Labour leaders warn Bill C-39 threatens right to strike

OTTAWA · Union leaders told a parliamentary committee on Tuesday that proposed amendments to the Canada Labour Code in Bill C-39 threaten decades of labour stability. Canadian Labour Congress President Bea Bruske said changes to Section 107 of the code would effectively eliminate the right to strike. The 243-page legislation also aims to accelerate approvals for major projects and create zones of national interest. Bruske told MPs on the special House of Commons committee reviewing the bill that the new ministerial powers would create more instability. "What looks like greater stability on paper is going to create more instability," she said.

The proposed changes state a minister can order a federally regulated business to resume operations or force parties into binding arbitration. Canadian Union of Public Employees national president Mark Hancock argued this would undermine collective bargaining. He said employers would have no incentive to negotiate fairly if they expect government intervention during a strike. "Bill C-39 doesn't encourage employers to bargain," Hancock said. "It encourages them to lowball workers and wait for the minister to do their dirty work." Jobs Minister Patty Hajdu defended the bill at a committee meeting on Monday.

Hajdu said the legislation strengthens the right to strike by preventing the use of Section 107 before a work stoppage begins. She argued the government must act during disputes with significant national consequences. "Protecting workers and protecting the national interest go hand in hand," Hajdu said. The Canadian Labour Congress has proposed its own amendments to the bill. Bruske said the group wants to ensure the minister cannot use Section 107 to end legal strikes. It also proposes an independent expert panel to determine if a strike constitutes a genuine national economic emergency.

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"The panel would advise government, and if intervention were necessary, government would have to introduce legislation and make its case in Parliament," Bruske said. Bill C-39 would also create a new special mediator role to document disputes and publish reports before negotiations collapse. The government intends this tool for situations where unions and employers have a history of conflict. If passed, the jobs minister would have to review the mediator's report and conclude a strike is harming the national interest before invoking Section 107. Bruske said her organization wants special mediators to be independent from government influence.

"Our experience under the Public Service Labor Relations Act raises some concerns that the proposed special mediator process could delay settlements rather than help achieve them," she said. The Liberal government has frequently used the existing Section 107 to end strikes in sectors like rail, ports and air transport. Labour experts say the new wording in Bill C-39 likely grants the minister additional authority. They expect those powers to face constitutional challenges under the Charter of Rights and Freedoms.

A Charter statement for the bill notes the Section 107 changes may engage freedom of association rights. It states that a ministerial order to resume work, extend a contract or impose binding resolution could affect the right to strike. The statement says the amendments do not ban strikes or lockouts outright. It explains the proposed authority could only be used after a work stoppage has begun and under specific conditions, which limit how it may be applied.

With files from The Canadian Press, BNN Bloomberg and Toronto Star