Canada announces consultations to modernize labour relations in federally regulated workplaces

Measures explored cover support for workers impacted by AI, automation
Canada announces consultations to modernize labour relations in federally regulated workplaces

Patty Hajdu, minister of jobs and families and minister responsible for the Federal Economic Development Agency for Northern Ontario, and John Zerucelli, secretary of state for labour, announced the launch of consultations to update the federal labour relations framework. 

Pascal Chan, the Canadian Chamber of Commerce’s vice president for strategic policy and supply chains, commended the timing of the Canadian government’s announcement. 

“While we can endeavour to invest in major projects and expand our trade capacity, none of it will matter if we fail to address the repeated labour stoppages that have damaged Canada’s reputation as a reliable trading partner,” Chan said in a statement. 

According to Employment and Social Development Canada (ESDC), through targeted virtual and in-person roundtables, employers, their representatives, unions, employee groups and other stakeholders can share their thoughts on potential measures to: 

  • Update collective bargaining timelines 
  • Improve training supports for workers affected by artificial intelligence and automation 
  • Amend workplace health and safety protections 
  • Fortify safeguards against misclassification and wage theft 
  • Consider ways to carry over union rights for retendered contracts 

“These consultations are about listening to unions, workers, employers and partners across the country to ensure that federally regulated workplaces remain fair, modern and supportive while empowering workers to thrive,” Hajdu said in ESDC’s news release. 

The federally regulated sector spans industries including banks, postal and courier services, air transportation, and rail, road and marine transportation. The federally regulated private sector encompasses the transportation, shipping, and telecommunications industries.

Goals of consultations

Amid financial uncertainty and other obstacles facing workers, industries, and communities within the swiftly evolving global landscape, the Canadian government intend for the consultations to help it: 

  • Add modern tools for employers and employees in the Labour Code 
  • Improve labour relations 
  • Help the national economy be stable and resilient 
  • Support workers better 
  • Protect Canadian jobs 

“As the world of work is changing and bringing new challenges, workers and businesses are key to the success of Canada’s ambition,” Hajdu said in ESDC’s news release

“Today’s economy demands action,” Zerucelli added. “Workers need the tools to adapt, and strong, modern labour policies will support a competitive workforce and a strong Canadian economy.” 

“If we truly want to become a superpower in the global economy, ensuring prosperity for both Canadians and businesses, we need to make the changes that signal to the world that Canada is [a] country that will always deliver the goods,” Chan said in the statement

Timeline

In May 2025, the federal government received the Industrial Inquiry Commission’s final report on labour relations challenges at the country’s West Coast ports. Since then, Canada has engaged stakeholders and analyzed the report’s recommendations. 

For the recently announced consultations, which will cover select recommendations from the commission, interested parties can provide their written submissions until this May 18. 

The Labour Standards Advisory Committee, the Occupational Health and Safety Advisory Committee, and the new Tripartite Advisory Council for Labour Policy will participate in the consultation process. 

The Canadian government plans to consider the input received when developing policy decisions and include the insights from the consultations in a “What We Heard” report.