Newsletters

169

Tough Collective Agreement Negotiations: Are Employees Really “Without a Contract”?

“The Port of Montreal’s longshoremen have been without a contract since December 2018.”

Throughout successive labour disputes, including the current one between the Maritime Employers Association and the longshoremen of the Port of Montreal, you have probably already read or heard in the news a statement that unionized employees have been “without a contract” since the expiry of their collective agreement. But what does this wording really mean? What is the legal regime in such a situation?

The law (s 59 of the Labour Code and, to some extent, s 50 of the Canada Labour Code) provides that, as of the expiry of a collective agreement, until the right to strike or to lock out is exercised, the employer cannot change the working conditions of the employees. Working conditions are frozen.

The law also provides that the employer and employees may provide in their collective agreement that its conditions will apply until a new agreement is signed. It is indeed a clause that is sometimes included in the text of collective agreements.

It should also be noted that while this is by no means a legal obligation, it is common for the employer and employees, when entering into a collective agreement, to agree on a salary increase retroactive to the expiry date of the previous agreement.

Finally, if the employer cannot change working conditions before the right to strike or lock out is exercised, this does not mean that any change in working conditions is a retaliatory measure and is prohibited. The employer is always allowed to carry on with the operations: “business as usual” remains the norm. The employer can therefore make decisions related to the working conditions of employees that correspond to the normal course of its activities and which are not inconsistent with its usual practices.

So next time you hear the expression “without a contract”, you will understand that employees do have an expired collective agreement but that the law protects their existing working conditions and their bargaining of power.

169

Articles in the same category

When it’s too late for latent defects…

The Superior Court recently rendered a judgment in Reinert v. Construction Maurice Bilodeau Inc., 2026 QCCS 2276, dealing with timeliness to give notice in cases of latent defects. The Facts In 2013, Ms. Sylvie Reinert and Mr. Denis Leclerc retained Construction Maurice Bilodeau Inc. (“CMB”) for the construction of a residential building on a vacant lot in Lévis. […]

Insurance Math: One Claim, Two Fires, Three Points of Origin, Zero Recovery: When Circumstantial Evidence Speaks Louder Than a Confession

In Chatel v. Desjardins Insurance, 2026 QCCS 712, the Quebec Superior Court reaffirmed a principle of insurance law: direct evidence is not required to establish an intentional fault. Mr. Chatel claimed $532,000 under his homeowner’s insurance policy following two fires that occurred four days apart. The first caused partial damage to his residence, while the second […]

The Quarrelsome Litigant: When the Right to Sue Becomes a Scourge

Access to the courts is a fundamental right, but what happens when a person uses it not to assert legitimate rights, but to harass others or clog the system to excess? This is quarrelsomeness: the tendency to exercise one’s right to litigate in an excessive or unreasonable manner. Far from being a marginal phenomenon, it […]

Before Buying a Product, Read This: The Rules Are Changing on October 5!

On October 5, 2026, the final amendments to the Regulation amending the Regulation respecting the application of the Consumer Protection Act (the “Regulation“) are expected to come into force, completing the implementation of the new “good working order” warranty in the province of Quebec. When this warranty applies, the merchant or manufacturer will be required to repair […]

No Notice of Default, No Termination

In Pavage Wemindji Inc. v. Compagnie de Construction et de Développement crie ltée, the Quebec Superior Court emphasized that a valid notice of default (mise en demeure) is not just a formality—it’s a precondition to exercising remedies like contract termination in many cases under Quebec civil law. The Decision The plaintiff, Pavage Wemindji Inc. (“Wemindji”), […]

Public Contracts: When Does a Penalty Clause Cross the Line?

Penalty clauses are a practical tool for owners: instead of having to prove actual losses when a contractor falls short, they can rely on a pre-agreed sum. For contractors, however, the stakes are equally significant — a lump-sum penalty can consume a substantial portion of the contract’s value. Still, the mechanism has its limits. Courts […]