Canada advances Bill C-39 to streamline project approvals and strengthen labour protections

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Canada Bill C-39 project approvals

Highlights

Bill C-39 proposes consolidating multiple federal project reviews into a single process led by the Impact Assessment Agency of Canada, aiming to reduce approval timelines.
The legislation introduces modernised collective bargaining, new worker protections, and dispute resolution reforms for federally regulated sectors to address labour market pressures.
Bill C-39 enables the creation of Regions of National Interest for strategic infrastructure, with Indigenous and provincial coordination central to future development and permitting.

Approval overhaul and project timelines

According to Canada.ca, as outlined by the Government of Canada, Bill C-39 is designed to reduce overlap in federal reviews and create a more predictable framework for major projects while keeping existing environmental and consultation requirements in place. The government says the bill is intended to support investment, jobs and goods movement across the country as Canada faces rising global competition for capital.

Under the proposal, projects that currently face separate reviews from multiple federal departments and ministers would move to concurrent federal reviews led by the Impact Assessment Agency of Canada, ending in a single federal decision. Departments would coordinate information requests, impact analysis, mitigation measures and permit advice to simplify the process and shorten timelines.

The government says the legislation would not remove impact assessment, permitting or consultation obligations, but would instead change how assessments are led and coordinated. Alongside the bill, Ottawa has also issued a Cabinet Directive on Getting Projects Built in Canada, with a goal of completing internal decision processes that have no statutory timeline within one year.

Labour reforms and broader economic impact

Bill C-39 also proposes changes to the federal labour framework, with measures aimed at modernising collective bargaining, dispute resolution and worker protections in federally regulated sectors. The government says the package responds to labour market pressures and enforcement gaps identified in recent Employment and Social Development Canada consultations.

Proposed worker measures cover misclassification, wage theft, occupational health and safety, contract retendering, the Wage Earner Protection Program and paid medical leave. The bill also clarifies the circumstances in which government action could be taken in rare labour disputes that remain unresolved and have effects beyond the bargaining parties.

The legislation further supports the creation of Regions of National Interest under the Building Canada Act, potentially covering transportation and energy corridors, telecommunications networks, transmission systems and industrial areas. Ottawa says Indigenous consultation would remain central to defining boundaries, identifying sensitive areas and setting development conditions, while coordination with provinces would be essential if projects are to be streamlined across both federal and provincial systems.

In our previous report on Bill C-39, the Building Canada Strong Act, we outlined Ottawa’s plan to speed up federal reviews for major infrastructure and resource-related projects by aiming for a one-year decision timeline after a complete application is filed. We also noted that the package pairs regulatory streamlining with updates to labour rules for federally regulated sectors, while the government says environmental standards and Indigenous rights protections would remain in place.

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