Bank of Canada’s Macklem defends use of replacement workers during strike

The head of the Bank of Canada is defending the central bank’s use of replacement workers during a strike involving security officers.

In a decision issued last week, the Canada Industrial Relations Board said the Bank of Canada contravened the Canada Labour Code by using contractors from Pinkerton Consulting & Investigations during the strike.

Earlier this month, the board released a similar decision saying the central bank had contravened the code by using contractors from Garda Canada Security Corporation and the services of union members.

Tiff Macklem, governor of the Bank of Canada, said in a letter to the president of the Canadian Labour Congress Thursday that the bank has never refused to comply with the orders of the board.

“Ahead of the CIRB’s first ruling, the bank made representations regarding the minimum necessary arrangements to ensure the security of our facilities and people in light of the strike,” he said.

“The board ruled, and the bank complied with that ruling within the prescribed time period by ceasing the arrangements and the use of the supplier it had in place.

“The bank felt it necessary to put in place alternative arrangements that, in the bank’s view, adhered to the Canada Labour Code and the previous CIRB ruling. The CIRB subsequently ruled a second time. The bank has also complied with that decision.”

Macklem said some exceptions to the rules allow for the use of replacement workers when necessary to prevent threats to life, health or safety, or to prevent serious damage to property.

He said the bank believes the intent of the exceptions was to address situations like this one, where there are acknowledged threats to the safety of people, facilities and assets.

“It is crucial that all parties have clarity regarding the use and application of these circumstances,” he said.

Security officers at the Bank of Canada went on strike in June after talks failed to secure a new collective agreement between the central bank and the union.

Macklem said the bank has pursued a fair settlement through the negotiation process.

In a statement issued last week, the Public Service Alliance of Canada called on the Bank of Canada to stop using replacement workers and return to the bargaining table to negotiate a fair deal.

“The 42 members at the bank’s Ottawa office and seven members at the Montreal office have been on strike for four weeks after the bank locked out members in Montreal,” said the union. “Workers continue to fight for a fair deal while also demanding respect for their right to strike.”

Asked whether the bank continues to use replacement workers or the services of bargaining unit members during the strike, Bank of Canada spokesperson Paul Badertscher said in an email that “the short answer is no.”

“As the governor’s letter indicates, the bank has complied with the rulings of the CIRB and ceased the prior arrangements and suppliers it had in place,” he said.

In 2024, Canada passed legislation to ban federally regulated workplaces from bringing in replacement workers during a legal strike. The new rules took effect last year.

Bea Bruske, president of the Canadian Labour Congress, said in a letter to Macklem, Jobs Minister Patty Hajdu and Secretary of State for Labour John Zerucelli last week that the bank’s “repeated disregard for the board’s orders is unacceptable.”

“Parliament enacted Canada’s anti-replacement worker provisions to protect collective bargaining and workers’ constitutional right to strike. Repeated non-compliance undermines both the law and confidence in Canada’s labour relations system,” she said.

Bruske said she urged the federal government to make it clear that no federally regulated employer is above the law and that compliance with the Canada Labour Code is not optional.

“We call on the Bank of Canada to immediately comply with the board’s orders, end its use of scab labour, and return to the bargaining table to negotiate a fair collective agreement,” she said.

A statement from Hajdu’s office said the federal government “will always maintain that the strongest deals happen at the table.”

“Mediators from the Federal Mediation and Conciliation Service have been working with the parties since the spring,” said the statement. 

This report by The Canadian Press was first published July 31, 2026. 

By Catherine Morrison | Copyright 2026, The Canadian Press. All rights reserved.