How the COVID 'hero pay' scandal prompted Ottawa to make wage-fixing illegal

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How the COVID 'hero pay' scandal prompted Ottawa to make wage-fixing illegal — via financialpost COVID Work Economy

. “Profits are coming in in record numbers and, Mr. La Flèche, you are proactively reaching out to your competitors to say, ‘When can we cut pandemic wages?'”“I’ll leave the remainder of those kinds of questions to the Competition Bureau,” Erskine-Smith said.

The bureau was still able to go after wage-fixing in civil cases, but first it had to prove that the behaviour hurt competition. Proving that, Boswell argued, “is not a low threshold.” In response, the House of Commons industry committee in 2021 asked the government to tack wage-fixing and no-poach agreements onto the list of criminal offences.

Michael Kilby, a competition lawyer in Toronto, said the new rules will seriously change the way he advises employers on labour issues. Before, he would have told clients that the bureau can only pursue wage-fixing in civil cases, and even then “there’s no real track record of them doing so and there are no real penalties associated with them doing that.” Now, he said, employers convicted of wage-fixing or no-poach agreements could face unlimited fines, jail time, and class action lawsuits.

in its standard franchise agreements. The coffee chain, however, says it stopped using the clause in 2018 and doesn’t enforce it in older agreements.Article content

 

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