Bank claims it introduced ‘alternative arrangements’ it believed satisfied the Code
Bank of Canada governor Tiff Macklem is defending the central bank's conduct during a security officers' strike after federal regulators ruled twice that the bank violated the Canada Labour Code by using replacement workers.
The Canada Industrial Relations Board (CIRB) ruled on July 23 that the Bank of Canada broke the Code by using contractors from Pinkerton Consulting & Investigations during the strike.
An earlier July decision found the bank had similarly violated the Code by relying on Garda Canada Security Corporation contractors and on its own union members.
Macklem said the bank complied with both rulings. In a letter to Canadian Labour Congress (CLC) President Bea Bruske – cited by Business Examiner – Macklem wrote that the bank "made representations regarding the minimum necessary arrangements to ensure the security of our facilities and people in light of the strike," and that it complied with the board's first ruling "within the prescribed time period by ceasing the arrangements and the use of the supplier it had in place."
Macklem said the bank then introduced "alternative arrangements" it believed satisfied the Code and the board's first ruling, but the CIRB ruled again that the bank was offside. He said the bank has since complied, and pointed to Code exceptions permitting replacement workers when necessary to prevent threats to life, health, safety or property.
Strike continues
The strike began in June after collective bargaining talks failed to produce a new agreement. The Public Service Alliance of Canada (PSAC) says 42 members at the Bank of Canada's Ottawa office and seven in Montreal have been on strike for four weeks, after the bank locked out its Montreal members.
PSAC has called on the bank to stop using replacement workers and return to bargaining. The union said in a statement that "workers continue to fight for a fair deal while also demanding respect for their right to strike,” according to the Business Examiner report.
Bank spokesperson Paul Badertscher told publication that when asked whether the bank continues to use replacement workers or bargaining unit members, "the short answer is no," adding the bank has ceased the prior arrangements and suppliers cited by the board.
Union, government respond
Bruske wrote to Macklem, Jobs Minister Patty Hajdu and Secretary of State for Labour John Zerucelli that the Bank of Canada's "repeated disregard for the board's orders is unacceptable," and that "repeated non-compliance undermines both the law and confidence in Canada's labour relations system," according to the Business Examiner report.
She called on the federal government to affirm that no federally regulated employer is above the law, and urged the bank to "immediately comply with the board's orders, end its use of scab labour, and return to the bargaining table."
Hajdu's office said mediators from the Federal Mediation and Conciliation Service have worked with both parties since spring, according to the same report, though no new bargaining sessions had been announced as of publication.
In a July 23 statement, CLC President Burske stated: “Parliament passed this law to protect workers’ right to strike and ensure collective bargaining is fair. When employers use scab labour, they undermine that fundamental right.
“The Bank of Canada should immediately stop using scab labour, comply with the Canada Industrial Relations Board’s orders, and return to the bargaining table.”
Amendments made to Bill C-58 that ban federally regulated employers from using replacement workers to do the work of unionized employees who are on strike or locked out came into force on June 20, 2025.
