Bill C-39 is the Government of Canada’s bold plan to build a stronger, more resilient economy by streamlining federal approval processes, protecting workers, modernizing labour relations, and advancing environmental sustainability and Indigenous reconciliation.

The world is changing rapidly. In response, the Government of Canada is focused on what it can control, building a stronger, more independent, and more sustainable economy. With the right foundations in place, Canada is diversifying our trade, developing our natural resources, maintaining strong environmental standards, and upholding the rights of Indigenous Peoples.

As Canada attracts new investment, builds major projects, and strengthens domestic supply chains, it is equally important to ensure that workers have strong protections, safe workplaces, and a modern labour framework that supports constructive labour relations and economic security.

Bill C-39 will create the conditions needed for investment in projects that support jobs and economic growth, and improve the safe, secure, and efficient movement of goods across the country while protecting the environment and upholding the rights of Indigenous Peoples. It will also support workers and fairer workplaces by modernising the federal labour relations framework and strengthening protections for workers in federally regulated industries. These measures represent the most ambitious and comprehensive reforms of federal approval processes in a generation, and will help position Canada to compete on the global stage.

In parallel with this legislation, the Government of Canada has issued a Cabinet Directive on Getting Projects Built in Canada to guide departments in implementing their new authorities under Bill C-39. This directive ensures that internal decision processes with no timelines outlined in federal legislation are also completed in one year and in alignment with the government’s priorities for economic growth and security, Indigenous reconciliation, and environmental protection, including through applying a mitigation hierarchy policy to addressing project impacts, in alignment with Canada’s Nature Strategy.

Part 1: Build Canada now

Canadian laws and regulations ensure projects are built responsibly, protect the environment, support workers, and uphold the rights of Indigenous Peoples. Overlapping requirements, duplicative processes, and lengthy timelines can delay projects and create uncertainty, making it harder to attract investment and put capital to work in Canada.

With growing global competition for investment, Canada must have a regulatory environment that is clear, efficient, predictable and rigorous. That is why the Government of Canada is proposing changes to modernise the regulatory and permitting system to simplify processes, reduce duplication, and give investors greater certainty to deploy capital and build projects, while maintaining strong environmental protections and respecting Indigenous rights.

The new process will:

• establish a one-year timeline for federal decisions to provide greater certainty for investors and project proponents;
• assign responsibility and authority for certain projects to a single expert federal project assessor, implementing a “one window” approach;
• strengthen coordination between permitting and assessment processes to reduce duplication and delay;
• enable one federal decision for impact assessment and permit decisions under the Impact Assessment Act;
• ensure coordinated and meaningful federal consultation processes with Indigenous Peoples through a new Crown Consultation Hub;
• enable Regions of National Interest through regional impact assessments; and
• not alter northern impact assessment and permitting co-management regimes, which are derived from modern treaties.

1.1 Efficient federal reviews and decisions

In the past, projects have often waited more than five years for the federal decisions needed to begin construction. These reforms will enable the federal government to complete necessary federal reviews and decisions within a maximum of one year once all information has been received, while upholding environmental standards and respecting Indigenous rights. These measures will:

• Give a clear mandate to the lead assessor (e.g. Impact Assessment Agency of Canada (IAAC), Canada Energy Regulator (CER), or Canadian Nuclear Safety Commission (CNSC)) to coordinate assessments and federal permitting processes, including Crown consultations ensuring they meet timelines. The CER and CNSC are experts in clean, conventional, and nuclear energy projects, and they will be empowered to conducts assessments on projects in their respective areas of expertise.

This one-year federal review and decision timeline begins once proponents have submitted their comprehensive applications and finalised studies and information for permitting and impact assessment. This one-year timeline includes the necessary time for the federal government to complete assessments, consult with Indigenous Peoples and the public, confirm potential impacts and mitigation measures, and make final decisions on project approvals. The Minister of Environment will be empowered to issue a single approval document on behalf of other Ministers and departments, reducing duplication and delays. This proposed process includes flexibility for proponents to opt out of the one-year timeline, should they require more time on assessments or a certain permit. The Minister of Environment would continue to be the decision-maker; the respective permit decision would simply be delayed until after the impact assessment decision statement is issued. This flexibility would be helpful for proponents who do not have financing to meet the information requirements for all permits at the same time as the impact assessment.

