The Bank of Canada has been instructed for the second time in a month to cease employing replacement workers to cover for striking security personnel, in a move that contravenes federal labour regulations. On 22 July, the Canada Industrial Relations Board (CIRB) affirmed that the central bank breached the Canada Labour Code by engaging a third-party security firm—Pinkerton Consulting & Investigations—just two weeks after being ordered to halt such practices.
Ongoing Strike and Contract Negotiations
At present, 49 security guards, represented by the Public Service Alliance of Canada (PSAC) Local 71250, have been on strike since late June due to stalled negotiations regarding employee benefits. The discussions for a new contract began in December 2024 but have yet to yield an agreement. As a result of the ongoing industrial action, all employees at the central bank have been required to work from home.
The prohibition against using replacement workers during strikes was established under federal law in June 2025, a decision that faced opposition from federally regulated employers who had long contested anti-scab legislation. Despite this legal framework, the Bank of Canada has seemingly disregarded the new rules.
Previous Violations and Union Response
The CIRB first ruled against the Bank on 7 July, citing its use of contractors from GardaWorld Security to fulfil roles typically performed by its own guards. In the aftermath of this ruling, Bank spokesperson Paul Badertscher assured The Globe and Mail that the institution had complied with the CIRB’s directives by the stipulated deadline and maintained that it respected the collective bargaining process.
However, PSAC representatives contended that the Bank was not adhering to the ruling. On 14 July, the union submitted a second complaint, alleging that non-employee individuals were conducting security checks around the Bank of Canada’s Ottawa premises.
The latest ruling by the CIRB was issued following a hearing where both the union and the Bank provided evidence concerning the use of external security personnel. The board has mandated that the Bank comply with its order within 48 hours.
Bank’s Response and Union Demands
In a statement, Amélie Ferron-Craig, spokesperson for the Bank of Canada, expressed disappointment with the CIRB’s ruling, asserting that the Bank had adhered to the Canada Labour Code and previous decisions. “After the first ruling, the Bank took alternative measures to secure the physical security of its facilities. The Bank is considering all of its legal options in response to the CIRB decision,” she stated.
In response, PSAC has urged the Bank to respect the ruling, cease the use of replacement workers, and return to negotiations for a fair contract. Ruth Law MacDonald, the union’s regional executive vice-president, highlighted that the core of the dispute revolves around worker benefits rather than wages.
Bea Bruske, president of the Canada Labour Congress—an umbrella organisation representing over three million workers—condemned the Bank’s actions as “unacceptable”, arguing that it undermines the integrity of Canada’s labour relations framework. “It is especially troubling that this conduct is coming from the Bank of Canada,” she stated, emphasising the expectation that such a prominent public institution should adhere to the laws established by Parliament.
Legal Perspectives on the Situation
David Doorey, a professor of labour law at York University’s Osgoode Hall Law School, noted that while there are exceptions allowing employers to use replacement workers in cases of imminent threat to their premises, the Bank’s rationale for its actions is questionable. Michael Lynk, an associate professor of labour and human rights law at the University of Western Ontario, suggested that the Bank might have believed it was complying by switching security firms from GardaWorld to Pinkerton, thus attempting to circumvent the initial ruling.
Prof. Doorey pointed out that each instance where the Bank employs contractors to test the limits of anti-scab legislation effectively buys time, allowing them to continue using replacement workers while awaiting further decisions from the Board.
Why it Matters
The ongoing dispute between the Bank of Canada and its striking security guards highlights significant issues surrounding labour rights and the enforcement of federal regulations. As one of Canada’s leading public institutions, the Bank’s actions are under scrutiny for potentially eroding trust in the country’s labour relations system. The outcome of this conflict could set important precedents for future labour disputes, impacting not only the Bank’s employees but also the broader landscape of workers’ rights in Canada. The situation underscores the need for adherence to legal standards and the importance of constructive dialogue in resolving labour disputes.