Canada’s “anti-scab” legislation could lead to more strikes and lockouts in rail, air, and marine shipping, as well as other sectors, employers’ groups say.
Bill C-58 unanimously passed its third and final reading in the House of Commons on May 27, as Ottawa looks to ban federal employers from using replacement workers during strikes. MPs voted 316–0 in favour of the bill, sending the legislation on to the Senate where it has already achieved its second reading and is now up for consideration in committee.
As the Senate hearings got underway, the group representing federally regulated employers said amending Canada’s Labour Code to prohibit the longtime practice could backfire.
Replacement-worker bans almost always result in more and longer strikes, Federally Regulated Employers, Transportation and Communications CEO Derrick Hynes told senators on thethe Senate’s Standing Committee on Social Affairs, Science, and Technology.
“These bans incentivize strike activity and discourage collective bargaining,” Mr. Hynes told the committee. “Those most affected by replacement worker bans are everyday Canadians.”
Banning replacement workers for major employers such as airlines, ports, railways, and telecoms can cause services to shut down and supply chains to break, he said, adding that other “critical services” such as mail, internet, and banking could all be “paused.”
Canadian Federation of Independent Business vice-president Jasmin Guénette agreed, saying small and midsize enterprises (SMEs) would be “collateral damage” if the legislation becomes law.
“I remind you that no one represents or defends the interests of SMEs and their employees at the bargaining table in these major federal industries,” Mr. Guénette said. “Strikes have damaging consequences for the economy, disproportionate to any benefits a union may ultimately derive from them.”
“There is a reason why similar bills were voted down in the past whether it be by the Liberals or Conservatives, for example in 2019 and 2016,” he added. “Why is that? Because a bill such as this one can have very serious consequences on the economy.”
Mr. Hynes said there has been no evidence submitted to date by any government, union, or academic to demonstrate how a replacement worker ban would improve the collective bargaining process.
“In fact … 96 percent of all bargaining ends without a work stoppage,” Mr. Hynes said. “This bill is a solution looking for a problem to solve.”
The proposed legislation applies to a wide variety of workplaces including airports, banking, broadcasting, railways, and telecommunications as well as federal Crown corporations. If a company chose to use scab labour during strikes or lockouts, it would face fines of $100,000 a day under the legislation.
Bill C-58 would also require employers and unions to come to an agreement within 15 days to determine what work needs to continue during a strike or lockout, if any. If the parties cannot come to an agreement, the Canada Industrial Relations Board (CIRB) would decide what activities need to be maintained within 90 days.
‘Equilibrium’ in Bargaining
Labour unions, who have pushed for the legislation, say it’s an important move for workers.Canadian Labour Congress president Bea Bruske said in a May 27 press release the bill would mean fewer “labour disruptions, avoiding work stoppages, and building a more balanced economy,” while Unifor National President Lana Payne said it would modernize “Canada’s labour relations system.”
The Senate committee previously heard from unions and labour advocates, Senator Jane Cordy said, adding that they presented a very different picture from the business groups.
The Canadian Labor Congress said “when employers are allowed to use … scabs, it puts a thumb on the scale in favour of the employer,” Sen. Cordy said. “Would this bill not bring equilibrium to labour relations?”
Public Affairs and National Policy Canadian Manufacturers and Exporters vice-president Ryan Greer said an “equilibrium” currently exists in the collective bargaining system, but the legislation would change all of that if it is made law.
“I'll be perfectly blunt; if our members saw some evidence or believed that this would, in fact, reduce the incidence or length of these disruptions they would come here and speak in favour of the bill,” Mr. Greer said. “We haven’t seen that evidence presented to the House Committee. I haven’t seen it presented here.”
Canadian Chamber of Commerce Government Relations vice-president Robin Guy said that government documentation shows higher incidence of workers striking in British Columbia and Quebec where the use of replacement workers is prohibited.
It is “significantly higher than the country average,” Mr. Guy said, adding that the government’s own studies show that provinces with such bans have “more frequent, longer strikes.”
“It’s not me saying that, it’s the government’s own paper. It’s experts from the academic community,” he said. “I trust the government’s discussion paper saying that this would lead to more strikes and more frequently.”
While the Canadian Chamber does not support the proposed legislation, if senators do decide to support it, at a minimum, it should be amended to “include an exemption for using replacement workers in instances that are in the national economic interest to the country,” Mr. Guy said.
When the bill was first introduced, Labour Minister Seamus O’Regan said it would be implemented within 18 months of its passage. He said last month, however, that the legislation would take effect 12 months after its adoption.
The Canadian Chamber of Commerce is also recommending it be pushed back to the original 18-month timeline “to allow for its proper implementation.”
