The upcoming flagship fall legislation by the current Liberal administration is anticipated to enhance a contentious segment of the Labour Code, as disclosed by reliable sources within the government. The proposed amendment by the Carney government to the Canada Labour Code aims to provide explicit permission for the responsible minister to instruct the Canada Industrial Labour Relations Board (CIRB) to terminate work stoppages and mandate arbitration.
The anticipated modifications to Section 107 of the Labour Code are poised to be integrated into the forthcoming bill by the Carney government, expected to be named the Building Canada Strong Act and presented in the coming week. Government House leader Steve MacKinnon expressed, “We will have very significant economic legislation as a centrepiece of this session,” in preparation for a two-day Liberal caucus retreat.
The revision to Section 107 seeks to legalize a current governmental authority to halt strikes and manage dispute arbitration through the CIRB. Although this power has been utilized by the government before, enshrining it into law is intended to boost confidence in the private sector and affirm Canada’s attractiveness for investments.
The primary focus of the legislation, as indicated by senior government sources, will be on addressing potential disruptive labor issues within industries crucial to Canada’s export sector, such as ports and railways. Details shared by the sources suggest that the bill may encompass provisions concerning trade corridors, collective bargaining, and initiatives to expedite federal project approvals. The sources, not authorized to speak publicly, chose to remain anonymous.
Despite Section 107 existing in the Labor Code since 1984, its infrequent usage changed when the current Liberal administration, under Prime Minister Justin Trudeau, invoked it to resolve disputes involving major unions and transportation companies. Notably, Jobs and Families Minister Patty Hajdu utilized Section 107 to intervene and end a strike by Air Canada flight attendants in August 2025.
Although the government has increasingly resorted to this section to manage labor disputes, unions argue that such actions undermine their negotiating leverage and infringe upon workers’ rights, leading to legal challenges in Federal Court. The impending measures will grant additional authority to the labor minister to appoint a “special mediator” in cases where unions in federally regulated sectors fail to reach agreements with employers.
The sources emphasized that the application of Section 107 will be considered a final recourse after receiving reports from the special mediator. However, any move to strengthen this section of the Labor Code is likely to provoke opposition from unions. Minister Hajdu reassured in an interview with CBC’s Power and Politics that the impending legislation will not restrict unions’ right to strike but will target specific instances of labor disruptions.
Hajdu emphasized the necessity for updated and robust mediation tools within the Labor Code to facilitate constructive negotiations between unions and employers, reducing the risks associated with labor disruptions.
