The federal Liberal government is preparing major changes to the Canada Labour Code as Parliament returns for its fall sitting, with proposed reforms expected to address Ottawa’s controversial power to intervene in strikes and lockouts.
A central focus is expected to be Section 107 of the Canada Labour Code, which gives the federal labour minister broad authority to take steps aimed at maintaining industrial peace and to refer questions or issue directions to the Canada Industrial Relations Board. The provision has increasingly been used in recent years when major labour disputes have disrupted federally regulated industries.
Government House Leader Steven MacKinnon says the government’s objective is not to eliminate workers’ right to strike but to make it easier for employers and unions to reach negotiated settlements. Jobs Minister Patty Hajdu has similarly said Ottawa wants to reduce the number of occasions on which the federal government has to intervene directly in labour disputes.
The government spent months consulting unions, employers and other stakeholders about potential changes to federal labour rules. Those consultations specifically examined possible guardrails around Section 107, along with proposals for a new special mediator role, expedited grievance arbitration, measures addressing bad-faith bargaining, changes to strike and lockout mandates and stronger protections against wage theft and worker misclassification.
Ottawa’s consultation report found broad agreement that Canada’s collective bargaining system generally works, with approximately 95 per cent of collective agreements reached without a work stoppage. However, unions and employers remain divided over the government’s intervention powers, and stakeholders generally favoured targeted reforms rather than sweeping changes to the bargaining system.
Labour organizations are warning Ottawa against expanding its ability to stop legal strikes. Canadian Labour Congress president Bea Bruske said any new authority allowing the government to prevent or terminate a lawful strike could weaken workers’ bargaining power.
Federally regulated employers have called for stronger mechanisms to prevent major disruptions. Derrick Hynes, CEO of Federally Regulated Employers–Transportation and Communications, has proposed creating a neutral third-party special mediator who could report publicly on bargaining disputes and provide information to help guide government decisions.
The labour reforms are expected to be connected to the government’s broader Building Canada Strong agenda, which Prime Minister Mark Carney says will also accelerate federal reviews of major projects. Carney has set out a target of “one project, one review, one year” as his government seeks to speed investment and infrastructure development.
The government has not yet publicly detailed the final wording of its proposed Section 107 amendments. Hajdu, MacKinnon and Canada-U.S. Trade Minister Dominic LeBlanc are expected to provide further details as the government begins introducing its fall legislative agenda.
The labour changes are set to become one of the first major tests of the fall parliamentary session, with the government arguing that reforms can help employers and workers reach agreements without Ottawa stepping in, while unions are watching closely for any provisions that could expand federal authority to end strikes.
