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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 amends the Canada Labour Code to ban the use of replacement workers during a legal strike or lockout in federally regulated workplaces. It sets narrow safety and conservation exceptions, adds strong fines for violations, and creates a path for either side to ask the labour board to settle a new agreement after a prolonged dispute.

  • Bans employers from using contractors, newly hired workers, or other employees to do the work of striking or locked‑out workers (s. 94(2.1)(a)-(c)).
  • Allows limited use of staff for safety, property protection, or environmental protection only, not to keep producing goods or services (s. 94(2.2)-(2.3)).
  • Lets either party apply to the Board to settle the terms of a new collective agreement after 90 days, with conditions (Division V.01).
  • Requires employers to reinstate striking/locked‑out employees ahead of any other person when the dispute ends (s. 87.6).
  • Authorizes investigations and orders to stop unlawful use of replacement workers (s. 94(2.5)-(2.10); s. 99(1)(b.3)).
  • Sets fines up to CAD $100,000 per day for violations (s. 100(5)).

What it means for you#

  • Federally regulated workplaces

    • Applies to workplaces covered by the Canada Labour Code. Examples typically include banks, interprovincial transport, telecom, and some Crown corporations. This bill does not change coverage; it changes rules during strikes and lockouts.
  • Unionized employees

    • During a legal strike or lockout, your employer cannot use contractors, people hired after notice to bargain, or other employees to do your work, except for limited safety/conservation tasks (s. 94(2.1)-(2.3)).
    • When the dispute ends, you must be reinstated in preference to any other person (s. 87.6).
    • If no agreement is reached after at least 90 days on strike/lockout, and after at least 30 days of good‑faith bargaining with assistance, your union may apply to the Board to settle a new agreement (Division V.01).
  • Employers

    • You must not use replacement workers to perform any duties of striking/locked‑out employees, including:
      • People hired after notice to bargain until a new agreement or award takes effect (s. 94(2.1)(a)).
      • Contractors or employees of another employer (s. 94(2.1)(b)).
      • Your own other employees (s. 94(2.1)(c)).
    • You may use personnel only as needed to prevent threats to life, health, or safety; serious damage to equipment or premises; or serious environmental damage. This is for conservation only, not to continue production (s. 94(2.2)-(2.3)).
    • Senior managers, directors, or officers may perform work, unless they hold that role by designation from employees or a certified union (s. 94(2.4)).
    • The Board can order you to stop using prohibited replacement workers during a dispute (s. 99(1)(b.3)). Violations can lead to fines up to $100,000 per day (s. 100(5)).
    • After 90 days of a legal strike/lockout, with at least 30 days of assisted good‑faith bargaining and no agreement, you may apply to the Board to settle the new agreement (Division V.01).
  • Contractors, staffing agencies, and non‑unit employees

    • You cannot be used to do the work of striking/locked‑out employees during a legal dispute, unless it is strictly for safety or conservation tasks (s. 94(2.1)-(2.3)).
  • Managers and officers

    • You may perform work of striking/locked‑out employees to the extent allowed, but not to continue production beyond safety/conservation needs. The exemption does not apply if you serve in that capacity by designation from employees or a certified union (s. 94(2.3)-(2.4)).
  • During strikes or lockouts

    • Production of goods or services that depend on striking workers must pause, except for safety, property protection, or environmental conservation work (s. 94(2.1)-(2.3)).
    • The Minister may appoint an investigator on application, who can enter the workplace at reasonable times, be accompanied by employer and union designees, require assistance, and report findings (s. 94(2.5)-(2.10)).
  • Timing

    • The bill does not state a specific coming‑into‑force date in the provided text. Effects begin after the law comes into force. Data unavailable.

Expenses#

  • Estimated net cost: Data unavailable.

  • Key points

    • The bill includes no explicit appropriations or funding levels (Bill text).
    • Administration may involve investigator appointments and Board proceedings, but no costs are estimated in the bill. Data unavailable.
    • Potential fine revenues (up to $100,000 per day per offence) depend on enforcement outcomes. Data unavailable.

Proponents' View#

  • The ban on replacement workers levels bargaining power and reduces the ability to continue production during a strike, which they say can lead to faster, good‑faith settlements (s. 94(2.1)-(2.3)).
  • The 90‑day application to the Board offers a structured way to end prolonged disputes once assisted bargaining has failed, giving both sides a clear backstop (Division V.01).
  • Safety and conservation exceptions allow essential tasks to continue, limiting risks to people, property, and the environment (s. 94(2.2)-(2.3)).
  • Strong, per‑day fines and Board orders create real deterrence against unlawful use of replacement workers, supporting compliance without lengthy court battles (s. 99(1)(b.3); s. 100(5)).
  • Guaranteed reinstatement protects strikers from being displaced by temporary hires, supporting stable return‑to‑work conditions (s. 87.6).

Opponents' View#

  • The broad ban, including on contractors and other employees, could make it harder to maintain essential operations and may lengthen or increase the impact of strikes on services (s. 94(2.1)(b)-(c)). This assumes parties do not settle faster.
  • The “conservation only” limit may be unclear in practice, leading to disputes over what tasks are allowed and added litigation or enforcement actions (s. 94(2.2)-(2.3)).
  • Fines up to $100,000 per day create high financial risk for employers, including for inadvertent breaches, and could pressure quick decisions rather than careful compliance (s. 100(5)).
  • Investigator entry and assistance powers may disrupt operations and raise privacy or procedural concerns, especially during tense labour disputes (s. 94(2.5)-(2.10)).
  • Letting the Board settle agreements after 90 days could shift bargaining from the workplace to the tribunal, strain Board capacity, and produce outcomes less tailored to specific workplaces (Division V.01).

Timeline

Oct 27, 2022 • House

First reading

Labor and Employment