Canadian Commissionaires Warn End of Federal Contracting Privilege Could Threaten Veterans’ Jobs

By: Ebenezer Adugyamfi & Emmanuel Ayiku for GhanaianNewsCanada
22 OCTOBER 2026

Canada’s decision to end a decades-old policy giving the Canadian Corps of Commissionaires priority access to federal security contracts is facing renewed criticism, with the organization warning that the change could undermine employment opportunities for military veterans.

The policy, known as the “right of first refusal,” has been in place since 1945. It was established after the Second World War to help former members of the Canadian Armed Forces transition into civilian life by providing employment in security services at federal government buildings and facilities.

Under the arrangement, the Commissionaires receive priority consideration for many federal security guard contracts before those opportunities are opened to other providers.

However, the federal government has decided not to continue the policy beyond March 31, 2027, with plans to move towards a competitive procurement system in which security companies compete for government contracts.

The Commissionaires argue that ending the arrangement could put their business model and the jobs it supports under pressure. The organization has said it risks losing access to contracts worth approximately $330 million annually and has launched legal action challenging the government’s decision.

The dispute has become a broader debate over whether federal procurement should be used not only to obtain security services at competitive prices but also to support veterans who need meaningful work after leaving military service.

An 80-year commitment to veterans

The Canadian Corps of Commissionaires was established to provide security services while creating employment opportunities for veterans.

Former military personnel often leave service with valuable experience in discipline, risk management, emergency response and security operations. However, transitioning into civilian employment can present challenges, particularly for those who need to retrain or adapt their military experience to civilian workplaces.

The right of first refusal was designed to help address that challenge by linking the federal government’s need for security personnel with the Commissionaires’ social mission.

Over the years, the organization has become one of Canada’s largest private-sector employers of veterans. It operates nationally and provides security services at government facilities and other locations.

The Commissionaires employs approximately 20,000 people, including around 3,500 veterans, according to figures reported earlier this year.

Its leadership maintains that the federal contracting arrangement has helped sustain an employment pathway for former service members and their families.

The organization also argues that its not-for-profit structure and veteran-focused mission distinguish it from commercial security companies whose primary objective is to generate profits.

Ending the preferential arrangement, it warns, could expose the organization to greater competition and make it more difficult to maintain the same level of veteran employment.

Why is the federal government ending the policy?

The government says the decision reflects changes in the labour market and questions about whether the existing arrangement remains effective in supporting veteran employment.

A central issue is a longstanding requirement that at least 60 per cent of the hours worked under contracts awarded through the right of first refusal should be performed by veterans.

According to government documents discussed in Parliament, the Commissionaires have struggled to meet that target for more than a decade. Government figures cited in October parliamentary debate indicated that veterans accounted for approximately 27 per cent of hours worked under the arrangement during the first quarter of the 2025–26 fiscal year.

The government argues that a policy created in the aftermath of the Second World War must be reassessed to ensure it continues to achieve its intended purpose under present-day conditions.

Officials have also pointed to the changing employment patterns of veterans, many of whom now pursue careers across a wider range of sectors, including technology, logistics and other skilled professions.

The government says its broader National Veteran Employment Strategy will continue to support former service members as they seek civilian employment.

However, critics argue that ending the contracting privilege does not automatically provide a replacement for the jobs and opportunities that the arrangement currently supports.

Commissionaires challenge the decision

The Commissionaires have expressed disappointment with the government’s decision and questioned why the policy is being terminated rather than modernised.

The organization has argued that the government could have worked with it to revise the existing requirements, develop alternative performance measures or introduce a transition plan that preserves meaningful employment opportunities for veterans.

The organization has also raised concerns about the potential financial consequences of losing priority access to federal contracts.

Its legal challenge seeks to contest the government’s decision, while the wider dispute has drawn attention to questions about consultation, procurement rules and the government’s obligations towards veterans.

The organization maintains that its social mandate should be considered when federal officials decide how security services are purchased.

The government, meanwhile, has indicated that the Commissionaires will still be able to compete for contracts under the new procurement framework.

That distinction is important: the decision does not prohibit the organization from providing security services to the federal government. Rather, it removes the preferential arrangement that has historically given it priority.

Political pressure mounts in Parliament

The decision has prompted criticism from opposition politicians and other advocates for veterans.

Conservative veterans affairs critic Blake Richards has argued that if the government proceeds with ending the arrangement, it should ensure that the replacement procurement system gives meaningful consideration to organizations that employ veterans.

New Democratic Party MP Gord Johns has also criticised the decision, arguing that the government should work with the Commissionaires to improve the policy rather than abolish it.

During parliamentary proceedings in October, opponents raised concerns about the potential impact on veterans, their families and communities where the organization provides employment.

Supporters of maintaining the arrangement argue that federal procurement can serve a wider public purpose. In their view, the government should consider not only the cost of security services but also the social benefits of providing former service members with stable civilian employment.

The government’s position is that veteran employment remains a priority, but the existing contracting arrangement has not consistently met its stated target.

The disagreement therefore centres on whether the shortcomings of the policy justify ending it or whether they should instead lead to reforms.

The role of private security companies

The move towards competitive procurement could create greater opportunities for commercial security providers to bid for federal contracts.

Private companies have challenged the preferential arrangement over the years, arguing that government security work should be allocated through a more competitive process.

A report published by the International Journalists’ Network in September 2026 examined the lobbying surrounding the policy change and the growing role of private security providers in federal contracting.

The debate has raised questions about how the government balances competition, value for money and social policy objectives when awarding contracts.

Supporters of a competitive system argue that open bidding can allow the government to compare prices, service quality and operational capacity across different providers.

Critics counter that the lowest-cost or most commercially competitive option may not necessarily deliver the same social benefits as a system that deliberately creates jobs for veterans.

The government will face pressure to demonstrate that the new system can maintain reliable security services while continuing to provide meaningful employment opportunities for former service members.

What happens after March 2027?

The current arrangement is scheduled to end on March 31, 2027, giving the Commissionaires and the federal government a transition period before the new procurement approach takes effect.

The outcome of the legal challenge and any further government measures could influence how the transition unfolds.

A key question is whether the government will introduce specific requirements or incentives to encourage successful bidders to hire veterans.

Without such measures, critics fear that veteran employment could become a secondary consideration in contract decisions.

Another question is whether the Commissionaires can remain competitive against commercial providers while maintaining its veteran-focused mission and national operations.

The government has said the organization’s experience and established record in delivering security services should position it to compete in the new environment. The Commissionaires, however, believes removing its priority status creates a significant risk to its operations and the employment opportunities it provides.

A wider debate about supporting former service members

The dispute extends beyond the security industry. It raises a broader question about how Canada should recognise the contributions of veterans after their military careers end.

Leaving the armed forces can mean adjusting to a different working environment, finding employment that recognises military experience and managing the financial and personal challenges associated with the transition to civilian life.

For supporters of the Commissionaires, the right of first refusal represents a practical way for the government to use its purchasing power to help veterans secure jobs.

For those favouring competitive procurement, the existing system must demonstrate that it remains effective, delivers value for taxpayers and meets its veteran-employment commitments.

Both sides face a test: the government must show that its replacement approach will not abandon veterans who rely on security-sector employment, while the Commissionaires must demonstrate how its model can continue to meet the needs of veterans and federal clients.

As the March 2027 deadline approaches, the central issue will be whether Canada can reform its approach to government security contracts without weakening the employment support that the policy was originally created to provide.