Statutory freeze (labour relations)

The word freeze is shorthand for a prohibition in the labour relations statute. It matters to a buyer or a seller when a certification application is filed before closing, because ordinary changes to pay or terms may need consent or permission. How it applies depends on the statute and the stage reached.

Ontario and British Columbia

• Ontario: once a union has applied for certification and the employer has the Board’s notice, section 86(2) of the Labour Relations Act, 1995 says the employer shall not, except with the union’s consent, alter wage rates or any other term or condition of employment or any right, privilege or duty of the employer or the employees, until the union gives notice to bargain or the application is dismissed, terminated or withdrawn. Section 86(1) covers a later stage.
• British Columbia: section 32(1) of the Labour Relations Code says that while an application is pending, the employer must not change pay rates or other terms of the affected employees without the board’s written permission. Section 32(2) says it does not affect the employer’s right to suspend, transfer, lay off, discharge or otherwise discipline an employee for proper cause.

What to ask

Ask whether any application or notice to bargain is pending, and whether any change to pay or terms is planned before closing. This entry covers Ontario and British Columbia only; check the rules where you are. See whether a union follows the business to a new owner and certification.