HUMA Committee briefing binder: Appearance by the Secretary of Sate (Labour) - November 20, 2025

Overview

• On June 18, 2025, the Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities (HUMA) passed a motion to invite "the Minister of Jobs and Families, the Minister of Housing and Infrastructure, the Secretary of State for Seniors, the Secretary of State for Labour, and the Secretary of State for Children and Youth to appear separately before the committee, each accompanied by their officials, for a minimum of one hour, to appear to discuss to the Committee to discuss to discuss their respective mandates and key priorities in their service to Canadians"
• Additionally, HUMA adopted a separate motion on September 18, 2025, to "undertake a study on the impact of the lack of a definition of the term "work" in Part III of the Canada Labour Code and into the Government's routine use of section 107 of the Canada Labour Code to refer labour disputes to the Canada Industrial Relations Board (CIRB) for binding arbitration, including their latest intervention ordering Air Canada and their flight attendants into binding arbitration despite the company's refusal to pay these attendants for their pre- and post-flight work, with a view to assessing the impacts these referrals have on the rights of workers in federally regulated industries", including the Minister of Jobs and Families and the Secretary of State (Labour)
• The Secretary of State (Seniors) appeared on October 28, while the Secretary of State (Children and Youth) appeared on November 18, with the Minister expected to appear on November 25

Committee proceedings

• During this appearance, you will be provided five minutes to deliver opening remarks. Following that, questioning will begin
• The first round of questions will give 6 minutes each to the CPC, LPC and BQ, in that order
• The second (and subsequent rounds) of questions allocate 5 minutes to the CPC and LPC, 2 and a half minutes to the BQ, and then 5 minutes to the CPC and the LPC
• Senior officials in attendance will be:
  • Paul Thompson, Deputy Minister of Employment and Social Development
  • Sandra Hassan, Deputy Minister of Labour and Associate Deputy Minister of Employment and Social Development

Parliamentary environment

• Prior to the prorogation and dissolution of the 44th Parliament, housing had been a key topic of interest for HUMA, having occupied 16% of the Committee's time, while accessibility and labour, together accounted for 22% of the Committee's time, and nearly 30% on Mandate and Estimates ministerial appearances. So far in the 45th Parliament, labour-related issues have generated significant attention, with current committee interest including:
  • HUMA is currently concluding its youth employment study and recently held the first meeting of the current study on the Canada Labour Code, on November 18
  • HUMA should begin its study on Impacts of Temporary Foreign Worker Program on the Labour Market at the end of November
  • the Minister appeared before the Standing Committee on Transport, Infrastructure and Communities (TRAN) on October 30, on their Changing Landscape of Truck Drivers in Canada study (aka Driver's Inc.)
  • Budget 2025: measures for CRA to combat Driver's Inc., amend the Canada Labour Code to restrict the use of non-compete agreements, immigration levels and Temporary Foreign Worker Program, expansion of the Union Training and Innovation Program, wage theft, pan-Canadian framework on Foreign Credential Recognition, Workforce Alliances and the Workforce Innovation Fund, other tariff measures
  • the Standing Senate Committee on Transport and Communications (TRCM) has undertaken a study on the "Maintenance of transport services in the case of labour disruptions", including the use of Section 107 of the Canada Labour Code

Conservative Party of Canada

• Kyle Seeback, CPC Labour critic, is expected to be present at this meeting. He has recently been critical of the government's actions regarding Canada's auto sector and has been critical of the TFW Program as taking jobs away from Canadians
• HUMA member and Employment critic Garnett Genuis has been very militant during the study on youth employment, criticizing the government on tax policy, skills training, and misalignment in immigration priorities
• In the House of Commons, CPC MPs, including HUMA members, have criticized the Temporary Foreign Worker program, with the Leader of the Opposition calling to end the program
• Other items CPC MPs have noted previously:
  • on October 15, Mr. Genuis released their Jobs Youth Plan, calling on the government to "unleash the economy", "fix immigration", "fix training", and "build homes where jobs are".
  • during the 44th Parliament, Lianne Rood introduced Bill C-409, An Act to amend the Canada Labour Code (hours of work of flight attendants), on June 9, 2024.

Bloc Québécois

• The BQ has been supportive of labour rights in general, critical of the government's use of back-to-work legislation and the Minister's use of Section 107 of the Canada Labour Code
• The BQ HUMA member and vice-chair, as well as other MPs, have been very passionate in the House of Commons in calling the government to protect the softwood lumber industry, which they characterize as being on the brink of collapse
• Other items BQ MPs have noted previously:
  • the BQ has been passionate about addressing the Driver's Inc. problem, suggesting 10 solutions. This line of questioning may be pursued, whether through the Canada Labour Code or the misuse of the TFW program in the Driver's Inc. scheme

Robert J. Morrissey - Chair

Liberal, Egmont, Prince Edward Island

Brief Biography

First elected in 2015, Bobby Morrissey served as a Member on the Standing Committee on Fisheries and Oceans (FOPO), the Liaison Committee as well as the Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities (HUMA). He served as Chair of the HUMA during the 44^th Parliament and was re-elected as Chair for the 45^th Parliament.

Previously, he was elected to the Prince Edward Island Legislative Assembly in 1982 and has dedicated his career and volunteer life to serving the residents of PEI. Having served as MLA for nearly 20 years, Bobby has a deep understanding of his communities' needs. He has held a number of high-profile roles within the Assembly, such as Minister of Transportation and Public Works, Minister of Economic Development and Tourism, and Opposition House Leader. He was also responsible for the redevelopment of the Canadian Forces Base Summerside and the surrounding community following its closure by the federal government in 1989.

Bobby left politics in 2000 to join the private sector as a consultant specializing in government relations, fisheries, and the labour market. Bobby has been a member of the Board of Directors for the Heart & Stroke Foundation of PEI. He was the founding member and former president of the Tignish Seniors Home Care Co-op, and Vice-Chair of Tignish Special Needs Housing.

Caroline Desrochers

Liberal, Trois-Rivières, Quebec

Brief Biography

Caroline Desrocher was first elected in the general election of 2025 for the constituency of Trois-Rivières, Quebec. She is Parliamentary Secretary to the Minister of Housing and Infrastructure.

Born in Montreal, Québec, she has a bachelor's degree in economics from Concordia University in 2000, Caroline Desrochers has worked as a diplomat and civil servant before first running for office in 2021, when she was defeated.

Caroline brings a rich background in diplomacy, economics, and public service to her role, one that naturally intersects with issues of language rights and minority communities across Canada. Her affiliation and committee work suggest alignment with federal efforts to Strengthen the Official Languages Act and Support Community Institutions.

Jessica Fancy

Liberal, South Shore-St. Margarets, Nova Scotia

Brief Biography

Elected in April 2025, Jessica Fancy is a Member of Parliament for South Shore-St. Margarets, Nova Scotia.

Born and raised on a mushroom farm in Caledonia, Queens County, Jessica has deep roots in the region. She spent more than 20 years as an educator, shaping the lives of countless young people in her community. Along the way, she earned two Master of Education degrees from Memorial University - one in Curriculum and Instruction, and the other in Educational Leadership. She has coached local youth sports, led the Rural Communities Foundation of Nova Scotia, and worked tirelessly to direct millions of dollars in investments toward community initiatives.

Her advocacy has focused on addressing food insecurity, strengthening education, and promoting environmental sustainability. Her key interests involve the concerns and contributions of rural communities in Canada

Natilien Joseph

Liberal, Longueuil-Saint-Hubert, Quebec

Brief Biography

Elected in April 2025, Natalien Joseph is a Member of Parliament for Longueuil-Saint-Hubert, Quebec.

Born in Haiti, Natilien Joseph arrived in Quebec nearly 8 years ago. He obtained a Diploma of Vocational Studies (DVS) in refrigeration assembly and repair, a DVS in truck transport at the CFTC in Charlebourg, and a Diploma of College Studies (DCS) in residential real estate brokerage at the Institut Teccart in Brossard in 2021.

He worked as a residential real estate broker on Montreal's South Shore for over a year, before switching to paratransit. His interests include the need of government to address housing concerns among Canadians, including the fight against homelessness and access to affordable housing.

Annie Koutrakis

Liberal, Vimy, Quebec

Brief Biography

First elected to the House of Commons in 2019, Annie Koutrakis is the Member of

Parliament for Vimy and the Parliamentary Secretary to the Minister of Jobs and Families. During the 44^th Parliament she acted as Parliamentary Secretary to the Minister of Tourism and Minister responsible for the Economic Development Agency of Canada for the Regions of Quebec and Parliamentary Secretary to the Minister of Transport. She was also a member of the Standing Committee on Official Languages (LANG), the Standing Joint Committee on the Library of Parliament (BILI), the Standing Committee on Transport, Infrastructure and Communities (TRAN) and the Special Joint Committee on Medical Assistance in Dying (AMAD).