The new process will not change Canada’s duty to consult Indigenous Peoples or its obligations under modern treaties for impact assessments under the Impact Assessment Act (IAA), or federal permitting. The proposed amendments to the CER Act will explicitly allow timelines to be extended to complete Indigenous consultations. Regulations under the Impact Assessment Act (IMTLs) will also be updated to allow for timelines to be suspended where necessary to complete Indigenous consultations.

For projects regulated by the CER and CNSC, there are additional proposed legislative changes introducing shorter statutory timelines, redesigned process steps, and changes to final decision-making authority that will enable lifecycle regulators to support efficient reviews and decisions.

1.1.1 Federal coordination

This legislation will confirm the Impact Assessment Agency of Canada’s mandate to oversee a more efficient and coordinated federal review process. The IAAC will work with departments to ensure impact assessments and reviews for federal permits can occur concurrently, or to support federal coordination when multiple permits are needed for a project, enabling federal reviews and decisions to be completed within a maximum of one year.

The CER and the CNSC will have a mandate to conduct robust assessments and coordinate permitting with federal authorities for projects they regulate.

Separately, Transport Canada will establish a Transportation Projects Office to facilitate coordination for all remaining transportation projects not coordinated by IAAC, CER or CNSC, or those listed under the Building Canada Act (BCA). The focus would be on streamlining processes, better coordinating consultation on regulatory approvals and permits, and removing duplication and administrative barriers. Railroads, airports, bridges, and highways are essential supply chain infrastructure, and the Transportation Projects Office will ensure projects are decided on efficiently.

Canadian Northern Economic Development Agency (CanNor), through its Northern Projects Management Office, will continue to coordinate federal decisions for projects in the territories.

1.1.2 One project, one decision, in one year

Currently, projects can face separate reviews by multiple federal departments and decisions from several ministers, creating duplication, delays, and uncertainty for proponents, investors, and communities. The proposed changes will replace this with concurrent federal reviews that require a full assessment by the Impact Assessment Agency of Canada, leading to one federal decision. Departments will work together to coordinate information requirements, assess impacts, identify mitigation measures, and provide integrated advice on impact assessments and permits – making the process simpler, faster, and more predictable.

Once a project is assessed, a single decision document would be issued by the Minister of Environment, with all required federal approvals, enforceable conditions, and mitigation measures. For projects with potential significant adverse federal impacts, impact assessment decisions would be made jointly with the minister responsible for the relevant sector, with the option to refer decisions to the Governor in Council.

Permits will continue to be enforced by responsible departments under existing legislation.

One project, one decision would not apply to projects regulated by the CER or the CNSC. A second process coordinated by the CER and the CNSC would apply to projects regulated by these entities to allow for a single project authority. Permitting and assessments would be coordinated with other departments, so those decisions are made at the same time as the CER or CNSC decisions and project proponents receive all federal decisions in a coordinated manner.

1.2 Strengthened crown consultation

Over the past several years, Indigenous Peoples have told the Government of Canada that project consultations can be duplicative, burdensome, and difficult to navigate. Federal departments and agencies need to better coordinate consultations to reduce duplication and support the meaningful participation of Indigenous communities.

The proposed legislation will amend the Impact Assessment Act and the Canadian Energy Regulator Act to formalise the roles of the Impact Assessment Agency of Canada, the CER, and the CNSC in coordinating Crown consultations. These amendments will support the Government of Canada in delivering one comprehensive consultation process per project, per Indigenous community.

Complementary to the proposed legislation, the Government of Canada will establish a Crown Consultation Hub within the Impact Assessment Agency of Canada to improve the coordination, consistency, and efficiency of federal consultation on projects, other than those led by the CER or the CNSC.

The IAA’s Crown Consultation Hub will:

• serve as the centralized federal lead for consultation with Indigenous Peoples, coordinating departments and agencies who will continue carrying out consultation and engagement activities directly with Indigenous communities;
• help identify and address concerns of Indigenous communities early;
• improve coordination with provincial consultation processes; and
• provide guidance to federal officials and project proponents on meaningful engagement and consultation with Indigenous communities, including with the aim of securing free, prior, and informed consent.

The proposed Hub would not oversee Crown consultation led by the CER or the CNSC, or federal Crown consultation coordinated by the Major Projects Office or CanNor’s Northern Projects Management Office in the territories.

