Prime Minister Mark Carney rises during Question Period on Parliament Hill on Monday.Adrian Wyld/The Canadian Press
The federal government introduced sweeping legislation on Monday aimed at reducing labour disruptions in federally regulated sectors and speeding up development approvals for major projects.
The changes to how the federal government reviews major projects represent a partial dismantling of environmental policies introduced under former Liberal prime minister Justin Trudeau. Those review rules have been sharply criticized by the energy sector, and the Alberta and Saskatchewan governments, and Prime Minister Mark Carney’s government is aiming to address those concerns in a push to drive economic growth.
Alberta and some business groups welcomed the changes Monday, but union leaders and environmentalists said they strongly oppose the government’s plans.
Bill C-39, the Building Canada Strong Act, was introduced in the House of Commons Monday afternoon by Transportation Minister and Government House Leader Steven MacKinnon.
“Our objective today is straightforward: to make it easier for Canadian businesses to build, invest and get their products to market, while creating an economy that delivers certainty, prosperity and opportunity for all Canadians,” he said at a news conference alongside other cabinet ministers.
Minister of Transport Steven MacKinnon rises during Question Period on Monday.Adrian Wyld/The Canadian Press
At more than 240 pages, the omnibus legislation references changes to about two dozen federal laws and enacts one new law called the Enabling Digital Trade Act, which encourages use of electronic trade forms by companies dealing with the government.
It also contains updates to the Canada Labour Code to create a new mediation process before the federal government can intervene in collective bargaining disputes in federally regulated sectors by referring them to the Canada Industrial Relations Board. This has been used to order striking workers back to work, such as Air Canada flight attendants in 2025.
Bill C-39 is a key part of the government’s effort to address the concerns of investors, who say Canada’s regulatory approval process discourages action on major projects because it is too slow and cumbersome.
Federal ministers said Bill C-39 maintains environmental standards and Indigenous rights, though stakeholders had expressed objections on both fronts earlier this year during federal consultations on the package of measures.
The legislation outlines a plan to create a system where a major project, such as a pipeline or offshore wind project, gets just one review, and receives a decision within one year.
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In order to speed up projects, Bill C-39 removes some requirements under the existing Impact Assessment Act, or IAA, a mechanism for ensuring the environmental sustainability of large developments created by Mr. Trudeau’s government.
Parliament approved Bill C-69 in 2019 after several years of debate. That law created the IAA, which replaced the Canadian Environmental Assessment Act. Liberal ministers said at the time that the changes would improve environmental protections, but the legislation became a lightning rod for criticism from the energy sector and the Conservative opposition, which regularly labelled it the “no more pipelines act.”
Prime Minister Mark Carney’s government has already introduced other workarounds related to C-69 and the IAA.
Last year’s Bill C-5, the Building Canada Act, granted cabinet the power to exempt some projects from parts of the IAA if they have been designated as being in the national interest.
Then, earlier this month, the government introduced regulatory changes to reduce duplication in the approval process for several types of large energy projects, such as oil sands extraction, transmission lines and some pipelines.
Those new rules mean that some projects that had been subject to reviews under both the IAA and the Canadian Energy Regulator Act would no longer be subject to the IAA.
Ottawa moves to reduce duplication in approval process for some large energy projects
Alberta Energy Minister Brian Jean said his government supports any move by Ottawa to shorten approval times and reduce red tape for nation-building infrastructure projects.
“A more efficient, coordinated and predictable process will improve the investment environment in Canada, create more jobs and support long-term economic growth,” Mr. Jean said in a statement.
Lisa Baiton, the chief executive of the Canadian Association of Petroleum Producers, called the bill “a significant step.”
Measures to streamline federal reviews and establish a one-year timeline for project decisions “can strengthen investor confidence and help advance the energy infrastructure needed to connect Canadian oil and natural gas to global markets,” she said in a statement.
Adam Legge, president of the Business Council of Alberta, also welcomed the new legislation, and urged Parliament to pass the bill and implement changes as quickly as possible.
“This legislation represents a long-overdue recognition of the policy and regulatory barriers that have stood in the way of Alberta and Canada’s prosperity, growth and job creation through our ability to attract investment,” Mr. Legge said in a statement.
Meanwhile, union leaders responded negatively to Bill C-39’s measures aimed at reducing labour disruptions in federally regulated sectors, such as airlines, rail lines and ports.
Canadian Labour Congress president Bea Bruske said she expects there will be legal challenges should the legislation become law.
“They are legitimizing taking away workers’ right to strike,” she said.
Labour code changes will threaten workers’ right to strike, unions say
Mark Hancock, president of the Canadian Union of Public Employees, said his organization is “very worried” about Bill C-39.
“The piece of this legislation that directly attacks workers and our right to strike – our constitutionally protected right to strike – is a huge problem for us,” he told reporters on Parliament Hill.
Jobs and Families Minister Patty Hajdu told reporters that union leaders’ comments that the bill’s changes to the Canada Labour Code weaken the right to strike are incorrect.
“We’re actually strengthening their rights,” she said.
Ms. Hajdu said the measures in Bill C-39 will encourage an earlier use of a special moderator who can issue a public report if bargaining breaks down between a union and a federally regulated employer. She suggested that such a report could reveal whether one side is not bargaining in good faith, which could create pressure to reach a deal.
Ottawa will not interfere with workers’ right to strike, Hajdu says
At issue is the government’s use of the Labour Code’s Section 107, which allows the federal government to intervene in disputes by referring them to the Canada Industrial Relations Board.
Ms. Hajdu said the new bill creates “clear guardrails” around the use of Section 107 and reinforces that it is a tool of last resort. The Canadian Labour Congress said the power shouldn’t be used at all.
Mr. Carney described the bill earlier this week as the most consequential economic legislation of the current Parliament.
The bill’s Labour Code changes are clearly inspired by a series of high-profile labour disruptions in recent years, including a 2024 railway stoppage, two recent shut downs at WestJet, last year’s strike by Air Canada flight attendants and a 13-day strike by B.C. port workers in 2023.
Conservative Leader Pierre Poilievre’s office said the party is reviewing the legislation before commenting.
NDP Leader Avi Lewis told reporters the bill would implement a “wish list” of demands from large corporations.
“Prime Minister Carney is using fear and disorientation around the trade war to push through a series of unpopular measures that he did not run on, has no mandate for, and would never get away with under normal circumstances,” he said.
Julia Levin, an associate director with Environmental Defence, released a statement calling the legislation the “Bulldoze Nature” bill.
“The government is seeking to eliminate any barrier to megaprojects like the West Coast pipeline and Roberts Bank megaport, no matter the cost to nature and wildlife,” she said.
With a report from Marieke Walsh