Bill C-12 Receives Royal Assent; Wages & Pensions to Be Protected

The Canadian Labour Congress announced a “Victory for Workers” on Friday:

Workers finally have new law to protect their wages

OTTAWA – Canadian workers have finally won new legal protection for their wages and their pension contributions when their employer goes bankrupt. Bill C-12, a series of amendments to existing insolvency and wage protection laws, was approved by the Senate last night and received Royal Assent today. This was accomplished after an intensive three-year campaign by the Canadian Labour Congress and its affiliated unions to change bankruptcy laws that unfairly put workers last in line to get paid.

It seems to me the new law accomplishes (at least) three significant improvements for those whom find themselves with a bankrupt employer and unpaid wages and/or pension contributions:

• moves workers up in the creditor line
• protects pension contributions
• limits unilateral changes to collective agreements by bankruptcy judges

Now all that’s left is proclamation, and to see how employees and unions fare under the amendments.