The federal Competition Bureau yesterday said it will begin enforcement of a criminal ban on wage fixing, effective on June 23. Parliament passed the law on allegations Canada’s largest grocers conspired to eliminate pandemic “hero pay.”.“When the amendment comes into force wage fixing and no-poaching agreements will become illegal and subject to significant criminal penalties in Canada,” the Bureau said in a statement. The maximum penalty is 14 years’ imprisonment..According to Blacklock's Reporter, Parliament last year passed Bill C-19 An Act To Implement Certain Provisions Of The Budget. The omnibus budget bill amended the Competition Act to state: “Every person who is an employer commits an offence who with another employer who is not affiliated with that person conspires, agrees or arranges to fix, maintain, decrease or control salaries, wages or terms and conditions of employment.”.“The law applies broadly across the entire economy,” Jennifer Miller, director general of marketplace policy at the Department of Industry, testified last May 5 at the House of Commons finance committee. “The enforcement of the Act, if cases come forward, the Competition Bureau considers them.”.“Is it the view of the government this would apply to ride sharing services like Uber?” asked Conservative MP Adam Chambers (Simcoe North, ON). “The Competition Act is a law of general application that does not typically distinguish between specific business models or types of industry,” replied Miller..“In situations where there is a franchisee-franchisor relationship who would be the employer?” asked Chambers. “It would depend of course on the specifics of the individual case,” replied Miller..Parliament amended the Act following a June 11, 2020 incident in which grocery chains Loblaw Companies, Sobeys and Metro Incorporated simultaneously announced the repeal of $2 an hour pandemic “hero pay” bonuses for employees. Executives acknowledged they were in contact by phone and email, but denied collusion..“We had discussions,” Michael Medline, CEO of Sobeys, later testified at the Commons industry committee. “Our lawyers were on the call.”.“We did not collaborate or coordinate with our competitors,” said Medline. “We never discussed with our competitors. We would never do that. Let me be absolutely clear. We did not coordinate our decisions with other retailers.”.The 1985 Competition Act section 45 previously prohibited any arrangement “to fix, maintain, increase or control the price for the supply of a product” under threat of $25 million fines and 14 years’ imprisonment. The original Act made no mention of wage fixing..“It’s a new era,” Commissioner of Competition Matthew Boswell said in 2021 remarks to the Canadian Bar Association. “The pace of change is speeding up as is the urgency to re-examine our laws.”
