Bill C-39: What Every Federal Employer Needs to Know
As Canada reshapes its trade framework and proceeds with numerous measures to enhance industries across the country, the federal government has tabled An Act respecting certain measures to strengthen the economy or, Bill C-39, which proposes significant reforms to federal labour and employment law.[1]
Divided into three parts, Part 3 of the Bill, Canada Strong For All, introduces the brunt of these amendments to the Canada Labour Code (“CLC“) and the Wage Earner Protection Program Act (WEPPA). Below are some of the key changes proposed that will affect collective bargaining processes, wage recovery enforcement, and paid medical leave and thereby federally regulated employers.
Changes to CLC, Part I – Industrial Relations
Earlier Engagement in Collective Bargaining and New Wage Freeze
Where a collective agreement resulted from an imposed arbitration, a strike or lockout, or has a term of five or more years, parties will be required to commence bargaining between 200 and 180 days before expiry, well ahead of the standard timeline.[2] Critically, a wage and conditions freeze will take effect at the 200-day mark: employers may not alter pay or working conditions without union consent until the preconditions for a lawful strike or lockout are met.[3] Before bargaining commences, the parties will be required to give written notice to the Minister of Labour and the Canada Industrial Relations Board, and immediately engage with...
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