Bill C-33

Kellie Leitch Parliamentary Secretary to the Minister of Human Resources and Skills Development and to the Minister of Labour

Mr. Speaker, I am here today to ask the House to support the quick passage of an act to provide for the continuation and resumption of rail service operations.

As the House will recall, last June there was a three day strike by Air Canada's customer sales and service agents. I am glad to say that it was resolved by the parties, and the harm to Canadians was limited.

In June of 2011, our government introduced and passed the Restoring Mail Delivery for Canadians Act because of the economic importance of reliable mail delivery.

Because the government took action, Canadian workers and businesses, as well as citizens, were spared the hardship that a prolonged interruption in mail would have caused. In March, the government passed an Act to Provide for the Continuation and Resumption of Air Service Operations to prevent a work stoppage at Air Canada involving the International Association of Machinists and Aerospace Workers and the Air Canada Pilots Association. This legislation protected the Canadian economy and the public.

Today, we are again faced with a work stoppage that could do enormous damage to our economy. Once again, we have to take measures to protect our national interests in this period of economic uncertainty.

Talks have failed to result in a new collective agreement between Canadian Pacific, CP Rail, and the Teamsters Canada Rail Conference, TCRC, which independently represents the running trades employees and the rail traffic controllers.

The work stoppage at CP Rail is causing confusion and doubt where stability and certainty are needed in our recovering economy. Stability and certainty are essential to keeping Canada in business. If my hon. colleagues were to ask their constituents, as I have asked mine, or if they were to ask almost anyone in Canada right now, they would hear what I have been hearing as well, that we cannot afford this work stoppage because the risks are too great. As parliamentarians, we have a responsibility to act. Therefore, we have to take a stand for Canada's economy.

Like other industrialized economies around the world, Canada has faced challenging economic times. Our economy has weathered the global storm well. Our government is proud of its record for sheltering Canadians from the worst effects of the downturn and laying the foundation for a strong recovery. We all read the papers and know that our country is not immune to the changes in the world economy. There could be more turbulence. As of April 2012, our unemployment rate was 7.3%, a definite improvement from last year.

We need to be careful if we are to maintain our progress and promote economic growth. We cannot afford to have major labour disruptions. We have so much potential. A labour stoppage in any key sector of our economy would be a serious impediment to our growth and recovery. A work stoppage that detrimentally affects a major freight transportation sector is no exception. Rail is a vital cog in keeping Canada among the top performing world economies. Trade represents 35% of our GDP. In Canada, the rail transport service contributes significantly to the Canadian economy.

Let me provide some facts to make the point of how vital rail services and shipping are to the Canadian economy.

A 2009 report prepared by the University of Toronto's Rotman School of Management estimates that four key Canadian bulk shipping industries, oilseed and grain farming, coal mining, wood products manufacturing, and pulp and paper and paper products manufacturing, contribute over $81 billion to Canada's GDP. These industries also account for nearly a million jobs.

The rail-based transportation system in Canada is complex and interconnects a range of stakeholders, such as shippers, terminal operators, transloaders, ports, shipping lines and trucks, which are all part of a very competitive supply chain. Problems occurring in one part of the supply chain can affect the stakeholders across it. An effective supply chain is critical to meeting the government's objectives related to strategic gateways and trade corridors, such as the Asia Pacific gateway, and is key to continuing our country's high economic success.

The Minister of Labour has heard from numerous stakeholders who are urging the government to ensure that this strike does not continue for any prolonged period of time. I would like to read just a few quotes from some of the correspondence that she has received from stakeholders.

The president and CEO of the Mining Association of Canada wrote that, in the minerals and metals sector, experience has shown that a rail stoppage impacts the ability of companies to bring essential inputs to their mines and smelters, and to move finished products and byproducts to their destinations. The association requested that the government take action to head off this potential work stoppage before it damages the economy.

