Research publications

Contents

• 1 Background
• 2 Description and Analysis
  • 2.1 General Matters Relating to the Bill
    • 2.1.1 Preamble
    • 2.1.2 Short Title, Definitions and Purpose of the Bill (Clauses 1 to 3)
  • 2.2 Designation of Ministers (Clauses 4 and 5)
  • 2.3 Sustainable Jobs Partnership Council (Clauses 6 to 10)
  • 2.4 Reports
    • 2.4.1 Annual Report and Minister’s Response (Clauses 11 to 13)
    • 2.4.2 Other Council Reports (Clauses 14 and 15)
  • 2.5 Sustainable Jobs Action Plan (Clauses 16 to 19)
  • 2.6 Sustainable Jobs Secretariat (Clause 20)
  • 2.7 Review of Act (Clause 21)
• Notes

1 Background

Bill C-50, An Act respecting accountability, transparency and engagement to support the creation of sustainable jobs for workers and economic growth in a net‑zero economy (short title: Canadian Sustainable Jobs Act),1 was introduced in the House of Commons on 15 June 2023 by the Minister of Natural Resources. On 23 October 2023, the bill was read a second time and was referred to the House of Commons Standing Committee on Natural Resources (RNNR) for consideration. RNNR made several amendments and reported the bill back to the House on 11 December 2023.2 Third reading of the bill was completed on 15 April 2024. The bill was introduced in the Senate on 16 April 2024. Following debate at second reading, on 23 May 2024, pursuant to an order adopted by the Senate on 22 May 2024, the bill was referred to the Standing Senate Committee on Social Affairs, Science and Technology for consideration and to the Standing Senate Committee on Energy, the Environment and Natural Resources for subject-matter examination. Consideration in committee was completed on 13 June 2024, and both committees reported the bill without amendment but with certain observations and comments.3 The third reading in the Senate was completed on 18 June 2024, and the bill received Royal Assent on 20 June 2024.

The Government of Canada describes this legislative initiative as the product of comprehensive consultation,4 the purpose of which is to establish both a plan and mechanisms for governance and accountability to place the federal government in a better position to support workers and communities as Canada works to build a net-zero economy.

To this end, the bill:

• introduces guiding principles for an equitable and inclusive future by supporting the creation of sustainable jobs while addressing climate action and energy security;
• requires the Governor in Council to designate both a minister responsible for the Act and specified ministers whose portfolios include sustainable jobs measures and actions;
• creates a sustainable jobs partnership council responsible for engaging with Canadians and advising government in order to establish a mechanism that will contribute to Canada’s sustainable jobs approach;
• requires the government to publish an action plan for sustainable jobs every five years;
• establishes a sustainable jobs secretariat to help implement the proposed Act;5 and
• requires the government to review the proposed Canadian Sustainable Jobs Act every 10 years.6

On 20 September 2023, the Minister of Justice tabled a Charter statement7 for Bill C-50 in the House of Commons. In his review of the bill, the Minister of Justice determined that it did not contain any inconsistencies with the Canadian Charter of Rights and Freedoms.

This legislative summary gives a brief description of the main measures proposed in the bill.

2 Description and Analysis

2.1 General Matters Relating to the Bill

2.1.1 Preamble

A significant portion of Bill C-50 is dedicated to the preamble, which sets out the rationale for the legislation. It describes climate change as a global issue with disproportional impacts that requires immediate and ambitious action by a broad array of actors. The preamble indicates that all governments in Canada, as well as industry, labour, Indigenous peoples, non-governmental organizations and individual Canadians, play important roles in building a net-zero economy. RNNR amended8 the preamble to specifically state that the governments of the provinces and territories have an important role to play within their jurisdictions to support the shift to a net-zero economy. The preamble also notes that trade unions, in particular, play an important role in representing the interests of workers.

The preamble recognizes that a net-zero emissions future presents opportunities for economic growth, the creation of well-paying, high-quality jobs and the increased participation of equity-seeking groups in Canada’s economy. Nevertheless, it also recognizes that efforts made to mitigate and adapt to climate change will have varying effects across the different regions, communities and sectors.

The preamble acknowledges Canada’s commitment to take measures as a signatory to the Paris Agreement 9 to mitigate the effects of climate change and to achieve net-zero emissions by 2050 under the Canadian Net-Zero Emissions Accountability Act.10 It also acknowledges Canada’s recognition and support of the International Labour Organization’s Resolution concerning sustainable development, decent work and green jobs11 and the associated guidelines12 on sustainable economies.

