The Public Service Alliance of Canada (PSAC) has launched a fresh legal challenge against the Bank of Canada, accusing the country's central bank of continuing to use replacement workers despite a binding order from the Canada Industrial Relations Board (CIRB) directing it to stop. The complaint has intensified an already contentious labour dispute and placed renewed focus on Canada's recently enacted anti-scab legislation.

The union has filed an unfair labour practice complaint, alleging that the Bank ignored the CIRB's decision by continuing to deploy individuals to perform work during an ongoing strike. If proven, the allegations could amount to a serious violation of Canada’s Federal Anti-Scab Legislation and undermine statutory protections designed to preserve workers' right to strike.

The latest dispute follows a ruling by the Canada Industrial Relations Board, which found that the Bank of Canada had breached Canada's anti-replacement worker legislation by using replacement personnel to maintain operations during the strike. The Board ordered the Bank to cease the practice within 48 hours.

According to PSAC, however, striking workers reported seeing individuals carrying out security duties at the Bank's Ottawa office even after the deadline had expired. The union argues that these actions directly contradict the Board's order and amount to an attempt to weaken the effectiveness of the lawful strike.

The legal significance of Canada's anti-scab laws

Canada's anti-scab regime prohibits federally regulated employers from using replacement workers in circumstances that would undermine a lawful strike or lockout.

The legislation seeks to preserve the balance of power during collective bargaining by preventing employers from continuing normal operations through substitute labour while employees exercise their statutory right to strike. Labour law scholars have long argued that unrestricted use of replacement workers diminishes the effectiveness of industrial action and weakens employees' bargaining position.

The CIRB's earlier ruling against the Bank therefore represented an important interpretation of these protections. The new complaint is no longer about whether the law applies, but whether the employer complied with a legally binding directive issued by the labour tribunal.

Should the Board determine that the Bank deliberately ignored its order, it could impose further legal consequences and reinforce the principle that tribunal decisions must be obeyed pending any lawful appeal.

A dispute that continues to escalate

The strike involves 49 PSAC members, 42 based in Ottawa and 7 in Montreal, who have remained off the job since 23 June after the employer locked out employees in Montreal. The union maintains that workers are prepared to continue industrial action until meaningful negotiations resume and a fair collective agreement is reached.

PSAC has criticised the Bank's alleged conduct as an attack on collective bargaining rights, arguing that continued reliance on replacement workers erodes the legal protections afforded to striking employees.

The dispute also demonstrates that labour litigation does not necessarily end when a tribunal issues a ruling. Compliance with labour board orders forms an essential part of industrial relations, and failure to comply may itself become the subject of separate legal proceedings.

Source: PSAC Union