The Association of International Automobile Manufacturers of Canada and the Canadian Vehicle Manufacturers' Association jointly wrote, “CP Rail plays a vital role in the shipment of both parts and components into Ontario vehicle manufacturing facilities, as well as a significant role in the shipment and distribution of finished vehicles from ports of entry to local dealerships across the country...The integrated North American auto industry is presently experiencing a positive but fragile economic recovery.” Any disruption to CP Rail service will have an immediate and dramatic impact on its collective membership and their operations in Canada.

I can tell members that the Honda plant in my riding definitely reiterates this. We have a challenge ahead of us if we do not get the rail moving.

The Western Grain Elevator Association wrote that “this work stoppage will have a significant impact on the grain industy. Many of our elevator locations are serviced only by CPR. In the event of a work stoppage, these elevators will have no options available to them in the transportation of grain products. This will lead to the inability to supply our international customers and prohibit producers from delivering to those facilities. If we cannot at the very least move this product in a timely way to our customers, the associated lost opportunities and added costs will be significant.”

Finally, the Forest Products Association of Canada wrote to the minister and outlined the following:

As most of the industry’s mills are located in remote areas where rail service is the only viable transportation mode, other forms of ground transportation are either too costly or unavailable to provide our companies with relief, making our sector particularly vulnerable to even the shortest disruptions in service.

The association wrote, “In addition, the industry does not have the capacity to stockpile finished product nor can it continue production without certain input materials. As a result, any service disruption will undoubtedly lead to the industry incurring significant cost and will quickly result in mills shutting down temporarily.”

Some companies have already had to shut down production lines or lay off workers. Already the effects of the strike are hurting businesses, and it is not even a week in.

I have quoted from just a small handful of stakeholders and businesses that have called on the government to act quickly to prevent a prolonged strike that would do damage and have significant effects on the Canadian economy. We need to act now to protect Canadian jobs and the Canadian economy. Let us consider what this work stoppage means to businesses. We have heard quotes from a few of them that by stopping the trains, the strike is negatively impacting our trade opportunities. Businesses are losing sales at home and abroad.

Will businesses be able to recoup these sales? There is no way to know. Are businesses able to adapt and find alternative solutions? Again, we cannot say.

Work stoppages create ripple effects, or to put it another way, a chain reaction of damage that has far-reaching effects, possibly creating layoffs all the way down the line. Even a short work stoppage is very costly. Lost income, lost opportunities, lost jobs are all the unintended consequences of a work stoppage. They are devastating for both workers and businesses in a time of economic challenge. The losses caused by this shutdown of rail services are not only borne by the railway and its employees. They are borne by hard-working Canadians and their families all across the country. Jobs are at stake. The viability of businesses is on the line. We cannot afford to let this continue.

Let me say a few words on the recent history of collective bargaining at CP Rail. The Teamsters Canada Rail Conference independently represents 4,200 running trades employees and about 220 rail traffic controllers. Their collective agreements expired on December 31, 2011. The TCRC started negotiating with CP Rail in October 2011.

On February 17, 2012 the Minister of Labour received notices of dispute from the employer regarding both the running trades employees and the rail traffic controllers. The main issues in this round of bargaining deal with pensions, health care benefits and working conditions. The parties were released from the conciliation process on May 1, 2012 and acquired the right to strike or lockout on May 23, 2012.

On May 16, the Minister of Labour offered the representatives from CP Rail and the TCRC an extended mediation process to help them resolve issues and reach agreements. Again on May 22 the Minister met with both parties in an attempt to encourage and facilitate an agreement. Regrettably, this additional assistance was not accepted. On May 23 the work stoppage began.

I want to inform this House that our government would like nothing more than for the parties to reach an agreement on their own. However, the Minister of Labour has offered the parties the tools provided through the Canada Labour Code, but to no avail. These disputes have gone on too long. The government has not stepped in prematurely. As I said earlier, the parties have been asking for assistance from the labour program since February and they have received assistance. However, it has not resulted in a collective agreement. This work stoppage will have a significant effect on Canada's trade. Millions of Canadians are affected directly or indirectly.