Canada will continue to fulfill its duty to consult and, when appropriate, accommodate Indigenous Peoples, and remains committed to fulfilling consultation requirements set out in modern treaties. The proposed approach outlined in the legislation and through the creation of the Hub will not remove consultation requirements or add new steps for Indigenous communities. Instead, it will create a more streamlined and coordinated process to alleviate administrative burdens associated with participating in federal consultation processes. It will support the meaningful participation of Indigenous communities, while also ensuring more coordinated and timely project decisions.

1.3 Simpler and clearer

The legislation proposes simplifying Canada’s regulatory system by:

• assigning responsibility and authority for certain projects to a single federal project assessor; and
• building an effective, modern, and efficient regulatory environment.

1.3.1 Single project authority

These changes will maintain assessment, permitting, and consultations, while putting the best-placed federal regulator in the lead. Environmental, health, social, economic, and Indigenous considerations will continue to be assessed and addressed with rigour. For pipelines, transmission lines, and certain offshore renewable energy projects regulated by CER (any offshore project not subject to the joint federal-provincial management boards with Nova Scotia and Newfoundland and Labrador), the CER will conduct the assessment under the Canada Energy Regulator Act, rather than through an integrated review panel with the Impact Assessment Agency. Since the introduction of the integrated review panel process in 2019, no project has met the threshold to be assessed by a panel.

For nuclear and uranium projects, the Canadian Nuclear Safety Commission (CNSC) will conduct impact assessments under the Impact Assessment Act, replacing the current integrated panel with the Impact Assessment Agency of Canada. The CNSC will continue to regulate these projects under the Nuclear Safety and Control Act.

1.3.2 Building an effective, modern, and efficient regulatory environment

Canada needs a regulatory system that moves at the speed and scale our economy demands. The Government of Canada is proposing changes to modernise outdates requirements, reduce duplication, and move projects from application to construction faster.

Adjustments to the Impact Assessment Act and other acts and regulations

Adjustments to the Building Canada Act

Adjustments to the Species at Risk Act (SARA)

Adjustments to the Canadian Navigable Waters Act (CNWA)

Adjustments to the Fisheries Act

Examples of proposed changes to Disposal at Sea Permitting Regimes

1.4 Enabling Regions of National Interest

The proposed legislation will build on the Government’s current approach to regional assessments by enabling the listing of Regions of National Interest under the Building Canada Act. These regions could include areas such as transportation or energy corridors, telecommunications networks, energy production and transmission systems, and industrial regions, and could be established for current or future development needs.

Under the proposed process, a regional assessment will first be conducted under the IAA that would clearly identify the geographic area of the region(s), types of activities in the region and standard conditions or mitigation measures for those activities to proceed in that area. These assessments would be comprehensive and examine the cumulative effects of current and foreseeable activities in the area, including through consultation with Indigenous Peoples.

Once the regional assessment is complete, the Minister of One Canadian Economy will make a recommendation to the Governor in Council for consideration. If listed as a Region of National Interest, certain developments identified through the assessment can be considered pre-approved, subject to conditions and mitigation measures. Additional projects not assessed as part of the regional assessment that could have environmental or other effects would require supplementary assessment and consultation.

The approach will simplify permitting, reduce the need for individual project reviews in areas with multiple similar projects, lower investor risk, and support earlier, more coordinated long-term regional development planning in the national interest, giving investors greater certainty to deploy capital, advance projects quickly, and create high-paying Canadian careers.

Indigenous consultation will be a key part of the process, including identifying geographic boundaries, culturally sensitive areas impacts, opportunities, and development conditions, while coordination and agreement with provinces would also be essential to enable projects to be streamlined under both federal and provincial processes.

Canada’s Nature Strategy, including biodiversity, ecological, and carbon mapping data, along with mitigation hierarchy principles, will support the identification and assessment of these regions.

1.5 Maintaining rigorous assessments

Strong environmental oversight, transparency, and meaningful participation is central to the Government of Canada’s approach. The proposal will not remove requirements for impact assessment, permitting, or consultation.

The proposal would change who leads the assessment, not the requirements or standards that apply.

