Restoring Rail Service Act

An Act to provide for the continuation and resumption of rail service operations

This bill was last introduced in the 41st Parliament, 1st Session, which ended in September 2013.

Sponsor

Lisa Raitt  Conservative

Status

This bill has received Royal Assent and is now law.

Summary

This is from the published bill. The Library of Parliament often publishes better independent summaries.

This enactment provides for the continuation and resumption of rail service operations and imposes a binding arbitration process to resolve matters remaining in dispute between the parties.

Elsewhere

All sorts of information on this bill is available at LEGISinfo, an excellent resource from the Library of Parliament. You can also read the full text of the bill.

Votes

May 29, 2012 Passed That the Bill be now read a third time and do pass.
May 29, 2012 Passed That Bill C-39, An Act to provide for the continuation and resumption of rail service operations, be concurred in at report stage.
May 29, 2012 Passed That the Bill be now read a second time and referred to the Committee of the Whole.

Restoring Rail Service ActGovernment Orders

May 29th, 2012 / 8:45 p.m.
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Halton Ontario

Conservative

Lisa Raitt ConservativeMinister of Labour

moved that Bill C-39, An Act to provide for the continuation and resumption of rail service operations, be read the second time and referred to a committee of the whole.

Mr. Speaker--

Restoring Rail Service ActGovernment Orders

May 29th, 2012 / 8:45 p.m.
See context

Conservative

The Speaker Conservative Andrew Scheer

Order, please. We will start the debate now and if members wish to carry on conversations I would invite them to do so on either side of the chamber in one of the lobbies.

The hon. Minister of Labour has the floor.

Restoring Rail Service ActGovernment Orders

May 29th, 2012 / 8:45 p.m.
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Conservative

Lisa Raitt Conservative Halton, ON

Mr. Speaker, it was just north of here, in Bonfield township, where the first spike was driven into our national rail system back in 1880. In the 132 years since, this transcontinental link has become a defining feature of our nation. Indeed, our country's history is linked to our railway system. From the shores of the St. Lawrence River, across the endless expanse of the Canadian Shield and the Prairies, through the majestic Rockies and over the rugged terrain of British Columbia, it has been the ribbon of steel that binds our country together.

Our government understands the historic connection that so many Canadians have to our rail service, but it is not just part of Canadian heritage. Much more than historical significance, Canada's rail system continues to be an integral part of our country's economic, trade and transportation needs.

Restoring Rail Service ActGovernment Orders

May 29th, 2012 / 8:45 p.m.
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Conservative

The Speaker Conservative Andrew Scheer

Order, please. I hate to interrupt the hon. minister once again but it is very difficult for the Chair to hear what she is saying and some members are having similar difficulties. If members who wish to remain in the chamber could just keep their conversations until later or, if they feel the need to converse with their colleagues, they can do so in either of the lobbies conveniently located on either side of the chamber.

The hon. Minister of Labour has the floor.

Restoring Rail Service ActGovernment Orders

May 29th, 2012 / 8:45 p.m.
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Conservative

Lisa Raitt Conservative Halton, ON

Mr. Speaker, Canadians may not even realize just how great the railways impact on the economy. I want members to consider these facts. Canada has the third largest rail network in the world and it handles the fourth largest volume of goods in the world. Two-thirds of Canada's rail traffic moves transborder and overseas trade. In fact, 40% of Canada's exports rely on rail transportation. With no trains running, the implications of this strike are widespread.

Let us take a look at Canadian Pacific Railways book of business.

Transport Canada reported that in 2010 CP Rail handled 74% of all potash, 57% of all wheat, 53% of all coal and 39% of all containers within Canada. In terms of revenue on an annual basis, this represents $5 billion worth of potash, $11.1 billion worth of grain and $5.25 billion worth of coal.

In addition to moving the potash, the wheat and the coal, the bulk commodities, this work stoppage is also impacting the manufacturing sector, the auto industry specifically. Auto parts are the third largest container import good that enters Canada through the west coast ports. This work stoppage is preventing these parts from being shipped to manufacturers here in Ontario.

Along with some members of our caucus, last evening I met with representatives of car manufacturers who told me that without the parts they need, assembly lines will slow down or stop, resulting in lost production and, depending on the duration of the work stoppage, possible layoffs affecting all auto manufacturers.

