Federal employers can no longer use replacement workers during strikes or lockouts after new legislation took effect June 20, marking the most significant change to Canadian labour law in decades.
Bill C-58, which amends the Canada Labour Code, prohibits federally regulated employers from using several categories of workers to fill positions during labour disputes. The ban includes employees or managers hired after bargaining notice is given, contractors, volunteers, students and members of the public.
The legislation affects approximately one million workers in federally regulated industries including banking, telecommunications, railways, airlines and interprovincial trucking.
Stricter replacement worker rules
Under the new rules, employers can only use existing employees who normally worked at the strike or lockout location before bargaining notice was issued. The law also prevents bargaining unit members from crossing picket lines during full strikes or lockouts.
Employers may still use replacement workers in exceptional circumstances to prevent threats to public safety, property destruction or environmental damage. However, they must first offer bargaining unit members the opportunity to perform necessary work.
Violations are considered unfair labour practices under the Canada Labour Code. Employers who breach the prohibition face fines up to $100,000 per day if prosecuted and convicted.
Maintenance of activities changes
The legislation also revises the maintenance of activities process, requiring employers and unions to reach agreements within 15 days of bargaining notice on which activities must continue during work stoppages to protect public health and safety.
If parties cannot agree, the Canada Industrial Relations Board must decide which activities require maintenance within 82 days. Both employers and unions must have a maintenance agreement in place before issuing 72-hour strike or lockout notices.
Government support for worker rights
“Banning the use of replacement workers in federally regulated sectors during strikes or lockouts is a major win for workers’ rights, collective bargaining, and fairness. This is a historic victory after decades of union advocacy and paves the way for more stable, respectful labour relations in Canada,” said Patty Hajdu, Minister of Jobs and Families.
John Zerucelli, Secretary of State for Labour, emphasized the legislation’s significance for the labour movement.
“The Canadian labour movement has been asking for this for a long time. The use of replacement workers during federal strikes and lockouts is officially prohibited. This marks a milestone that levels the playing field and ensures parties work towards getting a fair deal at the bargaining table,” Zerucelli said.
Background and enforcement
A limited prohibition on replacement workers existed from 1999 to 2025, but the new legislation expands these restrictions significantly. The ban applies to any strike or lockout ongoing on or after June 20, 2025, while new maintenance requirements apply to collective bargaining processes where notice is given after that date.
The Canada Industrial Relations Board handles complaints about violations and investigates alleged breaches of the replacement worker prohibition. The independent tribunal resolves workplace disputes under the Canada Labour Code.
The legislation received parliamentary support after extensive consultations with unions and employers. Government officials said the changes will improve labour relations, protect workers’ strike rights and provide greater economic stability during federal labour disputes.
