A landmark change to Canada’s federal labour laws officially came into force on June 20, 2025, profoundly altering the landscape of strikes and lockouts for federally regulated employees. Bill C-58, now prohibits employers from utilizing replacement workers during legal work stoppages, a move hailed by labour unions as a monumental victory for workers’ rights and fairer collective bargaining.
The new legislation marks a significant departure from previous rules, where the use of replacement workers was only restricted if the employer’s intent was to undermine a union’s representational capacity. With Bill C-58 now fully implemented, federally regulated employers – including those in sectors such as banking, telecommunications, and transportation – are strictly forbidden from bringing in individuals to perform the duties of striking or locked-out employees. This prohibition extends to employees hired after notice to bargain, transferred employees, contractors, volunteers, and even employees within the same bargaining unit.
Proponents of the bill, including major labour organizations like Unifor and the United Steelworkers, assert that the ban on replacement workers will level the playing field during negotiations, preventing employers from prolonging disputes by maintaining operations with temporary staff. This is expected to encourage swifter and more equitable resolutions at the bargaining table, ultimately reducing the duration and frequency of industrial actions.
To ensure compliance and accountability, the new law also introduces stringent penalties for violations. Employers found to be in breach of the replacement worker ban could face daily fines of up to CAD $100,000.
Furthermore, Bill C-58 strengthens the “maintenance of activities” process, requiring employers and unions to reach an agreement on essential services that must continue during a strike or lockout within 15 days of notice to bargain. This measure aims to safeguard public health and safety while still upholding the right to strike.
While celebrated by unions as a historic achievement, the coming into force of Bill C-58 is also prompting federally regulated employers to re-evaluate their strike preparedness strategies and internal policies. The focus now shifts towards robust pre-bargaining planning and early engagement to navigate potential labour disputes under the new framework.
For more information on Bill C-58 and its implications, refer to the official Government of Canada news release:
Protecting Canadian Labour: Replacement Workers Legislation now in Force
