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No Replacement Workers in Federal Strikes

Full Title: An Act to amend the Canada Labour Code (replacement workers)

Summary#

This bill changes the Canada Labour Code for federally regulated workplaces. It bans employers from using replacement workers during a legal strike or lockout. It also requires employers to take back striking workers after the dispute, unless there is a valid reason not to. The bill adds daily fines for violations.

  • Bans use of replacement workers during legal strikes/lockouts, with detailed prohibitions (Bill s.94(2.1)(a)-(f)).
  • Requires reinstatement of striking or locked-out workers in preference to others after the dispute (s.87.6).
  • Allows managers to work and allows steps to prevent serious property damage; essential services remain subject to existing rules (s.94(2.3), s.94(2.2), s.87.4).
  • Lets the Canada Industrial Relations Board order employers to stop using banned workers (s.99(1)(b.3)).
  • Creates a new offence with fines up to CAD $10,000 per day for ongoing violations (s.100(5)).
  • Applies to employers and bargaining units covered by the Canada Labour Code, Part I; no delayed start date is stated (Data unavailable).

What it means for you#

  • Households and workers

    • If you work in a federally regulated bargaining unit, your employer may not use people hired after notice to bargain, contractors, employees from other locations, or most other employees to do your job during a legal strike or lockout (s.94(2.1)(a)-(f)).
    • After a legal strike or lockout, you must be reinstated with preference over others, unless the employer has a valid reason not to reinstate you (s.87.6).
    • You may still have to perform work ordered to maintain essential activities under existing law (s.87.4 is referenced in s.94(2.1)(c)).
  • Employers (federally regulated)

    • You may not use replacement workers during a legal strike or lockout as set out in s.94(2.1)(a)-(f). Violations can trigger Board orders to stop and fines up to $10,000 per day for each day or part day the offence continues (s.99(1)(b.3), s.100(5)).
    • You may use managers, superintendents, supervisors, employer representatives, and directors/officers (unless the latter are designated by employees or a certified union) (s.94(2.3)).
    • You may take necessary measures to prevent destruction of, or serious damage to, property (s.94(2.2)).
    • When the dispute ends, you must reinstate striking or locked‑out employees with preference, unless you have a valid reason not to (s.87.6). You should be prepared to explain and document any such reason.
  • Managers and supervisors

    • You may perform work during a strike or lockout. The ban does not apply to you in your managerial capacity (s.94(2.3)(a)).
  • Contractors and workers from other employers

    • You cannot be used to perform the duties of employees who are on a legal strike or are locked out (s.94(2.1)(b)).
  • Unions

    • You can seek an order from the Canada Industrial Relations Board requiring an employer to stop using prohibited workers for the duration of the dispute (s.99(1)(b.3)).
  • Timing

    • Effective date: the bill text does not state a delayed coming‑into‑force date (Data unavailable).

Expenses#

Estimated net cost: Data unavailable.

  • No appropriations or new program spending are authorized in the bill text.
  • Creates an offence with fines up to CAD $10,000 per day for each day or part of a day the offence continues (s.100(5)).
  • Possible administrative and enforcement costs for the Canada Industrial Relations Board and prosecutions: Data unavailable.
  • Potential fine revenue: Data unavailable.

Proponents' View#

  • Levels the playing field in bargaining by removing the option to replace striking workers, which proponents say encourages negotiated settlements (s.94(2.1)(a)-(f)). Evidence of effects on dispute length or frequency: Data unavailable.
  • Protects job security by requiring reinstatement of strikers or locked‑out workers in preference to others after the dispute (s.87.6).
  • Adds clear, daily penalties that deter unlawful use of replacement workers ($10,000/day maximum) (s.100(5)).
  • Preserves safety and property through explicit exceptions for essential activities and property protection (s.87.4; s.94(2.2)).
  • Allows limited continuity through managers and supervisors without undermining the strike, due to the manager exception (s.94(2.3)). Impact on operations: Data unavailable.

Opponents' View#

  • Could lengthen or widen work stoppages by removing an employer tool to maintain operations, raising the risk of service disruptions in federally regulated sectors. Empirical evidence in this context: Data unavailable.
  • May impose operational and competitiveness costs on employers who cannot reassign employees from other sites or use contractors during a dispute (s.94(2.1)(b), (e)-(f)). Quantified costs: Data unavailable.
  • “Valid reason” for not reinstating an employee is not defined, which may drive grievances and litigation after disputes (s.87.6). Anticipated caseload impact: Data unavailable.
  • The property protection clause (“necessary measures” to avoid destruction or serious damage) is open to interpretation and may lead to disputes over what is permitted during a strike (s.94(2.2)).
  • Enforcement may be complex, requiring fact‑specific inquiries into who was hired when and what duties they performed, increasing compliance and oversight burdens (s.94(2.1)(a)-(f)). Quantified enforcement costs: Data unavailable.

Timeline

May 30, 2022 • House

First reading

Labor and Employment