Moreover, the preamble sets out Canada’s commitment to strengthen its collaboration with Indigenous peoples, as amended by RNNR to take Indigenous traditional knowledge into account when carrying out the legislation, by virtue of the enactment of the United Nations Declaration on the Rights of Indigenous Peoples Act.13

Finally, the preamble affirms Canada’s commitment to a sustainable and inclusive jobs approach that addresses barriers to employment for persons with disabilities, in light of its ratification of the United Nations Convention on the Rights of Persons with Disabilities.14

The preamble sets out the guiding principles that the Government of Canada will adhere to throughout the transition to a net-zero economy. The principles aim to:

• foster engagement among the relevant stakeholders and partners in adequate, informed and ongoing dialogue on a sustainable jobs approach;
• encourage sustainable jobs policies and programs that:
  • support the creation of decent work (well-paying, high-quality and secure jobs),
  • recognize local and regional needs,
  • account for the cultural values, strengths and potential of workers and communities,
  • provide an environment to help the economy and society achieve sustainability and inclusivity, and
  • advance the well-being of workers and communities in addition to achieving Canada’s nationally determined contribution in accordance with the Paris Agreement (amended by RNNR);
• establish an inclusive sustainable jobs approach that encourages the employment of members of underrepresented groups in the labour market, namely, women, persons with disabilities, Indigenous peoples, Black and other racialized individuals, 2SLGBTQI+ and other equity-seeking groups; and
• help strengthen global efforts to advance the creation of sustainable jobs, ensure equity and inform Canadian approaches to support workers and communities in the shift to a net-zero economy.

2.1.2 Short Title, Definitions and Purpose of the Bill (Clauses 1 to 3)

Clause 1 of Bill C-50 establishes the short title of the bill: Canadian Sustainable Jobs Act.

Clause 2 defines various terms used in the bill. Notably, it describes an “equity‑seeking group” as a “group of persons who are disadvantaged on the basis of one or more prohibited grounds of discrimination within the meaning of the Canadian Human Rights Act.” 15 The bill also defines “net-zero economy” as “an economy in which any anthropogenic emissions of greenhouse gases into the atmosphere are balanced by anthropogenic removals of greenhouse gases from the atmosphere over a specified period,” with RNNR adding that “net‑zero emissions” occur when “anthropogenic emissions of greenhouse gases into the atmosphere are balanced by anthropogenic removals of greenhouse gases from the atmosphere over the period referred to in section 6 of the Canadian Net-Zero Emissions Accountability Act.” Additionally, it employs the term “social dialogue” as defined by the International Labour Organization, which includes “all types of negotiation, consultation or simply exchange of information between, or among, representatives of governments, employers and workers, on issues of common interest relating to economic and social policy.” 16

Finally, RNNR amended clause 2 to include a definition for “sustainable job” as one that is

compatible with Canada’s pathway to achieving a net-zero-emissions and climate-resilient future and that reflects the concept of decent work, namely work – including a job in which the worker is represented by a trade union that has entered into a collective agreement – that can support the worker and their family over time and that includes elements such as fair income, job security, social protection and social dialogue.

Clause 3 indicates that the legislation is designed “to facilitate and promote economic growth, the creation of sustainable jobs and support for workers and communities in Canada in the shift to a net-zero economy.” The framework to realize these objectives requires participation by federal entities at the national and regional levels who focus on “skills development, the labour market, rights at work, economic development and emissions reduction.”

2.2 Designation of Ministers (Clauses 4 and 5)

Clauses 4 and 5 of the bill respectively allow the Governor in Council to designate a minister responsible for the Act and to designate additional specified ministers for the purpose of administering the Act.

2.3 Sustainable Jobs Partnership Council (Clauses 6 to 10)

Clause 6 of the bill establishes the Sustainable Jobs Partnership Council (the Council) and defines its terms of reference. Clause 7 empowers the Council to advise the minister and specified ministers on various measures for creating sustainable jobs and supporting workers, communities and regions in the shift to a net-zero economy, in addition to engaging with partners and stakeholders at the national, regional, provincial, territorial and community levels.

Clause 8(1) stipulates that the Council consist of a maximum of 13 members, appointed by the Governor in Council on the minister’s recommendation, who may hold office for a renewable term of up to three years. RNNR added clause 8(1.1) which outlines that the Council must include two co-chairs, three representatives of trade unions, three members representing Indigenous peoples, three members representing industry, one representative of an environmental non‑governmental organization and one representative of another key stakeholder group. Clause 8(2) enumerates factors that the minister must consider when making recommendations for Council member appointments, such as representative diversity, experience in industrial and technological transformation, unionized worker representation, Indigenous knowledge and climate policy, among other subjects.

