Bill C-58 Just Changed Everything: 7 Strike Protection Rules Every Canadian Employer Must Know by 2025

Bill C-58 has fundamentally transformed the landscape for Canadian employers dealing with labour disputes. Coming into force on June 20, 2025, this federal legislation prohibits the use of replacement workers during strikes and lockouts for federally regulated businesses. If your company falls under federal jurisdiction - including banks, telecommunications, airlines, shipping, and interprovincial transportation - these new rules now apply to your operations.

The legislation represents the most significant change to Canadian federal labour law in decades. Previously, employers could use replacement workers as long as it didn't undermine union representation. Now, the rules are far more restrictive and the penalties severe.

Who This Affects

Federal jurisdiction covers approximately 6% of Canadian workers, but these are often large, critical infrastructure companies. The rules apply to:

• Banks and financial institutions

• Telecommunications companies

• Airlines and airports

• Railway companies

• Shipping and port operations

• Interprovincial trucking

• Broadcasting companies

• Federal Crown corporations

Provincial employers remain subject to their respective provincial labour codes, though several provinces are considering similar legislation.

The 7 Critical Strike Protection Rules

Rule 1: Complete Ban on Post-Notice Hires

Once either party gives notice to bargain, employers cannot use any employee or manager hired after that date to perform struck work. This rule has no exceptions - it doesn't matter how qualified the new hire is or how critical your operational needs become.

Action Required: Review your hiring processes to ensure HR understands this restriction. Document the exact date notice to bargain is given and communicate this to all hiring managers immediately.

Rule 2: Location-Based Restrictions for Existing Employees

Employees hired before notice to bargain can only be used if they normally worked at the specific location where the strike or lockout occurs. You cannot transfer workers from other facilities, even within the same company, to maintain operations during a work stoppage.

Action Required: Audit your workforce by location. Identify which employees normally work where, and ensure this information is readily available to management during any potential labour dispute.

Rule 3: Zero Contractor Usage

Contractors are completely prohibited from performing union work during strikes or lockouts, regardless of when they were engaged. This closes what many employers previously saw as a viable option for maintaining operations.

Action Required: Review all contractor agreements and relationships. Consider how you will handle essential contractor services that overlap with union work during potential disputes.

Rule 4: No External Personnel

The legislation explicitly bans the use of:

• Volunteers

• Students (including co-op students)

• Members of the public

• Temporary agency workers

This rule eliminates virtually all external sources of replacement labour during work stoppages.

Action Required: Identify any current arrangements with temp agencies, educational institutions, or volunteer programs that might conflict with these restrictions during a labour dispute.

Rule 5: Bargaining Unit Members Cannot Cross Picket Lines

During a full strike or lockout, employers cannot permit employees in the bargaining unit to cross picket lines and continue working. This strengthens union solidarity and prevents employers from creating divisions within the bargaining unit.

Action Required: Ensure management understands they cannot encourage, permit, or facilitate bargaining unit members working during a full work stoppage.

Rule 6: Limited Emergency Exceptions with Union Priority

Replacement workers can only be used in exceptional circumstances to prevent:

• Threats to life, health, or safety of the public

• Destruction or serious damage to employer property

• Serious environmental damage to employer property

Even in these emergency situations, employers must first offer bargaining unit members the opportunity to perform necessary work before using any replacement workers.

Action Required: Develop emergency protocols that prioritize offering work to union members first. Document your emergency procedures and ensure they comply with this union-first requirement.

Rule 7: Mandatory Maintenance Agreements

Within 15 days of notice to bargain, employers and unions must reach an agreement on what work continues during a work stoppage to protect public health and safety. These maintenance of activities agreements must be filed with the Canada Industrial Relations Board and the Minister of Labour.

If parties cannot agree, the CIRB will decide what activities must be maintained.

Action Required: Begin maintenance agreement discussions early in the bargaining process. Identify critical health and safety functions that may need to continue during a work stoppage and be prepared to negotiate these with your union.

Implementation Timeline and Compliance

Since Bill C-58 came into force in June 2025, these rules are already binding. Employers who haven't yet adapted their labour relations strategies need to act immediately.

Immediate Steps:

• Audit current employment practices for compliance

• Update management training on replacement worker restrictions

• Review and revise emergency response procedures

• Establish clear communication protocols for labour disputes

• Document workforce locations and normal work assignments

Enforcement and Penalties

Violations constitute unfair labour practices under the Canada Labour Code. The Canada Industrial Relations Board investigates complaints and can order immediate cessation of violations.

The financial consequences are severe: employers face fines up to $100,000 per day for each violation. This penalty structure demonstrates the government's serious commitment to enforcement.

Recent Enforcement Activity: Since the law came into effect, the CIRB has already issued several compliance orders, showing active enforcement of these new provisions.

Strategic Implications for Employers

These changes fundamentally alter the dynamics of labour negotiations. Without the ability to maintain operations through replacement workers, employers have stronger incentives to reach agreements quickly and avoid work stoppages entirely.

Key Strategic Considerations:

• Earlier and more intensive bargaining preparation

• Greater emphasis on relationship-building with unions

• Enhanced focus on preventing disputes before they escalate

• More careful workforce planning and cross-training within bargaining units

• Stronger emergency preparedness with union cooperation

What Employers Must Do Now

Immediate Actions (Within 30 Days):

1. Conduct compliance audit of current practices

2. Train management on new restrictions

3. Update HR policies and procedures

4. Review contractor relationships for potential conflicts

5. Establish maintenance agreement protocols

Ongoing Requirements:

• Regular compliance training for management

• Updated emergency response procedures

• Enhanced labour relations planning

• Proactive bargaining preparation

• Clear documentation of workforce assignments

Building Compliance Culture

Success under Bill C-58 requires more than just policy changes - it demands a cultural shift toward compliance-first thinking in labour relations. Management teams need to understand that the old approaches to managing work stoppages are no longer available.

Training Focus Areas:

• Understanding federal vs. provincial jurisdiction

• Recognizing when notice to bargain triggers restrictions

• Emergency exception procedures with union-first requirements

• Proper documentation during labour disputes

• Communication protocols during work stoppages

The legislation represents a fundamental shift toward encouraging cooperative labour relations rather than adversarial approaches. Employers who adapt quickly and build strong relationships with their unions will be best positioned for success under the new regime.

For federally regulated employers, compliance with Bill C-58 is not optional - it's a legal requirement with significant financial consequences for violations. The time to prepare and adapt is now, while operations are normal and relationships with unions can be strengthened proactively.

Understanding and implementing these seven critical rules will help protect your business from costly violations while potentially improving long-term labour relations. The new landscape requires different strategies, but it also creates opportunities for more collaborative and sustainable workplace relationships.