There is more at stake here than the issues on the bargaining table. CP Rail and the TCRC, independently representing the running trades employees and rail traffic controllers, have had ample time to reach a negotiated agreement on their own. They will also be afforded all the tools available to rebuild and improve labour relations, such as preventive mediation services offered by the labour program. This work stoppage has gone on long enough, and for every day that it continues, our economy and trade relationships are jeopardized.

I ask my fellow parliamentarians to stand up for Canadians and support the motion and the legislation. We need to move forward and take action so that we can ensure that Canadian jobs and the Canadian economy are protected.

Denis Lebel Minister of Transport

Thank you very much, Mr. Chair, Mr. Bourdon, and members.

Thank you for the opportunity to be here to discuss these proposed amendments to the Railway Safety Act. This committee already has a high level of familiarity and engagement with these amendments and your continued support to improve the safety of our railway system is appreciated.

As you know, these proposed amendments were previously reviewed by this committee when they were presented to the House as Bill C-33 last spring. At that time, after several weeks of comprehensive discussion and analysis, all parties agreed unanimously to support the amendments, with one minor change related to safety reporting. Although that approved version of the bill died on the Order Paper when the election was called, the same amendments, with this committee's approved changes, were tabled in the Senate as Bill S-4, where they were again approved virtually unchanged and resubmitted to the House.

During second reading on March 13, we again heard many supportive comments from honourable members on the other side of the House. In brief, all parties once again expressed their strong support for the bill.

I believe the New Democratic Party member from Vancouver—Kingsway summed up the general feeling of the House when he referred to Bill S-4 as “...an excellent piece of legislation...that has gained the buy-in of industry, labour and government. ... It is a solid piece of legislation.”

The list of members who expressed their strong support for Bill S-4 goes on. Every member who spoke in the chamber agreed that this bill enhances rail safety, has the support of many stakeholders, has been widely debated and analyzed, and must be passed in a timely manner.

I must say, as the Minister of Transport, I deeply appreciate this enthusiastic support from all corners of the political spectrum. Everybody agrees on the importance of a safer rail industry for our economy and our communities. We all recognize that the industry is rapidly changing and that the Railway Safety Act needs to be updated accordingly. We all agree that the amendments, which have already been consulted on, debated, and unanimously approved by committee—not once, but twice—are the appropriate means to help ensure Canadians can reap the full benefits of a safe railway system. Better safety is clearly the objective that we all support.

The bill, as noted in the House, is a strong one. It is timely, it is thorough, and it is firmly focused on important and achievable improvements to our rail safety regime. I think much of the strength of this bill comes from the high level of stakeholder consultation that both preceded and followed its introduction to the House.

The initial Railway Safety Act review, which was launched in 2007, included input from the entire spectrum of railway interests, including the railways themselves, their shippers, their suppliers and their unions, as well as federal, provincial and municipal governments, national associations, independent researchers and the public. Essentially, all of the groups in our country were consulted.

Everybody had something to say, and we listened closely to their concerns. This bill is our comprehensive response. We identified the issues, we consulted on alternatives with the key players, and we subsequently took action with Bill C-33, and now with Bill S-4, to ensure that the safety concerns of Canadians are being properly addressed. We all seem to agree that they are. The member from Chambly—Borduas said during second reading that the NDP unabashedly supports the bill. Similarly, the member from Markham—Unionville said that “...the Liberal Party will certainly be supporting the bill”.

Speaking personally, I must say that I'm proud of this legislation. I am proud of it because it contains an effective blueprint for better safety in the rail industry. I am also proud of it because it shows how effective our parliamentary system can be when we decide to work together for the national interest. The net result is solid, seamless, and practical legislation like Bill S-4. I would like to remind you of some of the most important amendments in this bill.

First and foremost, Bill S-4 will improve railway safety in Canada by increasing the regulator's authority for stronger oversight and enforcement.

For one thing, these new authorities will allow the introduction of safety-based railway operating certificates for all railways. This means that every federally regulated railway in the country will have to demonstrate how they meet the safety standards set by the operating certificate before they begin operations.

This bill also provides the regulator with the authority to issue administrative monetary penalties when non-compliance with railway regulations is found. These monetary penalties have a very positive impact on safety and have already proven themselves effective in other modes of transport such as marine and aviation.

