Canada Is Banning “Wage Fixing” — Unless It’s Necessary to Boost Profits
A new bill in Canada takes aim at wage-fixing and no-poaching agreements among major corporations. But significant loopholes and objections from business groups underscore how even modest labor legislation faces staunch resistance from capital.
Federal government workers stage a protest outside the Service Canada building in Scarborough district of Toronto, Canada, on April 19, 2023. (Mert Alper Dervis / Anadolu Agency via Getty Images)
Earlier in the year, Canada’s regulators got wise to the fact that the country’s bosses regularly conspire to drive down their workers’ wages. In response, the government introduced a new bill aimed at addressing the “anti-competitive” impact of such agreements.
On May 30, Canada’s Competition Bureau issued its ultimate guidelines for enforcing wage-fixing and no-poaching policies among the nation’s major corporations. The new rules — which kicked in over the weekend — were the outcome of an “extensive consultation process,” primarily involving the country’s leading corporate law firms and business lobby groups.
Unsurprisingly, the legislation’s loopholes are substantial and could easily accommodate potential abuses. Leading up to the implementation of the measures and following their publication, business groups have responded with complaints and sharp denunciations. They claim that the changes are a threat to their profitability.
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