Canada Tables Bill C-39 to Fast-Track Major Projects and Reform Labour Laws
The Government of Canada has introduced Bill C-39, the Building Canada Strong Act, aiming to accelerate project approvals through a one-year timeline and modernize federal labour relations. While the government argues the bill boosts competitiveness and worker protections, environmental groups and unions have raised concerns about weakened oversight and expanded government powers over strikes.
The Government of Canada, under Prime Minister Mark Carney, has tabled Bill C-39, known as the Building Canada Strong Act. This comprehensive legislative package is designed to accelerate major project approvals, modernize federal labour relations, and strengthen domestic supply chains.
A central component of the bill is the establishment of a maximum one-year timeline for federal decisions on impact assessments and permits once all required information is received. This replaces previous timelines that often exceeded five years. The legislation also shifts assessment authority for specific energy projects from the Impact Assessment Agency of Canada (IAAC) to other regulatory bodies. Pipelines, transmission lines, and certain offshore renewable energy projects will now be assessed by the Canada Energy Regulator (CER), while the Canadian Nuclear Safety Commission (CNSC) will become the single assessor for nuclear and uranium projects subject to the Impact Assessment Act.
Furthermore, Bill C-39 enables the creation of "Regions of National Interest," where regional impact assessments can pre-approve certain types of development, thereby reducing the need for individual project reviews. A new Crown Consultation Hub within the IAAC will coordinate federal consultations with Indigenous Peoples to improve efficiency, although it will not oversee consultations led by the CER or CNSC. Transport Canada will also establish a Transportation Projects Office to handle approvals for transportation projects outside the purview of the IAAC, CER, or CNSC.
On the labour front, the bill proposes significant amendments to the Canada Labour Code. It requires collective bargaining to begin six months before an agreement expires if the current agreement is older than five years or if previous rounds ended in a work stoppage. Additionally, a Special Mediator may be appointed no later than day 75 of the conciliation period for a defined 21-day mandate to help resolve high-risk labour disputes.
However, the bill retains the Minister of Labour’s authority under Section 107 to direct the Canada Industrial Relations Board (CIRB) to order workers back to work or impose binding arbitration in exceptional cases where a strike threatens significant national impacts. Labour Minister Patty Hajdu stated that the bill strengthens labour rights and imposes a higher bar for federal intervention in strikes compared to previous frameworks.
Reactions to the bill have been mixed. Environmental Defence criticized the legislation for potentially diminishing federal responsibility for project reviews and making meaningful Indigenous consultation practically impossible. Meanwhile, the Canadian Labour Congress welcomed improvements to successor rights and wage theft protections but rejected the expansion of government power to end legal strikes based on "national interest." Notably, the government abandoned plans to exempt certain projects from Species at Risk Act protections following negative feedback during summer consultations.