As in the U.S., each Canadian jurisdiction places a statutory obligation on the employer and the union to "bargain in good faith and make every effort to conclude a collective agreement".

Once the trade union has been certified as bargaining agent, a "statutory freeze" is imposed upon the employer. This statutory freeze prevents the employer from changing the terms, conditions, rights or privileges of employment without the consent of the trade union, until a collective agreement has been concluded or the parties are in a position to strike or lockout.

The trade union is entitled to ask for (and receive) information from the employer that will allow it to collectively bargain. The type of information that a union can request includes the names of the persons in the bargaining unit, the classifications in which employees are employed, and the current wages paid to those employees. It has been held that providing this information to the union permits the full and frank discussion implicit in the duty to bargain in good faith. In many respects the context of the duty is the same as in the U.S., but there are important differences.

In Canada, there is no formal distinction between “mandatory” and “permissive” subject matters of bargaining. Unless prescribed by statute or by the practices of the relevant provincial Labour Relations Board, the parties are free to bargain any employment related issue to impasse. Collective bargaining legislation and/or Labour Relations Board practice prohibits bargaining to impasse such matters as the scope of the bargaining unit or the exclusion of managerial employees or employees who receive confidential information relating to labour relations. Some public sector employers are statutorily prohibited from bargaining pension issues to impasse.

Perhaps the most significant difference between Canadian and U.S. collective bargaining are the first contract arbitration provisions that exist in some Canadian jurisdictions. First contract arbitration provisions permit an arbitrator appointed by the provincial Labour Relations Board to set the terms and conditions of a first contract following certification. One party need not have committed an unfair labour practice before the other party can request first contract arbitration. However, first contract arbitration is not available as a matter of right; the applying party must demonstrate that one of the following conditions exists before a declaration will be made that a collective agreement will be settled by first contract arbitration:

• The employer has refused to recognize the bargaining authority of the trade union.
• Either party has taken an uncompromising position without reasonable justification
• Either party has failed to make reasonable or expeditious efforts to conclude a collective agreement
• Other circumstances exist that the Labour Relations Board considers relevant.