Clause 9 specifies that Council members are entitled to remuneration and to the reimbursement of their expenses. Under clause 10, Council members are deemed to be employees under the Government Employees Compensation Act 17 and employed in the federal public administration under the regulations made in section 9 of the Aeronautics Act 18 which establish the compensation payable for the death or injury of a public servant as the result of a flight taken in the course of duty.

2.4 Reports

2.4.1 Annual Report and Minister’s Response (Clauses 11 to 13)

Under clauses 11 and 12 of the bill, the Council must submit to the designated minister an annual report that contains its advice and a summary of its activities; this report will be published within 30 days after the minister receives it. Clause 13 requires the minister to then consult with the specified ministers and other relevant federal ministers, and prepare and publish a response to the report that addresses the Council’s advice, within 120 days after receiving the report.

2.4.2 Other Council Reports (Clauses 14 and 15)

Under clause 14 of the bill, the Council must prepare a report on any particular matter relating to the creation of sustainable jobs or the shift to a net-zero economy at the minister’s request, which the minister may publish. Clause 15 explains that the Council must prepare a progress report on activities specified by the minister within 30 days of the minister’s request.

2.5 Sustainable Jobs Action Plan (Clauses 16 to 19)

In keeping with the Government of Canada’s interim Sustainable Jobs Plan 19 for 2023–2025, clauses 16(1) and 16(2) of the bill require that the designated minister prepare a sustainable jobs action plan every five years and table it in both the Senate and the House of Commons. The minister has until 31 December 2025 to prepare the first plan which must be tabled in each house by the 15^th sitting day after that date. Every subsequent plan must be prepared by 31 December of every fifth year and tabled within the 15^th sitting day of each house. Under clause 16(3), as amended by RNNR, each plan must include:

• information about how the federal government will realize the legislation’s objectives in the following five-year period, including by investing in decarbonization, setting labour conditions for accessing federal economic incentives and identifying pathways to sustainable jobs;
• a description of how the federal government is upholding the guiding principles set out in the preamble;
• ministerial measures, milestones and methods of implementation, including measures related to skills development, economic and social measures, and regional and sectoral support measures;
• a summary of relevant, available data related to economic growth and the net‑zero economy, as well as data related to equity, diversity and inclusion in the labour force, and a description of how that data informed implementation measures, which includes:
  • the identification of any gaps in the data which impact labour market analyses and an indication of how those gaps are being addressed; information about labour-related measures, such as those that support skills development and training; a description of how it takes into account the plan established in section 9 of the Canadian Net‑Zero Emissions Accountability Act; and a discussion of measures taken by other actors, such as provincial or territorial governments, Indigenous peoples, trade unions, municipal governments or the private sector, which may contribute to the creation of sustainable jobs; and
• for subsequent plans, a description of the progress made toward achieving milestones under previous plans.

Clauses 17 and 18 allow the minister to amend a sustainable jobs action plan at any time, as long as the minister considers the Council’s advice, consults the specified ministers and other relevant federal ministers before doing so, takes into account the most recent greenhouse gas emissions reduction plan established under the Canadian Net-Zero Emissions Accountability Act and provides the opportunity for partners and stakeholders to make submissions (amended by RNNR). Likewise, an amended plan must be tabled in each House within each one’s first 15 sitting days following the preparation of the plan.

Under clauses 19(1) to 19(4), the minister must prepare a report with updates on progress toward achieving the milestones and implementation of the measures identified in the most recent plan, and including the details of any additional measures that are being or could be taken toward those milestones. The report must take into account the Council’s advice and the input of the specified ministers and other relevant federal ministers. Each progress report must also be tabled in the Senate and the House of Commons within their first 15 sitting days following the preparation of the report.

2.6 Sustainable Jobs Secretariat (Clause 20)

Clause 20 of the bill makes the minister responsible for establishing the Sustainable Jobs Secretariat to provide support to implement the Act. The Secretariat’s responsibilities, as amended by RNNR, include:

• enabling policy and program coherence in the development and implementation of each plan, supporting the federal government in designing the plan’s measures and implementing them among the federal entities that play leadership roles in their respective areas of responsibility;
• supporting the preparation of the plans and tracking their progress;
• coordinating federal–provincial and federal–territorial initiatives related to the plans and engaging with provincial and territorial governments in areas of common interest, including by serving as a source of information and point of contact for federal programs and funding related to sustainable jobs; and
• providing administrative and policy support to the Council.

2.7 Review of Act (Clause 21)

Under clause 21 of the bill, the minister must ensure that the Act is reviewed once every decade. The initial review is to be conducted within 10 years after the day on which the Act receives Royal Assent, then every 10 years thereafter. Furthermore, the minister must have a report on the review tabled in the Senate and the House of Commons within their first 15 sitting days following the completion of the report.

Notes