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Bill C-39 Expands Federal Intervention in Labour Disputes

By Drooid · · How we work

Core Event

On Monday the Liberal government under Prime Minister Mark Carney tabled Bill C-39, the Building Canada Strong Act, amending the Canada Labour Code. The amendments create a “special mediator” for high-stakes collective-bargaining disputes and require the federal labour minister to weigh the mediator’s assessment against the national interest before directing the Canadian Industrial Relations Board (CIRB) to end a strike or lockout. The government calls the changes “guardrails” that raise the threshold for ministerial intervention while helping parties reach settlements without work stoppages.

Background & Context

Section 107 of the Canada Labour Code already allows the minister to order an end to a labour dispute. Between 2023 and 2025 the government invoked Section 107 ten times in ports, railways, airlines and the postal service. Unions have called for its repeal, saying it undermines collective-bargaining power, while employers argue that strikes in transportation and telecommunications cause “catastrophic supply-chain disruptions.”

Data & Statistics

  • The federal labour code covers roughly 1.4 million federally regulated workers.
  • Government data show a peak of 272 strikes nationwide in 2023-2024, falling to 229 in 2025, with 124 strikes recorded between January and May of the current year.
  • About 95 percent of collective-bargaining negotiations are resolved without a work stoppage.

Official Statements & Responses

Minister of Jobs and Families Patty Hajdu said the reforms require a higher evidentiary bar before intervening, emphasizing that any use of arbitration must be justified. Sean Strickland, executive director of Canada’s Building Trades Unions, warned that removing the right to strike would erode a critical tool for worker safety and livelihoods. Transport Minister Steven MacKinnon linked the bill to faster approvals for major infrastructure projects.

Criticism & Opposition

Union leaders argue the amendments will dilute the right to strike. CUPE national president Mark Hancock said the legislation underestimates the rarity of strikes and threatens bargaining leverage. Labour-studies professor Larry Savage called the special-mediator provision a potential “back door to government-imposed settlements,” tilting the balance toward employers.

Why It Matters

If the minister can more readily direct the CIRB to impose settlements, unions may lose a key bargaining chip, potentially weakening wage growth and workplace safety protections. The government contends that reduced strike risk will give investors greater certainty and keep critical projects on schedule.

Verbatim Quotes

  • “These changes mean the labour minister must meet a higher bar before intervention is possible,” — Patty Hajdu
  • “This bill gives the government the new and expanded power to end a legal strike when it decides the strike is, or could be, against the national interest,” — Bea Bruske, Canada Labour Congress

What’s Next

Bill C-39 has been tabled and will now proceed through parliamentary debate and committee review. Its final form will depend on further amendments and votes in the House of Commons and Senate.