Canada has seen a resurgence in unionization, which is being led by younger generations prioritizing greater dignity and respect, workplace safety, and living wages. Unions have adapted to modern times by utilizing digital platforms to organize and communicate with employees. The recent BC Labour Relations Board 2022 Annual Report reveals interesting statistics about activity in our province, which we review in more detail below. Unions in BC have been particularly successful in the health care, social services, and construction industries.

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After the NDP introduced numerous changes to the Labour Relations “Code” in 2019 to favour unions and then eliminated the secret ballot vote by passing Bill 10 in 2022, many of us assumed that union certifications would sky rocket as it had done in 1992.  So it was with great interest that we awaited the Labour Relations Board (“LRB”) 2022 Annual Report to see if the number of certifications and applications to vary certifications had jumped. Surprisingly, the number of certifications granted in the last seven months of 2022 under Bill 10 is not as high as expected, which perhaps reflects the current economic reality of British Columbia, where non-union employers are increasing wages and benefits to attract workers - but we anticipate that will change.

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Labour Relations Board 2022 Report

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On March 10 2023 the LRB issued its 2022 Annual Report.

The reporting system is unique and in order to fully understand the data one must actually read the Report.  However it discloses some interesting statistics:

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• There were 150 applications for certification for unorganized employers with 135 granted covering 4222 employees, and 20 dismissed covering 472 employees
• There were 20 applications for decertification with 17 granted covering 259 employees
• Not surprisingly the most certifications granted were in Health Care and Social Services followed by construction
• Almost 65% of applications granted were for employers with between 1—20 employees
• What is particularly troubling for employes is the fact that 50% of applications by unions for remedial  (i.e. automatic certification without regard to union support) under section 14(4.1) were granted.  Compare that to the previous 10 years where only 8 such applications out of 90 were granted.  This reflects the powerful amendments to section 14(4.1)

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What then is the scorecard for the success of Bill 10 in favour of unions?  In the 1st 5 months of 2022 (pre Bill 10) there were 58 applications for certification filed, and 43 granted.  In the last 7 months of 2022 under Bill 10 and absent a secret ballot vote, 114 applications were filed and 87 granted.

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Notwithstanding the number of applications and orders for certifications, the statistics are for me surprisingly low under Bill 10. My sense is that it reflects the economic reality of BC where the demand for labour is at the highest it has been  for a long time. This worker shortage has caused non union employers to increase wages and benefits in order to attract employees and ensuring they pay at or near union wages. Job security is not much of an issue today, therefore I believe it is harder in this current  environment for unions to organize—in many cases not much more they can offer employees especially since once unionized under a collective agreement all  employees will have to start paying unions dues that in some cases can exceed $100 per month. There is also the fact that the demographics of workers  and the nature of business has changed significantly from 1992. And of course the NDP has provided non union employees with significant benefits such as the 5 day paid sick leave that might otherwise have been negotiated by unions.

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But if the pundits are right we are heading into recessionary times when workers will become more concerned about job security.  As a result it may well be that the steps taken by the NDP under Bills 30 and 10 will bear fruit for unions in 2023.

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Are You Prepared?

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While Chris and I have been successful in advising clients to oppose union certifications despite Bill 10, the reality is if a union signs up more than 55% of employees in an appropriate bargaining unit there is very little the employer can do to defeat the application.  The issues at the certification hearing (held within 5 business days of the application) usually centre around whether the unit was appropriate and inclusions/exclusions.  Once certified a union has a significant control over the business and significant leverage in achieving a collective agreement.

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We continue to recommend taking steps to limit the potential of a union certification before they come knocking.  If an employer  is lucky enough to find out about a union organizing campaign before an application is filed with the Labour Relations Board, there are steps it can take to communicate with the employees as it might under the old system of a secret ballot vote although there are certain risks that any such communications entail.  Further understanding your organization’s structure in terms of a potential application for certification is important.  With only 5 days to respond to the application employers might want to consider a form of audit of your organization.

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If you are interested in attending a webinar or seminar in 2023 on this topic of unionization or having us assist in an audit of your organization’s operations, please let Chris or Mike know via email, or sign up to our Employment & Labour Newsletter here.

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Mike Weiler & Chris Drinovz

March 25, 2023

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Note to Readers: This is not legal advice. If you are looking for legal advice in relation to a particular matter please contact one of our group members. We communicate all these updates to our clients and readers on our Employer Resources Portal and through monthly Newsletters.