Prior to becoming a Member of Parliament, Annie Koutrakis worked in full-service investment firms for 30 years, reaching the position of Vice President, Branch Manager, Advisor Services for a major financial services firm. A fervent believer in volunteerism, she has been involved in several community organizations, acting as President, CEO, Chair of the Executive Committee and member of the Board of Directors of the Hellenic Community of Greater Montreal, the Board of CLSC Normand-Bethune (now CLSC du Ruisseau-Papineau), the Board of Directors of Hellenic Social Services of Quebec, the Parents Committee at Ecole Démosthènes, the Alexandria Fundraising Committee in Laval, and the Board of the Hellenic Board of Trade of Montreal. She has also volunteered in municipal, provincial, and federal elections in various roles.

Rosemarie Falk - Vice Chair

Conservative, Battlefords-Lloydminster-Meadow Lake, Saskatchewan

Brief Biography

Rosemarie Falk has been the Member for Parliament for Battlefords-Lloydminster since 2017. She served as Vice-Chair for HUMA during the 44^th Parliament and was re-elected in that role for the 45^th Parliament. During the 44^th Parliament, she also served on the Standing Committee on Citizenship and Immigration (CIMM). She has acted as the Official Opposition's Associate Shadow Minister for Labour Since October 2022. She was the sponsor for Bill C-318, An Act to amend the Employment Insurance Act and the Canada Labour Code (adoptive and intended parents), during the 44^th Parliament.

Born and raised in Lloydminster, she has always been actively engaged in her community. Rosemarie has previously worked as a registered Social Worker in Saskatchewan and has a Bachelor of Social Work from the University of Calgary. Throughout her social work career and extensive volunteer work she has worked with some of the most vulnerable members of the community. She was previously a legal assistant specializing in family law and as a legislative assistant in federal politics. She is committed to being a strong voice for seniors, families, taxpayers and rural communities.

Garnett Genius

Conservative, Sherwood Park-Fort Saskatchewan, Alberta

Brief Biography

Garnett Genius was first elected in 2015. During the 44^th Parliament, he was the Vice-Chair and member of Standing Committee on Foreign Affairs and International Development (FAAE), member of the Standing Committee on Government Operations and Estimates (OGGO), the Standing Committee on Public Accounts (PACP), and the Standing Committee on Citizenship and Immigration (CIMM).

Mr. Genuis holds a Bachelor of Public Affairs and Policy Management from Carleton University and master's degree in public policy from the London School of Economics. Prior to running for office, he worked in the Prime Minister's Office under Stephen Harper. Currently the Conservative Shadow Minister for Employment, he was previously Critic for International Development and Human Rights and the Conservative Critic for Canada-China Relations and Multiculturalism.

He is a proponent of freedom of expression and has a strong interest in democracy and the rule of law.

Laila Goodridge

Conservative, Fort McMurray-Cold Lake, Alberta

Brief Biography

Laila Goodridge was first elected as the Member of Parliament for Fort McMurray-Cold Lake in September 2021. During the 44^th Parliament she served on the Standing Committee on Health (HESA), the Standing Committee on Official Languages (LANG) and the Standing Committee on the Status of Women (FEWO).

She was first elected to the Legislative Assembly of Alberta as the MLA for Fort McMurray-Conklin in a by-election in 2018 and then re-elected in the general election of 2019 as MLA for Fort McMurray-Lac La Biche. Argues for support for minority language groups and support for the natural resources industry, particularly regarding the oil and gas industry. Previously, she was a policy advisor for the oil and sands industry. She was previously the Shadow Minister for Families, Children and Social Development and Addictions and is now the Conservative Shadow Minister for Social Development and Families.

Colin Reynolds

Conservative, Elmwood-Transcona, Manitoba

Brief Biography

Elected in April 2025, Colin Reynolds is the new Member of Parliament for Elmwood-Transcona, Manitoba.

A construction electrician and member of IBEW Local 2085, Colin Reynolds grew up in the Valley Gardens neighborhood. He advocates fiscal responsibility, aiming to reduce taxes and government spending to alleviate financial pressures on families and businesses.

Colin Reynolds positions himself as a strong advocate for workers, especially those in skilled trades. He supports policies focused on lowering taxes, improving housing affordability and strengthening public safety.

Marilène Gill - Vice Chair

Bloc Québécois, Côte-Nord-Kawawachikamach-Nitassinan, Quebec

Brief Biography

Originally from Sorel, Quebec, Marilène Gill has served as the Bloc Québécois Member of Parliament for the riding of Côte-Nord-Kawawachikamach-Nitassinan (formerly Manicouagan) since 2015. She currently holds the position of Deputy Whip for the Bloc Québécois and serves as the opposition critic for Employment and Social Development Canada (ESDC).

She now holds the role of Vice-Chair on the Standing Committee on Human Resources, Skills Development, Social Development and the Status of Persons with Disabilities. During the 44th Parliament, she served as Vice-Chair of the Standing Committee on Indigegous and Northern Affairs.

Prior to her first election in 2015, Marilène Gill taught at the college level while pursuing doctoral studies in literature. She holds a master's degree in literary studies from the Université du Québec à Trois-Rivières (2004).

Program Overview in Protecting Canada's Labour Market

Temporary Foreign Worker Program Data

Temporary Foreign Worker Program: Program Usage

Temporary Foreign Worker Program: Labour Market Impact Assessment Misuse and Fraud Associated with the Program

Issue Sheet - Misclassification in the Trucking Sector

Temporary Foreign Worker Program: Proposed New Agriculture and Fish Processing Stream

Issue

As artificial intelligence (AI) becomes increasingly embedded in Canadian workplaces, changes are expected in the labour market, including impacts on youth, as well as a growing need for re-skilling and upskilling.

Background

• Canada is a global leader in responsible AI, supported by a strong workforce of developers and researchers and a policy framework that balances regulation with innovation, in line with G7 commitments.
• Although AI adoption remains low overall, Canadian businesses are increasingly integrating AI, with faster uptake in tech-intensive and professional sectors, and slower adoption in areas like agriculture and food services.
• The full impact of AI on employment remains uncertain. However, an analysis by Statistics Canada estimates that approximately 60% of Canadian jobs are exposed to AI.
  • Of the jobs exposed to AI, roughly half are expected to benefit from the productivity enhancements that AI brings, while the other half may see certain human tasks replaced by AI.
• Unlike previous forms of automation, AI is forecasted to have a significant impact on high-skilled workers. This includes both positive impacts, through task support, and negative impacts, such as task displacement. On balance, however, more workers with post-secondary education are expected to benefit from AI adoption rather than be displaced by it.
• Youth, who tend to be more comfortable with digital technologies, may be well positioned in the labour market to take advantage of new AI tools; however, they could also be disadvantaged, as generative AI has the potential to reshape entry-level roles, potentially reducing opportunities to gain early work experience.

Key facts

• According to Statistics Canada, AI adoption among Canadian businesses doubled from 6% in 2024 to over 12% in 2025, with 18% planning to adopt AI software within the next year.
• Despite rising adoption, employers report limited impacts on employment. Among businesses that use AI, nearly 90% reported no change in employment, 4% reported an increase, and only 6% reported a decrease.
• Early Canadian data suggests that most businesses using AI are opting to train existing staff: nearly 40% have trained employees, compared to just 5% who hired AI-trained staff. This trend is expected to continue, with half of employers planning to train existing staff in AI over the next year.
• Statistics Canada estimates that Canadians living in urban areas, women, higher earners, and highly educated individuals are more likely to be employed in jobs that are highly exposed to AI. This exposure can lead to productivity enhancements but also poses risks of labour displacement.
• While a causal relationship between AI and youth unemployment has not been firmly established, some emerging evidence suggests a potential link. A recent Stanford University study of the American labour market found that young workers aged 22 to 25 in jobs most exposed to AI experienced a 13% decline in employment since 2022. Similar declines were not observed among older workers in these sectors, nor among youth in jobs with limited exposure to AI.
• While most projections do not anticipate large-scale worker displacement due to AI, changes in the composition of tasks due to AI means that an estimated 42% of the Canadian workforce will require reskilling to effectively use AI tools (2023 IBM Survey of Canadian Executive).

