Business groups applaud the Liberal government’s bill to curb work stoppages and fast-track project approvals

OTTAWA — Business groups applauded the Liberal government’s omnibus bill on Tuesday, which they say will provide the regulatory and labour changes needed to make Canada a competitive place to invest.

“The legislation takes direct aim at two longstanding barriers to Canada’s prosperity: slow and unpredictable project approvals and labour instability affecting critical supply chains,” said Adam Legge, president of the Alberta Business Council, during a press conference on Parliament Hill.

“It’s one project, one review, one decision, one-year framework will reduce timelines, bring greater certainty and accountability to federal project reviews, with each review led by the lifecycle regulator best equipped to do the job,” Legge added.

Legge was joined by business representatives from British Columbia, Saskatchewan and Manitoba.

Bill C-39 is aimed at ensuring that any proposed project, like a pipeline, an offshore renewable energy project or designated power lines, get one review and a decision within one year.

It also removes the responsibility of conducting impact assessments for major energy and nuclear projects away from the Impact Assessment Agency of Canada and puts it into the hands of specialized bodies: either the Canada Energy Regulator or the Canadian Nuclear Safety Commission.

It also addresses the federal government’s use of the controversial Section 107 in the Canada Labour Code, which the Liberal government has used to end work stoppages and refer employers and unions to binding arbitration.

Section 107 was used to end several strikes over the last several years, including at Air Canada, Canada Post, CN and CPKC Rail, and ports in British Columbia and Quebec.

The bill aims to provide a process the minster must follow to invoke Section 107, including taking into account a special mediator’s report on the matter and if the minister is of the opinion that the strike adversely affects the national interest.

Saskatchewan Chamber of Commerce CEO Prabha Ramaswamy said in 2025 alone, Canada lost 4.3 million person working days.

“Transportation-related disputes accounted for almost 36 percent of those disruptions, with 60 work stoppages over two years,” she said. “This is why we welcome these measures designed to encourage earlier intervention in labour disputes.”

In a recent report, University of Calgary professor and economist Trevor Tombe quantified the economic impact of Canada’s recent work stoppages, noting that the driving up of costs due to inflation post-pandemic, has led to increase in strikes in the past several years.

Tombe found that recent patterns of work stoppages across transportation and warehousing are associated with an estimated $511-million reduction in annual GDP.

A recent report by the Business Council of British Columbia found that Canada has one of the highest rates of working days lost due to industrial action among its peer economies, including France, with 108 working days lost per 1,000 employees.

Canadian unions, including Unifor and the Canadian Labour Congress, argue the Section 107 changes threaten the constitutional right to strike and would like this part of the bill removed.

When asked if they are worried about a union backlash to the legislation, the business leaders said the bill does not take away the right to strike and includes measures to keep both employers and unions at the bargaining table.

“We’re going to be encouraging labour groups to support it because it keeps Canadians working,” said Legge. “It keeps Canadians and our goods moving, it keeps confidence in the ability for Canada to deliver goods to international markets.”

The bill’s introduction comes on the heels of the Canada Investment Summit in Toronto last week. The Liberal government is aiming to attract $500 billion in private capital investment by the end of the decade.

Finance Minister François-Philippe Champagne was asked if international investors told his government that labour disruptions were an obstacle to their willingness to invest in Canada.

“I would say [we] don’t need anyone to tell us that,” he told reporters on Tuesday. “Canadians understand that, Canadians have seen that in this country we need stability and predictability.”

Pascal Chan, vice-president of strategic policy and supply chains at the Canadian Chamber of Commerce, said he looked forward to engaging with the government on Bill C-39.

“Reliable transportation gets Canadian products to market, something Canadians know is increasingly essential for our economic security,” he said, in a statement.

“When they are interrupted, the consequences reach far beyond the workplace involved in the dispute, exposing businesses to the risks of losing access to supplies and customers, while workers and communities with no say in the negotiations ultimately pay the price,” Chan added.

In a statement, Business Council of Canada president and CEO Goldy Hyder said the bill addresses the structural weaknesses that have held back Canadian competitiveness for years.

“For too long, we have made it harder than it needs to be to invest in our resources and reliably transport them to our allies and partners,” he said. “We now have an opportunity to change that.”

National Post