Employers Argue That Ban on Replacement Workers Would Lead to Increased Strikes
Employers’ groups are warning that Canada’s “anti-scab” legislation may result in more strikes and lockouts in various sectors like rail, air, and marine shipping.
Bill C-58 was unanimously passed in the House of Commons on May 27, aiming to prohibit federal employers from using replacement workers during strikes. The bill received a 316–0 vote in favor and is now under consideration in the Senate.
During Senate hearings, the group representing federally regulated employers expressed concerns that amending Canada’s Labour Code to ban replacement workers could have negative consequences.
According to Federally Regulated Employers, Transportation and Communications CEO Derrick Hynes, replacement-worker bans often lead to more prolonged strikes, incentivize strike activity, and hinder collective bargaining.
The proposed legislation applies to a wide range of workplaces, including airports, banking, railways, and telecommunications among others. Employers using scab labor during strikes or lockouts could face fines of $100,000 per day.
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Employers fear that small and midsize enterprises (SMEs) would suffer if the legislation passes, as no one represents them in major federal industries during bargaining negotiations.
The Senate committee heard differing views from unions and business groups regarding the bill’s impact on labor relations.
While labor unions support the legislation as a move to balance labor relations, business groups argue that it could lead to more frequent and longer strikes, disrupting the economy.
