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Fair Representation Act

An Act to amend the Canada Labour Code (fair representation)

Summary

This bill amends the Canada Labour Code to define and prohibit employer domination or influence over trade unions in federally regulated workplaces. Unions found to be dominated or influenced cannot be certified, and existing certifications must be revoked after a Board inquiry. Employees can apply for an inquiry at any time with 25% support, subject to limits during legal strikes or lockouts. Employers face fines up to $100,000 and potential administrative monetary penalties, with a five-year statutory review.

  • Clarifies "domination or influence" to include interfering in union formation/administration or providing financial/other support.
  • Bars certification and mandates revocation of certification for employer-dominated or influenced unions.
  • Requires that a union seeking certification be governed by members elected by employees in the proposed bargaining unit.
  • Allows the Board to initiate inquiries and requires an inquiry if 25% of employees apply; limits applications during legal strikes/lockouts without Board consent.
  • Creates an offence with fines up to $100,000 and enables an administrative monetary penalty scheme for violations.
  • Requires a ministerial review and report within five years; takes effect 30 days after royal assent.

Builder Assessment

Vote No

The bill strengthens prohibitions against employer domination of unions, which can support fair representation and safer workplaces, but it primarily adds penalties and procedural triggers that increase regulatory burden without clear gains in productivity or national prosperity. Because it conflicts with reducing red tape and does not clearly advance competitiveness, exports, or investment, overall alignment is negative.

  • Publish clear safe-harbour guidance so routine collaboration (e.g., safety committees, training funds, neutral meeting space, benefits administration) is not captured as "influence."
  • Require materiality and intent thresholds, with rapid, time-limited decisions, so remedies target only conduct that truly compromises independence.
  • Use proportionate, scaled penalties tied to firm size and conduct severity, and avoid duplicative AMPs plus fines to reduce compliance complexity.
  • Offer a simple, time-bound secret-ballot re-certification vote as an alternative to litigation-heavy decertification to preserve worker choice and reduce disruption.
  • Provide an economic and regulatory impact assessment and set service standards for Board inquiries to minimize uncertainty for employees and employers.
  • Clarify how the "elected by employees in the unit" governance test applies to multi-site or multi-unit unions to avoid unintended decertification of legitimate independent unions.

Question Period Cards

Can the minister provide data on the prevalence and harm of employer-dominated unions in the federal jurisdiction and table the economic impact analysis on jobs, investment, and labour stability for the fines and mandatory decertification in this bill?

How will the government ensure the new definition of employer "influence" does not penalize legitimate collaboration like joint safety committees, training programs, or neutral meeting space, and will clear safe-harbour guidance be published before the law takes effect?

Why was a 25% employee threshold chosen to compel a Board inquiry, what timelines and due-process safeguards will prevent vexatious or strategic complaints, and will the minister consider a rapid secret-ballot re-certification option as a simpler alternative to immediate decertification?

Principles Analysis

Canada should aim to be the world's most prosperous country.

A targeted labour-relations rule may improve fairness but has uncertain macroeconomic effects on growth or incomes.

Promote economic freedom, ambition, and breaking from bureaucratic inertia (reduce red tape).

Introduces new prohibitions, penalties, and procedural triggers that add compliance complexity and enforcement risk.

Drive national productivity and global competitiveness.

Could stabilize labour relations through credible representation, but decertification risks and compliance overhead may offset productivity gains.

Grow exports of Canadian products and resources.

No direct link to export growth or trade performance.

Encourage investment, innovation, and resource development.

Clearer rules may reduce legal uncertainty, but stronger enforcement and fines may deter some investment; net impact is unclear.

Deliver better public services at lower cost (government efficiency).

Definition clarity can streamline decisions, yet Board inquiries and enforcement likely increase administrative workload and cost.

Reform taxes to incentivize work, risk-taking, and innovation.

No tax measures are included.

Focus on large-scale prosperity, not incrementalism.

A narrow amendment to labour law; does not constitute a broad-based prosperity initiative.

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PartyMember of Parliament
StatusOutside the Order of Precedence
Last updatedN/A
TopicsLabor and Employment
Parliament45