It's a complete non-story. Nobody in any official, or indeed relevant, position has proposed this. If you actually look up the story he's only been banging on about civil stuff (divorce and financial arrangements) that only matters to those involved. Anyway, it isn't going to happen.
Whatever officially is or isn't happening isn't my place to say, since I'm not a resident of your country and since it has little direct influence on our daily lives in this country.
What I do feel I have a right to say is that it doesn't matter only to those involved. It matters to the an entire free nation that all people are treated equally and given equal rights under the law of the land (whatever that law may be).
Say for example a woman wants a divorce from her husband. If the general law of the land allows for that to happen, then she should be allowed to get one. There shouldn't be a separate laws saying, "oh, by the way, people of this religious group aren't entitled to the same legal procedures simply because their religion doesn't support it." I don't care if it is Sharia law, Talumdic law, Catholic law, Mormon law or Scientologist law. At any point in a person's life s/he should have the right to either renounce his/her religion or say, "even though my book of worship and my over-riding religious authority says xyz I don't believe I should be bound by those dictates, and I am free to chose the opposite path."
By running alternative systems of law (or faith-based arbitration) for matters of civil disputes, there is an unfair burden placed on the parties involved, especially if one of the parties is living under a system that doesn't recognize equality between the people involved due to race, gender, sexual orientation, etc. In those cases pressure from the societal group can become over-whelming and can prevent a person from acting in his/her own self-interest.
This province flirted with accepting limited use of Sharia law for family disputes, but the idea was eventually rejected by our government. The sad part it that it took the possible implementation of Muslim-based system to move the people to action, whereas the implementation of Catholic and Jewish-based systems a few years earlier didn't cause any uproar.
Thankfully the Premier got this one call right and said that there would be no place for any religious-based parallel system in the future.
In case anybody is interested this
link provides some background as to what happened in Ontario, as does the embedded link within the story.