Canadian Chamber Appears Before Standing Senate Committee on Social Affairs, Science and Technology’s Study on Bill C-58

On June 12, 2024, Robin Guy, Vice President and Deputy Leader of Government Relations at the Canadian Chamber of Commerce, presented before the Standing Senate Committee on Social Affairs, Science and Technology regarding Bill C-58.

Representing 400 Chambers and Boards of Trade and approximately 200,000 businesses nationwide, we expressed the Chamber’s grave concerns about the proposed ban on anti-replacement workers and highlighted the potential negative impacts on small businesses, workers, and Canadian families who rely on essential services provided by federally regulated sectors.

The full remarks and video recording can be found below.

Good afternoon, Madame Chair and honourable Senators,

On behalf of the Canadian Chamber of Commerce, our 400 Chambers and Boards of Trade, and approximately 200,000 businesses across the country, thank you for the opportunity to participate in today’s discussion as the Committee reviews Bill C-58, the Government’s proposed ban on anti-replacement workers.

Ultimately, the issue relates to who will protect the interests of the small businesses, the workers whose jobs are threatened and the Canadian families who suffer shortages or higher costs as a result of labour disruptions. Bill C-58 is a threat not only to businesses and entrepreneurs but also to the millions of Canadians who rely on vital services provided by companies operating in the federally regulated sector. As a result, the Canadian Chamber has grave concerns regarding this legislation. 

In Q4 of last year, Canada lost 926,400 hours to labour disputes. To put that in context, it’s the most in any quarter of the last 18 years. In fact, a recent Scotiabank report stated that Canada is losing more hours worked to striking workers than it lost at any point during pandemic restrictions. And all signs indicate more labour unrest is forthcoming.

The Government’s own discussion paper on anti-replacement worker legislation stated “the majority of studies suggest that when a province prohibits replacement workers, [it] is associated with more frequent strikes and lockouts, at least in some sectors.” If that research is correct, the ban could harm the economy by subjecting Canada’s federally regulated telecommunications and transportation infrastructure to even more frequent and lengthy disruptions.

Replacement workers allow organizations in rail, ports, telecom and air to sustain a basic level of “lights on” continuity that preserves critical services for Canadians. These workers are an essential backstop for our economy, able to step in on a temporary basis — in the interests of Canadians — until a work stoppage ends.

There are serious ramifications for all Canadians if we prohibit these workers from keeping those lights on.

Outages to our telecommunications infrastructure that we all count on to be fast and reliable are often resolved without issue. But, during a strike, replacement workers would not be able to fix problems. Small businesses, including coffee shops or restaurants would lose their ability to process payments, while Canadians wouldn’t be able to reach loved ones.

Consider as well that Canadians across the country rely on commuter public transit to get to where they’re going, including many who rely on rail service to get to and from work each day. Approximately 70 million passengers use rail each year, including along our biggest corridors in the Greater Toronto, Montreal and Vancouver areas. During a rail strike, without replacement workers, we could not ensure trains continued to move on a reliable schedule. Tens of thousands of Canadians would be forced to find alternative ways to get to where they needed to go.

Air travel would also be significantly impacted, especially in the many communities that can only be accessed by plane. If pilots, baggage handlers or the workers who fuel planes were to go on strike, replacement workers would not be able to ensure Canadians could keep moving. Canadians going on vacation would need to cancel their trips. Workers wouldn’t be able to get home. Canadians in fly-in communities would be cut off.

Simply put, there is no need or benefit from banning the temporary use of replacement workers.

The role of the Government of Canada should be to defend the public interest, not to promote the interests of one of the parties in a strike. Canada’s long-established collective bargaining system has been carefully crafted to encourage employers and unions to reach agreements at the bargaining table. This new legislation would tip the balance of power and potentially inflict severe economic consequences on Canadian communities, businesses and workers.

While the Canadian Chamber fundamentally does not support Bill C-58, if they do support, we would encourage Senators to consider amending this legislation.

At a minimum, we would recommend that Senators include an exemption for using replacement workers in instances that are in the national economic interest of the country.

We also recommend that Senators amend the proposed legislation to begin at the notice of dispute rather than at the notice of bargain.

To find the right balance in C-58, and ensure critical infrastructure continues to operate, the Senate should remove the restrictions on transferring employees between workplaces. It can achieve this by deleting clause 9(4)(c).

Additionally, we would urge Senators to reverse amendments on its enforcement date to 18 months, to allow time for its proper implementation.

As stated by the Minister of Labour, “our credibility as a trading nation depends on the stable operation of our supply chains. We must do everything we can to preserve that stability.” We couldn’t agree more. However, this bill will do the opposite.

Thank you again for the opportunity to contribute to this critical topic. I look forward to answering your questions.