The Act Respecting Collective Agreement Decrees applied by parity committees came into force on April 20th, 1934.

The Act respecting collective agreement decrees applied by parity committees

The Act Respecting Collective Agreement Decrees allows the working conditions negotiated by a group of employers and unions to be imposed on an entire sector — which may be regional in scope. When this law was adopted in 1934, labour protection laws did not exist. Today, Quebec is one of the jurisdictions in North America with the most generous social safety net.

This regulatory framework imposes a significant administrative burden, a sector-specific payroll tax, a loss of flexibility, and unfair competition between SMEs that are subject to the decree and those that are not. According to our estimates, this unique regime — which affects approximately 10,000 businesses — creates an annual burden of $47 million.

This system is currently facing a crisis of confidence among affected businesses and does not reflect the principles of sound governance. The parity committees that enforce this regulation are not subject to the Act Respecting the Citizen’s Protector or the Access to Information Act. Moreover, these parity committees are made up of employers and unions — meaning that those who impose the regulations are both judge and party, raising serious concerns about impartiality.

According to a CFIB survey, the primary demand from businesses subject to the decree is simply to abolish the Act altogether. This is exactly what CFIB is calling for.

Our position

CFIB urges the government to abolish the Act respecting collective agreement decrees applied by parity committees. Not only does it harm SMEs’ competitiveness, it creates inequalities between businesses and grants excessive power to parity committees which lack transparency.

Sign our petition against red tape

Quebec is the only province with several burdensome, province-specific rules — such as the Act Respecting Collective Agreement Decrees.
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