In regard to container traffic, $200 million of cargo is traded through the port of Vancouver alone every day. That cargo is destined for Canada's economic trading partners and the homes of hard-working Canadian families.

The economic impact stretches even further as Canada's rail companies paid $787 million in fuel last year, property taxes, sales and other forms of taxes in 2010, and over $2.5 billion annually in wages and benefits. That is the money that circulates through the entire Canadian economy. I think members can understand why our government is so concerned about the work stoppage at CP Rail and the fact that activity has been ground to a halt.

I want to be clear. Resorting to a work stoppage is not the norm for labour relations here in Canada. In fact, it is just the opposite. When the labour program is engaged through mediation and conciliation officers, 94% of negotiations and disputes are actually resolved without a work stoppage. We do see this, undoubtedly, as the better option.

When parties choose to resolve their differences, both the employers and the unions carefully consider the importance of maintaining the strength, the viability and the competitiveness of their operations. When parties choose to resolve their differences, they are recognizing that work stoppages and labour instability leads to long-term and generally detrimental impacts on the future of their company, on job prospects for new employees, on the customers they serve and on the national economy. However, that has not happened in this case and we are on day seven of a work stoppage.

There is no denying that negotiated agreements work. As we have always said, the best and the longest lasting solution to any labour dispute is when the parties come to an agreement at the table. However, there are instances when the parties are just too far apart to reach a compromise.

Let us look at the current dispute. In the case before us between CP Rail and the Teamsters Canada Rail Conference, there have been repeated efforts to break the impasse and the parties have tried to reach contracts for all the people who are involved. The TCRC, the teamsters, and the CP Rail representatives actually started negotiating in October and November 2011. The main issues in this round of bargaining for both units are important. They are pensions, health care benefits and working conditions.

However, by mid-February of this year I received notices of dispute from the employer for both units indicating that they needed some labour intervention. We provided the parties with the services of two conciliation officers for both unions' bargaining units. It made sense to have the same conciliation officers for both units so that we could have some consistency in the process.

Unfortunately, reconciliation was not achieved and, quite frankly, things have not progressed toward negotiated agreements. As such, the parties were released from conciliation on May 1.

On May 16, I met with the representatives in Calgary where I proposed a five point plan that would have provided extended mediation services for 120 days to the parties, as well as have a third party expert in pensions at the table, which would have delayed the possibility of a work stoppage. This was in recognition of the difficulties the parties had in terms of negotiations. Unfortunately, the union rejected this offer and the work stoppage began on May 23.

Even after the strike commenced, we provided assistance to the parties every single day.

However, on Sunday, May 27, the mediators tabled draft terms for voluntary arbitration that represented, in their view, a compromise solution to help address the impasse and avoid back-to-work legislation. In very short order, in under an hour, both parties rejected this compromise voluntary arbitration.

As a result, the officials from Labour Canada withdrew their services because, in their opinion, they determined that the positions of both parties were so entrenched that no forward motion was possible.

In situations where no resolution is in sight, where a strike is ongoing and the lives of Canadians and the health of the economy are being affected, the government has no option but to act. Indeed, the government has an obligation to act, which is why our government is introducing Bill C-39. It would end the work stoppage but it would also provide the parties with an interest-based arbitration process to help them resolve their conflict with the help of an arbitrator.

I can assure my hon. colleagues that this was not our first choice. Members on this side of the House do believe in the right to collective bargaining and would much prefer to see labour disputes resolved by the parties involved, as it is done a vast majority of the time. Our government only intervenes in situations where the public interest is seriously threatened, which is the case today.

History will show that, in 1995, the Liberal government at the time was faced with the same economic situation as a result of a rail labour dispute. It was during the debate on the back-to-work legislation in 1995 that the Liberal labour minister, Lucienne Robillard, stated in the House of Commons:

We would be lacking in our duty to the people of Canada if we allowed a work stoppage in the railway sector to threaten the stability of our economy and the jobs of the thousands of workers affected by this dispute.

It is this duty to Canadians and to our economy that I am asking for this House to support Bill C-39, an act to provide for the continuation and resumption of rail service operations. It is because there is so much at stake for individual rail workers, the company, businesses and their employees who depend upon CP's services and, quite frankly, ultimately, the economic recovery itself.

I would ask hon. members to ask their constituents, particularly the businesses in a constituency. I know what they will hear. They will hear that we cannot afford an extended work stoppage in one of Canada's most important transportation systems. The risks to jobs, to corporate profits and Canada's global competitiveness, frankly, are too great. Like other industrialized economies around the world, Canada is coming out of a difficult economic period.

