Bill C-39 brings major changes to federal labour law, from new inspectors to reformed collective bargaining rules
The federal government has tabled sweeping amendments to the Canada Labour Code (CLC) as part of landmark legislation introduced in Ottawa on Thursday, targeting collective bargaining reform, expanded workplace safety enforcement, and a crackdown on worker misclassification.
The changes form the "Canada Strong for All" pillar of Bill C-39, the Building Canada Strong Act – the federal government's most ambitious legislative package in a generation. Alongside reforms to infrastructure approvals and transportation corridors, the bill proposes significant changes to how federally regulated employers and unions resolve disputes, and what protections apply to approximately one million private-sector employees across Canada, according to Employment and Social Development Canada (ESDC).
Strengthening collective bargaining and the right to strike
The proposed CLC amendments are designed to help parties reach negotiated agreements earlier, with the goal of reducing costly labour disruptions while preserving fundamental worker rights, according to the government. The bill explicitly protects the right to strike – a central concern raised by labour groups throughout months of consultations – and proposes creating a new special mediator role to support negotiations before they reach an impasse.
"Strong labour relations are essential to the success of Canadian workers, businesses and our economy," said the Honourable Patty Hajdu, Minister of Jobs and Families, in the government’s announcement. "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."
The bill also revisits section 107 of the CLC — a contentious provision that allows the federal government to intervene in active bargaining disputes. Hajdu had signalled ahead of the fall session that Ottawa had no intention of eliminating the right to strike, but conceded that "better tools are needed" in cases where negotiations collapse entirely.
More inspectors and enforcement capacity
Beyond collective bargaining, the bill commits to significantly bolstering enforcement. The legislation would add 100 new health and safety officers, which ESDC projects would increase federal inspection capacity by approximately 70 per cent. A further 26 new staff would be hired at the Canada Industrial Relations Board (CIRB) to address a growing backlog of worker complaints against employers.
The package also includes additional inspectors specifically tasked with cracking down on worker misclassification the practice of incorrectly designating employees as independent contractors to avoid obligations under the CLC. This area has been flagged as a growing compliance risk across federally regulated industries, which include banking, airlines, railways, and broadcasting.
Taken together, these operational commitments represent a meaningful resource investment in the federal labour regime, which currently covers approximately 22,000 employers, according to ESDC.
What the bill means for HR leaders
For HR professionals working inside federally regulated industries, Bill C-39 carries immediate operational implications. The planned expansion of health and safety officers means more frequent inspections, a lower tolerance for compliance gaps, and greater accountability for employers who have previously relied on under-resourced enforcement.
The emphasis on earlier dispute resolution through strengthened mediation and revised bargaining timelines puts new weight on HR leaders to invest in proactive labour relations before grievances escalate. The CIRB complaint backlog the government is seeking to clear signals that unresolved disputes have accumulated at a pace current resourcing cannot absorb.
The proposed legislation was informed by a two-phase consultation process between April and August 2026, in which ESDC gathered more than 26,000 responses and held 78 engagement sessions with workers, unions, employers, and Indigenous groups, according to the government. Bill C-39 now heads to parliamentary review.