Key messages

• AI adoption is accelerating in Canadian workplaces, with usage doubling in one year and further growth expected. This will increase the impact of AI on jobs, making workforce adaptability and skill development more critical.
• It is too early to determine the definitive impact of AI on the labour market, including any link to the recent rise in unemployment, among youth or more broadly, as multiple factors are at play. Projections suggest that most AI-exposed jobs are not at immediate risk of elimination. Instead, many will be reshaped through task redesign, particularly for post-secondary educated workers who are better positioned to benefit.
• Successful AI integration into the labour market depends on robust upskilling and talent development strategies that equip workers with the knowledge and confidence to adapt their roles, deploy AI technologies, and drive innovation-while addressing the unique operational and technical needs of specific sectors.
• ESDC's income and training supports are available to help new labour market entrants and existing workers navigate a workplace where AI tools are increasingly present.
• Looking ahead, Innovation, Science and Economic Development Canada (ISED) is consulting with stakeholders on the Government of Canada's AI Strategy. To help track AI's use in the economy and better understand its impact on employment, Budget 2025 announced an investment of $25 million over six years and $4.5 million in ongoing funding for Statistics Canada to launch the Artificial Intelligence and Technology Measurement Program (TechStat)

Issue

In the context of economic uncertainty, it is crucial to support Canada's economy by removing interprovincial labour mobility and trade barriers and enabling workers to fill jobs wherever they are available in Canada.

Background

• The Government of Canada is committed to building one Canadian economy by removing barriers to interprovincial trade and labour mobility and identifying and expediting nation-building projects that will connect and transform our country (priority #2 of the May 21, 2025, Government of Canada's mandate).
• The free movement of workers supports an efficient labour market and contributes to economic growth by optimizing the distribution of labour and skills. Labour mobility is primarily a provincial/territorial responsibility. Provinces and territories establish occupational standards and entry-to-practice requirements for most regulated occupations.
• The Red Seal Program, which receives federal funding and in-kind contributions from provinces and territories, is an F-PT collaboration to establish common occupational standards for 54 Red Seal trades. This supports harmonized apprenticeship training and a well-recognized credential that shows that the skilled tradesperson has met the requirements of the national standard, which in turn facilitates their mobility.
• Additionally, through the Forum of Labour Market Ministers, federal, provincial and territorial governments collaborate to implement a Labour Mobility Action Plan. This Plan will bring about immediate and long-term changes that will substantially reduce barriers to the mobility of workers in regulated occupations, including the skilled trades. Key initiatives include:
  • Amending Chapter Seven of the Canadian Free Trade Agreement (CFTA) to eliminate administrative burden, increase predictability, accountability and support pan-Canadian consistency.
  • Reviewing the 14 occupations that have labour mobility exceptions (only two of them are skilled trades). 
  • Eliminating barriers to skilled trades mobility in collaboration with the Canadian Council of Directors of Apprenticeship (CCDA). The CCDA manages the Red Seal Program. 
  • Addressing health and safety issues by engaging the Canadian Association of Administrators of Labour Legislation (CAALL). 
• These changes will improve the labour mobility of skilled tradespersons. For example:
  • amendments to the CFTA will enable tradespersons:
    • to receive a decision on their labour mobility application within 30 calendar days which will enable them to start work sooner
    • to clearly understand the requirements and processes for certificate recognition, supported by the new obligation for regulatory authorities to clearly publish their recognition processes on their website
• • The digital solution implemented by the CCDA enables employers and apprenticeship authorities to immediately verify the certificate of qualification of tradespersons and issue a local certificate (as required) so that tradespeople can begin work faster. It also provides information on the additional safety certifications requirements in the new jurisdiction.
• • Harmonizing occupational health and safety training requirements across provinces and territories through the CAALL will allow workers to work in different jurisdictions without having to repeat this training unnecessarily.

Key facts

• About 215,000 working age Canadians move between provinces and territories each year (0.5% of the 2024 population).
• Workers in regulated occupations, including compulsory skilled trades, are required to have their qualifications recognised in other provinces or territories to be able to practice there. 
• Chapter Seven of the CFTA, signed by all provinces and territories and the federal government, lays out the conditions to improve and promote interprovincial mobility in regulated occupations, including the skilled trades. It includes the certificate-to-certificate recognition principle which is a form of mutual recognition.
• However, labour mobility barriers persist hindering Canada's efficiency and productivity. They include red tape and administrative burden (for example, extensive documentation); varying occupational standards across jurisdictions; and a lack of clear information on labour mobility processes. This can make the labour mobility process expensive, lengthy and complex for workers and employers.

Key messages

• In the context of economic uncertainty, it is crucial to support Canada's economy by removing interprovincial trade barriers and enabling workers to fill jobs wherever they are available in Canada.
• All governments are seized with the urgency to address the trade crisis Canada is facing and are working together to strengthen our labour market and support one Canadian economy.
• The Government of Canada is working with provinces and territories to advance an ambitious and comprehensive plan to eliminate barriers to the mobility of workers in all regulated occupations, with a focus on the skilled trades.
• This plan will make interprovincial and territorial certificate recognition processes more transparent, faster and less complex. Amending the Canadian Free Trade Agreement will support pan-Canadian consistency.
• This plan also includes initiatives specific to the skilled trades. It includes the implementation of digital tools to make the verification of tradespeople's credentials easier. Governments are also collaborating to address labour mobility issues related to differing health and safety standards.

Issue

Canada needs more skilled trades workers to adapt to shifts in demographics, technology, global supply chains, and to support major national projects, including housing.

Background

• While apprenticeship is a provincial and territorial (PT) responsibility, the federal government plays a leadership role in fostering a cohesive trades and apprenticeship system in Canada, including by making significant investments through the Canadian Apprenticeship Strategy (CAS).
• Since 2022, the CAS has been contributing to strengthening Canada's apprenticeship ecosystem by helping its key actors (for example, employers, unions and training organizations) participate in skilled trades apprenticeships, thereby supporting a trades workforce that is skilled, inclusive, certified and productive.
• With 13 PT apprenticeship authorities responsible for regulating apprenticeship systems that respond to their respective industrial, economic and geographic realities, a cohesive approach to helping address skilled trades labour shortages is needed now, more than ever, to build housing at an unprecedented speed and deliver on current and anticipated major infrastructure projects.
• The CAS is essential to a well-coordinated, coherent ESDC-led response to growing a more robust and resilient skilled trades workforce capable of meeting labour market needs of today and tomorrow so the government can deliver on two key priorities: Building One Canadian Economy and Making Housing More Affordable (priorities #2 and #4 of the Prime Minister's Mandate Letter, May 21, 2025).

Key facts

• Announced in 2019 and implemented in 2022, the CAS includes a suite of apprenticeship supports namely the Union Training and Innovation Program (UTIP), the Skilled Trades Awareness and Readiness (STAR) program, the Women in the Skilled Trades (WST) Initiative, the Apprenticeship Grants (which sunset in March 2025), the Apprenticeship Service, and support for Skills/Compétences Canada. It is also complemented by an award-winning National Campaign to promote the skilled trades as first-choice careers, as well as by the Red Seal Program and the Canada Apprentice Loan, the two latter initiatives separately funded by the Department.
• Together these initiatives empower the skilled trades training ecosystem and build Canada's skilled trades talent pipeline. Supports include:
  • union-led apprenticeship training and innovative approaches to improving accessibility of training programs for apprentices from equity deserving groups in the Red Seal trades
  • building awareness of the skilled trades (for example, through PT and national skilled trades competitions) and facilitating work experience opportunities for individuals wishing to pursue a career in the trades, and
  • financial incentives to increase the number of employers participating in apprenticeship by making it easier and more affordable for them to hire first year apprentices. This then increases opportunities for apprentices to get the hands-on experience they need for a career in the skilled trades
• Feedback has been positive. For example, Canada's Building Trades Unions affiliates report that because of the support of the Union Training and Innovation Program (UTIP):
  • their training centres now have the resources to build advanced curricula and online learning tools, enabling them to attract, train, and retain the next generation of tradespeople
  • the equipment upgrades they were able to make mean apprentices are using new tools that reflect real-world conditions they will face on the job which is resulting in students being more engaged and better prepared for certification exams
  • participants from equity deserving groups are also sharing that UTIP "opened doors that were previously closed" and "provided mentorship that made all the difference" in their apprenticeship journey
• There is a longstanding policy to link the eligibility of federal apprenticeship investments to Red Seal trades. Tying eligibility for federal apprenticeship supports to PT participation in the Red Seal Program is the mechanism through which the federal government ensures that support is focused on trades of national significance, where there is comparability/consistency of the training and certification requirements at the national level.
• Budget 2016 announced $110 million over five years, from 2017 to 2018 to 2021 to 2022, and $25 million per year ongoing for the Union Training and Innovation Program (UTIP). This initiative provides annual funding to support union-based apprenticeship training, innovation, and enhanced partnerships in the Red Seal trades across Canada through two permanent streams of funding for investments in training equipment, and innovation in apprenticeship.
  • Budget 2025 announced $75 million over three years, starting in 2026 to 2027, to double the UTIP, which supports union-based apprenticeship training in the Red Seal trades.
• In 2023 to 2024, CAS investments of $361 million enabled 41,697 individuals to participate in skills training activities across 192 projects.
• In 2023, there was a record high in new apprenticeship registrations (over 82,000 new registrations in a Red Seal trade), the highest rate since 2012. In addition to increased registration numbers, the Department is also seeing a rise in women's participation in male-dominated Red Seal trades, more youth joining apprenticeship programs, improved perception of skilled trades, and effective collaboration with provinces and territories on the Red Seal program (Registered Apprenticeship Information System (RAIS).
• Demand for skilled trades workers is expected to remain strong, with more than 593,000 job openings in Red Seal trade-related occupations, mainly due to retirements and strong employment growth between 2024 and 2033 (Canadian Occupational Projection System, 2024 projection). These projections do not account for recent developments expected to impact labour markets, including tariffs, lower immigration targets, and rising ambition in major projects.

