities rules and a faster decision timeline (82 days), reducing uncertainty before a strike or lockout (Bill s.87.4(2)–(6.1)).
• Strong penalties (up to $100,000/day) and potential administrative penalties increase compliance and deter unlawful use of replacements (Bill s.100.1, s.111.01).
• Ensures workers can return to their jobs when disputes end, supporting continuity of operations post-strike (Bill s.87.6).

Opponents' View#

• Could extend the length or impact of strikes and lockouts in critical sectors by removing employers’ ability to maintain operations with temporary staff, affecting supply chains and consumers; effect size is uncertain and context-dependent. Data unavailable.
• Safety exceptions are narrow and conditional; meeting them requires offering work first to striking workers and showing no other means exist, which may slow responses to emergencies (Bill s.94(7)).
• May incentivize employers to outsource work to contractors before notice to bargain, to preserve some operational capacity during disputes under the “grandfathering” clause (Bill s.94(5)).
• Imposes high penalties and strict rules that could trigger more litigation over who counts as a covered “contractor,” “dependent contractor,” or transferred employee, and over Board timelines (Bill s.94(4)–(5), s.99.01).
• New 15-day deadline to settle maintenance-of-activities could front-load disputes and delay strike timelines if parties cannot agree, increasing Board caseload and creating bottlenecks (Bill s.87.4(2)–(6.1)).