moved for leave to introduce Bill C-253, an act to amend the Bankruptcy and Insolvency Act (unpaid wages to rank first in priority in distribution)
Mr. Speaker, hopefully this bill will be a little less controversial.
The bill seeks to amend the bankruptcy act so that unpaid wages owing to an employee at the time of a bankruptcy will rank first in priority in terms of distribution of the assets of the company. The purpose is to give unpaid wages and other compensation due for benefits in a bankruptcy first priority, the logic being that other secured creditors know full well the risk of a possible bankruptcy of the company in which they are investing and compensate for that by charging interest and making profit on the loan.
In the case of an employer and employee relationship, all that exists is the trust relationship that the employee will be compensated fairly for hours worked. Therefore, it is up to Parliament to add the protection for the worker in this case, and I seek broad support from the House on that matter.
(Motions deemed adopted, bill read the first time and printed)