In addition, your approval of Bill S-4 will allow us to raise existing judicial penalty levels which were established 20 years ago and are now badly out of date. Raising these levels will make them equivalent to other modes and provide an important additional tool for our safety compliance and enforcement toolbox.

One other key component of these amendments is the significantly stronger focus they place on railway accountability and the need for effective railway safety management systems. With these amendments in place, railways will be required to appoint a senior executive to be responsible for safety issues. They will also be required to establish non-punitive reporting systems so that employees can raise safety concerns without fear of reprisal. In addition, railway companies will need to demonstrate how they continuously monitor and assess the level of safety of their operations.

These are critical steps for the development of an effective safety culture, and both the railway companies and the unions have expressed their strong support for these measures.

In addition to these key improvements, S-4 will also clarify the minister's authority related to national railway matters and expand regulation-making authorities, which will enable us to implement requirements for environmental management plans and emission data collection.

In sum, the proposed amendments before you today will significantly reinforce and modernize the Railway Safety Act to reflect the needs of this generation and those to follow. Railways are the backbone of our economy. As such, they are an important part of our history and our future. It is our shared responsibility to ensure they remain safe.

As we all know from the recent tragedy in Burlington, even one accident is one too many. We cannot afford to hesitate. The time to move forward is now.

In conclusion, I would like to once again thank all parties for their ongoing support. I would also like to thank this committee again for the opportunity to be here. I deeply appreciate your high level of engagement on this bill and all transport and infrastructure issues.

We will be happy to answer any questions you may have.

Thank you, Mr. Chairman.

Lisa Raitt Minister of Labour

Mr. Speaker, I do hope that the opposition members listen carefully to what I am about to say because I would hate for them to make the mistake of repeating that untruth outside this place or inside this place again.

The description of what just happened did not happen. There was no conversation with any workers. We acted on behalf of the public interest and the national economy by passing Bill C-33 in order to ensure that there would be services for Canadians and to ensure that we protected the economy. That is what we did.

We are on the side of Canadians. We are not on the side of the big union bosses.

Kellie Leitch Parliamentary Secretary to the Minister of Human Resources and Skills Development and to the Minister of Labour

Mr. Speaker, as I said before, we are acting in the best interests of the Canadian public.

Early Wednesday morning, Bill C-33, An Act to provide for the continuation and resumption of air service operations was passed by the House of Commons. We put the public interest, the Canadian economy and Canadian flyers first.

By passing the legislation immediately, we have protected the public interest from the real potential scenario of a strike or work stoppage.

Unlike the NDP members, who really want to focus on aiding their union bosses, we are focused on ensuring the Canadian public is put first.

The Acting Speaker Bruce Stanton

I have the honour to inform the House that a communication has been received as follows:

Rideau Hall

Ottawa

March 15, 2012

Mr. Speaker,

I have the honour to inform you that Mr. Stephen Wallace, Secretary to the Governor General, in his capacity as Deputy of the Governor General, signified royal assent by written declaration to the bill listed in the Schedule to this letter on the 15th day of March, 2012, at 5:09 p.m.

Yours sincerely,

Patricia Jaton

Deputy Secretary

The schedule indicates the bill assented to was Bill C-33, An Act to provide for the continuation and resumption of air service operations.

The Acting Speaker Barry Devolin

I have the honour to inform the House that a message has been received from the Senate informing this House that the Senate has passed the following bill: Bill C-33, An Act to provide for the continuation and resumption of air service operations.

The Deputy Chair Barry Devolin

Mr. Speaker, the committee of the whole has considered Bill C-33, and has directed me to report the same, without amendment.

(Bill reported)

Elizabeth May Saanich—Gulf Islands, BC

Mr. Chair, I have some questions, but I would rather look at Bill C-33 and figure out how we got here.

The hon. parliamentary secretary referred to constituents. I have constituents too and a lot of them work at Air Canada. I know them to be very hard-working. They have accepted a lot of concessions to help the employer, two billion dollars' worth of wage concessions over the last 10 years.

