Industry expresses concerns about delay in starting consultations on labour challenges in federally-regulated sectors


Those in federally regulated sectors are questioning why the Liberals decided to wait a year since the report was issued last year to start consultations, noting that negotiations with railway workers are set to resume in September.

The federal government is facing criticism for waiting nearly a year to begin consultations on a report ordered by the government exploring labour challenges in federally-regulated sectors.

Jobs Minister Patty Hajdu announced Friday that they would stand up “targeted virtual and in-person roundtables” to discuss issues flagged in the report, including potential changes to s. 107 of the Canada Labour Code, which gives the government broad powers to act to maintain industrial peace.

Written feedback will be accepted until May 18.

The Liberals used the controversial power to end last year’s strikes by Air Canada flight attendants, as well as similar labour stoppages at the major railways and ports. Unions are challenging the government’s use of the measure, arguing it’s an unfair curtailing of the constitutionally-protected right to strike.

READ MORE: Flight attendants defy back-to-work order, prompting new questions on Liberals’ use of strike-breaking orders

Those in federally regulated sectors are questioning why the Liberals decided to wait a year since the report was issued last year to start consultations, noting that negotiations with railway workers are set to resume in September.

Negotiations on a new deal with the longshore workers in B.C. are set to start in November.

While the consultations will focus on issues beyond the report, Ottawa is looking for guidance on imposing geographic certifications for certain sectors or regions. This is particularly important in B.C., where longshore workers’ locals can choose to negotiate individually with ports employers. Players in the industry warn that this would be very disruptive, noting that ports have seen several lengthy labour disputes in recent decades.

In an appearance before the House transport committee this week, the head of the group that represents federally-regulated employers expressed concern about the lack of movement from Ottawa on the recommendations in the now year-old report.

A source in the sector told iPolitics on Thursday they’re encouraged that Minister Hajdu announced a “consultation that’s broader” than the industrial inquiry commission. Still, they called the timing “concerning,” with the start of bargaining on a new B.C. ports labour deal coming later this year.

“Some clarity around some of these key items would really be appreciated,” the source said, pointing to the geographic certification rules and the potential for a special mediator.

The source asked not to be identified to speak freely.

Despite criticism over the wait in starting consultations, the source said they found it “encouraging that the government is undertaking a very compressed consultation schedule,” with the process expected to last only 30 days.

“So, we’re optimistic that at the end of that process, there will be some changes introduced, and they’ll be introduced in time to inform the collective bargaining process that’s going to unfold later this year along the West Coast.”

Then labour minister Seamus O’Regan in 2023 ordered a review into labour disruptions at Canadian ports after a longshore workers’ strike crippled ports in B.C. for nearly two weeks.

He then ordered an industrial inquiry commission into the issue the following spring, with the report filed in May 2025.

The report recommended preserving the right for longshore workers’ to strike, but called for changes to allow for the appointment of a special mediator and changes to certification and collective bargaining rules for the parties involved.

The special mediator would act as an independent third-party to assess the disagreements on the bargaining table while also taking into account broader elements such as the public interest.

It’s supported by the federally regulated employers as a way of preventing crippling labour disputes, but unions say that can be done by not offering an easy way out for businesses by having Ottawa interfere.

The industrial inquiry commission report offered no position on use of s. 107, but said that “part of what renders the existing system untenable is that government is compelled to intervene with imperfect information.”

S. 107 has become a hot button issues in labour spaces, winning the backing of employers for offering a quick resolution to disputes, while garnering strong opposition from unions.

A special mediator process would “help address this problem by giving the government a window into what is happening at the bargaining table via a neutral third party,” the report stated, adding that it should be modelled after similar provisions that exist in B.C.’s labour code.

The third-party mediator would be tasked with producing a detailed report about what has happened and what ought to happen to resolve potential disputes, allowing the government to “rely on the special mediator’s expert opinion about negotiations and the likelihood that the parties can reach a deal,” the report read.



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