Unions slam Carney government over silence on Bank of Canada's use of replacement workers

Jobs Minister Patty Hajdu was not available for an interview and didn’t comment on the bank’s actions, but said in a statement that generally the government expects companies to follow the law. 

“The minister expects every employer to abide by the Canada Labour Code,” the statement said.

The government has also provided mediators to help the bank and the Public Service Alliance of Canada resolve the strike. 

The replacement worker legislation passed in the summer of 2024 came into force last year. It prevents federally regulated employers from bringing in replacements when a strike is underway, except for cases where there is a risk to health and safety or a significant threat to property. Passing the legislation was one of the NDP’s demands in the supply and confidence agreement which helped the Trudeau government avoid an election from 2022 to 2025. 

Hajdu celebrated the law last year when it came into force, posting on X that it was a “historic win” for workers.

“It marks a turning point after decades of union advocacy and sets the stage for more respectful labour relations in Canada,” she said.

NDP MP Don Davies said the government should have much more to say when a federal Crown corporation, like the Bank of Canada, is violating labour law.

‘Pattern of anti-union sentiment’

“The silence is telling but it’s consistent with what I’ve discerned is a long-standing repetitive, continual pattern of anti-union, anti-labor sentiment in behaviour and action from the Carney government,” he said. 

The bank has a significant amount of independence because of its role managing interest rates, but Davies said in this case it would be fair for the government to weigh in. 

“If the Bank of Canada broke any other law, if they were engaged in wire fraud or price fixing or some other kind of scandal, would they remain silent? I don’t think so.”

Ruth Lau MacDonald, an executive vice-president with the Public Service Alliance of Canada, said her members work hard protecting the bank and its facilities around the clock. She said when the so-called “Freedom Convoy” came to town and most downtown Ottawa businesses were shuttered, her members remained on the job throughout because the bank requires 24-hour protection.

Given Mark Carney’s former post as governor of the Bank of Canada, Lau MacDonald said she is surprised the prime minister has had nothing to say. 

“The fact that he has not made a statement on this ongoing labour dispute, that he has not spoken up about these two rulings or two findings is questionable,” she said. 

Lau MacDonald said issues like this are raising real concerns about the prime minister’s concern for labour. 

“I don’t see the same kind of relationship building and care and consultation coming out of the Carney Liberals that we did under Trudeau,” she said.

Bank says move was justified

The dispute has also attracted the attention of the Canadian Labour Congress. President Bea Bruske wrote Hajdu and current Bank of Canada Governor Tiff Macklem a letter in July arguing the bank’s decision to bring in replacement workers twice was deeply troubling.

“As one of Canada’s foremost public institutions, Canadians rightly expect it to demonstrate respect for the laws passed by Parliament,” she said in the letter. 

The Liberals just wrapped up consultations on possible changes to the Canada Labour Code. Bruske said the bank’s actions and the government’s silence was shredding confidence in the government when it comes to labour protections.

“It is difficult to ask workers to have confidence in strengthening the Code when one of Canada’s own institutions refuses to follow it,” she wrote. “If the government cannot ensure compliance within its own institutions, how can workers trust it to enforce the law across federally regulated workplaces?”

Macklem responded with his own letter, saying the bank believed it was working within the exemptions to the anti-replacement worker law when it brought in the two contractors. 

“The bank believes that the intent of these exceptions was to address circumstances like ours, where there are acknowledged threats to the safety of our people, facilities and assets. It is crucial that all parties have clarity regarding the use and application of these circumstances,” he said in the letter. 

The industrial relations board issued a cease-and-desist order, but it hasn’t released its full written decisions yet. Macklem said he looks forward to reading that decision and to finding a deal with workers. 

“We also remain committed to the collective bargaining process as the right avenue to reach an agreement that is fair to both the bank and our security officers.”