A new law that protects workers’ wages and pensions in cases of bankruptcy took effect December 14.
The Harper government proclaimed Bill C-12 which amends Bill C-55, the original bill to re-arrange the order in which creditors of a bankrupt company are paid.
The labour movement - and especially the Canadian Labour Congress - was instrumental in getting the bill through Parliament under the former Liberal government,
The law is designed to provide workers extra protection for ther wages and their pensions in the event their employer files for bankruptcy.
The Liberal government proclaimed Bill C-55 into law in 2005, but the law was not proclaimed due to an effective employer lobby.
The Harper government insisted on making amendments to resolve “technical deficiencies.” These changes were incorporated into Bill C-12.
- See also: Submission regarding Bill C-55: “A Good First Step, Provided it Heads in the Right Direction” (Canadian Labour Congress)