Key messages

• Budget 2025 announced $75 million over three years, starting in 2026 to 2027, to double the Union Training and Innovation Program, which supports union-based apprenticeship training in the Red Seal trades.
• This is on top of the Government of Canada's current investments of nearly $1 billion per year to support apprentices through loans, tax credits, Employment Insurance benefits during in-school training, project funding, and support for the Red Seal program.
• Today, the Government of Canada is rising to the challenge of delivering housing and major infrastructure projects at an unprecedented pace. While this intensifies existing labour market pressures, it also presents a powerful opportunity to rethink how we build, innovate, and respond to the evolving needs of our communities.
• As such the federal government will continue to play a leadership role in fostering a more cohesive trades and apprenticeship system in Canada, particularly for the Red Seal trades.
• The Canadian Apprenticeship Strategy contributes to growing a more robust and resilient skilled trades workforce capable of meeting labour market needs of today and tomorrow.

If pressed on the sunset of the Apprenticeship Grants

• While the Apprenticeship Grants ended on March 31, 2025, the Government of Canada remains fully committed to supporting apprentices financially as they progress or are unemployed through their technical training. Individual apprentices continue to be supported through several measures, including the:
  • Employment Insurance for Apprentices
  • Canada Apprentice Loan (up to $20,000 per Red Seal apprentice)
  • Tradesperson's Tools deduction
  • Apprentice Mechanic Tools deduction
  • Tuition Tax Credit
  • Canada Training Credit
  • Labour Mobility deduction

If pressed for examples of UTIP projects

• Colin Reynolds (Conservative Party Commitment) - Elmwood - Transcona (Winnipeg)
  • Through the Union Training and Innovation Program, the Operating Engineers of Manitoba (OETIM) - Local 987 received $217,000 to purchase virtual reality simulators for technical training for Crane Operator apprentices. This investment helped provide technical training to Indigenous and newcomer students, with thirteen participants obtaining Red Seal certification.
• Marilène Gill (Bloc Québecois) - Côte-Nord - Kawawachikamach - Nitassinan (Quebec)
  • Apprenticeship training is not delivered by unions in Quebec. The Government of Canada delivers UTIP funding through a bilateral agreement with the Province of Quebec. Through this funding, the UTIP funded two projects in the Côte-Nord Region, delivered by the Centre de services scolaire (CSS) de l'Estuaire and Eastern Shores School Board. Together, these school boards purchased welding and construction trailer equipment that helped train 45 students, including eight women and seven Indigenous students, with an overall pass rate of 80%.
• Laila Goodridge (Conservative Party Commitment) - Fort McMurray - Cold Lake (Alberta)
  • Through the Union Training and Innovation Program, Portage College obtained $131,979 to modernize its welding lab. Note: the UTIP provides flexibility to support non-union organizations which provide provincially-recognized training to Red Seal apprentices. This funding is expected to help provide current and relevant training, promote the college for apprenticeship training in the region, and train more Alberta apprentices who will readily contribute to Canada's economy.

Issue

Since US and other tariffs are seriously affecting employment in various sectors in Canada, in the summer of 2025 the Prime Minister announced $570 million, over three years, in targeted support for steel and softwood lumber workers, and for workers from other tariff-impacted industries.

Background

• Tens of thousands of jobs are being affected by foreign tariffs, resulting in additional Employment Insurance (EI) claims for regular benefits, additional applications for the Work-Sharing program, and an increase in the number of workers who will be eligible for EI-funded training.
• This EI-funded training is essential for supporting employers and workers in these challenging economic times. It helps workers gain the skills and training they need to enhance their productivity and to thrive as our economy transitions.
• The $570 million announced for tariff-affected workers supplements the Government of Canada's existing labour market investments - for instance, the $2.9 billion provided annually under bilateral labour market agreements with the provinces and territories. For 30 years, these agreements have funded delivery of training and employment assistance services via provincial and territorial employment assistance offices across Canada to help millions of Canadians upgrade their skills and find employment each year.

Key facts

• ESDC is targeting $570 million for the support of steel and softwood lumber workers, and workers from other tariff-impacted industries, including:
  • $450 million over 3 years to provide training and employment support for up to 50,000 tariff-impacted workers, including mid-career and long-tenured workers
  • $70 million over 3 years, to support up to 10,000 Canadian steel workers, and
  • $50 million over 3 years to support more than 6,000 Canadian softwood lumber workers
• Agreements are being finalized with provinces and territories. We are working with employers and unions to prepare for program roll out which will begin in November. PTs also have existing funding to provide training to displaced workers.
• Displaced workers in tariff-impacted sectors will be contacted and offered skills development training that will allow them to reskill and upskill into new opportunities. Employed workers and those on Work-Sharing agreements will also be able to access training to help them retain their jobs and help their employers pivot to new opportunities.
• The Government of Canada also provides $2.9 billion per year under its labour market agreements with the provinces and territories, which in turn design and deliver training and employment supports tailored to local labour market needs.

Key messages

• An essential part of supporting workers is ensuring they have active support measures to attach or reattach themselves to the workforce as soon as possible after job loss.
• Canada has long worked with P/Ts and Indigenous organizations to develop and sustain a national system of training and employment assistance supports; this includes hundreds of points of service across the country to serve Canadians where they live.

Tariff-Response

• The Government of Canada is investing $570 million over three years in collaboration with provinces and territories, employers, unions, and other stakeholders, to ensure that tariff-response funding is allocated where it is needed most, notably for:
  • mid-career, long-tenured workers affected by U.S. tariffs and global market shifts
  • Indigenous peoples, and
  • underrepresented groups, such as youth, persons with disabilities, and women

Issue

Despite significant labour shortages across key sectors in Canada, internationally trained professionals continue to face barriers to entering the labour market, such as a lack of Canadian work experience and the foreign credential recognition (FCR) process for regulated occupations.

Background

• FCR and licensure are largely a provincial and territorial responsibility that are often delegated through legislation to regulatory authorities. There are approximately 600 regulatory authorities in Canada and 65 to 275 regulated occupations, depending on the jurisdiction.
• The Foreign Credential Recognition Program (FCRP) helps to develop and strengthen Canada's foreign credential assessment and recognition capacity, contributes to improving the labour market integration outcomes of internationally trained professionals, and supports interprovincial labour mobility. The Program does this by: convening provinces and territories (P/Ts) to share information and best practices, and by providing funding to P/Ts, regulatory authorities, and other organizations to improve FCR processes by making them faster and more efficient; providing loans and support services to help internationally trained professionals with FCR expenses; and by providing employment supports to help internationally trained professionals gain Canadian work experience in their field of study.

