Ottawa’s bill to ban the use of replacement workers — also known as “scabs” — in labour disputes has received royal assent.
Bill C-58, officially titled An Act to amend the Canada Labour Code and the Industrial Relations Board Regulations, 2012, marks a major change in federal labour policies, the most notable since the 1990s. The new law, developed through extensive consultations with unions and employers, received unanimous support in Parliament.
Under the new legislation, employers are prohibited from hiring replacement workers to perform the duties of unionized employees during strikes or lockouts. The only exceptions to this rule apply in scenarios where public health and safety or the protection of employer property are at risk.
Furthermore, the bill introduces a requirement for employers and unions to agree early in the bargaining process on which activities must continue during work stoppages to safeguard public health and safety. This agreement must be reached within 15 days of notice to bargain. Should the parties fail to agree, the Canada Industrial Relations Board (CIRB) will determine the essential activities within 82 days.
“The CIRB, as the independent administrative tribunal, will enforce these new changes,” said a press release from Employment and Social Development Canada. “This legislation will apply to employers and workers in federally regulated sectors, including interprovincial and international transportation, banks, telecommunications, and postal services.”
Minister of Labour and Seniors, Seamus O’Regan Jr., highlighted the historical significance of the legislation, stating, “This is one of the most seminal moments in Canadian labour history. Thanks to all the labour leaders, activists, and workers who worked so hard over many decades to finally make this happen.”
The new measures aim to improve labour relations by ensuring that disputes are resolved at the bargaining table, minimizing disruptions, and providing stability to the economy. The provisions of Bill C-58 will come into effect on June 20, 2025, allowing the CIRB time to prepare for its new responsibilities.
According to Employment and Social Development Canada, the Federal Mediation and Conciliation Service (FMCS) plays a crucial role in resolving disputes under Part I of the Canada Labour Code, which governs workplace relations and collective bargaining. In the fiscal year 2023-2024, 96% of disputes referred to the FMCS were resolved without a work stoppage.
The ban on replacement workers reinstates a broader prohibition that existed before 1999 when amendments to the Canada Labour Code introduced a limited ban based on recommendations from the 1995 Sims Task Force report, “Seeking a Balance.”