Bill C-39 would change collective bargaining rules, add nearly 130 compliance officers, crack down on worker misclassification
The federal government introduced legislation Monday that would, among its many ambitions, significantly reshape the labour relations landscape for employers and workers in federally regulated industries. Tabled as Bill C-39, the bill is the government's most comprehensive reform effort in a generation, according to the Prime Minister's Office, and was informed by more than 26,000 public responses and 78 cross-country engagement sessions held over the summer.
The HR-relevant core of the bill sits under what the government is calling the "Canada Strong For All" pillar — a set of amendments to the Canada Labour Code aimed at modernizing federal labour protections and recalibrating the collective bargaining process.
On collective bargaining, the proposed changes are designed to push parties toward earlier resolution of disputes. The government says the amendments will help employers and unions address issues before they escalate, reach negotiated agreements more readily, and resolve disagreements through existing dispute mechanisms — while explicitly protecting the right to strike.
“Strong labour relations are essential to the success of Canadian workers, businesses and our economy. As workplaces continue to evolve, our labour laws must keep pace to ensure workers are protected and workplaces remain fair and safe. This legislation will protect the right to strike while reinforcing the responsibility of unions and employers to negotiate in good faith, helping ensure workers and employers can continue to navigate challenges together," said Patty Hajdu, Minister of Jobs and Families and Minister Responsible for the Federal Economic Development Agency for Northern Ontario.
Compliance and enforcement
The government has announced it will hire 100 new federal health and safety officers — a move it says will increase federal inspection capacity by about 70 per cent. In parallel, 26 new staff are to be added to the Canada Industrial Relations Board, specifically to address a backlog of worker complaints against employers.
The legislation also signals a harder line on worker misclassification. The government says it will deploy additional inspectors to crack down on the practice of classifying employees as independent contractors — an issue that has drawn sustained attention across industries, including transportation and gig-economy platforms, both of which fall under federal jurisdiction in certain contexts.
The bill will proceed through parliamentary review. The government has also issued a Cabinet Directive effective immediately, requiring federal departments to complete project reviews within one year — a signal that the administrative machinery is being reorganized in parallel with the legislative agenda.
Major infrastructure projects
The labour provisions sit within a bill that is primarily oriented toward accelerating major infrastructure projects — pipelines, ports, mines, and trade corridors.
The government says capital investments and incentives totalling $280 billion over five years are expected to enable more than $1 trillion in total investment from public, private, and institutional partners. Since September 2025, 27 nation-building initiatives have been referred to the government's Major Projects Office, representing $200 billion in investments.
That scale of infrastructure activity, if it materializes, will generate significant demand for skilled tradespeople and project workers — and may intensify existing pressures on workforce planning, wage expectations, and labour supply in affected regions.
