Full Breakdown
Bill C-39 Introduces New Mediation Tool for Canada’s Labour Disputes
By Drooid · · How we work
Background and Legislative Context
The Liberal government tabled Bill C-39 as an omnibus package that amends Section 107 of the Canada Labour Code. Section 107 gives the responsible minister broad authority to “maintain or secure industrial peace,” a power the government has used repeatedly since 2024 to order striking workers back to work and to trigger binding arbitration. Under the new bill, a special mediator may be appointed for up to 21 days; the mediator’s report, including bargaining issues and a likelihood-of-agreement assessment, must be released publicly five days after issuance unless the parties settle. The report would have to be considered before the minister can invoke Section 107. The government frames the change as a “guardrail” that adds transparency and accountability to labour negotiations.
Official Statements & Responses
Jobs Minister Patty Hajdu said the amendment is intended to give unions “new leverage” by making mediators’ findings public, arguing that past bargaining disputes often left unions unable to prove employer misconduct. She emphasized that the public release of a mediator’s report could damage a company’s reputation and shareholder confidence.
He described the legislation as a tool to ensure accountability on both sides of a dispute.
Criticism and Opposition
Bea Bruske, president of the Canadian Labour Congress, warned that the bill expands government power to end legal strikes when they are deemed contrary to the national interest, calling the change “unacceptable” and a breach of the government’s promise to workers.
Cindy Woodhouse-Nepinak, national chief of the Assembly of First Nations, raised concerns that the bill’s accelerated timelines for federal project reviews prioritize investment over the Crown’s honour, potentially sidelining Indigenous rights. She urged that the legislation be matched by thorough parliamentary scrutiny and public review.
Verbatim Quotes
- “It's meant to provide, first of all, another tool to parties to understand what the dynamics are and why they're struggling to get to that deal,” — Patty Hajdu, jobs minister
- “In the past, if an employer was refusing to bargain or was removing things from previous offers or acting in a way that was not bargaining in good faith, the union members could talk about it, but they couldn't necessarily prove it,” — Patty Hajdu, jobs minister
- “ "This bill gives government the new and expanded power to end a legal strike when it decides the strike is, or could be, against the national interest," Bruske said.” — Bea Bruske, labour congress president
- “The truth is that any predetermined timeline, principally designed to attract investment, subordinates the honour of the Crown to commercial imperatives," Woodhouse-Nepinak said.” — Cindy Woodhouse-Nepinak, nations national chief