I feel very grateful to all the people because I happen to use Air Canada to travel between my home in British Columbia and here. I will admit to the House that I am terrified of flying. I approach a flight with the same anticipation that most people have when visiting their dentist. It is only on Air Canada that I have any margin of comfort. I feel very good about the safety record, the work of the mechanics, and the work of the pilots. I would like to pay tribute to how hard they work and to express my regret to the Minister of Labour that we are not allowing them to fulfill their collective bargaining rights in a way that allows a fair process.

This is a slender piece of legislation, but it packs a punch. What we are doing with successive pieces of legislation like this is undermining collective bargaining rights in Canada. I am sure the public sector workers are watching what is happening here. As we saw with the back to work legislation for Canada Post, we are seeing a pattern which undercuts labour rights in the country.

Getting to the specifics of this legislation, I do not know that I have ever seen a bill that includes clauses like clause 4 and clause 19. Back to work legislation is usually about a situation where there has been a work stoppage. In this case, we have anticipatory work stoppage legislation. Clause 4 deals with the air service operations. Clause 19 deals with pilots. In both cases, the legislation that we are called upon to pass tonight assumes that if the legislation comes into force and there is no strike or lockout, at that moment there would be a freeze. A strike would not be allowed nor would a lockout be allowed.

That certainly strikes me as unusual in the frame of back to work legislation that we have seen in the House in the 41st Parliament and in labour relations in general. Anticipating a strike or labour action undercuts labour relations. From a management point of view, when management knows that back to work legislation is in the offing, it certainly makes it easier not to work as hard as it should in a collective bargaining relationship to come to terms and to meet each other halfway.

I accept what the hon. Minister of Labour has said, that in a conciliatory process in which a very respected judge was acting as a conciliator, a deal was struck but was rejected by the workers. That is their right. Could we not now use those mechanisms again and give those workers the chance through free and fair collective bargaining rights to choose to accept or reject the terms of an agreement that affects everything about their working life?

I am very concerned as well by the final offer selection provisions in clause 11. I am wondering how we have come to something which is so extremely arbitrary. The hon. member for Cape Breton--Canso has read into the record how the judge felt about the previous arbitration decisions in relation to Canada Post that were forced through the House last June. We see it again here.

Certainly, even at this late hour, could we not see an amendment to this legislation that would allow us to ensure that normal collective bargaining rights are pursued in the choice of an arbitrator?

The hon. parliamentary secretary referred to working with a hockey team in his previous life. In my previous life I did labour law in Halifax with a lovely firm that was then called Kitz, Matheson, Green and MacIsaac. It was the only big downtown establishment law firm that did labour law from the union side. We did a lot of collective bargaining and a lot of arbitration. The first step was always the choice of the arbitrator. The union and management each would put forward a list of names. There would be a process. There would usually be a bit of back and forth in choosing the right arbitrator.

In this instance, we are very rapidly moving to the most strict and draconian approaches to arbitration. It is binding arbitration with final offer selection. On top of that, neither the union nor management will have any input as to who the arbitrator is.

I would ask the hon. Minister of Labour if she could respond to this question: Even at this late stage with the process before the committee of the whole, would the minister be prepared to consider an amendment to allow the union and management to each put forward a list of arbitrators before the selection is made?

I am not sure the minister heard my question. Would she consider an amendment to allow a list of acceptable arbitrators' names from management and the union to be put forward to replace what we now see in clause 11?

The Deputy Chair Barry Devolin

The House is in committee of the whole on Bill C-33.

I would like to begin this sitting of the committee of the whole with a short statement about the manner in which the deliberations will proceed. The rules governing debate in the committee of the whole are as follows:

No member shall speak for more than 20 minutes at a time. Speeches must be strictly relevant to the item or clause under consideration. There is no formal period for questions and comments. Members may use their time to speak or to ask questions and the responses will be counted in the time allotted to that member. Members may speak more than once. Members need not be in their own seat to be recognized.

The House will now proceed to clause by clause consideration of the bill. The hon. Minister of Labour.

(On clause 2)

The hon. Minister of Labour.