Federal government moves to make it easier for labour minister to end strikes in key industries
The Carney government plans to amend Canada's Labour Code to explicitly authorize the minister to direct arbitration in labour disputes at ports, railways, and other sectors critical to exports.
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The Carney government plans to amend Canada's Labour Code to explicitly give the labour minister power to direct the Canada Industrial Relations Board to end work stoppages and order binding arbitration in labour disputes — a move that could formalize and expand the use of emergency strike-breaking authority in key sectors.
The changes to Section 107 of the Labour Code are expected to be tabled next week as part of the Building Canada Strong Act, a broader economic legislation package. Government House Leader Steve MacKinnon said Friday the act will include "very significant economic legislation" as a centrepiece of the session.
Section 107 has technically been on the books since 1984, but it sat unused for decades until recently. Under Prime Minister Justin Trudeau, the Liberals invoked it to end a dispute between the Teamsters union and Canada's two largest railway companies, to send workers back to ports in Montreal and Vancouver, and — in August 2025 — to force Air Canada flight attendants back to work after they walked out. Jobs and Families Minister Patty Hajdu invoked the power in that last case.
Writing the power explicitly into law could increase private sector confidence, sources said. The focus of the amendment will be "high-potential disruptive labour issues" in industries with serious implications for Canada's exports — ports and railways chief among them.
Unions have contested the heavy-handed use of Section 107, arguing it undermines their ability to bargain collectively and violates workers' rights. The challenge has been filed with the Federal Court.
Hajdu said the new measures will include appointing a "special mediator" who issues a report when unions in federally regulated industries can't reach agreement with employers. Section 107 would be used as a "last resort" following that report, sources indicated. "There are some relationships between employers and unions that have become increasingly fractious, and the tools in the Canada Labour Code just aren't strong enough to actually help people get to those agreements," Hajdu said's Power and Politics on Friday. She added the coming legislation "won't contain anything to limit the ability of unions to strike and will focus on a fraction of cases that lead to a 'labour disruption.'"
By the numbers
What amendment to Canada's Labour Code is the government planning?
The Carney government plans to amend Section 107 of the Labour Code to explicitly authorize the labour minister to direct the Canada Industrial Relations Board to end work stoppages and order binding arbitration in labour disputes in key sectors like ports and railways.
When was Section 107 first added to the Labour Code?
Section 107 has been part of the Labour Code since 1984, though it remained unused for decades until recent years.
What past labour disputes did the government resolve using Section 107?
The government invoked Section 107 to end a dispute between the Teamsters union and Canada's two largest railway companies, to send workers back to ports in Montreal and Vancouver, and in August 2025 to force Air Canada flight attendants back to work after a walkout.
