Companies’ Creditors Arrangement Act (R.S.C., 1985, c. C-36)

Act current to 2014-10-27 and last amended on 2013-04-01. Previous Versions

Marginal note:Collective agreements
  •  (1) If proceedings under this Act have been commenced in respect of a debtor company, any collective agreement that the company has entered into as the employer remains in force, and may not be altered except as provided in this section or under the laws of the jurisdiction governing collective bargaining between the company and the bargaining agent.

  • Marginal note:Application for authorization to serve notice to bargain

    (2) A debtor company that is a party to a collective agreement and that is unable to reach a voluntary agreement with the bargaining agent to revise any of the provisions of the collective agreement may, on giving five days notice to the bargaining agent, apply to the court for an order authorizing the company to serve a notice to bargain under the laws of the jurisdiction governing collective bargaining between the company and the bargaining agent.

  • Marginal note:Conditions for issuance of order

    (3) The court may issue the order only if it is satisfied that

    • (a) a viable compromise or arrangement could not be made in respect of the company, taking into account the terms of the collective agreement;

    • (b) the company has made good faith efforts to renegotiate the provisions of the collective agreement; and

    • (c) a failure to issue the order is likely to result in irreparable damage to the company.

  • Marginal note:No delay on vote

    (4) The vote of the creditors in respect of a compromise or an arrangement may not be delayed solely because the period provided in the laws of the jurisdiction governing collective bargaining between the company and the bargaining agent has not expired.

  • Marginal note:Claims arising from termination or amendment

    (5) If the parties to the collective agreement agree to revise the collective agreement after proceedings have been commenced under this Act in respect of the company, the bargaining agent that is a party to the agreement is deemed to have a claim, as an unsecured creditor, for an amount equal to the value of concessions granted by the bargaining agent with respect to the remaining term of the collective agreement.

  • Marginal note:Order to disclose information

    (6) On the application of the bargaining agent and on notice to the person to whom the application relates, the court may, subject to any terms and conditions it specifies, make an order requiring the person to make available to the bargaining agent any information specified by the court in the person’s possession or control that relates to the company’s business or financial affairs and that is relevant to the collective bargaining between the company and the bargaining agent. The court may make the order only after the company has been authorized to serve a notice to bargain under subsection (2).

  • Marginal note:Parties

    (7) For the purpose of this section, the parties to a collective agreement are the debtor company and the bargaining agent that are bound by the collective agreement.

  • Marginal note:Unrevised collective agreements remain in force

    (8) For greater certainty, any collective agreement that the company and the bargaining agent have not agreed to revise remains in force, and the court shall not alter its terms.

  • 2005, c. 47, s. 131.