On May 27, 2024, the House of Commons (the “House”) voted unanimously to pass proposed “anti-scab” legislation which would amend the Canada Labour Code (the “Code”) to greatly restrict the use of replacement workers during strikes and lockouts in federally regulated workplaces (“Bill C-58” or the “Bill”). Such workplaces include cross-border trucking and bus companies, airlines, rail transportation, to name a few.
As discussed in one of our previous blogs, Bill C-58 would most notably amend the Code to:
- substantially expand the scope of the existing prohibition against the use of replacement workers during legal strikes and lockouts, subject to certain exceptions;
- prohibit employers from using the services of bargaining unit members during a legal strike or lockout, subject to certain exceptions; and
- create harsh potential penalties for employers that violate either of these prohibitions. (For more details regarding the proposed changes, please read our initial blog regarding bill C-58.)
Notably, the House passed Bill C-58 unanimously with 316 yeas and 0 nays, demonstrating that it has broad support across party lines. As a result, it is very likely that the Senate will ultimately also pass Bill C-58, although this has yet to happen. The Bill passed second reading in the Senate on June 6, 2024 and was referred to a committee for consideration, prior to the Bill undergoing third reading in the Senate.
The Bottom Line
Although it is presently unclear when Bill C-58 will undergo third reading in the Senate, and despite there being no guarantee that it will be passed, the broad support the Bill has received across party lines strongly suggests that it will ultimately become law.
Thus, federally regulated employers with unionized workplaces should continue monitoring the progress of Bill C-58 closely, given that its passage would be highly detrimental to them. In particular, the Bill would greatly diminish the ability of such employers to mitigate the adverse operational impacts of legal strikes, while also making legal lockouts a more impractical tool for employers to gain leverage in collective bargaining disputes.
That said, even if Bill C-58 is ultimately passed, it would not come into force until 18 months after receiving royal assent, giving employers more time to consider how they would navigate the new prohibitions during a legal work stoppage.
We will continue monitoring the legislative progress of Bill C-58 and provide timely updates regarding any new developments. If you have any questions regarding the amendments discussed above, or if you require any assistance with navigating a collective bargaining dispute/work stoppage, please do not hesitate to contact us for expert legal advice and guidance.
