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Sunday, October 25, 2026

Canada: Bill C-39 Proposes Significant Changes to Collective Bargaining in the Federal Sector - Littler Mendelson P.C.

At a Glance

  • Bill C-39 proposes significant amendments to the Canada Labour Code that would affect several aspects of labour relations for federally regulated employers.
  • The proposal expressly codifying the Minister of Labour’s ability to end a strike or lockout where it is found to be in the “national interest” to do so is sure to gain the most attention.
  • Other proposed changes that may have significant impact on employers include those intended to support earlier and more structured bargaining, expand dispute resolution tools, and preserve bargaining relationships in certain third-party contractor situations.
  • Because the bill remains proposed legislation, federally regulated employers may wish to monitor its progress and consider how the amendments could affect bargaining strategy, labour relations planning, and collective agreement administration if enacted.

On September 21, 2026, the federal government introduced Bill C-39, the Building Canada Strong Act. Among its workforce-related measures, the bill proposes substantial amendments to the Canada Labour Code (“Code”) that would reshape several aspects of the federal labour relations framework, including collective bargaining timelines, first collective agreement negotiations, successor rights in prescribed contractor-replacement situations, multi-employer bargaining, special mediation, section 107 interventions, and paid medical leave. The bill is currently at First Reading and has not yet been enacted.

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