Bill C-223 (Historical)

An Act to amend the Bankruptcy and Insolvency Act (unpaid wages to have first priority in distribution)

Bankruptcy and Insolvency Act

[John Maloney, Liberal, Welland, ON]

Mr. Speaker, on behalf of the all-party steel caucus, I would like to communicate our position that private member's Bill C-223 merits further study at committee stage.

Many past and present employees of the steel industry are being seriously affected by the shake-up that is occurring in this sector. As a result, provisions in the Bankruptcy and Insolvency Act are being implemented and these employees and pensioners find themselves at a disadvantage to other creditors after years of hard toil and loyal service, and at a time in their lives when it is most difficult to start over.

This issue is not unique to either the steel industry or even to Canada. It is a growing serious concern for men and women across the country. The steel caucus is unanimous that a serious study of the provisions of Bill C-223 as they relate to the Bankruptcy and Insolvency Act is required.

Our position has been communicated to the Minister of Industry and a copy has been sent to all members of the House of Commons. Let us have a full review of this issue. Our employees and pensioners deserve nothing less.

[Pat Martin, NDP, Winnipeg Centre, MB]

moved for leave to introduce Bill C-223, an act to amend the Bankruptcy and Insolvency Act (unpaid wages to have first priority in distribution).

Mr. Speaker, as my hon. colleague from Windsor West, who was good enough to second this bill, says, this bill is all about justice. In the event of a bankruptcy, the bill would put the wages of workers as a top priority in terms of those people who might get the shares of the assets of the bankrupt company. Currently, there are 10,000 bankruptcies per year. Over $2 billion is left owing to workers in back wages, pension contributions and benefits.

We believe there should be broad support for this idea. Even the owners of the bankrupt companies should be pleased to see that debts to their employees would be realized and made good upon after the fact, when the assets of the company are divided up. I believe unpaid wages should have first priority in distribution, not sixth, or seventh or eighth priority as is currently the case.

It is a matter of simple justice, and I encourage all members of Parliament to read the bill and hopefully see fit to vote with me to do something for Canadian workers who are left holding the bag when companies go bankrupt, as is so often the case.

(Motions deemed adopted, bill read the first time and printed)