Requirements for impact assessments, permitting, and consultation will remain in place. The CER will become the single authority responsible for assessing pipelines, transmission lines, and certain offshore renewable energy projects, and the CNSC will become the single assessor for conducting the impact assessment of nuclear and uranium projects that are subject to the Impact Assessment Act. Both the CER and CNSC will continue to apply existing review standards and safeguards, including consideration of environmental, health, social, economic, and Indigenous impacts.

Part 2: Keep Canada moving

As the global economy shifts, Canada is moving with speed to diversify our trade, attract new investment, and building a stronger, more resilient, and more independent Canadian economy. This means creating a regulatory system that gives industry the speed and certainty to put capital to work, get projects built quicker, and compete globally while maintaining strong safety and environmental standards, and upholding Indigenous rights.

The legislative changes proposed in Bill C-39 will modernise Canada’s transportation system to build stronger supply chains, unlock generational investment in trade infrastructure, and better connect Canadian businesses to markets at home and globally. These changes will reduce bottlenecks, better integrate Canada’s trade corridors, and make the system easier for businesses to navigate, helping goods move faster, lower costs, and strengthening Canada’s ability to compete.

Part 2.1 Strengthen Canada’s trade corridors and ports

The legislation will transform Canada’s transportation system from fragmented networks into integrated national trade corridors designed to move goods faster, strengthen supply chains, and connect Canadian businesses more efficiently to global markets.

The proposed measures will:

• modernize Canada’s National Transportation Policy, within the Canada Transportation Act, to embed supply chain efficiency;
• set performance metrics to allow for corridor-based key performance indicators and facilitate greater planning and collaboration amongst all transportation providers involved in the corridor;
• designate National Trade Corridors to help different parts of the system work better together and track how well things are running; and
• grant the Minister of Transport the authority to create a National Trade Corridors Council to identify areas causing delays, suggest ways to make the system more efficient, and make stronger, more coordinated decisions.

These changes will move goods faster from where they are made to domestic and international markets, reduce delays at supply chain chokepoints like ports and railyards, and make shipping more reliable for businesses.

These legislative changes and measures will create a more modern and business-focused governance framework to make Canada’s ports more competitive and commercially oriented. They will help port authorities attract investment, expand, and grow exports. Based on the outcomes of the 2018 Ports Modernization Review and what was heard through engagements, this legislation proposes new measures that will:

• create a modern governance system that gives ports additional commercial and financial flexibilities to generate revenue, build key infrastructure, and increase trade;
• encourage ports to work together to improve efficiency, coordination, and competitiveness;
• strengthen Board governance and the performance of Canada Port Authorities (CPAs), by creating new authorities to improve transparency and oversight;
• enable CPAs to manage navigation interferences within their respective areas of administration to reduce duplication; and
• create new tools for the Government of Canada to keep the St. Lawrence Seaway operating reliably, supporting stable trade, and protecting operations in times of change.

Proposed amendments to the Canada Marine Act and Canada Transportation Act will also enable enhanced oversight of investments and supply chains, including through enhanced information and data collection. The amendments would also lower the financial threshold for transactions that are required to provide notification and clarify that terminals operating at Canadian Port Authorities are works for the general advantage of Canada.

Part 2.2 Regulatory certainty and red tape reduction

A clear and simple regulatory system helps businesses invest, grow and stay competitive, while maintaining strong safety and environmental standards and the Duty to Consult. This legislation proposes changes that advance flexible, efficient regulations to make it easier for Canadian businesses to build, invest, operate, innovate, and expand without compromising the high regulatory standards for quality, safety and sustainability.

Trade digitalization provides Canada with an opportunity to modernise how trade information is exchanged and used, reducing the administrative burden on industry and implementing a more connected approach making trade faster, simpler, and more efficient.

At the heart of this approach is a core digital government principle: "Tell Us Once, Tell us Digitally." Businesses should only have to provide the same trade information once, with authorized information securely reused across government rather than being requested multiple times. To help make this possible, Canada is reviewing relevant laws and regulations to identify and remove barriers to the electronic exchange and use of trade information and documents within the federal government. Proposed changes would reduce duplicative information requirements, enable greater data sharing across government, and make it easier to use electronic trade documents.

