The Bank of Canada has been ordered for a second time within a month to halt the use of replacement workers amid an ongoing strike involving its security personnel. The Canada Industrial Relations Board (CIRB) issued this ruling on July 22, highlighting the central bank’s violation of the Canada Labour Code by employing a third-party security firm, Pinkerton Consulting & Investigations, after being previously admonished to cease such practices. The strike, initiated by 49 security guards represented by PSAC Local 71250, has persisted since late June due to failed negotiations regarding employee benefits.
Strike Context and Background
The issues at stake stem from protracted negotiations that have been underway since December 2024, with the striking security guards demanding improved benefits. Following the breakdown of discussions, the guards decided to initiate industrial action, which has resulted in the central bank’s entire workforce being required to work remotely.
A significant change in federal labour law took effect in June 2025, making it illegal for federally regulated employers to utilise replacement workers during strikes. This legislation was met with resistance from various employers who had lobbied against anti-scab laws. Despite this, the Bank of Canada appears to be ignoring the mandate, prompting further scrutiny of its actions.
Previous Rulings and Allegations
The CIRB had initially ruled against the Bank of Canada on July 7, after determining that it had been using contractors from GardaWorld Security to perform duties typically assigned to its own security staff. In response to the ruling, a spokesperson for the bank, Paul Badertscher, claimed in a statement to The Globe and Mail that the institution had fully complied with the CIRB’s directives.
However, allegations from the Public Service Alliance of Canada (PSAC), the union representing the striking guards, suggest otherwise. On July 14, PSAC filed a further complaint, asserting that they had witnessed non-bank employees conducting security checks around the Bank of Canada’s premises in Ottawa, indicating a breach of the earlier order.
The Latest CIRB Ruling
The recent ruling from the CIRB followed a hearing that included testimonies from both PSAC and representatives of the Bank regarding the accusations of employing third-party security personnel. The decision explicitly mandates that the Bank of Canada must comply with the order within 48 hours.
In response, Amélie Ferron-Craig, another spokesperson for the Bank, expressed disappointment with the CIRB’s latest ruling, asserting that the institution had adhered to the Canada Labour Code and previous orders. Ferron-Craig stated, “After the first ruling, the Bank took alternative measures to secure the physical security of its facilities,” and indicated that they are contemplating their legal options in light of the recent decision.
PSAC has urged the Bank of Canada to comply with the CIRB’s ruling, cease the use of replacement workers, and return to the negotiating table to secure a fair agreement. Ruth Law MacDonald, the union’s regional executive vice-president, reiterated that the core of the dispute revolves around worker benefits rather than wages.
Broader Implications for Labour Relations
Bea Bruske, President of the Canada Labour Congress, has condemned the Bank’s conduct as “unacceptable,” asserting that such actions undermine the integrity of Canada’s labour relations framework. Bruske emphasised the expectation that a key public institution like the Bank of Canada should uphold the laws enacted by Parliament.
Labour law expert David Doorey from York University noted that while there are exceptions allowing for the employment of replacement workers under specific circumstances, the Bank’s rationale for continuing its use of contractors raises questions. Michael Lynk, an associate professor at the University of Western Ontario, suggested that the Bank might have believed it was technically compliant by switching to a different security contractor, despite the ongoing strike.
Why it Matters
This ongoing dispute not only sheds light on the Bank of Canada’s compliance with federal labour laws but also raises significant questions about the rights of workers and the responsibilities of employers within the public sector. As the strike continues, it underscores the essential role that effective negotiation and adherence to legal frameworks play in ensuring fair treatment of employees. The outcome of this situation may set a precedent for future labour relations within the federal landscape, potentially influencing how employers approach negotiations and disputes with their workforce.
