Thank you very much, Mr. Chair. It's my privilege to appear before this committee to provide an overview of the labour components of Bill C-39.
Let me start by emphasizing the central objective of these reforms: to support workers and employers in negotiating good and durable agreements at the bargaining table. That is the best outcome for everyone.
Federally regulated sectors underpin our economy, helping us stay connected and moving. They have one of the best, most skilled workforces in the world, with over one million workers.
Reliable supply chains and a strong economy depend on healthy labour relations. Collective bargaining and the strong labour relations in this country are essential ingredients to a strong and reliable economy.
Bill C-39 is focused on strengthening collective bargaining, protecting workers from misclassification, strengthening support for first collective agreements and ensuring successor rights when contracts change hands.
The tripartite advisory council and many consultation respondents pointed out that the majority of labour relationships work well. In fact, in 95% of labour disputes that the federal mediation and conciliation service supports, parties arrive at new collective agreements without a disruption.
However, for a small number of disputes that become entrenched, existing tools have not been sufficient to help these parties get to a deal together at the table. Often, these are parties that have experienced previous disputes. This bill presents new tools to increase the number of successful collective agreements reached by employers and unions themselves.
It focuses on three key areas.
First, it modernizes collective bargaining and gives earlier support, stronger mediation, additional help for difficult negotiations, and more time at the table. It also lays the groundwork for expedited grievance arbitration and an administrative monetary penalty regime for bad-faith bargaining.
Second, it strengthens worker protections against misclassification, wage theft and workplace accidents. It also preserves airport workers' union representation when contracts change hands.
Third, it brings clarity, transparency and accountability to section 107 of the code. Section 107 is a tool that has been in the Labour Code for decades, but Canadians told us they wanted greater clarity and transparency around its use.
Bill C-39 sets that out in law. Parties in particularly challenging disputes would receive intensive support from a special mediator focused on reaching a deal. If settlements still can't be reached, a report on the dispute would be made public, explaining where the bargaining broke down.
In addition, a national impact assessment would determine whether significant consequences of the labour disruption extend beyond the bargaining parties. Only after those steps and, importantly, only once a lockout or a strike has begun could section 107 be used. Each step is designed to return responsibility for reaching an agreement to the bargaining table.
The majority of negotiations will still proceed through the regular bargaining process without a special mediator or a national impact assessment.
Mr. Chair, the right to strike is fundamental to meaningful collective bargaining, and this bill strengthens and protects that right by explicitly removing the ability to use section 107 prior to any labour disruption.
The government has a responsibility to act when an exceptionally consequential dispute remains unresolved with no path to resolution in sight. Protecting workers and protecting the national interest go hand in hand. Bill C-39 strengthens protections for workers, including by ending misclassification.
A stronger Canada for all requires strong workplaces, fair labour practices and a workforce that can thrive, and that starts at the bargaining table. These measures will help support workers, employers and productive labour relations across the country.
And they will help build Canada strong.