Canada introduces Bill C-39 to reform federal labour laws

The Canadian federal government has introduced Bill C-39, also known as the Building Canada Strong Act, to amend the Canada Labour Code. The proposed legislation aims to streamline project approvals and introduce new mechanisms to resolve industrial disputes in federally regulated sectors, including rail, ports, airlines, and banking.

A central feature of the bill is the creation of a special mediator role to assist when collective bargaining reaches a deadlock. The legislation also seeks to clarify Section 107 of the labour code, which governs the labour minister’s authority to end strikes or lockouts. Under the new rules, the minister would be required to weigh a mediator’s assessment against the national interest before intervening.

Reactions to the bill are divided. Employer groups, such as the Federally Regulated Employers — Transportation and Communications (FETCO), have expressed encouragement, noting that the changes could help stabilize collective bargaining and provide better resources for resolving grievances.

Conversely, labour leaders have criticized the measures. Bea Bruske, president of the Canadian Labour Congress, described the bill as an “attack on the workers’ rights” to use strike leverage. The Canadian Labour Congress is currently reviewing legal options and may challenge the legislation in court.