Ottawa looking for additional input on changes to federal labour policy

By Terry Davidson ·

Law360 Canada (July 6, 2026, 4:14 PM EDT) -- Canada’s government is holding another round of consultations on revamping labour relations policies for workers in federally regulated industries — this time with a focus on grievance arbitration, bad faith bargaining, and strikes and lockouts.

In a July 3 news release, Ottawa announced that “additional consultations will take place over the summer” in a bid to further “protect the rights of … workers, including the right to strike.”

“This additional consultation process will further explore ways to strengthen the federal labour relations framework, including enhancing collective bargaining processes and bolstering supports for workers,” states the release.

This second phase of consultations will “build on areas from the initial consultation” and “explore emerging topics raised by stakeholders.” These include expedited grievance arbitration, bad faith bargaining, the length of a strike or lockout mandate, first collective agreements, paid medical leave and wage theft.

“This engagement will include submission of written feedback from any interested parties or workers, as well as targeted roundtables with stakeholders,” states the release. “These roundtables will allow meaningful and interactive discussions with employers and employer representatives, unions and employee groups, Indigenous partners, and other key stakeholders.”

Input from both rounds of consultations will be published in a “What We Heard” report — which will be key to determining next steps in the strengthening of labour relations.

Minister of Jobs and Families Patty Hajdu

Minister of Jobs and Families Patty Hajdu

“We heard strong interest and thoughtful input during the first round of consultation,” said federal Jobs and Families Minister Patty Hajdu in a statement. “These consultations will go deeper on important issues and validate earlier feedback so that our labour relations framework reflects workers’ and employers’ needs and supports fairness for workers and employers alike.”

Secretary of State for Labour John Zerucelli said the goal remains a simple one: “Give workers the tools and support they need to succeed. This extended consultation continues that conversation on the issues shaping Canada’s workplaces.”

The first phase of consultations was launched in the spring.

Federally regulated industries in the private sector include air transportation, banking, postal and courier services, pipelines, radio and television broadcasting, and marine shipping and port services.

As of late 2024, around 22,000 employers and one million employees were covered by the labour code in the federally regulated private sector.

The federally regulated public sector includes the federal public service.

A goal of the consultations is to gather input on potential policy measures and possible amendments to the Canada Labour Code.

If you have any information, story ideas or news tips for Law360 Canada, please contact Terry Davidson at t.davidson@lexisnexis.ca or 905-415-5899.