What Companies Considering an Expansion into Canada Need to Know About Unions

Many of our clients considering a Canadian expansion are wary of the possibility of unionization of their Canadian workforces. Unionization can be perceived by employers as leading to a significant loss of control over their workplaces and, specifically, a loss of flexibility to manage in the efficient and effective manner to which they are accustomed. These clients often express their desire to operate within a jurisdiction in which they are free to manage and negotiate directly with their employees, rather than indirectly through a union that represents the collective interests of those employees.

Following its certification as a bargaining agent, a union is empowered to negotiate various employment terms on behalf of workers, including wages, seniority rights, benefits, vacations and other daily working conditions.

Canadian employees can be attracted to unionization due to a perception that their best interests can best be advanced through collective negotiation with their employer, or at least common representation to formulate broad structures for working conditions based upon an assumption that a union is best positioned to secure those conditions on their behalf (and will look out for their best interests).

This article provides a high-level overview of some of the considerations an employer may wish to consider in respect of unionization when expanding into Canada.

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