Key facts

• The total budget for the FCRP in 2025 to 2026 is $71 million (includes transfers from other programs on top of ongoing funding).
• Budget 2024 provided an additional $50 million over two years starting in 2024 to 2025 for the Program, with a focus on residential construction and health care. This builds on Budget 2022 investments of $115 million over five years starting in 2022 to 2023 and $30 million ongoing for the Program, starting with a focus on supporting the labour market integration of internationally educated health professionals.
• Budget 2025 announced $97 million over five years, starting in 2026 to 2027, for Employment and Social Development Canada to establish the Foreign Credential Recognition Action Fund and work with the provinces and territories to improve the fairness, transparency, and timeliness of FCR, with a focus on health and construction sectors. This funding will be sourced from existing departmental resources.
• System improvement projects make processes faster and more efficient.
  • For example, the FCRP supported the National Nursing Assessment Service to create an Expedited Service. Launched in June 2023, this new service allows an internationally educated nurse to start the credentialing process for becoming a Registered Nurse or Licensed Practical Nurse in one application for a single price. It has reduced the credential assessment process by 85% (from 12 months to 6 weeks) and the cost of assessment by 40% (from $1,250 to $750). Currently, 80% of regulatory bodies representing the nursing professions are part of the Expedited Service
• Loans projects help internationally trained professionals cover FCR expenses. Since 2018, the FCRP has supported the issuance of nearly $29 million in FCR loans to more than 3,100 internationally trained professionals.
  • From 2018 to 2022, $16.9 million in loans were issued to 1,853 internationally trained professionals. To date, 56% of borrowers completed the FCR process and 63% found employment in their field of expertise or related occupation. These results continue to increase during the current loan repayment phase (2022 to 2026)
  • In 2022 to 2023, the FCRP launched seven new 10-year agreements totaling $43 million that are now issuing new loans. To date, these projects have issued nearly $12 million in loans to more than 1,300 internationally trained professionals
• Employment support projects help internationally trained professionals gain Canadian work experience.
  • Since 2021, over 10,000 participants were provided with employment supports. Of the projects which concluded, 43% of participants have gained Canadian work experience relevant to their profession or field of study and 40% have found employment in their field of expertise or an alternative career
  • For example, the FCRP is currently supporting a $2.5 million project with La Société Économique de l'Ontario to help 250 Internationally Educated Health Professionals (IEHPs) in Ontario and British Columbia gain Canadian work experience by providing structured, supervised internships

Key messages

• Provincial and territorial governments are primarily responsible for credential recognition and licensure for regulated occupations and often delegate this authority through legislation to regulatory authorities.
• The Government of Canada recognizes the challenges internationally trained professionals face. The Foreign Credential Recognition Program supports the labour market integration of internationally trained professionals by funding P/Ts, regulatory bodies and other stakeholders to improve foreign credential recognition systems, provide loans and support services to help internationally trained professionals navigate foreign credential recognition processes, and employment supports to help internationally trained professionals gain Canadian work experience.
• Budget 2025 announced $97 million over five years, starting in 2026 to 2027, to establish a Foreign Credential Recognition Action Fund and work with the provinces and territories to improve the fairness, transparency, and timeliness of FCR, with a focus on health and construction sectors.
• Since 2015, the Program has invested over $347 million in 137 projects to support internationally trained professionals.
• These investments help reduce the time, cost and complexity of foreign credential recognition processes and help internationally trained professionals obtain employment in their fields of expertise.

Project examples

Issue

On September 5, 2025, as part of a broader tariff package, the Government announced $382 million over five years and $56 million ongoing to launch new Workforce Alliances and a Workforce Innovation Fund (WIF) to tackle urgent labour market challenges, bring together government, employers, unions, and industry organizations to develop and implement tailored workforce development strategies and drive growth.

Background

• There is a need for greater cohesion and more strategic workforce development in key sectors, exacerbated by the current geopolitical and economic context. Existing workforce development approaches to meet in-demand occupations are fragmented and Provinces and Territories lack collaboration mechanisms to support alignment.
• Workforce Alliances will focus on sectors under pressure and those with growth potential, by bringing together employers, unions, educational institutions and industry associations to address labour market challenges and to coordinate public and private investments in skills development. These actions will help businesses and workers succeed in the changing labour market, and ensure that there is a pipeline of talent in growth sectors.
• The new WIF is an agile fund that will provide targeted strategic investments to help businesses in key sectors (at a national or regional level) boost skills development, recruitment, and retention of the workforce they need. It will also enhance labour market resilience through initiatives that help workers upskill, reskill, and transition to new jobs. The WIF will invest in projects that support government priorities such as nation-building projects, defence strategy and housing, among others. The fund will incentivise private sector investments as it is based on a cost-sharing model.
• By introducing a national coordinating mechanism with the tools to implement real solutions, the Alliances and the WIF will help not only frame a coordinated response around tariff impacted sectors but also support the government's mandate priorities focused on one Canadian economy, creating new careers in the skilled trades via a modern housing industry, and supporting the workforce to deliver on Canada's major projects.

Key facts

• Global economic instability and shifting trade relationships are placing significant pressure on some of Canada's largest sectors, creating additional and evolving challenges for Canada's workforce such as significant labour shortages, adaptability challenges, skills mismatches, productivity lags, and supply chain issues. These disruptions manifest differently across sectors and industries, requiring tailored action.
  • Between January and April 2025, Canadian exports to the United States declined by 26.2%, driven largely by newly imposed U.S. tariffs and shifting market conditions. The manufacturing and energy sectors were among the hardest hit, with significant drops in automotive and crude oil exports.
• Affected priority sectors are integral to achieving our goals, such as mining and energy to protect Canada's sovereignty; manufacturing driving affordability; transportation to remove trade barriers; and construction enabling our housing and infrastructure goals.
• At the same time, youth unemployment is high, and key industries are saying they are lacking the skills they need - both issues calling for new solutions to develop and match skills with demand-sectors.

Key messages

• Canadian workers have felt the impact of U.S. tariffs.
• As part of a broader tariff package announced by the Prime Minister on September 5, 2025, the Government of Canada is investing in modern measures to protect, build and transform Canada's strategic industries.
• New investments include creating up to five Workforce Alliances to tackle urgent labour market challenges in sectors under pressure and with growth potential.
• As an illustrative example is a Metal, Minerals, and Mining Alliance that could be created with a mission to support major projects and the defence industry. Challenges with attracting and retaining talent are currently impacting this sector's ability to respond to growth and capitalize on opportunities. An Alliance would mobilize to orchestrate complex, cross-jurisdictional collaboration, engaging provinces and territories, Indigenous partners, and industry stakeholders to ensure alignment and maximize impact. The Alliances, with support from other skills and employment programming, would spearhead initiatives to establish mentorship and leadership development opportunities, promote inclusive workplace policies, and create targeted incentives for hiring local workers, demonstrating a comprehensive, hands-on approach to drive systemic change and foster economic growth in rural communities.
• Similarly, the Workforce Innovation Fund will invest in strategic initiatives that strengthen labour market resilience such as training, reskilling and upskill to build talent pipelines for government priorities including nation-building projects, housing, and critical minerals, among others. Furthermore, it will help workers and businesses in sectors most affected by global trade disruptions and U.S. tariffs such as steel and softwood lumber, by supporting their transition into new industries.
• The Fund may also support business and trade diversification initiatives that help firms expand trading partnerships, increase productivity, and adjust to shifting international trade trends.
• For example, the Fund could support initiatives such as the Mine Training Society's "Sustainable North: Our Workforce", which aims to provide training and transition supports to mid-career workers in the Northwest Territories, by moving to low-carbon jobs due to expected closures of diamond mines.
• The vision for the Alliance and the Workforce Innovation Fund is to collectively create self-sustaining workforce ecosystems.

Issue

Ongoing collective bargaining between the Canada Post Corporation (Canada Post) and the Canadian Union of Public Workers (CUPW).

Background

• Canada Post and CUPW are negotiating the renewal of two expired collective agreements covering the following bargaining units:
  • the Urban Postal Operations unit, representing approximately 42,000 employees
  • the Rural and Suburban Mail Carriers unit, representing approximately 10,900 employees
• The parties have been engaged in bargaining since November 2023, holding over 120 meetings between then and August 2024. On August 2, 2024, CUPW filed notices of dispute to request assistance from the Federal Mediation and Conciliation Service. Two conciliation officers were appointed on August 13, 2024. Following the end of the conciliation period, two mediators were appointed on October 15, 2024, and a special mediator was appointed on November 14, 2024.
• The parties acquired the legal right to strike or lockout on November 3, 2024. On November 15, 2024, the union commenced a nationwide strike. On the same day, the employer announced changes to the terms and conditions of employment.
• On December 13, 2024, the previous Minister of Labour referred the disputes to the Canada Industrial Relations Board (CIRB) under section 107 of the Canada Labour Code (Code). The CIRB ordered a return to work and extended the existing agreements until May 22, 2025. On December 16, 2024, an Industrial Inquiry Commissioner, William Kaplan, was appointed under section 108 with a mandate to examine the current bargaining dispute and the positions of the parties, with special attention to the underlying causes of the dispute, specifically:
  • the financial situation of Canada Post
  • Canada Post's expressed need to diversify and/or alter its delivery models in the face of current business demands
  • the viability of the business as it is currently configured
  • the union's negotiated commitments to job security and full-time employment
  • the need to protect the health and safety of employees

The Commissioner submitted his report on May 15, 2025, and a copy was immediately shared with the parties.