The proposed changes would simplify rules and approvals and maintain Canada’s high standards, by:

• amending provisions in the Canada Transportation Act to support a “Tell-Us-Once” approach – reducing the need for companies to submit the same information separately to different departments. removing some reviews, which would exclude trucking, bus, electrical transmission, and pipeline transactions from merger reviews under the Canada Transportation Act;
• aligning more quickly with international standards, through new ministerial authority to adopt standards or obligations Canada has already agreed to;
• clarify the validity of electronic transferable records in accordance with the UNCITRAL to ensure that that these documents can be easily exchanged in the context of international trade processes;
• enable the sharing of trade and administration data among departments and agencies to avoid importers and exporters having to share the same information to multiple federal departments and agencies;
• speeding up approvals for lower risk projects, such as transferring minor approvals under the International Bridges and Tunnels Act to the Minister of Transport;
• clarify that railway line construction approval under the Canada Transportation Act is not needed when the project has been reviewed under the IAA;
• update existing exemptions in the Canada Transportation Act permitting railways to construct within 300 meters of an existing railway line for up to five km (current exemption is within 100 meters for up to three km);
• clarifying competition rules in the marine sector by repealing the Shipping Conferences Exemption Act;
• reducing unnecessary reporting requirements by simplifying obligations under the Marine Liability Act and aligning compliance and enforcement tools;
• providing flexibility under the Coasting Trade Act to address federal, provincial or territorial declared emergencies by permitting foreign vessels to temporarily undertake activities without obtaining a coasting trade licence; and
• extending the interswitching pilot in the prairies for 48 months to give shippers increased options. This will only be brought into force at a time when there is a reliable trading relationship with the United States.

These measures will support competitive and resilient supply chains, improve system flexibility and help move key goods, such as grain, more efficiently.

Part 2.3 Modernize transportation security clearances

Airports and ports are critical gateways for Canadian trade, making their security essential to protecting our supply chains. Their scale and complexity also create vulnerabilities to insider threats, where individuals with legitimate access can exploit their positions to facilitate the movement of illicit goods. World Customs Organization data indicates that insiders play a significant role in illicit activity across global supply chains.

The current Transportation Security Clearance Program was initiated just over 40 years ago and mainly focuses on transportation-specific risks within some aviation and marine facilities. While this approach works well for its original purpose, it’s less effective at addressing wider public safety. The program’s scope limits our ability to consider other relevant information, like any links to organized crime or patterns of suspicious activity, when assessing whether someone should have access to trusted positions within the transportation system.

To address these vulnerabilities, Transport Canada is proposing to modernize the Transportation Security Clearance program through legislative amendments to the Canada Transportation Act. These amendments would expand the Minister’s authority in four ways:  

• Broadening the use of clearances, by applying Transportation Security Clearances to roles and functions across transportation. 
• Expanding risk assessments to consider a wider range of risks like public safety and transportation integrity.  
• Enhancing information sharing while protecting the sensitive nature of that information and balancing fairness to individuals. 
• Improving program integrity with clear accountability, compliance and new enforcement measures. 

Changes to the Act will establish a foundation upon which further consultation and policy work would be undertaken to develop future regulations in this area. The existing Transportation Security Clearance regime remains in place until further consultations have been held, and subsequent regulations developed.

Part 3: Canada Strong for all

Canadian workers are at the heart of Canada’s economic strength. As we unlock investment, build major projects, and strengthen supply chains, we must ensure workers have strong protections, safe workplaces, fair wages, and the economic and job security to succeed in a changing economy.

This is particularly important in federally regulated sectors, such as ports, rail, air transportation, telecommunications, banking, and marine transportation, which are essential to Canada's economic growth.

Changing workplaces, economic uncertainty, and growing demands on critical infrastructure also call for modern labour relations institutions, strong worker protections, and a framework that supports adaptation, productivity, and economic resilience in federally regulated sectors. While approximately 95% of labour disputes in these sectors are resolved without a work stoppage with the help of the Federal Mediation and Conciliation Service (FMCS), recent consultations also identified a need for modern, flexible tools that reduce reliance on brinksmanship that can lead to dysfunctional bargaining dynamics, and helps parties address workplace challenges before they escalate into disputes.

Bill C-39 will support federally regulated workers and industries by:

• modernizing collective bargaining and increasing supports to reach deals at the bargaining table;
• clarifying the circumstances under which government action could be taken in rare disputes that are unresolved and that have consequences far beyond the bargaining parties; and
• strengthening worker protections and modernizing workplaces.

