Question Period Note: Discrimination lawsuit against on-reserve oil and gas agency

N.A.

• The Government of Canada is firmly committed to ensuring the health, safety and well-being of all government employees and takes all allegations of harassment and discrimination very seriously.

• As we respond to questions of law in court, the government is simultaneously working to eliminate racism and discrimination by creating support and developing programs. We know there is more to be done.

• Indian Oil and Gas Canada continues to take steps to ensure that the workplace is free of harassment and discrimination.

On September 14, 2021, Canada was served with a proposed class action lawsuit which alleged harassment and discrimination in the workplace on the basis of race, culture, ethnicity or gender at Indian Oil and Gas Canada (IOGC), Indigenous Services Canada (ISC), Crown–Indigenous Relations and Northern Affairs Canada (CIRNAC), and the former Indigenous and Northern Affairs Canada.

In March 2023, the plaintiffs narrowed the proposed class to current and former Indigenous employees of, and contractors with, IOGC only (excluding the deputy head and those in the Executive Division). The claim advances allegations of systemic negligence as a result of systemic bullying, discrimination, harassment, and intimidation of Indigenous employees in the workplace and so now focuses clearly on race based discrimination rather than on gender and race based discrimination.

IOGC was created in 1987 and is a separate operating agency within the Lands and Economic Development Sector of ISC. Its offices are located on the reserve lands of Tsuutʼina Nation southwest of Calgary.

Both representative plaintiffs identify as Indigenous women. Ms. Zentner was an
employee from 1997 until she retired in May 2024. Ms. Wells was a term employee and left the organization at the conclusion of her term in 2020.

On September 22, 2023, the plaintiffs filed with the court their notice of motion for certification and supporting affidavits.

On April 16, 2024 Canada filed a motion to strike the claim on jurisdictional grounds along with supporting affidavits from ISC, Public Service Commission, and Treasury Board.

On July 17, 2025, Canada filed its response to the plaintiffs’ certification motion and its reply to the plaintiffs’ response to Canada’s motion to strike.

On September 15, 2025, the plaintiffs filed their reply to Canada’s response to the certification motion.

The hearing date for the motion to strike and certification motion is November 4-6, 2025.

Under the FPSLRA, federal employees can present grievances on any matter affecting their terms and conditions of employment, including harassment and discrimination, and grievances can be referred to an independent federal labour relations board for independent adjudication.

As per section 236 of the FPSLRA, the courts do not have the authority to intervene in disputes between the employer and employees so as not to undermine the comprehensive labour grievance process established by Parliament. The grievance rights afforded by the FPSLRA are in lieu of any right of action that an employee may have in relation to a grievable issue. Therefore, the grievance process cannot be circumvented by separate action. The government's response to the Zentner class action is consistent with the existing legal framework for complaints of this nature.

If pressed on the allegations being made
• The Government has been served with a proposed class action lawsuit which alleges harassment and discrimination at Indian Oil and Gas Canada.

• As the class action lawsuit is before the courts, the Government is unable to provide further specific comment at this time, or to comment on specific cases, other than to confirm that the allegations are taken seriously and will be addressed as part of the litigation process. If pressed on why the Government filed a motion to strike the claim
• Workplace disputes can be settled quickly and fairly through internal procedures instead of the courts, including at Indian Oil and Gas Canada. For employees with terms of more than 3 months, these matters can be grieved under the Federal Public Sector Labour Relations Act (FPSLRA).

• Under the FPSLRA, employees can file grievances on harassment, discrimination and other issues. Employees cannot use the courts to address workplace disputes if there are already internal procedures to address them.

• Employees in the public service and Indian Oil and Gas Canada have access to a range of options to resolve grievances which includes an appeals process.

• The government's response to the Zentner class action is consistent with the existing legal framework for complaints of this nature.