After catching you up on some of the big stories of the week, Amanda Lang discusses the federal government\u2019s job creation strategy with Patty Hajdu, Minister of Jobs and Families. <\/p>\n
OTTAWA — The federal government is exploring possible guardrails or alternatives to using what she says is a \u201ccontentious\u201d section of the Labour Code that allows Ottawa to intervene in bitter bargaining conflicts, Jobs Minister Patty Hajdu said this week.<\/p>\n
Hajdu\u2019s department launched broad consultations with employers, unions and other stakeholders this spring about changes they\u2019d like to see to the Canada Labour Code.<\/p>\n
In an interview Thursday, Hajdu said the initial feedback was fruitful but Ottawa has decided to do a second, more focused round of consultations over the summer to go deeper on certain questions.<\/p>\n
The federal government wants to modernize the Labour Code to promote earlier engagement between parties and cut down on the number of times bargaining ends with a prolonged work stoppage warranting Ottawa\u2019s intervention, Hajdu said.<\/p>\n
\u201cThe goal of these consultations is to understand how to minimize those times where relationships are so frayed, where people are so angry with each other, that coming to an agreement about the next five years seems like an impossible task,\u201d she said.<\/p>\n
\u201cAnd then also to provide tools that when, in those rare cases that have broken down, there is a path forward with help from the (Canada Industrial Relations Board).\u201d<\/p>\n
![\"\"](\"https:\/\/www.newsbeep.com\/ca\/wp-content\/uploads\/2026\/07\/3POPZWXIDWNWIH5A6KL47URXUI.jpg\")
Minister of Jobs and Families Patty Hajdu delivers an announcement in Ottawa on Tuesday, March 10, 2026. THE CANADIAN PRESS\/Patrick Doyle Minister of Jobs and Families Patty Hajdu delivers an announcement in Ottawa on Tuesday, March 10, 2026. THE CANADIAN PRESS\/Patrick Doyle <\/p>\n
Bea Bruske, president of the Canadian Labour Congress, said in an emailed statement Friday that the first round of consultations were rushed but she trusts the government heard \u201cloud and clear that the right to strike is a fundamental right we will not negotiate on.\u201d<\/p>\n
\u201cIn the rare occasions when bargaining requires job action, Canadians expect the government to act as a referee, ensuring fairness and respect for the rules,\u201d she said.<\/p>\n
\u201cBut more and more, the employers have expected the government to get in the game and tip the scales on their behalf.\u201d<\/p>\n
Ottawa has intervened in a number of high-profile labour disputes in recent years by invoking Section 107 of the Labour Code, which allows the minister to refer parties to the industrial relations board when they\u2019re at odds. Those included labour stoppages involving railways, ports and Canada Post.<\/p>\n
The board can then put the two parties into binding arbitration if warranted to end a strike or lockout.<\/p>\n
The labour department got an earful about Section 107 from employers and unions alike during the spring consultations. Hajdu said the second round will delve deeper into how the tool should or shouldn\u2019t be used.<\/p>\n
\u201cWe heard deep differences between employers and unions about the importance of Section 107 and whether or not it should be kept,\u201d she said.<\/p>\n
Hajdu asserted there was a \u201cquiet consensus\u201d during the consultations on the need for a tool to give the minister the power to \u201cfoster industrial peace\u201d in the roughly five per cent of cases where the parties are unable to get to an agreement at the negotiating table.<\/p>\n
So far, Hajdu said, the government has heard there should be more transparency about when Section 107 should be deployed, and more advance consultations with parties before it\u2019s used. Hajdu said the federal government will also be open to hearing about alternatives to Section 107 in the review\u2019s next phase.<\/p>\n
In her statement, Bruske said that Section 107 is effectively dead, since it was invoked to quash the Air Canada flight attendants strike last summer but workers stuck to the picket lines anyway.<\/p>\n
She disagreed with Hajdu\u2019s claim that a tool like Section 107 is necessary when the government has the power to pass back-to-work legislation.<\/p>\n
\u201cIf you\u2019re going to break a strike, at the very least debate it in Parliament and let Canadians see where their MPs stand on protecting workers\u2019 rights,\u201d Bruske said.<\/p>\n
Other topics Ottawa will ask about during the review are expediting grievance arbitration, bad faith bargaining and accusations of wage theft. Issues already covered in the first round of talks included AI and automation and health and safety precautions.<\/p>\n
Hajdu said the federal government has also been approached by unions seeking a change to the Labour Code for workers organizing for their first collective agreement — an area she said the legislation hardly covers in its current form.<\/p>\n
![\"\"](\"https:\/\/www.newsbeep.com\/ca\/wp-content\/uploads\/2026\/07\/ZZRTQDUFLBDRHHCPQWUVTNRPYQ.JPG\")
Bea Bruske Carole Saab Candace Laing Canadian Chamber of Commerce president and CEO Candace Laing (left) and Federation of Canadian Municipalities CEO Carole Saab (right) listen as Canadian Labour Congress president Bea Bruske responds to a question during a news conference in Ottawa, Wednesday, Jun 4, 2025. THE CANADIAN PRESS\/Adrian Wyld <\/p>\n
Bruske said her main fear is that the consultations will be used to weaken the right to strike. She said the Canadian Labour Congress\u2019s submissions offer legislative and non-legislative ways to improve labour relations in federally regulated industries.<\/p>\n
Hajdu said the right to strike is protected by the Charter of Rights and Freedoms and it\u2019s not something she or the government is looking to touch.<\/p>\n
The Senate transport and communications committee published a report last month arguing that Canada needs tools to avoid major labour disputes like the ones that shut down national railways in 2024. Those disruptions put Canada\u2019s reputation as a reliable trading partner at risk, senators on the committee argued.<\/p>\n
But Hajdu offered a different take when asked how current economic anxieties collide with labour rights.<\/p>\n
She said while the government is focused on building a strong economy, that economy is not separate from its workers, their wages, benefits and their pensions.<\/p>\n
Hajdu pointed out that union representatives are often beside Prime Minister Mark Carney and his ministers during major project announcements, reflecting the critical role the unionized trades will play in fulfilling Ottawa\u2019s infrastructure agenda.<\/p>\n
Canadians, even those not in unions, rely on strong unions to advocate for the kinds of collective benefits some might take for granted today, Hajdu said. Most Canadians didn\u2019t enjoy the concept of a \u201cweekend\u201d until unions fought for it, she noted.<\/p>\n
\u201cWe need strong labour relations to reassure the world that we can get our products to market \u2026 but we also need the protections for unions when they feel their rights have been violated,\u201d Hajdu said.<\/p>\n
The minister said there\u2019s currently no timeline for tabling legislation to amend the Labour Code based on the ongoing consultations. Her department is expected to product a report about what stakeholders said during consultations.<\/p>\n
By Craig Lord<\/p>\n
This report by The Canadian Press was first published July 3, 2026.<\/p>\n
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