British Columbia Needs a Labour Relations System That Attracts Investment

Jurisdictions that consistently attract investment combine robust worker protections with labour relations systems that are transparent, balanced, predictable, and efficient.

Unfortunately, British Columbia has moved in the opposite direction.

Over the past several years, BC's labour relations framework has become increasingly difficult to navigate for employers, more uncertain for investors, and increasingly different from the systems found in competing jurisdictions such as Ontario and most of the United States.

When companies decide where to build a manufacturing facility, distribution centre, mine, clean-energy project or corporate office, labour policy is one of the factors considered alongside taxation, permitting, infrastructure, and energy costs. Every increase in uncertainty raises the cost of investing in British Columbia.

Competitive BC believes it is time to restore confidence in British Columbia's labour relations system.

British Columbia now operates one of the most union-friendly certification systems in North America.

Since 2022, a union that demonstrates signed membership cards from at least 55 percent of employees in a proposed bargaining unit is automatically certified without a secret-ballot vote. Where support is between 45 and 55 percent, a representation vote is held on an expedited basis.

Ontario follows a different model. Outside a limited number of construction and sector-specific exceptions, Ontario employees decide union certification through a secret-ballot vote supervised by the Ontario Labour Relations Board. The United States also relies primarily on secret-ballot elections administered by the National Labor Relations Board.

Competitive BC believes democratic workplace decisions should generally be made by confidential ballot. A secret vote protects employees from pressure from every direction — whether from employers, unions, or co-workers — and provides the clearest measure of employees' wishes.

A labour relations system perceived as fair by both workers and employers produces greater confidence, fewer legal disputes, and more stable labour relations.

The Labour Relations Board plays a critical role in British Columbia's economy. Its decisions determine whether unions are certified, unfair labour practices have occurred, bargaining units are defined, strikes are lawful, and collective bargaining disputes are resolved.

Businesses and unions alike depend upon a Board that is independent, balanced, timely, predictable, and expert in modern workplaces.

Competitive BC is concerned that confidence in the Board has declined among many private-sector employers. Business organizations representing thousands of employers have publicly expressed concerns regarding increasing delays, growing case complexity, recruitment challenges, and the composition of Board appointments. They have also called for reforms to strengthen confidence in the institution and improve its ability to recruit experienced labour relations professionals with significant private-sector expertise.

The issue is not whether decisions favour employers or unions. The issue is whether all participants have confidence that decisions are made by a Board whose composition reflects the diversity of British Columbia's economy and whose processes are timely, balanced, and predictable.

Investment follows certainty. When confidence in administrative institutions declines, investors begin pricing additional regulatory risk into their decisions.

Competitive BC recently reviewed a substantial number of recent Labour Relations Board decisions. The review identified several issues affecting business confidence.

First, many proceedings require months — or in some cases considerably longer — to reach final resolution, particularly where unfair labour practice complaints, mediation, or remedial applications are involved. Extended proceedings create uncertainty for both employers and employees.

Second, remedial powers available to the Board — including remedial certification in exceptional circumstances — can significantly affect investment risk where employers perceive outcomes to be difficult to predict.

Third, businesses increasingly report concern that litigation before the Board has become more complex, more expensive, and more time-consuming than in competing jurisdictions.

None of these observations suggest the Board fails to apply the law. Rather, they highlight that the structure and administration of the current system can increase uncertainty and transaction costs for businesses considering investment in British Columbia.

Predictability is itself an economic asset.

On union certification, BC relies on card-based certification at 55% with no guaranteed secret ballot and automatic certification in many cases — resulting in lower employer certainty and lower perceived investment competitiveness. Ontario and the United States both use secret-ballot votes as the general rule, with automatic certification limited to exceptional circumstances.

No single labour policy determines where businesses invest. However, labour relations are part of a broader competitiveness equation that includes taxation, permitting, infrastructure, energy costs, and regulatory certainty. When British Columbia differs significantly from competing jurisdictions on multiple dimensions, investment increasingly flows elsewhere.

Competitive BC believes British Columbia can have both strong worker protections and a world-class investment climate.

We support reforms that would: restore secret-ballot certification as the standard method of union certification; improve the timeliness and efficiency of Labour Relations Board proceedings; ensure Board appointments reflect balanced expertise from labour, private-sector employers, academia, and dispute resolution; publish enhanced performance measures for Board timelines and case management; increase transparency regarding Board operations and appointment processes; and preserve strong penalties for employer and union misconduct while protecting employees' right to make workplace decisions through confidential voting.

British Columbia competes every day for investment, jobs, and talent. A labour relations system that is balanced, transparent, and predictable is not simply good labour policy. It is good economic policy.