The approach includes amendments to Part I (Industrial Relations) of the Canada Labour Code (Code), Part III of the Code, the Wage Earner Protection Act, and a suite of non-legislative measures. These measures will contribute to safer workplaces, fairer treatment for workers, greater income security, and a strengthened labour relations framework across federally regulated sectors.

The proposed approach builds on the spring and summer 2026 consultation held by Employment and Social Development Canada and the 2025 Industrial Inquiry Commission on West Coast Ports report.

3.1. Strengthening collective bargaining and preventing disputes

Part I of the Code governs workplace relations and collective bargaining between unions and employers in federally regulated private sectors. It applies to more than one million employees and more than 22,000 employers.

The legislation will amend Part I of the Code to require earlier engagement in difficult bargaining relationships, expand mediation and dispute-resolution tools, encourage good faith bargaining, and strengthen labour-management relationships. As the current framework delivers positive outcomes in most cases, the approach focuses on adding additional tools and flexibility to help address the limited number of cases that remain difficult to resolve.

Post-dispute remediation

Earlier support for high-risk bargaining relationships

Additional time for negotiated settlements

Geographic certification

The legislation will amend Section 34 of the Labour Code to allow unions, employers, the Minister or the CIRB to initiate a geographic certification application.

Expedited grievance arbitration

All collective agreements must contain grievance resolution mechanisms, but in some sectors, grievances can accumulate into significant backlogs that strain labour relations and make disputes harder to solve. This legislation will enable future regulations to establish expedited grievance arbitration processes to address systemic backlogs, and support more timely, constructive labour relations.

Helping foster good-faith bargaining

The legislation will introduce a regulatory authority to establish an administrative monetary penalty regime, to address bad-faith bargaining.

Enhanced support for first collective agreements

Establishing a union can result in workplace tensions that, when coupled with a new collective bargaining process, can negatively impact the ability to settle a first collective agreement. The legislation will strengthen support for first collective agreement negotiations by requiring the FMCS to work with the parties once a copy of the union certification order is issued. FMCS will help newly unionized parties, build positive relationships, address differences at the beginning of negotiations, and establish a first collective agreement.

The legislation will allow either party to apply to the Canada Industrial Relations Board (CIRB) to direct a binding method of resolution when a first collective agreement has not been entered into after nine months of bargaining. This will ensure that a first collective agreement can be established within a reasonable timeframe.

The CIRB is the independent administrative tribunal that resolves workplace disputes and certain appeals under the Code.

Strengthening the Canada Industrial Relations Board

The legislation proposes targeted investments to bolster CIRB capacity to address growing caseloads and backlogs, reducing delays and helping ensure complaints are adjudicated in a timely, credible, and effective manner.

3.2. Addressing entrenched disputes with significant national impacts

Free collective bargaining is the best way to reach durable labour agreements. In exceptional cases, negotiations can reach an impasse and existing dispute resolution tools may not be sufficient, particularly where a work stoppage could have serious consequences beyond the bargaining parties.

Section 107 of the Code currentlygives the Minister of Labour authority to take measures deemed necessary to maintain or secure industrial peace and promote conditions favourable to the settlement of industrial disputes.

Bill C-39 establishes a clearer and more transparent framework for the use of these authorities in the exceptional circumstance of a labour dispute that threatens to have significant national impacts. It would clarify the Minister’s existing authorities under section 107, and provide two requirements before it can be invoked.

Under the proposed framework, the Minister could only consider exercising section 107 authorities after:

• a special mediator has been appointed and completed their mandate;
• the special mediator has submitted a public report to the Minister;
• the Minister has considered that report; and
• the Minister has formed the opinion that a strike or lockout would have a significant adverse national impact.

Where these conditions are met, once a work stoppage has commenced, the Minister could direct the CIRB to:

• order the resumption of operations or services;
• extend the terms of an existing collective agreement on an interim basis; or
• establish a binding dispute-resolution mechanism, such as arbitration, to resolve outstanding issues.

These authorities will not replace collective bargaining as the primary means of resolving labour disputes and would only be available after the prescribed process has been completed.

The legislation will amend Part I of the Code with the new process for appointing a special mediator.

3.2.1. Special mediator appointment

The legislation would create a new Special Mediator process to provide an intensive, structured dispute resolution tool aimed at helping parties reach a negotiated settlement before a labour dispute escalates.

