Last week, the Ontario government passed its latest budget bill, Bill 229: Protect, Support and Recover from COVID-19 Act (Budget Measures), 2020 (“Bill 229”). Bill 229 implements initiatives contained in Ontario’s 2020 budget through amendments to existing statutes.

Amendments to key employment statutes include:

Protecting a Sustainable Public Sector for Future Generations Act, 2019:

Bill

Successor rights are a long standing fixture in Ontario’s labour relations legislation. Generally speaking, under s. 69 of the Labour Relations Act (LRA), the purchaser of a business effectively steps into the seller’s shoes for the purpose of labour relations and becomes bound by any collective agreement that the seller is party to, unless the Ontario Labour Relations Board (OLRB) declares otherwise. The same principle applies where the business is leased, transferred or otherwise disposed of. The fundamental purpose of s. 69 of the LRA is to preserve the bargaining rights of the Union. The idea is that once the Union has been recognized with respect to a particular business, the Union may pursue that bargaining right when all or part of the business is sold.

Whether successor rights extend to the context of court-appointed receiverships had been an unsettled area. Recently, the OLRB determined that a court-appointed receiver that actively operated the debtor’s business through its agent was a successor employer for the purpose of s. 69 of the LRA: United Food and Commercial Workers International Union, Local 175 v Rose of Sharon (Ontario) Community cob as Rose of Sharon Korean Long-Term Care Home, 2018 CanLII 32988 (Rose of Sharon). We outline key aspects of the OLRB’s decision below.
Continue Reading Ready to Bargain with the Union? Court-Appointed Receivers at Heightened Risk of Successor Employer Determination

With the newly elected PC majority government, change is the one certainty that Ontario employers can expect. The specifics of what the change will look like have not been spelled out since the PC five-point platform did not touch on areas that directly impact employers. We can nonetheless anticipate that this government will consider initiatives to improve the competitiveness of Ontario businesses, such as the following:
Continue Reading The Big Blue Machine Returns: What’s Next for Employers

Further to our recent blog post about the Ontario government’s reform of the employment standards legislation through The Fair Workplaces, Better Jobs Act, 2017, employers can also expect significant changes to the legislation governing unionized workplaces. The key changes proposed in respect of Ontario’s Labour Relations Act (“LRA”) concern union certification, bargaining unit structure, first contracts, just cause protection, return-to-work rights and procedures, successor rights, and fines for individuals and organizations, which are summarized below.
Continue Reading Ontario Set to Make Significant Changes to Labour Relations Act