The Competition Act will be updated in the federal budget for 2022, according to the federal government.
Trudeau spoke in Hamilton, Ont. on April 8, 2022.
The photo was taken by Galit Rodan.
Trudeau's government is going to make a number of changes to Canadian competition rules.
The Competition Act for the digital era will be updated with a series of legislative amendments, according to a brief section on page 72 of the budget. The government promised to tackle anti-competitive conspiracies that hurt workers. The line was a sign that a fix could finally be coming for Canada's limp approach to wage fixing.
The Trudeau government has faced calls to strengthen the law against wage fixing since 2020, when Canada's three largest grocers canceled $2-per-hourhero pay bonuses for their front-line workers on the same day.
The bureau declined to investigate the case, a move that many, including a former competition commissioner, saw as an example of the law's blindspot when it comes to workers.
It became clear that our laws were insufficient for addressing wage fixing, according to Liberal MP Nathaniel Erskine-Smith.
A federal Liberal backbencher held a news conference in Toronto.
The photo was taken by Colin Perkel.
In a parliamentary hearing into the scandal in 2020, Erskine-Smith sparred with executives from the parent company of Sobeys. Both Metro and Loblaw said they contacted their competitors. The companies denied wrongdoing.
A change to the act would make wage fixing a criminal offence. Wage fixing can only be pursued as a civil offense. It's considered to be a supply-side conspiracy where competitors get together to fix the price of their business inputs, rather than the products they sell.
If a group of independents pool their resources to buy supplies in bulk as a way of keeping prices lower for consumers, those types of agreements can be positive. The bureau has to prove that the behavior hurt competition. The bureau doesn't have to prove that the behavior is anti-competitive in criminal cases.
Competition Bureau Commissioner Matthew Boswell said it was difficult to prove wage fixing hurts competition. Boswell has been an advocate for competition reform in Canada, arguing that the law is out of step with the U.S. and other allies.
The Competition Act, including wage fixing agreements, will be reviewed in February.
The Minister of Innovation, Science and Industry Francois-Philippe Champagne was in the House of Commons on Parliament Hill.
The photo was taken by The Canadian Press.
The government said in the budget that it will start conducting broad consultations on the role and functioning of the law. The act that can be fixed easily was noted by the government. In a series of legislative amendments, the Liberals said they will fix loopholes, tackle practices harmful to workers and consumers, and update the law for digital reality.
Boswell said in a statement on Friday that he welcomed the announcement of amendments to the Competition Act and looked forward to the upcoming broad consultation on the Act and the enforcement regime.
He hopes the language means the government will add a wage fixing amendment to the Budget Implementation Act.
Adding wage fixing as a criminal offence under the act might not be the magic solution that some people think it is.
It's definitely not a slam dunk because of the criminal cases.
Email: jedmiston@postmedia.com
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