Labour adjustment plans

The Labour Relations Code requires that employers and unions meet regularly as part of a joint consultation process to promote the cooperative resolution of workplace issues, to respond and adapt to changes in the economy, to foster the development of work-related skills and to promote workplace productivity.

Developing a labour adjustment plan 

Where there is a collective agreement in place, there are some types of changes an employer might make that require it to give formal notice to the union and to work with the union to develop an adjustment plan to mitigate the effects of the changes. The obligation to try to develop a labour adjustment plan exists separate and apart from the requirement to engage with the union as part of the joint consultation process.

    The requirement that the parties meet and attempt to develop an adjustment plan has three elements:

    1. it applies when an employer introduces or intends to introduce a change that affects the terms, conditions, or security of employment of a significant number of employees in the bargaining unit,
    2. the employer must give 60 days' notice before it implements it, and
    3. once notice is given, the employer must be prepared to meet with the union, in good faith, and try to develop an adjustment plan to mitigate its effects.

    The adjustment plan may include:

    • Human resource planning
    • Employee counselling
    • Retraining for bargaining unit members
    • Notice period for terminations
    • Severance pay
    • Early retirement options

    Once the adjustment plan is agreed to, it becomes legally binding and enforceable.

    What if we can't agree on the adjustment plan?

    Either party can apply for a mediator's help with developing an adjustment plan.  The mediator will review the facts and work with the parties to try to come to an agreement. If the mediator can't help the parties come to an agreement, they may make recommendations about what should be included in the adjustment plan.

    To apply for a mediator:

    1. Complete Form 54
      FORM 54: LABOUR ADJUSTMENT PLAN MEDIATION
    2. Submit the application by email, mail, or courier
    3. Serve the other party as required by the Rules
    4. Arrange to pay the $100 filing fee

    What if notice wasn't given?

    You can apply to the Board if you feel the notice requirements of Section 54 have not been complied with. To make an application:

    1. Complete an application by written submission (i.e. letter)
      1. Make sure the application has the information required as per the Rules
    2. Submit the application by email, mail, or courier
    3. Serve the other party as required by the Rules
    4. Arrange to pay the $100 filing fee


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    This page was last updated: 2021-05-14

    Disclaimer: The information on this website is provided for general purposes only and is not legal advice. This information is subject to the Labour Relations Code, the Labour Relations Board Rules, the Labour Relations Regulation and the published decisions of the Board

    The Labour Relations Board acknowledges the traditional territories of the many diverse Indigenous Peoples in the geographic area we serve. With gratitude and respect, we acknowledge that the Board’s office is located on the traditional unceded territories of the Coast Salish peoples, including the territories of the xʷməθkʷəy̓əm (Musqueam), Skwxwú7mesh (Squamish), and səlil̓wətaʔɬ (Tsleil-Waututh) Nations.