Federally Regulated Employers – Transportation and Communication (FETCO) has formally requested a major overhaul of the Canada Labour Code. The group is proposing that failed negotiations in critical industries be settled through binding arbitration rather than through strikes.
The $19.2 billion cargo diversion and rising work stoppages
The economic argument for this legislative change centers on massive financial losses caused by recent labor unrest. Derreck Hynes, president of FETCO, noted that Canada has recorded more person-days lost to strikes in the last three years than in the previous decade combined. according to the report, the group is specifically calling for a special mediation office to bypass strikes and move directly to arbitration when negotiations fail.
A primary example of this volatility occurred during the West Coast port disruptions in British Columbia throughout 2023 and 2024. The report states these work stoppages lasted approximately 13 days and resulted in $19.2 billion worth of cargo being diverted, an impact that Hynes warns may cause business to never return to the region.. This follows other significant disruptions, such as the WestJet flight attendant strike at Vancouver International Airport in Richmond, B.C., reported as occurring on August 2, 2026.
Dan Kelly’s warning on small business supply chain disruptions
Beyond the large-scale industries represented by FETCO, the ripple effects of labor unrest are hitting smaller enterprises. Dan Kelly, president of the Canadian Federation of Independent Business (CFIB), has highlighted how recent strikes have disrupted supply chains, forcing some firms to shut down or lay off employees.
As the report notes, these disruptions do not just affect the airlines or railways themselves, but create a cascade of economic pressure on the small and medium-sized companies that depend on those industries for reliable service and logistics.
Bea Bruske and the Canadian Labour Congress's defense of bargaining power
The proposal has met fierce resistance from organized labor, which views the move as an attack on fundamental worker rights. Bea Bruske, president of the Canadian Labour Congress, has warned that any infringement on the right to strike diminishes the power of workers to secure fair treatment and dignity.
Bruske argues that the push for arbitration may actually decrease the incentive for employers to negotiate in good faith . She noted in a CTV News interview that many strikes are driven by core issues such as wages, benefits, scheduling, and workplace health and safety, rather than just financial demands.
The collision between FETCO's proposal and Ottawa's modernization mandate
The federal government in Ottawa is currently reviewing the Canada Labour Code with a mandate to modernize employment standards and workplace rules. This review occurs at a time when business leaders are concerned that Canada's reputation for reliability is at stake as the country attempts to diversify trade partners.
Despite the clear divide between employers and unions, several specific questions remain regarding the government's next steps:
- Will the federal government prioritize the economic stability of the telecommunications and transport sectors over the constitutional right to strike?
- How will the proposed special mediation office define which specific industries qualify as "critical"?
- Will the modernization mandate include specific protections for small and medium-sized businesses affected by supply chain volatility?
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