The upcoming key legislation from the Liberal government is anticipated to enhance a contentious part of the Labour Code, as per information from two high-ranking government insiders. The Carney administration intends to adjust the Canada Labour Code to explicitly grant the responsible minister the authority to instruct the Canada Industrial Labour Relations Board (CIRB) to halt work stoppages and mandate arbitration.
Expected to be included in the Carney government’s bill, named the Building Canada Strong Act and scheduled for introduction next week, are revisions to Section 107 of the Labour Code. “We will present highly significant economic legislation as the focal point of this session,” stated Government House leader Steve MacKinnon prior to a two-day Liberal caucus retreat.
The modifications to Section 107 will formalize an existing government power to halt a strike and take control of arbitration in a labor dispute by directing it to the CIRB. Sources indicate that enshrining this practice into law could boost confidence in the private sector, emphasizing Canada as a secure location for investments.
The emphasis is on addressing “potentially disruptive labor issues” in sectors crucial to Canada’s export interests, such as ports and railways. Insight provided by two senior government sources shed light on the forthcoming legislation, which is expected to cover trade corridors, collective bargaining, and measures to expedite approvals for federal projects. The sources, not authorized to speak publicly, will remain unnamed by CBC News.
Section 107, in effect since 1984, saw limited utilization until recent times when the Liberals, under Prime Minister Justin Trudeau, employed it to resolve disputes involving the Teamsters union and Canada’s top two railway firms. Additionally, the government utilized this section to end conflicts at ports in Montreal and Vancouver. Minister Patty Hajdu invoked Section 107 to intervene in a labor dispute involving Air Canada flight attendants in August 2025.
The Liberal government has increasingly resorted to this provision to compel striking workers back to work, a move criticized by unions as undermining their bargaining power and infringing upon workers’ rights, leading to legal challenges. The new legislation will grant the labor minister the authority to appoint a “special mediator” to intervene in cases where unions and federally regulated industries fail to reach agreements.
The utilization of Section 107 is envisioned as a final recourse following reports from the special mediator. However, any efforts to bolster this section of the Labour Code are likely to provoke opposition from unions. Minister Hajdu assured that the upcoming legislation will not restrict unions’ right to strike but will focus on resolving specific labor disruptions.
Hajdu emphasized the need for modern, effective tools within the Labour Code to mediate disputes and facilitate productive negotiations between employers and unions.