With a longstanding desire for stricter labour laws, Canada seems to be heading towards a significant change in its operation of labour disputes. A proposed change in the federal labour legislation, known as Bill C-58, seeks to place a ban on employers’ use of replacement workers or ‘scabs’ during strikes or lockouts.
This federal labour bill was introduced by Minister of Labour and Seniors, Seamus O’Reagan. The primary agenda of the bill is not only the ban on ‘scabs’, but it also aims at encouraging unions and employers to negotiate the framework of activities well ahead, should a strike or lockout take place. Interestingly, the introduction of this bill happened on the same day when the historic strike by the Screen Actors Guild-American Federation of Television and Radio Artists (SAG-AFTRA) in the United States came to an end.
The proposed changes in the bill would apply to federally regulated private sectors, which includes entities like banking, interprovincial railways, radio and television broadcasting, and various other sectors. At the moment, approximately 910,000 Canadians fall under the bracket of ‘federally regulated’ employment.
Opposition to the bill comes mainly from various business organizations in Canada. A significant representation of this opposition is a joint letter from February 2023 led by the Canadian Chamber of Commerce. The letter, signed by more than 80 Canadian business organizations, criticizes the bill indicating that it could potentially damage the Canadian economy.
The proposed anti-scab legislation has been in existence in British Columbia and Québec for a number of years, but it hasn’t been replicated at the federal level yet. The government’s ability to introduce the bill this time might be attributed to the “supply and confidence” agreement set up back in March 2022. This agreement essentially lays down that the New Democratic Party (NDP) would support the Liberal government on budget matters and confidence matters. In return, the Liberals agreed to support key policy goals set by the NDP, one of them being the legislation banning the use of scabs by the end of 2023.
Despite critics suggesting that the introduction of the bill in Parliament was a little delayed with only 20 more sitting days left for the year, the push towards this bill’s introduction marks an interesting chapter for amendments in Canadian labour law. It is a significant development that labour law professionals in Canada, and indeed internationally, will observe eagerly.