Feds set to make major changes to Canada’s labour code

Canada's Liberal government is set to introduce significant amendments to the country's labour code as MPs return to Parliament for the fall sitting. The changes, expected to be proposed by Government House Leader Steven MacKinnon, will focus on altering the government's power to intervene in strikes and lockouts, with the aim of making the process of reaching collective agreements more efficient.

Currently, Section 107 of the labour code serves as a tool to stop or curb work stoppages in key industries. In recent years, it was utilized by Jobs Minister Patty Hajdu to order binding arbitration in the case of Air Canada flight attendants who went on strike. However, the flight attendants ultimately ignored the order and continued their strike until a deal was reached.

Unions and business leaders have expressed concerns about the potential changes, with Bea Bruske, president of the Canadian Labour Congress, arguing that any new power to prevent or shut down legal strikes would weaken the right to strike. Derrick Hynes, CEO of Federally Regulated Employers-Transportation and Communications, suggested that a neutral third-party special mediator, providing a public report on bargaining and informing government actions, would be a significant improvement.

The government's proposed legislation, part of the "Building Canada Strong Act," aims to expedite the approval of new federal projects, although the connection between the labour code changes and the bill is not yet clear. The Carney government's second budget is also anticipated in the coming months, with Prime Minister Mark Carney expressing plans to balance the operating budget 12 months ahead of schedule.

Other legislative matters, including Bill C-22 on lawful access and a bill regulating AI chatbots and restricting social media access for minors, are also on the agenda. Conservative Leader Pierre Poilievre has called for transparency regarding the failed trade talks with the U.S., while Opposition parties have urged Carney to hold a debate after the European Union's proposed alliance announcement.