• On May 23, 2025, the union initiated an overtime ban.
• On June 12, 2025, the Minister, pursuant to subsection 108.1(1) of the Code, ordered a vote on the final offers submitted by the employer to the union on May 28, 2025. On August 1, 2025, the CIRB announced that the union members of both bargaining units had voted to reject the employer's offers.
• On August 20, 2025, CUPW tabled offers for both bargaining units. Canada Post assessed that these proposals did not present a sufficient basis for further negotiations and indicated that the union should revise its offers to better align with the company's realities.
• On September 15, 2025, the union escalated its job action from an overtime ban to the cessation of commercial flyer delivery.
• On September 25, 2025, the Honourable Joël Lightbound, Minister of Government Transformation, Public Works and Procurement, announced that the Government would be implementing a series of measures based on the recommendations outlined in Commissioner Kaplan's report. These measures aim to address Canada Post's financial challenges and include lifting the moratorium on community mailbox conversions, ending the 1994 moratorium on rural post office closures, giving Canada Post flexibility on letter mail delivery standards, and reviewing the process for increasing the stamp rate. Minister Lightbound also directed Canada Post to immediately review its structure to identify efficiencies and reduce costs.
• In response to the Government's announcement, the union launched a nationwide strike on September 25, 2025, which remains ongoing. On October 3, 2025, the employer presented new offers, which the union described as a major step backward but agreed to review. Mediators remain available, although no meetings are currently scheduled.
• On October 11, 2025, at 6 am local time, the union moved from nationwide strike action to rotating strikes.
• The parties have agreed to resume discussions and have met on October 30, 2025. At their request, federal mediators facilitated the meeting.

Key messages

• For nearly two years, Canada Post and the Canadian Union of Portal Workers have been engaged in negotiations to renew their collective agreements
• The Government has taken steps to promote conditions favourable to the settlement of this dispute, including through the appointment of federal mediators who have been supporting the parties in their bargaining for more than a year, the appointment of a special mediator and the appointment of an Industrial Inquiry Commissioner, an expert in labour relations, who provided recommendations.
• Despite these efforts, no agreement has been reached on the terms and conditions of new collective agreements, and a rotating strike is ongoing.
• Canadians have been impacted by the work stoppages and expect a resolution to the dispute. Given the circumstances, it is essential that both parties continue working toward a negotiated agreement.

Issue

Use of section 107 of the Canada Labour Code in labour disputes.

Background

• Under section 107 of the Canada Labour Code (the Code), the Minister of Labour may refer any question or direct the Canada Industrial Relations Board (CIRB) to do such things as to the Minister seem likely to maintain or secure industrial peace and to promote conditions favourable to the settlement of disputes.
• The text of section 107 is as follows
  • Additional powers
    • 107 The Minister, where the Minister deems it expedient, may do such things as to the Minister seem likely to maintain or secure industrial peace and to promote conditions favourable to the settlement of industrial disputes or differences and to those ends the Minister may refer any question to the Board or direct the Board to do such things as the Minister deems necessary.
• Although "industrial peace" is not defined in the Code, it can refer to a state of harmonious labour relations between employers and employees whereby industrial disputes, if they arise, are resolved in a way that avoids or reduces work stoppages.
  • Most recent use of section 107
    • On August 16, 2025, a strike and lockout began in the dispute involving Air Canada and Canadian Union of Public Employees (CUPE) Airline Division.
    • That same day on August 16, 2025, the Minister of Labour invoked section 107 of the Code and directed the CIRB to order the parties to resume airline service operations, impose final binding arbitration to resolve outstanding terms of the collective agreement, and extend the existing collective agreement until a new one is determined by the arbitrator. The CIRB followed the Minister's directions and effectively ordered an end to the dispute on August 17, 2025.
    • CUPE defied the CIRB's orders and remained on strike, leading the employer to file an application to the CIRB seeking a declaration of unlawful strike. The CIRB declared the strike unlawful on August 18, 2025, but CUPE remained on strike until August 19, 2025, when the parties reached a tentative agreement.

Key facts

• Since 2023, ten referrals have been made under section 107, nine of which have been made to end or temporarily pause a strike or lockout and/or impose arbitration. The most recent referrals were made in the following labour disputes:
  • Air Canada (August 2025)
  • Canada Post (December 2024)
  • West Coast ports (November 2024)
  • Port of Montreal (November 2024)
  • Port of Quebec (November 2024)
  • Canadian National Railway and Canadian Pacific Kansas City Railway (August 2024).
• Unions have challenged the section 107 referrals, and the CIRB's related orders, that ended or temporarily suspended strikes and lockouts and order arbitration in 2024 and 2025, arguing that the referrals and orders interfered with the meaningful process of collective bargaining, which includes the right to strike, as protected by section 2(d) (freedom of association) of the Canadian Charter of Rights and Freedoms. These challenges are proceeding before the Federal Court and the Federal Court of Appeal.
• On October 6, 2025, MP Leah Gazan of the New Democratic Party introduced Bill C-247, An Act to amend the Canada Labour Code. The Bill proposes to repeal section 107 of the Code entirely. Ms. Gazan is 39th on the list of consideration for private members' business, meaning that Bill C-247 currently falls outside the Order of Precedence.
• The replenishment of the Order of Precedence is expected in winter/spring 2026 (TBC). At that time, Ms. Gazan could select Bill C-247. It typically takes between 10 and 29 months for a PMB to receive Royal Assent, should it be adopted by both Houses of Parliament.

Key messages

Use of section 107

• Although negotiated agreements are the best way forward, it is my duty and responsibility to act in the interests of businesses, workers, farmers, families and all Canadians, when certain parties do not fulfill their responsibility to negotiate to reach an agreement.
• A decision to invoke section 107 is not taken lightly and is considered on a case-by-case basis under exceptional circumstances.
• The challenges against the uses of section 107 to end or temporarily suspend the right to strike or lockout and order arbitration are currently before the courts. We are not aware when decisions will be issued.

Issue

What are the next steps following the Industrial Inquiry Commission investigating longshoring labour disputes at the West Coast ports?

Background

Key facts

• The labour dispute between the ILWU Canada and the BCMEA involved a 13-day strike at the West Coast ports in July 2023 that caused serious disruption to the Canadian economy and supply chains.
• The work stoppage shut down major operations at 30 West Coast ports, including the Port of Vancouver, which is the third-largest port in North America in terms of volume and the largest port in Canada.
• The West Coast ports strike caused serious disruptions to the economy and created significant obstacles to the movement of goods. This added to existing challenges for Canada's economy, including supply chain volatility, wildfires, and labour shortages. The dispute impeded the movement of cargo valued at around $10 billion in total, significantly impacting Canadian supply chains in all regions of the country. The most impacted industries were transportation and warehousing, construction, manufacturing, natural resources, and retail trade.

Key messages

• To improve collective bargaining between unions and employers at the West Coast ports, and to ensure stability of Canadian supply chains, the Government appointed an Industrial Inquiry Commission to examine the structural issues underlying longshoring labour disputes at Canada's West Coast ports.
• The Commission submitted its final report with its findings and recommendations.
• The Government thanks the Commission for its work and is carefully evaluating its findings and recommendations.

Issue

Addressing employee misclassification in the road transportation industry and protecting federally regulated gig workers under the Canada Labour Code.

Background

The misclassification of employees has garnered significant attention in recent weeks, due to media attention and the launch on October 9, 2025, of a probe on the changing landscape of truck drivers in Canada by the House of Commons Standing Committee on Transport, Infrastructure and Communities. However, this has been a long-standing issue for key stakeholders in the road transportation sector, including the Canadian Trucking Alliance (CTA), which have lobbied for stronger enforcement of labour, safety and taxation rules that they allege are being flouted by enterprises using the "Drivers Inc." business model. From a Labour Program perspective, a number of measures have been taken to better protect workers from being misclassified, including legislative changes to the Canada Labour Code (Code), increased collaboration between government organizations and enhanced compliance and enforcement efforts.

