The Canada Industrial Relations Board has issued a second order demanding the Bank of Canada stop using third-party security contractors during an active strike. The central bank has 48 hours to comply after being found in violation of federal labour laws.
The shift from GardaWorld to Pinkerton Consulting
The Canada Industrial Relations Board (CIRB) determined that the Bank of Canada repeatedly bypassed federal labour protections by hiring outside firms to maintain security . According to the report, the central bank first violated the law by utilizing personnel from GardaWorld Security, which led to an initial board decision on July 7.
Despite that first warning, the CIRB issued a second ruling on July 23. This latest decision found that the Bank of Canada continued to contravene the Canada Labour Code by engaging Pinkerton Consulting & Investigations to perform the specific duties typically handled by the striking security guards. this pattern of switching contractors suggests a persistent attempt by the central bank to maintain operations without negotiating with its own staff.
The July 2025 ban on replacement workers
The legal friction stems from a significant shift in federal legislation that prohibits the use of replacement workers during legal strikes. as the report states, this prohibition has been in effect since July 2025, a regulatory change that faced strong opposition from various federal employers who argued it limited their operational flexibility during labour disputes.
The Bank of Canada's actions place it at the center of a broader tension between federal labour rights and the operational needs of critical government institutions. By attempting to use firms like GardaWorld and Pinkerton, the Bank of Canada is testing the boundaries of a legal framework desgined to increase the bargaining power of striking employees.
The benefits dispute facing 49 PSAC Local 71250 guards
The current labour unrest involves at least 49 security guards who are members of the Public Service Alliance of Canada (PSAC) Local 71250. These employees walked off the job on June 23 after negotiations regarding their benefits package reached a stalemate. The report notes that bargaining for a new contract has been ongoing since December 2024, indicating a protracted struggle over compensation and working conditions.
For the guards represented by the Public Service Alliance of Canada (PSAC),the use of replacement workers is not just a legal technicality but a direct threat to their leverage. When the Bank of Canada employs third-party contractors, it effectively diminishes the impact of the strike, potentially prolonging the dispute over the benefits that triggered the walkout.
The 48-hour window for Bank of Canada compliance
The timeline for resolution is now critical, as the Canada Industrial Relations Board has given the Bank of Canada 48 hours to cease all use of replacement workers. This deadline follows a second complaint filed by the Public Service Alliance of Canada (PSAC) on July 14, after union members spotted non-bank personnel conducting security checks at the Bank of Canada's Ottawa headquarters .
There remain significant questions regarding the bank's internal communication and its commitment to the law.. While Bank of Canada spokesperson Paul Badertscher previously asserted that the institution had fully complied with the first July 7 order, the subsequent discovery of Pinkerton contractors contradicts that claim. It remains unclear why the Bank of Canada continued to hire outside help after the first ruling, and the institution has not yet responded to inquiries regarding its current compliance status.
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