Advocacy

May 25, 2026 

The Honourable Patty Hajdu, P.C., M.P.
Minister of Jobs and Families and Minister responsible for the Federal Economic Development Agency for Northern Ontario
Place du Portage, Phase II
165 de l’Hôtel-de-Ville Street
Gatineau QC J8X 3X2

(submitted via email to esdc.nc.labour.consultations-travail.nc.edsc@hrsdc-rhdcc.gc.ca)

Dear Minister Hajdu,

Thank you for providing the opportunity to provide written feedback on the Ministry of Employment and Social Development Canada’s (ESDC) consultation document, Building Canada Strong for All — Powered by Canada’s Workers.

The Business Council of Alberta (BCA) is Alberta’s leading business organization, representing the chief executives and entrepreneurs of companies across the province’s major industries. We offer pragmatic, non-partisan solutions to improve Canada’s investment climate and prosperity. Our members represent the majority of Alberta’s private sector investment, job creation, exports, and research and development.

BCA’s interest in the Canada Labour Code, and labour relations in federally-regulated industries more broadly, is focused on the reliability and integrity of Canada’s trade-related transportation network. As a nation reliant on international trade to support its standard of living, Canada’s long-term economic competitiveness depends on reliable transportation networks and resilient supply chains. Canada’s railways alone transport approximately $380 billion worth of goods annually.

However, repeated labour disruptions over the past several years have chipped away at the reliability and integrity of those networks. These disruptions have had significant economic consequences for businesses, workers, consumers, and exporters across the country, while also damaging Canada’s reputation as a reliable and predictable trading partner at a time of growing global competition for investment and market access. According to the Railway Association of Canada, each day of a strike can require three to five days for supply chains to recover.

The challenge is not simply the occurrence of labour disputes themselves, but the absence of sufficiently proactive mechanisms to support earlier dispute resolution and reduce the likelihood of prolonged disruptions. Canada’s labour relations framework must continue to respect the constitutional right to collective bargaining and strike action while also recognizing the broader national economic interest in maintaining the reliable operation of critical transportation and supply chain networks.

The challenge is not simply the occurrence of labour disputes themselves, but the absence of sufficiently proactive mechanisms to support earlier dispute resolution and reduce the likelihood of prolonged disruptions. Canada’s labour relations framework must continue to respect the constitutional right to collective bargaining and strike action while also recognizing the broader national economic interest in maintaining the reliable operation of critical transportation and supply chain networks.

BCA encourages the federal government to pursue reforms that strengthen early dispute resolution, improve bargaining certainty, and reduce the likelihood of prolonged disruptions in nationally significant transportation and supply chain networks. In particular, BCA recommends the following measures to support a more proactive, predictable, and resilient labour relations framework for critical trade infrastructure:

1. Reducing reliance on late-stage government intervention

Labour dispute resolution in federally-regulated sectors increasingly rely on late-stage government intervention after negotiations have already broken down, rather than mechanisms that encourage earlier resolution before disruptions occur.

Repeated disruptions followed by ad hoc intervention create uncertainty for businesses, exporters, workers, and investors alike. Over time, emergency interventions such as back-to-work legislation and the use of Section 107 authorities have become increasingly common methods to resolve those disputes. While these tools may sometimes be necessary to limit economic harm, relying on them after negotiations have failed is not a substitute for a more proactive and predictable labour relations framework.

Canada would benefit from earlier engagement and structured dispute resolution mechanisms before disputes escalate into major supply chain disruptions. As the Industrial Inquiry Commission on West Coast Ports noted, repeated reliance on ad hoc intervention can weaken incentives for earlier compromise and timely negotiated settlements.

2. Strengthening early dispute resolution  

BCA supports reforms that improve the structure and timing of the bargaining process, through clearer timelines and systems that encourage collaborative collective bargaining and reduce the likelihood of avoidable disruptions in critical trade infrastructure.

In particular, BCA supports establishing a formal Special Mediator mechanism consistent with recommendations from the Industrial Inquiry Commission on West Coast Ports. A designated mediator with a structured early-intervention role could help parties resolve disputes before positions harden and broader economic disruptions occur. Doing so would reduce uncertainty for employers, workers, exporters, and supply chain users while limiting reliance on emergency intervention. 

3. Protecting nationally significant trade infrastructure and goods 

BCA supports examining whether additional maintenance-of-activities protections are warranted for nationally significant trade and transportation infrastructure. Currently, Section 87.7 of the Canada Labour Code includes protections to support the continued movement of grain exports during labour disruptions due to their national economic importance. However, these protections do not extend to many other export-critical goods or to the broader rail network.

The federal government should examine whether additional export-critical goods and rail services connected to major supply chains warrant similar continuity protections or alternative dispute resolution mechanisms.

Any reforms should seek to appropriately balance collective bargaining rights with the broader national economic interest in maintaining the reliable operation of critical trade infrastructure and supply chains.

4. Ensuring bargaining regulations support supply chain reliability

In addition to dispute resolution and continuity protections, the federal government should also consider how recent legislative changes may affect the duration and economic impact of labour disruptions in nationally significant sectors.

Specifically, BCA is concerned that recent changes to replacement-worker provisions under Bill C58 may contribute to longer or more disruptive work stoppages in sectors where supply chain impacts are especially significant.

Given the national economic importance of federally regulated transportation infrastructure, the federal government should review whether Bill C-58 may unintentionally contribute to longer or more disruptive work stoppages in critical trade and transportation sectors, including whether restoring prior Canada Labour Code provisions would better support supply chain reliability and bargaining outcomes.

Doing so would help reduce the risk of prolonged supply chain disruptions, support the continued movement of critical goods and services, and better protect the broader Canadian economy while collective bargaining continues.

Summary of recommendations

BCA recommends that the federal government:

• Amend the Canada Labour Code to strengthen early dispute resolution mechanisms and reduce the likelihood of prolonged labour disruptions in the operation of nationally significant trade infrastructure.

• Establish a Special Mediator for major labour disputes as outlined in the Industrial Inquiry Commission on West Coast Ports. Designated by the Minister of Labour, this mediator would provide oversight and early intervention prior to strike action. 

• Designate rail service essential for basic export goods. Extend Section 87.7 of the Canada Labour Code to include rail (Section 2, paragraph b) alongside ports (Section 2, paragraph a).

• Expand essential service protections beyond grain to include additional export goods that are in the national economic interest. Agriculture, energy, and critical inputs into economic supply chains should be included under Section 87.7 of the Canada Labour Code.

• Repeal Bill C-58, restoring prior Canada Labour Code provisions. Alternatively, the federal government should amend Section 94.1 of the Canada Labour Code to add an exception permitting the use of replacement workers in export-critical transportation infrastructure — including rail and port operations — where a work stoppage poses a significant risk to nationally significant supply chains.

Conclusion 

Canada’s labour relations framework should continue to protect collective bargaining rights while also supporting earlier dispute resolution, greater bargaining certainty, and the reliable operation of critical trade networks.

As outlined in BCA’s From Barriers to Breakthroughs, improving Canada’s competitiveness requires regulatory and institutional frameworks that are more predictable, efficient, and dependable. Labour relations frameworks governing nationally significant trade infrastructure should form part of that broader effort to strengthen Canada’s investment climate and trade competitiveness.

As Canada works to strengthen its trade competitiveness and attract private-sector investment, reliable transportation and supply chain networks will remain critical to that effort.

BCA appreciates the opportunity to participate in this consultation and welcomes continued engagement as reforms are considered.

Sincerely,
Adam Legge
President, Business Council of Alberta