OTTAWA — The Liberal government has proposed new conditions to modify a controversial aspect of the Canada Labour Code, specifically aimed at limiting the government's power to intervene in high-profile labour disputes. This move comes as part of Bill C-39, the Building Canada Strong Act, which seeks to streamline project approvals and introduce adjustments to the Canada Labour Code.
Jobs Minister Patty Hajdu emphasized that these proposed changes would set a “higher bar” for the federal government's authority to end strikes. However, labour leaders have expressed concerns, arguing that the legislation may roll back workers' rights rather than enhance them.
At the core of these proposed modifications is Section 107 of the Canada Labour Code, a section that has faced considerable criticism for the government's use to terminate strikes across various sectors in recent years. Currently, this provision allows a minister to refer two parties in a deadlock to the Canada Industrial Relations Board. This board can then declare an impasse, effectively terminating the work stoppage and moving the negotiations to binding arbitration.
While labour advocates had hoped for the repeal or restriction of this section, employers have shown support for increased government intervention where labour disruptions may pose a risk to Canada’s economic interests. Under the new provisions, the minister would be required to satisfy two conditions before invoking Section 107. First, the minister would have to declare that the dispute in question is adversely affecting the “national interest.”
The proposed definition of “national interest” in the legislation includes considerations of how the dispute impacts the Canadian economy, whether it leads to “serious social disruption,” and any implications it may have on the freedom of association. Additionally, the minister must take into account a report from a newly proposed special mediator, who would present the views of the disputing parties and potentially offer recommendations for a new collective agreement.
Minister Hajdu explained that these changes are intended to position Section 107 as a tool of last resort, employed only after alternative solutions have been fully explored by both parties. A senior government official reiterated that this legislation would not expand the minister’s powers.
However, Bea Bruske, president of the Canadian Labour Congress, has raised concerns over the implications of these changes. She contended that the government would be effectively granting itself the authority to intervene unilaterally in strikes if deemed necessary for the national interest. Bruske noted, “A strike has economic impact because that is how collective bargaining works. If government can end a strike because it is having an economic impact, employers have less reason to compromise and reach a deal.”
Hajdu defended the legislation, asserting that the inclusion of a special mediator, whose findings will be made public, increases transparency throughout the bargaining process for federally regulated sectors. She suggested that enhanced visibility of sticking points may have incentivized parties to engage more collaboratively in previous negotiations.
NDP Leader Avi Lewis criticized the approach taken by the government, arguing that adding an additional step for using Section 107 does not equate to implementing protective measures. He characterized it as an expansion of the criteria permitting discretionary intervention by the minister, rather than a limitation. Nevertheless, Bruske acknowledged some positive aspects of the proposed legislation, such as protections against wage theft and requirements for collective bargaining to commence six months prior to the expiration of a current agreement in certain cases.
Furthermore, the bill mandates that businesses and unions engage in federally mediated “relationship repair work” following any work stoppage and proposes heightened enforcement and penalties for bad-faith bargaining. The federal government also announced plans to hire an additional 26 employees at the Canada Industrial Relations Board to expedite the resolution of workers' complaints against employers and 100 health and safety officers to enhance workplace safety inspections.
The Liberal ministers championing the extensive changes in Bill C-39 argued that Canada is at a critical crossroads and must swiftly address challenges posed by U.S. trade aggression and other geopolitical shifts. Hajdu highlighted, “We are fighting every single day to save jobs, to grow jobs and to make sure that we can actually build big things in this country and get our goods to market.”
In contrast, Lewis accused Prime Minister Mark Carney of exploiting the current economic climate to push through numerous controversial measures that he claims lack a mandate from the public and would not gain support under normal circumstances.
