Government Of Canada Launches Consultations On Labour Relations Reform Under The Canada Labour Code

On April 17, 2026, the federal government announced the launch of consultations intended to gather feedback on ways to improve labour relations in the federal sector. The window to provide submissions is short, with feedback due by May 25, 2026.

The information gathered will inform what are expected to be significant changes to the Canada Labour Code (“Code”), with specific proposed amendments including:

• amended timelines for collective bargaining and the dispute resolution process;
• introducing expedited arbitration provisions; and
• reviewing section 107 of the Code.

Scope and Process

The consultations are open to all stakeholders in federally regulated industries and it is expected that major unions operating in the federal sector will make extensive submissions.

Engagements from the government will take place through targeted virtual and in‑person roundtables, discussions through existing advisory bodies, and written feedback. Interested stakeholders may submit written submissions until May 25, 2026 (originally May 18, 2026) to: esdc.nc.labour.consultations-travail.nc.edsc@hrsdc-rhdcc.gc.ca.

The government has indicated that it intends to publish a public “What We Heard” report following the conclusion of the consultation process.

Topics Identified for Feedback

The federal government’s consultation document identifies several key subject areas on which stakeholder input is being sought. The consultation materials seek feedback on, among other things:

• The collective bargaining process, including the structure and timing of bargaining, conciliation, cooling off periods, and notice requirements associated with strikes and lockouts;
• Dispute resolution tools and ministerial authorities, including the potential creation of a ‘special mediator’ role which would provide additional support to federally regulated parties in resolving labour disputes;
• Bargaining approaches from other jurisdictions and whether they should be adopted in the federal labour relations framework, such as the introduction of sectoral bargaining and essential service designations;
• Grievance arbitration and whether provisions providing for an expedited process should be embedded within the federal labour relations framework, either for all sectors or specific sectors;
• Training supports for workers impacted by artificial intelligence and automation, and whether training needs are currently addressed in federally regulated workplaces;
• Tools with respect to misclassification and wage theft, such as whether collaborations or partnerships outside of Information Sharing Agreements with other government departments, such as the Canadian Revenue Agency, should be adopted;
• Potential adoption of additional occupational health and safety measures, such as an inter-jurisdictional training framework that aligns curricula across Canada;
• Contract retendering, and the benefits and challenges of extending successor rights in cases of contract retendering across some or all federally regulated workplaces; and
• Clarifying the intent of the Wage Earner Protection Program legislation and consideration as to whether legislation should be amended, such as to change the timeline for trustees or receivers to provide required information.

Beyond the issues listed, the government has also welcomed suggestions on other potential policy initiatives, the proposal of new tools, and legislative changes to the Code that could help strengthen labour relations.

Considerations for Employers

While the launch of the consultations is framed as questions for discussion at this stage, it is apparent that the federal government’s sweeping review of the Code has put key issues, such as ministerial powers over strikes and lockouts, squarely in the spotlight. The consultations are occurring against the backdrop of significant geopolitical and economic pressures and the government's stated objective of diversifying Canada's trade relationships - context which suggests that labour stability in critical supply chain sectors is likely to feature prominently in the reform agenda.

It is critically important that federal employers provide submissions to ensure that their perspectives and concerns are heard. Given the short window for participation, employers should begin preparing their submissions promptly. In preparing submissions, employers should consider sharing how patterns of labour disruption have impacted their operations, employees, customers, and supply chain relationships, including, where possible, cost implications and recovery timelines.

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