Bill C-39: Big Changes Are Coming to Federal Workplace Rules

On September 21, 2026, the federal government tabled Bill C-39 (the "Building Canada Strong Act"), a wide-ranging bill that includes some of the most significant changes to the Canada Labour Code in decades. While the bill's primary focus is the acceleration of infrastructure project approvals, it also introduces major workplace changes of which every federally regulated employer should be aware.

The proposed workplace reforms affect union negotiations, dispute resolution, government enforcement, and the classification of workers. These changes are the product of public consultations held between April and August 2026, where the federal government collected more than 26,000 responses and held 78 sessions with workers, unions, employers, and Indigenous groups.

Union Negotiations and Dispute Resolution

Bill C-39 sets out new timelines and steps designed to get unions and employers talking, and settling, sooner. The bill gives the Minister of Labour new power to appoint a special mediator when parties are struggling to reach, renew or revise a collective agreement. It also creates new rules for first-contract arbitration, something for which unions have long been advocating.

The most controversial piece is the bill's revisions to Code Section 107, permitting the Minister to step in when a labour dispute threatens serious national consequences. While the government insists that this power would only be used as a last resort after a set process has been exhausted, unions are vigorously opposed to this new and expanded governmental power to end a legal strike when the government decides the strike is, or could be, against the national interest.

Enforcement and Worker Mis-classification

Beyond the negotiation and dispute resolution rules, Bill C-39 aims to bolster government enforcement in a significant way, including the hiring of 100 new health and safety officers, boosting inspection capacity by about 70%, and 26 new staff at the Canada Industrial Relations Board to work through the backlog of worker complaints. More inspectors will also be dedicated to cracking down on worker mis-classification (where employers are found to label workers as “independent contractors” in order to avoid their obligations under the Code). The bill also adds new tools to enforce settlements and clarifies how paid medical leave interacts with similar benefits negotiated in collective agreements, an issue that employers have flagged for some time.

Looking Ahead

Bill C-39 is now before Parliament. Its passage is far from certain, and the labour law changes are sure to spark heated debate.

Federally regulated employers (whether in transportation, telecommunications, banking or other sectors) should be keeping a close eye on the bill as it moves forward at the legislature. We will continue to follow the bill’s progress, and we promise to keep you updated.

For more information about Bill C-39 and how it may impact you or your organization, please reach out to Peter Straszynski or another member of our Labour & Employment Group.