Paul Cavalluzzo | Christopher Pigott
Union and employer counsel clash over new limits in Bill C-39’s s. 107 rewrite and whether it survives Charter scrutiny
By Julius Melnitzer | October 2, 2026
For labour lawyers, the fight over the Building Canada Strong Act focuses on the rewrite of s. 107 of the Canada Labour Code, the ministerial power Ottawa has repeatedly used to end strikes and lockouts in federally regulated industries.
Bill C-39, a 243-page omnibus bill tabled in the House of Commons on Sept. 21 by Transport Minister and Government House Leader Steven MacKinnon, keeps that power but puts conditions on it.
The existing s. 107 gives the Minister of Labour broad authority to do whatever the minister considers necessary to keep or restore labour peace. Governments have relied on it in recent years to refer rail, port, airline, and postal disputes to the Canada Industrial Relations Board (CIRB) for back-to-work and binding arbitration orders. Several of those orders have been challenged in court.
To use s. 107, the minister must first appoint a special mediator, no later than day 75 of the statutory conciliation period. The bill also lengthens that period from 60 to 90 days. And the minister can act only after a work stoppage begins.
The mediator has up to 21 days to resolve the dispute. If talks fail, the mediator must report on the open issues, each side’s position and participation, and whether a settlement is likely. The report becomes public five days later. MORE . . .
Julius Melnitzer is a Toronto-based writer who focuses on law, legal affairs, and the business of law. Follow him on LegalWriter.net or email him at julius@legalwriter.net.