While our government is proud of our record of sheltering Canadians from the worst effects of the downturn and laying the foundation for recovery, we all read the papers every day.

We all know our country is not immune, however, to currents in the world economy, events beyond our borders over which we have no control. We have uncertainty in Europe at the moment, and there very well could be more turbulence in the days and months ahead. Therefore now is not the time to risk our economy, especially considering that we are making steady progress in creating jobs and restoring consumer and investor confidence.

I do want to remind my hon. colleagues that as of April 2012 our unemployment rate has dropped to 7.3%. That is a definite improvement over last year. That is no wonder, because we added 58,000 new full-time jobs last month alone. However, to maintain this progress and to promote economic growth we need to be vigilant. We cannot afford to allow labour disruptions to continue in a major industry so crucial to domestic trade and our international exports. A labour stoppage in this key sector of our economy would be a serious impediment to our recovery and growth, because quite frankly, the domino effect throughout the economy of a prolonged work stoppage at CP Rail could mean major losses at home or abroad.

What needs to be understood is this. There is much more at stake here than issues on a bargaining table. The employees represented by the Teamsters want to be treated fairly and they want our respect for their rights under the Canada Labour Code. Our government clearly understands this. However, Canadians have rights too and Canadians gave us a strong mandate to protect the economy. This strike affects more than CP Rail and its workers. It affects Canadian businesses, Canadian exporters, Canadian farmers, Canadian miners and Canadian ports, and it affects Canadian families. A prolonged strike puts other people's livelihoods at risk. It is those people's interests that we are acting for in proposing this legislation.

In opposing the bill, the opposition is putting its pro-union ideals squarely ahead of two things, common sense and the national economy. Its vision is narrow and it only stands up for special interests. I urge all hon. members to pass this bill as quickly as possible.

Restoring Rail Service ActGovernment Orders

May 29th, 2012 / 9 p.m.
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NDP

Alexandre Boulerice NDP Rosemont—La Petite-Patrie, QC

Madam Speaker, I am going to take this brief opportunity to respond to the speech made by the Minister of Labour, who praised the values of the railways in Canada and told us just how important they are, how wonderful they are, how great they are, and how much they are loved.

In the NDP, the official opposition, we also love the railways, but we would like the workers who make them run and keep the freight trains rolling to be treated with a little more respect.

The first thing that comes to my mind is “Oops, I did it again”. The Conservative government is incapable of restraining itself from interfering in things that are none of its business: labour relations and collective bargaining, which have to be conducted freely. This is the third time. There were Canada Post and Air Canada and its pilots and mechanics, and now the people at Canadian Pacific are paying the price of the Conservatives’ ideology. The question I want to ask the minister is quite simple.

Does this government recognize the right of working people in this country to associate and bargain freely? With its laws forcing workers back to work and imposing terms on them, is this Conservative government in the process of subtly, under the table, changing the rules that govern collective bargaining in Canada?

Essentially, is what you want to do to change the Canada Labour Code to take the right to strike away from working people?

Restoring Rail Service ActGovernment Orders

May 29th, 2012 / 9 p.m.
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NDP

The Deputy Speaker NDP Denise Savoie

I remind all hon. members that they must address their questions to the Chair.

The hon. Minister of Labour.

Restoring Rail Service ActGovernment Orders

May 29th, 2012 / 9 p.m.
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Halton Ontario

Conservative

Lisa Raitt ConservativeMinister of Labour

Madam Speaker, I will start from the beginning. Should the government be involved in this matter? The answer is absolutely. We are acting in the best interests of the national economy and the Canadian public. To facetiously say that it is something we did by mistake is completely incorrect and quite insulting, frankly.

We are here on a mandate from the Canadian people to protect the economy. We take it very seriously, and sometimes we have to make tough choices and tough decisions. We have to balance the interests of the whole versus the individual. That is exactly what we are doing in this case.

In terms of changing the Canada Labour Code, there is no desire, no underhanded device in order to do it. We are very clear on 60 years of parliamentary precedence in railway strikes. We are intervening on behalf of the Canadian public and on behalf of the national economy.

Restoring Rail Service ActGovernment Orders

May 29th, 2012 / 9:05 p.m.
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Liberal

Rodger Cuzner Liberal Cape Breton—Canso, NS

Madam Speaker, one thing we all know is that back-to-work legislation really indicates failure, not success.

