Mr. Speaker, allow me to explain on behalf of the Government of Canada why we believe it is so important that we act now to ensure the continuation and resumption of air service operations at Air Canada.
To be clear, we firmly believe the best solution is one that is arrived at by two parties together. In this case we are talking about three parties that are bargaining in two different labour disputes, yet that does not change the fact that the parties should work together to reach their own deal, because that is always the best deal, one they reach together.
However, that solution has not presented itself. As a result, Canadians now face not only the risk of grounded Air Canada services but also the risk of damage to our economy, and this is occurring at a time when our economy cannot withstand that damage. Our government's action to provide for the continuation and resumption of air service operations at Air Canada is the right solution to prevent harm to our economy.
The first federal back to work legislation in this country dates back to 1950 when the St. Laurent government tabled Bill 1, the Maintenance of Railway Operations Act. The bill was designed to put an end to a strike that had shut down the nation's rail system. Parliamentarians at that time understood the clear risk posed by paralysis in a major transportation sector. They took action and they spared Canada's economy from unnecessary harm. At the time, Canada was heavily dependent on railways to move people and goods across Canada. When freight trains slowed to a halt, everyone could see that our economy was bound to pay a heavy price. Bill 1 ordered an end to the strike and it imposed a process for settling the dispute between the railway workers and their employer, and within days the workers were back on the job.
There are important parallels between the rail strike of 1950 and what is at stake here with a looming work stoppage at Air Canada today. The federal government in 1950 took strong action, because it understood that a labour dispute between rail workers and their employer would affect far more than just the two parties at the negotiating table.
The risk today is just as real and just as far-reaching. Canada's economy, our international reputation as a trading partner, jobs, prosperity and the livelihoods of Canadian families are on the line as a result of these two labour disputes between Air Canada and the International Association of Machinists and Aerospace Workers and between Air Canada and the Air Canada Pilots Association.
According to the International Labour Organization, for every job lost in the airline, between four and ten jobs could be lost in the economy. There is more than enough uncertainty in the global economy today as it is. Canada cannot afford to have a grounded airline. This would create havoc and doubt at a time when the world is tuning in to us as a great place to do business and a great place to invest.
Members of the International Association of Machinists and Aerospace Workers make up the largest unionized workforce at Air Canada. There is no question about what a work stoppage involving this group would mean to daily operations at Air Canada, a company that is an integral part of this country's economy. The IAMAW has publicly stated in its own bulletin to its members that without them, all will be grounded.
Let us turn to the approximately 3,000 pilots represented by the Air Canada Pilots Association. It is quite obvious that a work stoppage involving this group would grind the airline to a halt. Air Canada would be grounded. In fact, the pilots themselves have stated that they think Air Canada is an essential service. Captain Paul Strachan, the president of the ACPA, said himself during testimony at the Senate Standing Committee on Transport and Communications when he was asked whether he considers Air Canada to be an essential service, “I think it's essential for this country. As we sit here today, it is absolutely essential. It is a cornerstone of our entire economy”. Even the pilots themselves, who are party to one of the labour disputes we are faced with today, admit it is essential for Air Canada to remain flying.
Consider what a sudden and complete stop in service would mean at Air Canada, Canada's largest air carrier. Business people might have to forgo meetings with clients, conventions could be cancelled at the last minute and air travellers might get stranded at airports and have to cancel their holidays. Each of these developments would carry a cost. Thus there can be no doubt that a work stoppage would weaken Canada's economy and Air Canada's reputation among the travelling public.
Air Canada and its unions have been at odds over pensions and wages since 2003. The labour dispute with the IAMAW has been evolving for some time. It was apparent that a negotiated settlement to be ratified by all parties was not going to be easy to achieve.
While a tentative contract settlement between Air Canada and the IAMAW was reached in February, the workers rejected this agreement. Subsequently, 78% of the members also voted in favour of giving the union a strike mandate. On March 6, the union provided the strike notice to the Minister of Labour.
The labour dispute with the ACPA has been evolving also for a significant period of time. Again, a tentative agreement was reached between Air Canada and the ACPA, yet ACPA's membership also voted to reject that agreement. Later in the year, 97% of the ACPA membership voted in favour of a strike mandate. On March 8, the employer, Air Canada, provided notice of its intention to lock out the pilots to the Minister of Labour.
Despite assistance from a conciliation commissioner, in the case of the IAMAW, and from two co-mediators, in the case of the ACPA, the three parties have been unable to resolve their differences. Meanwhile in its financial report issued last month, Air Canada said that it lost $80 million in the fourth quarter of 2011 alone. Air Canada continues today to face serious financial challenges, and has been trying to cut costs. The unions have made financial concessions in the past, but now they are not willing to do so.
Our government has done its best to assist these parties in reaching an agreement. It is now time for Parliament to do the right thing and support the government in its efforts to ensure the continuation and resumption of air service operations for Air Canada.
Let us consider this. In 2005 a one-day wildcat strike involving ground crew workers at Canada had the effect of delaying 60 flights and led to the cancellation of 19 others in Toronto alone. Reduced operations by Air Canada will also be very costly to Canadian airports, as well as Nav Canada, which operates our air navigation system.
The risks to our economy are very real, plus the future of Air Canada could be on the line. A work stoppage at Air Canada goes against the best interests of hard-working Canadians, Canadian and international business and the already fragile economy.
Therefore, I call on all members of the House to join me in acting to keep Air Canada flying, to maintain the confidence of the travelling public, to provide for the continuation and resumption of air service operations at Air Canada.