Employee Misclassification

• Misclassification occurs when an employer wrongfully classifies an employee as an independent contractor, and as a result the employee is denied basic employee rights, protections and entitlements.
• As a result of misclassification, workers may experience precarious working conditions and economic vulnerability, including low and unpredictable earnings, unpredictable schedules, and unpaid work time.
• For example, misclassified truck drivers treated as self-employed independent contractors may lose most job protections, including:
  • union and collective bargaining rights
  • occupational health and safety protections
  • minimum labour standards (for example, minimum wage, paid medical leave, overtime pay, vacation pay, paid general holidays) and
  • other employment related benefits, such as Employment Insurance
• Misclassification also creates unfair competition, undercutting legitimate businesses that comply with the Code and provide related employment benefits.
• Provisions for combatting employee misclassification were first added to the Code in 2021, when it became prohibited for employers to treat an employee as if they were not their employee in order to avoid their obligations under Part III (Labour Standards) of the Code or to deprive the employee of labour standards rights.
• A pilot project launched in the Ontario Region to support the new misclassification measures uncovered widespread misclassification in the road transportation industry.
• Subsequently, the 2022 Fall Economic Statement committed $26.3 million over 5 years to the Labour Program to amplify enforcement and compliance activities needed to combat employee misclassification in the federally regulated road transportation industry. Since then, the Labour Program has established a dedicated team that conducts inspections of workplaces where employers are suspected of misclassifying employees.
• From April 2023 to October 31, 2025, the Labour Program has initiated over 670 inspections and found 127 cases of misclassification. The focus has been on high-risk employers suspected of misclassification - drawing from a list of employers with a history of non-compliance, employers provided through a tip line and names provided by stakeholders.
• The team has successfully obtained voluntary agreement from more than 80% of employers inspected to properly treat their drivers as employees and comply with the Code. Employers who did not cooperate with Labour Program inspectors or did not come into compliance, have been issued Compliance Orders (CO) and Administrative Monetary Penalties (AMPs).
• In June 2024, legislative changes to the Code that better protect workers against misclassification and simplify enforcement came into force.
• The amendments introduced strengthened prohibitions on misclassification under Part I (industrial relations), Part II (occupational health and safety) and Part III (labour standards) of the Code and a presumption that all workers, including gig workers, are employees unless proven otherwise, placing the burden of proof on employers if a worker's employee status is contested.
• Workers who are true independent contractors are not affected by these amendments.
• In addition, to bolster compliance and enforcement respecting the prohibition on misclassification, Budget Implementation Act, 2024, No. 1 (Budget 2024) also announced that Employment and Social Development Canada and the Canada Revenue Agency (CRA) would enter into data-sharing agreements.
• An information sharing agreement between the Labour Program and the Canada Revenue Agency (CRA) has been in place since March 2025. This enables the Labour Program to share information with the CRA on employers alleged or found to be misclassifying employees.
• In addition, in Budget 2025 the Government announced its intention to amend the information sharing provisions of the Income Tax Act and the Excise Tax Act to allow the Canada Revenue Agency (CRA) to share relevant taxpayer and confidential information with Employment and Social Development Canada for the purposes of furthering collaboration to address the misclassification of workers.
• The Labour Program and the Temporary Foreign Worker Program (TFWP) have signed a Memorandum of Understanding (MOU) to share information. This will help address non-compliance and better target enforcement activities in the road transportation sector. Under this agreement, both programs will exchange employer and business information, including details on complaints and investigations, particularly for employers found in violation of legislation or with a high number of pending complaints.

Key facts

• The road transportation industry has more than 8,000 federally regulated employers and 260,000 employees. According to Labour Force Survey data, there are approximately 31,800 incorporated self-employed truck drivers without employees in the federally regulated road transportation industry.
• Since its inception in April 2023 to October 31, 2025, the Labour Program's National Misclassification Team has undertaken over 670 inspections and more than 420 education activities with carriers in the federally regulated road transportation sector.
• The Misclassification Team has obtained voluntary agreement from more than 80% of employers inspected, and found not to be complying with the rules, have since agreed to properly classify their drivers as employees. Employers who did not cooperate with Labour Program inspectors or did not come into compliance, have been issued Compliance Orders (CO) and Administrative Monetary Penalties (AMPs).
• As of October 31, 2025, the Labour Program has issued 30 Compliance Orders and 22 AMPs to address misclassification in the road transportation sector.
• The Misclassification Team also collaborates with federal and provincial partner agencies to raise awareness about misclassification among truck drivers at commercial motor vehicle inspection stations (weigh stations) across Canada.
• Since late 2024, joint operations have taken place at weigh stations in Quebec, Ontario, Nova Scotia, British Columbia, Alberta, Saskatchewan and Manitoba to educate drivers about misclassification and their rights under the Code, as well to gather information on employers who may be misclassifying drivers.
• These joint operations are often in partnership with other federal departments, such as the Canada Revenue Agency (CRA), and provincial regulatory agencies including worker compensation boards.

Key messages

• The Government is committed to upholding labour protections.
• Addressing employee misclassification is a key priority, especially where truck drivers are wrongly classified as independent contractors, denying them protections under the Code and social benefits like Employment Insurance (EI) and Canada Pension Plan (CPP).
• Based on robust stakeholder engagement, the Government amended the Canada Labour Code in 2024 to strengthen the prohibition against employee misclassification. As such, all workers, including gig workers, are presumed to be employees unless proven otherwise, placing the burden of proof on employers if a worker's status is contested. These amendments better protect workers in federally regulated sectors, but do not affect true independent contractors.
• Since the inception of the dedicated Misclassification Team in April 2023 to October 31, 2025, the Labour Program has initiated over 670 inspections and 420 outreach educational sessions including at weigh stations across the country in partnership with provinces and other regulatory bodies.
• The Labour Program's collaboration with the Canada Revenue Agency and with the Temporary Foreign Worker Program through information sharing arrangements will further strengthen enforcement efforts against misclassification and violations of other legal frameworks.

If pressed about investments from the Government of Canada to address misclassification

• In the 2022 Fall Economic Statement, the former Government took measures to address misclassification and potential non-compliance in the federally regulated road transportation industry by announcing $26.3 million over 5 years, starting in 2023 to 2024.
• The Labour Program created a dedicated team of labour standards inspectors to focus on misclassification of truck drivers across Canada. This work includes outreach, awareness, communications, as well as undertaking inspections and other enforcement activities to obtain compliance with the Code.
• The Labour Program continues to expand partnerships with federal and provincial regulatory agencies to address misclassification. This includes joint outreach activities with provincial counterparts at weigh stations in Quebec, Ontario, Nova Scotia, British Columbia, Alberta and Saskatchewan, educating drivers on their rights and uncovering intelligence and leads on possible misclassification. In some cases, the joint operations include additional partners such as provincial Workers Compensation Boards (WCB) and the Canada Revenue Agency (CRA).

If pressed about Government Action or Enforcement

• Employers who misclassify employees and deprive them of their rights and benefits are in contravention of the Canada Labour Code and may be subject to enforcement measures, such as administrative monetary penalties (AMPs), compliance orders, and payment orders for wages owed to their employees.
• Between April 1, 2024 and November 3, 2025, the Labour Program has issued over 820 payment orders to employers totalling over $4.5 million for unpaid wages and other amounts in the road transportation sector.
• As of October 31, 2025, the Labour Program has issued 22 AMPs to address misclassification in the trucking industry, as well as 30 compliance orders.
• To date, the Labour Program has published the names of 2 employers found to have misclassified employees. More naming of non-compliant employers is expected, as the Labour Program is examining ways of increasing the issuance of AMPs and the public naming of bad actors, as part of a robust review of the AMPs regime.

Issue

Why is the Government conducting a probe on flight attendants' unpaid work? Will it add a definition of "work" in the Canada Labour Code?

Background

Canada Labour Code

• Part III of the Canada Labour Code (Code) sets out standards regarding employment conditions including hours of work, payment of wages, leaves, annual vacations, holidays and rights on termination of employment. There are roughly 1,020,000 employees subject to Part III of the Code who are employed by approximately 18,500 federally regulated private-sector employers and Crown corporations.
• Part III does not include a definition of what constitutes "work". However, the Labour Program has developed Interpretations, Policies and Guidelines (IPGs) that clarify the meaning of "work" to ensure consistent interpretation of the Code. The interpretation of work described in the IPG on hours of work includes training, time spent at the employer's disposal at the worksite waiting to be assigned work, and time spent while on break but remaining at the employer's disposal.
• For flight attendants, approximately 90% of whom are unionized, the meaning of work and the calculation of pay for time worked is negotiated between employers and employees' bargaining agents. The Canadian Union of Public Employees - Air Canada Component (CUPE) agreed to the remuneration formula provided for in the collective agreement that was signed approximately ten years ago with Air Canada.
• Certain divisions under Part III of the Code, including the Minimum Wage and Age of Employment division, do not apply to employees represented by a union, if the collective agreement provides rights and benefits at least as favourable as those provided in those divisions. This means that an employer and a union may negotiate an alternative rate of pay so long as employees receive at least the minimum wage.

