Bill C-39: An Act respecting certain measures to strengthen the economy

Tabled in the House of Commons, October 19, 2026

Explanatory Note

Section 4.2 of the Department of Justice Act requires the Minister of Justice to prepare a Charter Statement for every government bill to help inform public and Parliamentary debate on government bills. One of the Minister of Justice’s most important responsibilities is to examine legislation for inconsistency with the Canadian Charter of Rights and Freedoms [“the Charter”]. By tabling a Charter Statement, the Minister is sharing some of the key considerations that informed the review of a bill for inconsistency with the Charter. A Statement identifies Charter rights and freedoms that may potentially be engaged by a bill and provides a brief explanation of the nature of any engagement, in light of the measures being proposed.

A Charter Statement also identifies potential justifications for any limits a bill may impose on Charter rights and freedoms. Section 1 of the Charter provides that rights and freedoms may be subject to reasonable limits if those limits are prescribed by law and demonstrably justified in a free and democratic society. This means that Parliament may enact laws that limit Charter rights and freedoms. The Charter will be violated only where a limit is not demonstrably justifiable in a free and democratic society.

A Charter Statement is intended to provide legal information to the public and Parliament on a bill’s potential effects on rights and freedoms that are neither trivial nor too speculative. It is not intended to be a comprehensive overview of all conceivable Charter considerations. Additional considerations relevant to the constitutionality of a bill may also arise in the course of Parliamentary study and amendment of a bill. A Statement is not a legal opinion on the constitutionality of a bill.

Charter Considerations

The Minister of Justice has examined Bill C-39, An Act respecting certain measures to strengthen the economy, for any inconsistency with the Charter pursuant to his obligation under section 4.1 of the Department of Justice Act. This review involved consideration of the objectives and features of the bill.

What follows is a non-exhaustive discussion of the ways in which Bill C-39 potentially engages the rights and freedoms guaranteed by the Charter. It is presented to assist in informing the public and Parliamentary debate on the bill. It does not include an exhaustive description of the entire bill, but rather focuses on those elements relevant for the purposes of a Charter Statement.

The main Charter-protected rights and freedoms potentially engaged by the proposed measures include:

• Freedom of association (section 2(d) of the Charter)
  Section 2(d) of the Charter provides that everyone has freedom of association. Freedom of association has been interpreted as protecting the right of employees to meaningfully associate in pursuit of collective workplace goals, including through a meaningful process of collective bargaining. A meaningful process of collective bargaining includes the right to form an association, to make collective representations to the employer, to have those representations considered in good faith, and to strike or access to another fair and effective dispute resolution mechanism.
• Right against unreasonable search and seizure (section 8)
  Section 8 of the Charter protects against “unreasonable” search and seizure. The purpose of section 8 is to protect individuals against unreasonable intrusion into a reasonable expectation of privacy. A search or seizure that intrudes upon a reasonable expectation of privacy will be reasonable if it is authorized by a law, the law itself is reasonable (in the sense of striking an appropriate balance between privacy interests and the state interest being pursued), and it is carried out in a reasonable manner. The assessment of the reasonableness of the law is a flexible one that takes into account the nature and purpose of the legislative scheme, and the nature of the affected privacy interests.
• Equality rights (section 15)
  Section 15(1) of the Charter protects equality rights. It provides that every individual is equal before and under the law and has the right to the equal protection and equal benefit of the law without discrimination, including on the basis of race or ethnic origin. Equality entails the promotion of a society in which all are secure in the knowledge that they are recognized at law as human beings equally deserving of concern, respect, and consideration. Section 15(2) of the Charter clarifies that section 15(1) does not preclude laws, programs, or activities that have as their object the amelioration of conditions of disadvantaged individuals or groups, including those that are disadvantaged because of race or ethnic origin.

Canada Transportation Act

Division 2 of Part 2 would amend the Canada Transportation Act to provide the Minister of Transport the authority to grant a security clearance to any individual or suspend or cancel a security clearance for any purpose such as transportation security or safety, the integrity of the national transportation system, and public safety, as well as the ability to disclose any information related to security clearances. The proposed amendments also provide the Minister of Transport with authority to introduce a temporary extension of the ‘interswitching’ limit, for the transfer of traffic between two railway companies, in Alberta, Manitoba, and Saskatchewan, along with a requirement to provide certain information relevant to assessing the effects of the interswitching limit. These disclosure authorities and requirements to share information potentially engage section 8 of the Charter, as these activities involve the collection and disclosure of information in which there may be a reasonable expectation of privacy, including information related to security clearances.

