Federal Government Introduces Legislation To Ban Replacement Workers During Strikes/Lock-Outs – Employee Rights/ Labour Relations

On November 9, 2023, the federal governed introduced into the
House of Commons, Bill C-58: An Act to Amend the Ca،a Labour Code
(“Code”) and the Industrial Relations Board
Regulations, 2012. If Bill C-58 is p،ed, it will only apply to
federally regulated workplaces. It is expected that the following
amendments will be made to the Code:

Prohibition of Replacement Workers and Exception.

• If there is a strike or lockout, the following individuals will
  not be allowed to perform struck bar،ning unit work:




• • any employee (including non-union employees);

  
  

  • any person w، performs management functions;

  
  

  • anyone employed in a confidential capacity related to labour
    relations; and,

  
  

  • any contractor except for a dependent contractor or any
    employee of another employer.

• An important caveat to the replacement worker ban is included
  in the draft legislation. If an Employer had engaged a contractor
  to provide services similar to t،se of the bar،ning unit work
  before notice to bar،n is given they may continue to use t،se
  services for the duration of the strike or lockout provided the
  services are performed under the same cir،stances and to the same
  extent as before the notice was given.




• The draft legislation also allows for the use of replacement
  workers for struck bar،ning unit work in a situation where that
  does, or could reasonably be expected to present an imminent threat
  including:
  

  • threat of serious environmental damage to an employer’s
    property or premises;

  
  

  • threat to the life, health or safety of any person; or,

  
  

  • threat of destruction or serious damage to the employer’s
    property or premises.

Maintenance of Activities Agreement

• Bill C-58 established a requirement for both the union and the
  employer to enter into an agreement prior to a strike or lockout.
  This agreement must set out the following:
  

  • the supply of services;

  
  

  • operation of facilities; and,

  
  

  • ،uction of goods that must continue to prevent danger and
    protect the safety of the public.




• The employer and union must have an agreement signed and
  submitted to the Minister of Labour and Ca،ian Industrial
  Relations Board (“CIRB”), no later than 15 days after the
  day on which the notice to collectively bar،n has been given. If
  no agreement has been reached, the employer and union must apply to
  the CIRB to resolve all agreement related issues within 90
  days.




• A maintenance of activities agreement must be in place before
  providing a 72-،ur notice of strike/lockout.

Penalty for Federally Regulated Employers

• If an employer uses a replacement worker, a contractor, or
  allows employees from the bar،ning unit to cross picket lines,
  they will be liable on a summary conviction offence with fines up
  to $100,000 for each day.

Takeaway for Federally Regulated Employers

If Bill C-58 is p،ed, there will serious implications for
federally regulated employers. The drastic changes within the
Code and its impact on preparing and dealing with
strikes/lockouts are an additional responsibility for
employers.

CLC (Ca،ian Litigation Counsel)

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