Bill C-58 would considerably reduce the quality of services offered to Canadians, MEI tells senators

OTTAWA, June 11, 2024 (GLOBE NEWSWIRE) — Banning the use of replacement workers in federally regulated industries would prolong and increase the frequency of work stoppages, according to comments the Montreal Economic Institute is preparing to make in the Senate this afternoon.

“In provinces that prohibit the employment of replacement workers, work stoppages are more numerous and can be up to 60 percent longer,” underlined the President and CEO of the MEI, Daniel Dufort. “But here’s the problem: These measures don’t seem to lead to better wages for workers.”

The Senate Standing Committee on Social Affairs, Science and Technology is currently studying Bill C-58, which proposes to ban temporary replacement workers in federally regulated industries.

A recent study by the MEI reveals that in Quebec and British Columbia, the only provinces with such laws in force, work stoppages were longer and more frequent than in provinces without such laws.

In jurisdictions banning replacement workers, private investment was 25 percent lower, causing private sector wages to fall by as much as 3.6 percent.

Dufort cites the impending railway strike as an example of the widespread impact Bill C-58 could have on Canadian workers.

A simultaneous strike by unionized employees of Canadian Pacific Kansas City Limited (CPKC) and Canadian National (CN) could paralyze freight transportation, as well as the many commuter rail lines that depend on these networks.

“If the 80 CPKC rail controllers were on strike after the entry into force of C-58, no more trains would be able to run on its network,” explains Dufort. “Vancouver’s West Coast Express, GO Transit’s Milton line and three Exo commuter train lines in Montreal could be paralyzed without replacement workers.

The MEI is an independent think tank on public policies with offices in Montreal and Calgary. Through its publications, its appearances in the media and its advisory services to political decision-makers, the MEI stimulates debate on public policies and reforms based on a solid economy and entrepreneurship.

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