Project Overview
The Forestry Workers Lien for Wages Act (FWLWA) was passed in 1891 to protect loggers working in remote northern Ontario. At the time, many workers were isolated, paid late, or not paid at all. The Act gave them a special legal right—a “lien”—over the logs they harvested so they could recover unpaid wages.
Over more than a century, both the logging industry and Ontario’s commercial law have changed dramatically. Logging operations today are larger, more mechanized, and structured very differently from the small camps of the 19th century. Modern loggers are often contractors running significant businesses, and they operate in a regulatory and financial environment that did not exist when the Act was created.
The LCO began reviewing the Act after a 2009 insolvency case highlighted the difficulties of interpreting its outdated language. Through research, consultations, and meetings with loggers, industry representatives, government, and legal experts, the LCO examined whether a lien regime still made sense in today’s industry.
The LCO’s review found that the Act no longer fits the economic or legal realities of modern forestry work. The relationship between loggers and mills has shifted; loggers now have better access to financial information, and many extend substantial credit to mills—making them more like commercial creditors than wage-dependent workers. Meanwhile, other small businesses in similar positions do not receive special statutory protection. The Act also creates challenges for lenders and businesses trying to operate within Ontario’s broader commercial law framework.
Key Recommendations
The LCO made one clear recommendation:
Repeal the Forestry Workers Lien for Wages Act
- The Act is outdated and no longer reflects how the modern logging industry operates.
- Loggers today face different economic realities and have access to legal and financial tools that did not exist when the Act was created.
- Repeal would bring loggers’ rights in line with those of other creditors and ensure consistency within Ontario’s commercial law system.