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Ottawa eyes Labour Code conflict intervention changes, minister says

Published July 5, 2026 at 7:29 PM UTC

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The federal government is exploring potential modifications to the Canada Labour Code, particularly focusing on Section 107, which grants Ottawa the authority to intervene in contentious bargaining conflicts. Jobs Minister Patty Hajdu announced this initiative following broad consultations with employers, unions, and other stakeholders earlier this spring. The initial feedback was deemed valuable, prompting a second, more targeted round of consultations over the summer to delve deeper into specific issues. The government's objective is to modernize the Labour Code to encourage earlier engagement between parties and reduce the frequency of prolonged work stoppages that necessitate federal intervention. Hajdu emphasized the importance of fostering industrial peace and providing tools for conflict resolution, especially in the rare instances where negotiations break down completely. Bea Bruske, president of the Canadian Labour Congress, expressed concerns about the government's approach, stating that the right to strike is fundamental and should not be compromised. She also highlighted the expectation that the government act impartially to ensure fairness and adherence to established rules during labour disputes. The consultations have revealed significant differences between employers and unions regarding the use and necessity of Section 107. While some parties advocate for its retention as a means to maintain industrial peace, others question its effectiveness and potential impact on workers' rights. The government has acknowledged the need for greater transparency in deploying Section 107 and is open to considering alternatives during the ongoing review process. The right to strike remains protected under the Charter of Rights and Freedoms, and the government has stated that it does not intend to alter this fundamental right. The consultations also aim to address other issues, including expediting grievance arbitration, addressing bad faith bargaining, and tackling wage theft. The Senate transport and communications committee recently published a report advocating for binding arbitration to prevent major labour disputes, particularly in critical sectors like railways, which have previously disrupted Canada's reputation as a reliable trading partner. Minister Hajdu underscored the government's commitment to building a strong economy that is closely linked to the well-being of workers, their wages, benefits, and pensions. She noted that strong labour relations are essential for ensuring the efficient movement of products to market and for protecting workers' rights when they feel their rights have been violated. Currently, there is no specific timeline for introducing legislation to amend the Labour Code based on the ongoing consultations. The Department of Employment and Social Development Canada is expected to produce a report summarizing the feedback received during the consultations.