A key feature of the new process is the introduction of a defined timetable designed to create focused bargaining pressure and ensure that mediation occurs at a meaningful point in negotiations. The legislation establishes when a Special Mediator may be appointed during the conciliation process, the duration of the mediation mandate, and the steps that must follow if the dispute remains unresolved.

A Special Mediator could be appointed to work closely with both parties no later than day 75 of the conciliation period for a defined 21-day period to help narrow outstanding issues, identify potential paths to agreement and support all reasonable efforts to achieve a negotiated settlement.

If the parties are unable to reach an agreement, the Special Mediator would be required to provide a report to the Minister assessing:

• the issues remaining in dispute;
• the positions of the parties on those issues;
• the extent of the parties' participation in the process; and
• the likelihood of reaching a negotiated settlement within a reasonable period.

The report would also include the Special Mediator's views and recommendations. The report would be provided to the Minister and the bargaining parties and, if a collective agreement or tentative agreement is not reached, would be made public following a five-day period. If a tentative agreement is reached but subsequently rejected, the report would also be made public.

Taken together, these timelines create a structured progression from conciliation, to intensive mediation, to public reporting, while maximising opportunities for the parties to conclude a voluntary settlement at every stage. The public release of the report is intended to promote transparency and accountability while encouraging continued efforts to reach an agreement at the bargaining table.

The appointment of a Special Mediator would not suspend or otherwise affect the timing of the right to strike or lockout. Instead, the process is designed to occur before a legal work stoppage can begin, ensuring that parties benefit from an additional, time-limited opportunity to resolve outstanding issues and avoid a strike or lockout whenever possible.

3.2.2. National impact assessment

In addition to a special mediator’s report, an assessment would be completed by the Employment and Social Development Canada to determine whether a labour disruption is likely to have significant impacts beyond the bargaining parties, considering the importance of free collective bargaining and the protected right to strike, potential for national economic disruption, broader social and public impacts, and the availability of alternatives or mitigation measures.

3.3. Supports for workers and strengthening workplace protections

Labour market pressures continue to evolve, and persistent gaps remain in enforcement of core protections. Recent ESDC consultations confirmed the need for workplace protections that keep pace with emerging challenges. Alongside the amendments to strengthen collective bargaining and dispute resolution, a suite of worker supports is being proposed, covering: misclassification and wage theft, occupational health and safety protections, contract retendering, the Wage Earner Protection Program, and paid medical leave.

This suite of measures includes proposed amendments in Bill C-39 and non-legislative measures and investments that would support Bill C-39.

Misclassification and wage theft

Misclassifying workers as contractors results in lost wages and protections, and Code-compliant employers face unfair competition. Building on other measures already underway, the Government will provide additional support to strengthen compliance, enforcement, and introduce digital tools to address wage theft and employee misclassification, with a focus on the trucking industry.

Workplace safety

Workplace injuries, including psychological health and safety, are imposing significant and increasing costs on workers and employers. Enhanced measures, including supporting more inspections, prevention activities, enforcement, and return-to-work supports, will improve safety, retention, and productivity.

Contract retendering

Successor rights in cases of contract retendering at airports and in the air transportation industry will be extended under Part I of the Code to ensure that union representation and the collective agreement are preserved when a contract changes from one contractor to another, strengthening protections for workers, and promoting worker stability and fairness.

Sustaining the Wage Earner Protection Program

The Wage Earner Protection Program (WEPP) provides financial support to Canadian workers who have lost their job and are owed wages by their insolvent employer. Amendments to the Wage Earner Protection Act will address gaps to ensure more predictable WEPP payments while preventing the misuse of insolvency mechanisms. This will ensure that payments are delivered in accordance with the program’s intended purpose and that eligible workers receive timely and predictable support.

Paid medical leave framework

Since December 2022, employees in the federally regulated private sector have been entitled to three days of medical leave with pay after a 30-day qualifying period, plus one additional day per month of continuous employment, totaling up to ten days per year.

Employers have raised concerns about “stacking” of benefits from similar negotiated or employer-provided leave regimes and sought clarity on the Code’s “greater right or benefit” provision.

Bill C-39 will amend Part III of the Code to clarify that its paid medical provisions constitute a minimum floor, not an additional benefit that must be added to equivalent or greater collectively bargained leave. This proposal will maintain employees’ access to up to ten days of paid medical leave.