The following considerations support the consistency of these authorities with section 8. In the regulatory and administrative contexts, privacy expectations are reduced. Powers to gather, compel the production of, or disclose relevant information for regulatory or administrative purposes, rather than for the purpose of investigating offences, have been upheld as reasonable under section 8. The purposes of the measures are also relevant to section 8, whether it be to ensure the safety and security of the transportation system or to support the efficiency of the transportation system. In reviewing the relevant provisions, the Minister has not identified any potential effects that could constitute an unreasonable interference with privacy as protected by section 8 of the Charter.

Canada Marine Act

Division 3 of Part 2 amends the Canada Marine Act to require that port authorities establish an Indigenous advisory committee, and engage the Indigenous advisory committee at least once a year with respect to issues related to port activities, including, for example, environmental, social and economic updates, land-use planning, and port-community issues. Establishing a body solely for Indigenous advisory purposes could be considered a distinction based on race or ethnicity that engages the protection of subsection 15(1).

The following consideration supports the consistency of this measure with section 15. In seeking to include Indigenous people’s perspectives in marine infrastructure and services, the Bill is in keeping with the purpose of section 15 to promote substantive equality and prevent discrimination against disadvantaged groups. Subsection 15(2) of the Charter clarifies that subsection 15(1) does not preclude laws, programs, or activities that have as their object the amelioration of conditions of disadvantaged individuals or groups, including those that are disadvantaged because of race or ethnic origin.

Canada Labour Code

Part 3 Division 1 of the Bill would amend Part I of the Canada Labour Code (the Code) to make changes to the framework for collective bargaining in federally regulated industries. The Bill would replace or amend various sections of the Code to provide for new requirements and timelines related to collective bargaining. It would provide for the transfer of certain rights in the context of contractors, new requirements in relation to first collective agreements, geographic certification in certain circumstances, and special mediation in certain circumstances. It would also replace section 107 of the Code to establish new requirements for the Minister of Labour (the Minister) to direct the Canada Industrial Relations Board (the Board) to take measures that, in the Minister’s opinion, are likely to maintain or secure industrial peace and promote conditions favourable to the settlement of industrial disputes.

Geographic certification

The Bill would add new subsections 34(1.1) and (1.2) to the Code and amend subsection 34(2) of the Code to allow for a geographic certification process to be initiated upon the application of two or more employers, the referral of the Minister, or the Board’s own initiative. In those cases, the Board may determine that two or more bargaining units constitute a unit appropriate for collective bargaining and certify a trade union as a bargaining agent for that unit. The proposed mechanism would apply to the long-shoring industry and could apply to other industries and geographic areas designated by regulation.

These amendments potentially engage section 2(d) because the structure of the bargaining unit and the certification of a bargaining agent could impact the process of collective bargaining. The proposed geographic certification provisions could facilitate meaningful collective bargaining where employees are employed from time to time by multiple employers in the same industry and geographic area. The Board would retain responsibility for determining whether the bargaining units constitute a unit appropriate for collective bargaining and whether the statutory conditions for geographic certification are satisfied. The fact that the Bill would authorize employers, the Minister or the Board to initiate a geographic certification process, without an application by a trade union, does not in itself substantially interfere with the ability of employees to pursue collective workplace goals.

Successor rights

The Bill would amend section 44 of the Code to establish successor rights where a new contractor succeeds a previous contractor in providing services in airports in the air transportation industry. These requirements could be extended to additional services, industries, or locations through regulations.

Where a new contractor succeeds a previous contractor, the bargaining agent for employees of the previous contractor would become the bargaining agent for employees of the new contractor. A trade union that had applied for certification before the succession could also be certified by the Board as bargaining agent for employees of the new contractor. The new contractor would be bound by any collective agreement applicable to the employees on the date of succession and would become a party to specified pending proceedings.

These amendments may support freedom of association by preserving collective representation and collective bargaining arrangements in certain circumstances. The Board would be required to determine questions arising under section 44 and could review questions related to the appropriateness of the bargaining unit for employees.

Commencement of collective bargaining and first collective agreements

The Bill would replace subsection 49(1) and add section 50.1 to the Code to require certain parties to start collective bargaining between 200 and 180 days before the expiry of the collective agreement. The requirement would apply where the collective agreement resulted from an imposed binding method of resolving issues in dispute, where a strike or lockout occurred during the bargaining that resulted in the collective agreement, or where the agreement has a term of five years or more. The parties would be required to notify the Minister and the Board, engage with the Federal Mediation and Conciliation Service, and bargain in good faith and make every reasonable effort to reach a collective agreement.

The Bill would replace various parts of sections 73 to 75 to establish a 90-day period for conciliation, subject to a longer period agreed to by the parties.

The Bill would amend section 80 to provide that, when the parties have not entered into a first collective agreement within nine months after notice to bargain was given, either party may apply to the Board for an order directing a binding method of resolving the issues remaining in dispute. The Board would be required to make such an order. An order directing a binding method of resolving the outstanding issues would suspend the right to strike or lockout until a binding determination is made or the parties enter into a collective agreement.

