Bill C-58, limiting use of replacement workers amid federal labour disputes, now in effect

Canada says legislation aims to allow parties to focus on negotiating fair deals

Bill C-58, limiting use of replacement workers amid federal labour disputes, now in effect

Bill C-58 – An Act to amend the Canada Labour Code and the Canada Industrial Relations Board Regulations, 2012 – has come into force on June 20. 

The legislation bans employers from using replacement workers to perform the work of unionized employees on strike or locked out in federally regulated workplaces, according to an Employment and Social Development Canada (ESDC) news release. 

“The Canadian labour movement has been asking for this for a long time,” said John Zerucelli, secretary of state (labour), in the news release. “The use of replacement workers during federal strikes and lockouts is officially prohibited.” 

Changes under Bill C-58 also seek to improve the maintenance-of-activities process by requiring employers and unions to agree on what work to maintain to promote public health and safety during a work stoppage within 15 days after the issuance of a notice to bargain. 

In case of a disagreement, the Canada Industrial Relations Board will choose which activities to maintain, if any. 

According to ESDC’s news release, the federal government introduced and passed the legislation, which aims to: 

  • permit parties to focus on negotiating fair deals 
  • provide better safeguards for Canada’s workers 
  • strengthen labour relations 
  • protect the fundamental right to strike 
  • limit collective bargaining interruptions 
  • improve the economy’s stability during federal labour disputes 

Bill’s context

In its news release, ESDC called Canada’s workers the foundation of the country’s ambition. ESDC said a strong economy relies on stable labour relations. ESDC added that using replacement workers could tip the scales, threaten good faith bargaining, and increase tensions. 

“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,” said Patty Hajdu, minister of jobs and families and minister responsible for the federal economic development agency for Northern Ontario, in ESDC’s news release

“This marks a milestone that levels the playing field and ensures parties work towards getting a fair deal at the bargaining table,” Zerucelli added. 

In its news release, ESDC expressed gratitude to the unions, stakeholders, workers, and partners who participated in the efforts leading to this bill’s passage. 

“This is a historic victory after decades of union advocacy and paves the way for more stable, respectful labour relations in Canada,” Hajdu said in the news release.