PIPSC open letter on Bill C-5: An Act to enact the Free Trade and Labour Mobility in Canada Act and the Building Canada Act

On June 6, 2025, Bill C-5, An Act to enact the Free Trade and Labour Mobility in Canada Act and the Building Canada Act, was introduced in Parliament. It received Royal Assent on June 26, 2025. The review process for the Bill was accelerated and condensed. While there were no formal opportunities for PIPSC to provide input, we developed a position to encourage proper implementation and to highlight the significance of the legislation to Canadians and PIPSC members. 

PIPSC Supports CLC’s Proposed Amendments 

PIPSC endorses the Canadian Labour Congress's vision for Bill C-5 as a catalyst for internal trade and nation-building projects that create sustainable, well-paying union jobs across Canada. 

These investments could drive lasting economic benefits for workers and communities from coast to coast to coast.

We also support the CLC’s position of endorsing the following key amendments to the Bill:

  • rein in ministerial powers by implementing clear legislative guardrails and mandatory parliamentary oversight
  • clarify enforcement and accountability mechanisms tied to the five “national interest” criteria outlined in the Act
  • guarantee robust and enforceable commitments on labour standards, community benefit agreements, and equity provisions in national projects
  • enshrine the “Buy Canada” and “Buy Clean” models to ensure these projects drive domestic job creation and climate progress
  • guarantee a high-standard, rights-based consultative process with Indigenous peoples that includes free, prior, and informed consent.

These amendments were needed because the new legislation grants extraordinary discretionary powers to the responsible Minister and the Governor in Council without sufficient safeguards.

Indigenous consultation

The Assembly of First Nations and other Indigenous organizations raised fundamental concerns about Bill C-5's approach to Indigenous consultation. Their opposition centers on three critical issues: 

  • undermining constitutional and Treaty rights 
  • weakening the Crown’s duty to consult and accommodate, and 
  • disregarding the principle of free, prior, and informed consent, as affirmed in the United Nations Declaration on the Rights of Indigenous Peoples Act (UNDRIP).

While UNDRIP is referenced in the legislation, it is not a mandatory or binding criterion. This level of discretionary power removes any obligation to prioritize Indigenous rights in decision-making. Additionally, by sidestepping foundational environmental laws, this further undermines Indigenous governance over lands and waters.

PIPSC believes the federal government should commit to a true nation-to-nation relationship, reconciliation, and fulfil its obligations under the United Nations Declaration on the Rights of Indigenous Peoples Act.

Environmental concerns

The Building Canada Act allows the government to fast-track projects by overriding various other Acts of Parliament. This includes environmental laws such as the Fisheries Act, the Canadian Environmental Protection Act (CEPA), the Species at Risk Act, and the Impact Assessment Act or the Canadian Navigable Waters Act, which can be circumvented if they oppose a new project of national importance. 

Our members at departments like Environment and Climate Change Canada and Fisheries and Oceans Canada dedicate their careers to protecting our air, water, forests, and fisheries. The current legislation threatens to bypass their expertise and the environmental laws they uphold. 

PIPSC is in favour of new national projects, but they must be environmentally sound and this goal must be outlined in the Act and existing environment laws must be enforced.

Role of the Public Sector

When taxpayers finance major national projects, the benefits must remain in Canadian hands. This principle goes beyond patriotic sentiment—it represents sound fiscal policy and strategic national planning.

Canadian ownership and control must be non-negotiable. Projects built with public funds cannot become foreign-owned assets that extract value from Canadian communities. We need explicit legislative protections against the foreign acquisition of infrastructure that Canadians have paid to build.

Federal civil servants should lead project administration and delivery. Our public service professionals bring unparalleled expertise, institutional knowledge, and unwavering commitment to Canadian interests. Unlike private contractors whose loyalty follows profit margins, federal employees are accountable to the public they serve.

Public ownership deserves serious consideration as the most effective safeguard against foreign takeover. When governments retain ownership stakes, they maintain control over strategic assets and ensure long-term benefits flow to Canadian communities rather than offshore shareholders.

Skilled government employees represent better value than expensive external contractors. Our federal workforce combines technical excellence with cost-effectiveness and democratic accountability. Choosing internal capacity over outsourcing keeps expertise in-house while delivering superior results for taxpayers.

Concerns from the Federal Regulators

The Canadian Nuclear Safety Commission and Canadian Energy Regulator have special distinction under the proposed legislation. PIPSC represents the majority of unionized scientists and engineers at both these organizations. Whereas numerous pieces of legislation can be overridden to achieve authorization, projects covered by legislation that governs CNSC and CER require confirmation that certain criteria are met. For CNSC, the organization must confirm that the projects will not compromise the health or safety of persons, national security or the implementation of international obligations. CER must confirm that the project will not compromise the safety or security of persons or regulated facilities.

There is a great deal of uncertainty within those organizations about how this legislation will be implemented. There are concerns of increased pressure to approve more projects more quickly. It is unclear whether or not these organizations will be able to achieve the reviews on an accelerated timeline without compromising safety. These fears are worsened by internal staffing problems. Our members cite shortages, recruitment and retention issues. 

When industry needs personnel, it's often easier for them to poach trained professionals from the regulatory bodies with both industry experience and knowledge of the regulatory system. Legislative changes must be accompanied by investment to resolve the current staffing issues at CER and CNSC. 

Accountability, Democratic Oversight and Governance

PIPSC has serious concerns about how aggressively the Act was rushed through the House of Commons with little time for debate or discussion. 

We are also concerned that anything deemed a “national interest project” can be rushed through approval without properly accounting for existing legislation. This undermines the rule of law and raises concerns about the potential for unethical conduct.

Parliament has a duty to maintain a proper legislative process. This includes:

  • Meaningful public participation in project approval decisions
  • Rigorous review processes before adding projects to Schedule 1
  • Full stakeholder engagement rather than perfunctory consultation

The Path Forward

Bill C-5 represents an important opportunity to strengthen Canada's economic foundation while advancing reconciliation, environmental protection, and democratic governance. But opportunity alone is insufficient—we must get the implementation right.

PIPSC supports the CLC's proposed amendments to ensure this legislation delivers on its promise of building a stronger, more prosperous Canada that works for everyone.

The choice is clear: Implement the legislation based on the following amendments, or risk undermining the very goals this legislation seeks to achieve.

Canada deserves better. Canadians expect better. With the right implementation, Bill C-5 can deliver better.