These proposed changes potentially engage s.2(d) by impacting the process of collective bargaining including the applicable timelines to start negotiations, engage in conciliation, and apply to the Board for a binding method of resolving issues. The proposed changes may support freedom of association by facilitating meaningful collective bargaining, including in circumstances where a new bargaining relationship is being established or where previous bargaining has resulted in a strike, lockout or imposed dispute resolution process, or where the agreement has a term of five years or more. The earlier start to bargaining and the longer conciliation period is intended to support the process of collective bargaining. The suspension of the right to strike or lockout following an order under section 80 is accompanied by a binding method of resolving the outstanding issues, providing an alternative dispute resolution to replace the right to strike.

Special mediation

The Bill would add sections 87.01 to 87.04 to the Code to authorize the Minister, if the Minister considers it appropriate, to appoint a special mediator for a period of 21 days to assist the parties in settling a dispute, within a prescribed timeline. If the dispute is not resolved, the special mediator would provide a report addressing the issues in dispute, the position of the parties, an assessment of the parties’ participation, the likelihood of settlement within a reasonable time, and the mediator’s views and recommendations.

The Bill would require the Minister to provide the report to the parties and, subject to specified exceptions and redactions for personal information or confidential business information, make it available to the public without delay. The purpose would be to have the special mediation process take place before a strike or lockout and to have at least 10 days between the publication of the report and a strike or lockout. However, the Bill clarifies that the appointment of the special mediator does not suspend the right to strike or lockout.

These proposed provisions potentially engage section 2(d) because they may affect the process of collective bargaining. The special mediation process provides the parties with an additional opportunity to resolve their dispute through collective bargaining. The special mediator would not have authority to impose any measure including a collective agreement. The special mediation period is limited to 21 days, and the Minister must make the special mediator’s report available to the public without delay. The proposed changes do not remove the right to strike, and the Bill clarifies that the appointment of the special mediator does not suspend the right to strike or lockout. The proposed changes support the parties in the collective bargaining process with the goal of facilitating resolution of the issues in dispute.

Maintenance of activities

The Bill would amend subsection 87.4(2) of the Code to change the deadline for an employer and trade union to enter into an agreement concerning maintenance of activities where subsection 50.1(1) applies. In those circumstances, the agreement would have to be entered into no later than the 185th day before the expiry of the collective agreement, rather than no later than 15 days after notice to bargain is given.

The proposed change to the timeline potentially engages section 2(d) by requiring the maintenance of activities agreement to be established at an earlier stage of the bargaining process. The proposed amendment would provide the parties with greater certainty concerning the activities that must continue and may reduce the possibility of disputes about maintenance of activities after a strike or lockout has commenced.

Ministerial intervention under section 107

The Bill would replace section 107 of the Code to provide that the Minister may take measures that, in the Minister’s opinion, are likely to maintain or secure industrial peace and promote conditions favourable to the settlement of industrial disputes. The Minister could refer questions to the Board or, subject to the new subsection 107(2), direct the Board to take measures the Minister considers necessary.

The Bill would provide that, where a strike or lockout that is not prohibited under Part I is underway, the Minister could direct the Board to make an order providing for the resumption or continuation of the employer’s operations or employees’ duties, extending the collective agreement, or imposing a binding method of resolving the issues in dispute only if the Minister has considered the special mediator’s report and is of the opinion that the strike or lockout adversely affects or may adversely affect the national interest.

The Bill would provide that, in determining whether the national interest is adversely affected or may be adversely affected, the Minister may take into account relevant considerations, including whether the strike or lockout has or may have a significant impact on the Canadian economy, whether it is causing or may cause serious social disruption, and whether the Minister’s direction to the Board has an impact on freedom of association.

These proposed amendments potentially engage section 2(d) because a Ministerial direction to the Board to order employees to resume their duties, extending a collective agreement, or imposing a binding method of resolving outstanding issues, may engage the right to strike. The amendments would not generally prohibit strikes or lockouts. Rather, the proposed authority could be exercised when a strike or lockout is already underway and would be subject to specified conditions. The conditions include that the Minister consider the special mediator’s report, and that the Minister form the opinion that the strike or lockout affects or may adversely affect the national interest. The national interest would be assessed based on relevant considerations, including significant economic impact, serious social disruption, and the impact of the Minister’s direction to the Board on freedom of association. These considerations constrain the circumstances in which the authority may be exercised.

The potential effects of these amendments on section 2(d) must be assessed contextually, having regard to the Code, the circumstances of the labour dispute, the history and nature of collective bargaining between the parties, the impact of the strike or lockout on the national interest, the nature of the measures directed by the Minister, and the nature of the dispute resolution mechanism to replace the right to strike.