Key facts

• In the recent labour dispute between Air Canada and CUPE, CUPE claimed that pre- and post-flight tasks performed by flight attendants are unpaid.
• On August 18, the Minister of Jobs and Families announced the launch of a probe on unpaid work in the airline sector, consisting of consultations to determine whether flight attendants are being paid in a manner that, at minimum, meets the requirements of the Code.
• Following the rejection on September 6 of a tentative agreement reached on August 19 by CUPE members working for Air Canada, which, according to both parties, included pay for time spent performing pre- and post-flight activities, all outstanding issues have been referred to final and binding interest arbitration. In accordance with the terms of the agreement reached, there can be no strike or lockout.
• Four sessions of targeted consultations with stakeholders in the airline sector took place from September 23 to October 3. Stakeholders were invited to provide written submissions until October 17. The Labour Program will publish a What We Heard Report as soon as possible.

Key messages

• The Government of Canada is committed to protecting workers. This includes ensuring that flight attendants, who play a critical role in keeping Canadian passengers safe, can avail themselves of all labour standards rights and entitlements.
• The Labour Program consulted employer and employee representatives in the airline sector to better understand whether flight attendants are paid in a manner that complies with Part III of the Canada Labour Code.
• A What We Heard report summarizing the results of the consultations will be published as soon as possible. The Government will determine appropriate action based on the final report.

If pressed on adding a definition of "work" in the Canada Labour Code

• The Labour Program has developed Interpretations, Policies and Guidelines (IPGs) that clarify the meaning of "work" to ensure consistent interpretation of the Canada Labour Code. The interpretation of work in the IPGs includes training, time spent at the employer's disposal at the worksite waiting to be assigned work, and time spent while on break but remaining at the employer's disposal.

Issue

This document outlines responsive lines regarding the forced labour import ban, due diligence legislation, and An Act to Enact the Fighting Against Forced Labour and Child Labour in Supply Chains Act in preparation for the Honourable John Zerucelli's (Secretary of State, Labour) appearance before the Human Resources, Skills and Social Development and the Status of Persons with Disabilities (HUMA) Committee on November 20, 2025.

Background

• Canada is currently the only country that has both federal supply chain legislation (former Bill S-211, referred to as "The Supply Chains Act") and an import ban on goods produced with forced labour currently in place.
• The previous government's 2021 mandate letters (for the ministers responsible for international trade, federal procurement, public safety and labour) and Budgets 2023 and 2024 included commitments to introduce legislation to eradicate forced labour from Canadian supply chains and strengthen the import prohibition on goods produced using forced labour.
• In 2020, as part of the Canada-United States-Mexico Agreement (CUSMA), Canada amended the Customs Tarriff to include a prohibition on the import of goods mined, manufactured or produced forced labour into Canada.
  • The Canada Border Services Agency (CBSA) is responsible for the administration and enforcement of the import prohibition
  • In Fall 2024, Global Affairs Canada led public consultations with businesses, government entities and civil society organizations on potential measures to strengthen the forced labour import ban
• The Government also supports CUSMA technical-level exchanges among labour, border, and trade officials in the U.S., Canada and Mexico to advance collaboration on forced labour research and enforcement.
• In January 2024, Canada introduced The Supply Chains Act, which requires certain entities and government institutions to report on steps taken to prevent and reduce risks of forced labour in their supply chains. Public Safety Canada is responsible for its implementation.
• On October 21, 2025, Bloc Québécois MP Simon-Pierre Savard-Tremblay tabled PMB C-251. The Bill seeks to strengthen the forced labour import ban by introducing aspects of the U.S. reverse onus enforcement model in Canada. Officials from implicated departments and agencies are closely studying Bill C-251 to better understand its potential impacts. Additional analysis is required to evaluate the bill's feasibility and understand its implications for Canadians.

Key messages

• The Government of Canada believes in the importance of upholding human rights, including international labour standards, in global supply chains.
• The Government will continue to work closely with stakeholders and international partners to address exploitation in supply chains.

Issue

Canada-United States-Mexico Agreement (CUSMA) Review

Background

Key facts

Key messages

• Trade and labour protections are mutually supportive. Canada strives to demonstrate internationally that a competitive economy includes safe, healthy and cooperative workplaces.
• We are committed to continue working with our partners in the U.S. and Mexico on the implementation of the Labour Chapter.
• Suggest that you engage with Minister LeBlanc to further discuss the CUSMA review or matters related to Canada-U.S. trade.

Issue

The Government has launched a Comprehensive Expenditure Review (CER) to ensure spending is responsible, cost-effective and delivers results for Canadians.

Background

• Departments were asked to bring forward ambitious savings to support a phased approach to achieving potential savings of 15% by fiscal year 2028 to 2029, based on planned spending in the 2025 to 2026 Main Estimates.
• This target is ambitious and represents an 'up to' amount, providing the government with flexibility to select proposals that best align with its focus on balancing fiscal discipline, quality service delivery for Canadians, and economic growth.

Key facts

ESDC savings targets have been assigned as follows, based on 2025 to 2026 Main Estimates levels:

• 7.5% in 2026 to 2027
• 10% in 2027 to 2028
• 15% in 2028 to 2029

Budget 2025

Budget 2025 announced $780.5 million in ongoing savings for the Department, following the Comprehensive Spending Review. These savings will be achieved through program optimization and jurisdictional alignment, modernizing government operations and seeking efficiencies through program consolidation.

Key messages

• The Comprehensive Expenditure Review is about ensuring that government spending is responsible, cost-effective and delivers results for Canadians.
• As Secretary of State, I am cognisant of the important role that Government programs and services play in the lives our citizens. Any decisions taken as part of the Comprehensive Expenditure Review will be in the best interest of Canadians, including workers.

Secretary of State (Labour)

Below is a list of funded Budget items under your lead or support for the ESDC portfolio.

Lead

• Program/Initiative 1: Union Training and Innovation Program to Train the Next Generation of Canadian Builders
  • Budget 2025 Announcements 1
    • As announced on October 27, 2025, Budget 2025 proposes to provide $75 million over three years, starting in 2026-27, to Employment and Social Development Canada to expand the Union Training and Innovation Program, which supports union-based apprenticeship training in the Red Seals trades.

Supporting the Minister of Jobs and Families

• Program/Initiative 1: Restricting Non-Compete Agreements
  • Budget 2025 Announcements 1
    • Budget 2025 announces that the government intends to amend the Canada Labour Code to restrict the use of non-compete agreements in employment contracts for federally regulated businesses. The government will launch consultations on proposed legislative changes in early 2026.
• Program/Initiative 2: Protecting Workers Against Wage Theft
  • Budget 2025 Announcements 2
    • The 2024 Fall Economic Statement announced the government's intent to make regulatory changes to substantially increase the penalties imposed on federally regulated employers who commit wage theft. The government remains committed to ensuring workers are protected and compensated for the work they perform. The work to increase penalties is currently underway and consultations with workers and employers on proposed changes will take place over the coming months.
• Program/Initiative 3: Protecting Workers Against Improper Classification
  • Budget 2025 Announcements 3
    • To crack down on employers that misclassify employees, Budget 2025 proposes to provide $77 million over four years starting in 2026-27, with ongoing funding of $19.2 million annually, for the Canada Revenue Agency to implement a program that addresses non-compliance related to personal services businesses, as well as lift the moratorium on reporting fees for services in the trucking industry. Budget 2025 also proposes to amend the Income Tax Act and the Excise Tax Act to allow the Canada Revenue Agency to share information with Employment and Social Development Canada for the purpose of addressing worker misclassification.

Issue

What is your mandate and how are you supporting the Government's priorities?

Background

• The Prime Minister's May 21, 2025, mandate letter asked Ministers and Secretaries of State to "meet a series of unprecedented challenges with both a disciplined focus on core priorities and new approaches to governing."
• The letter outlined seven specific missions:
  • Establishing a new economic and security relationship with the United States and strengthening our collaboration with reliable trading partners and allies around the world.
  • Building one Canadian economy by removing barriers to interprovincial trade and identifying and expediting nation-building projects that will connect and transform our country.
  • Bringing down costs for Canadians and helping them to get ahead.
  • Making housing more affordable by unleashing the power of public-private cooperation, catalysing a modern housing industry, and creating new careers in the skilled trades.
  • Protecting Canadian sovereignty and keeping Canadians safe by strengthening the Canadian Armed Forces, securing our borders, and reinforcing law enforcement.
  • Attracting the best talent in the world to help build our economy, while returning our overall immigration rates to sustainable levels.
  • Spending less on government operations so that Canadians can invest more in the people and businesses that will build the strongest economy in the G7.

Points to Register