The federal government is considering adjustments to the Canada Labour Code aimed at reducing conflicts in collective bargaining and improving mechanisms for resolving disputes. Jobs Minister Patty Hajdu said the government is exploring potential changes to a controversial provision, Section 107, which empowers the minister to intervene in protracted labour disputes by referring parties to the Canada Industrial Relations Board for binding arbitration.

Since launching broad consultations with employers, unions, and other stakeholders this spring, the government has received significant feedback on the Labour Code, prompting plans for a second round of more targeted consultations this summer. Hajdu emphasized the government’s goal to encourage earlier engagement between labour and management to prevent prolonged work stoppages that require federal intervention.

“We want to understand how to minimize those times where relationships are so frayed that coming to an agreement about the next five years seems impossible,” Hajdu said, adding that the review also aims to strengthen tools enabling a path forward in rare cases where bargaining breaks down completely.

Section 107 has been a focal point for criticism from both employers and unions. Opposing views emerged during the initial consultations, with participants divided over the provision’s value and its application. Hajdu noted a “quiet consensus” on the need for some mechanism to maintain industrial peace in the small percentage of disputes that stall negotiations, currently estimated at around 5 percent.

In response to early feedback, the government is considering increasing transparency regarding when Section 107 is invoked and enhancing advance consultation with affected parties. Moreover, it remains open to exploring alternative approaches to dispute resolution as part of the ongoing review.

Other issues slated for examination include ways to speed up grievance arbitration, address bad-faith bargaining, and tackle wage theft allegations. The initial consultations also covered emerging concerns such as artificial intelligence, automation, and workplace health and safety measures. Additionally, unions have urged the government to make changes facilitating first-time collective bargaining, an area Hajdu acknowledged as insufficiently addressed under existing legislation.

The review has encountered some apprehension from labour groups. The Canadian Labour Congress expressed concern that the process might weaken collective bargaining rights and the right to strike, though Hajdu affirmed that these rights, protected under the Canadian Charter of Rights and Freedoms, would not be compromised.

In the broader context, the Senate transport and communications committee recently released a report highlighting the need for stronger tools to prevent major labour disputes like those that disrupted national railway operations in 2024, disruptions that senators said jeopardized Canada’s standing as a dependable trading partner.

Hajdu stressed that economic growth and labour rights are closely linked, noting the vital role that unionized workers and the trades will play in implementing the government’s infrastructure plans. She observed that union representatives frequently join Prime Minister Mark Carney and cabinet ministers at major project events, underscoring the collaboration between government and labour in advancing national priorities.