Carney’s economic bill puts Canadian government at odds with unions

Canadian Prime Minister Mark Carney’s plan to speed up investment and major projects has brought his government into conflict with the country’s largest unions. The dispute centres on Bill C-39, the Building Canada Strong Act. Carney’s government says the legislation would provide greater certainty for investors and help Canada respond to economic pressure from the United States, including tariffs imposed under President Donald Trump.

The bill would give Ottawa clearer powers to intervene in federally regulated strikes and lockouts. It would require the government to appoint a special mediator, wait for a public report and consider whether a work stoppage was harming the national interest before using existing powers under Section 107 of the Canada Labour Code. Once a strike or lockout was under way, the labour minister could direct the Canada Industrial Relations Board to restore operations and impose a binding process such as arbitration.

The government says the changes establish safeguards and reinforce the right to strike. Unions disagree. The Canadian Union of Public Employees has opposed the proposal, while its national executive voted to defy the proposed limits if the bill passes without amendments.

Union leaders say employers may expect Ottawa to intervene rather than negotiate seriously. Labour groups point to eight uses of Section 107 since 2024 in disputes involving airlines, railways, ports and Canada Post. They argue that the threat of government intervention could reduce the effectiveness of strikes.

Supporters of the bill say the changes are necessary as Canada seeks investment and greater economic independence from the US.