One thing that has been well publicized in past pieces of legislation that have been tabled by the minister is that they were tabled contrary to advice received by senior department officials, and we know the past legislation tabled has resulted in two charter challenges and two extended court battles.

I ask the minister if in this case there was any such representation from her senior officials. If so, what ramifications of this legislation do we anticipate down the road?

Restoring Rail Service ActGovernment Orders

May 29th, 2012 / 9:05 p.m.
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Conservative

Lisa Raitt Conservative Halton, ON

Madam Speaker, first of all, I'd like to correct the alleged facts that were brought forward by the member for Cape Breton—Canso. Indeed, what he said with respect to officials providing advice is incorrect. In fact, the advice I am provided by officials is very professional advice based upon the facts on the table, and I act on the advice of the officials in the best capacity I can.

That being said, this is different legislation. It is interest-based arbitration and it is tailored to fit the needs of the parties in this current dispute specifically. It is on the advice of officials, it is from within the discussion of the cabinet and it is very much appropriate for the situation we have right now.

Restoring Rail Service ActGovernment Orders

May 29th, 2012 / 9:05 p.m.
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Conservative

Laurie Hawn Conservative Edmonton Centre, AB

Madam Speaker, we are here debating the procedural motion, which allows for the quickest possible passage of the restoring rail service act. There are some members who argue we should let this go on and on, who knows for how long, for further bargaining between the two parties, which has already been shown to be not very effective.

Can the Minister of Labour please explain the necessity to expedite the passage of this bill?

Restoring Rail Service ActGovernment Orders

May 29th, 2012 / 9:05 p.m.
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Conservative

Lisa Raitt Conservative Halton, ON

Madam Speaker, indeed, we are on day seven of a work stoppage, of a strike, and it is incredibly important to make sure we get the CP Rail trains moving as quickly as possible for the national economy.

The ministers of industry, natural resources, agriculture and transport have all heard from their stakeholders, and we've heard from our stakeholders here in the country that it is getting very tight concerning the ability to move cargo and to receive cargo in the country, and that is going to have an effect on their business operations and on their employees.

We are on day seven. Traditionally, in the past, we have seen severe economic circumstances develop after seven to nine days, and indeed, I hope we will be able to deal with this matter expeditiously so we do not face that situation.

Restoring Rail Service ActGovernment Orders

May 29th, 2012 / 9:05 p.m.
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NDP

Alain Giguère NDP Marc-Aurèle-Fortin, QC

Madam Speaker, the problem with this government's special legislation is that Canadian workers invariably end up worse off in terms of salaries, pension funds and working conditions.

How can the Conservatives claim that this legislation is good for Canadians, when the Canadians working for these companies are being systematically penalized? Are they not active participants in the economy too?

Restoring Rail Service ActGovernment Orders

May 29th, 2012 / 9:05 p.m.
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Conservative

Lisa Raitt Conservative Halton, ON

Madam Speaker, indeed they are, and they are an incredibly important part of the economy, and CP Rail is as well, but the point is that these parties had the ability for the last eight to nine months to negotiate their own deals. They also had the ability in the past eight to nine months to recognize, if they were asking for difficult concessions at the table and they were not going to receive them, that they should find their own way to an arbitration process, to a mediation process. We in Labour Canada have offered both an extended mediation process and a conciliation process, and all these things have been rejected by CP Rail and by the workers.

The effect of the strike is ongoing, and the effect of the strike is on the national economy. It is the obligation of the government at this point to take a look at the greater good for the economy and the greater good for the national interest and to act appropriately. In this case, acting appropriately is introducing this legislation and having quick passage.

Restoring Rail Service ActGovernment Orders

May 29th, 2012 / 9:05 p.m.
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Liberal

Frank Valeriote Liberal Guelph, ON

Madam Speaker, I am really beginning to question the sincerity and genuineness of the intentions of the government with this legislation. I say that for two reasons. One is, if this were such an essential service to Canadians, then the minister would designate rail service as an essential service, by which would accrue a number of rights to the employees.

Number two is that the minister and the government are only emboldening the railway company. The reason I say that is they have had the rail service review since March of last year. They have been comatose on the file and have done nothing about it. That is hurting farmers, and I am convinced that their only interest is supporting the railway companies.