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16 www.canadianlawyermag.com LABOUR SPECIAL PROMOTIONAL FEATURE Federal legislation will increase risk of strikes IN 2023, "the year of the strike," there were 745 work stoppages across Canada and more than 6.5 million person-days not worked. By comparison, in 2022 there were 157 work stoppages and fewer than 1.9 million person-days not worked. 1 On June 20, 2024, the federal government made matters worse – much worse – when it passed Bill C-58, An Act to amend the Canada Labour Code and the Canada Industrial Relations Board Regulations, which will come into force on June 20, 2025. Bill C-58 will amend the Canada Labour Code (CLC) 2 to limit the use of replacement workers and implement an expedited process for maintenance of activities agreements for federally regulated businesses. Bill C-58's limit on replacement workers will tilt the negotiating balance in favour of unions, which will thereafter have less incentive to bargain in any meaningful way. The net result may be more frequent and prolonged strikes at unionized, federally regulated businesses. Further, because federally regulated businesses operate in significant industries such as international and interprovincial transportation (air, land, and rail), telecommunications and broadcasting, banking, ports, cross-border tunnels, bridges, pipelines, postal and courier services, and border security (to name a few), a federal strike can widely impact supply chains across the country and the Canadian economy at large. To prepare for the inevitable, every business that could be materially impacted by a work stoppage at a federally regulated business (including a provincially regulated business) should create a work stoppage contingency plan. A detailed plan, which should be operational before notice to bargain is given, 3 will help ensure operations continue as smoothly as possible, limit economic loss, and maintain key relationships with customers. Trickle-down impact of a strike A work stoppage not only directly impacts the business involved but it also has a trickle-down effect on suppliers, customers, and the broader economy. This was made abundantly clear by the 2023 Vancouver Port Strike, one of the most economically impact- ful work stoppages of that year. The strike by longshore workers lasted 13 days and was estimated to have reduced Canada's gross domestic product by between $730 million and $980 million. In total, $10 billion of merchandise shipments were impacted. Major shipping delays affected supply chains in virtually every sector across the country including agricultural, automotive, energy, manufacturing, and retail. 4 Strike contingency planning is therefore essential for any business that could be impacted by a work stoppage. What will Bill C-58 change? Limit the use of replacement workers As of June 20, 2025, a federally regulated employer will be prohibited from using the following classes of people to perform Brought to you by As the industry braces for Bill C-58 to come into force next June, contingency planning now is a must "There are a multitude of factors to consider, and reconsider, which is why contingency planning can take several months to develop and operationalize. The time to prepare is now" Sundeep Gokhale, Sherrard Kuzz