Bill C-39 (Historical)

Restoring Rail Service Act

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

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.

Rail Service Resumption Act, 2015

[Alexandre Boulerice, NDP, Rosemont—La Petite-Patrie, QC]

Mr. Speaker, it saddens me once again today to rise in the House, in the Parliament of Canada, to oppose a bill. I rise as a member of the official opposition to represent the values of the NDP, which is opposing a back-to-work bill for the seventh time since the Conservatives took power in 2006. This government is certainly a repeat offender when it comes to attacking workers, violating their legitimate rights and preventing them from exerting pressure, which includes going on strike.

In 2007 we had Bill C-46 for the continuation of railway operations, so this is not the first time. In 2009 we had Bill C-61 for the continuation of railway operations once again. In 2011 it was Bill C-6 to restore mail delivery. That bill targeted postal workers and letter carriers. Also in 2011 was Bill C-5 to continue air service for passengers. Then we had Bill C-39 and Bill C-33 in 2012, when the Conservatives once again created a power imbalance between the parties. They systematically took the employer's side and took away fundamental rights from unionized workers, who are well within their rights to exert pressure.

I asked the minister a question earlier that I believe is the key issue we are concerned about: do people still have the right to strike and use pressure tactics in Canada today? Does this Conservative government recognize that striking is a legitimate way of expressing the right of association and freedom of collective bargaining? The Conservatives seem to be completely ignoring that aspect, and I will come back to that later. The Supreme Court's recent decision has once again upheld this right that the Conservatives have been flouting, year after year, in Canada.

We have reached a point where workers have to ask themselves whether they will be bothering anyone if they exercise their right to strike. Will the government systematically intervene and break the rules to give the employer more power and additional arguments? The situation is always the same. If the employer knows for sure that it does not really have to reach an agreement because its friends in the Conservative government will intervene, violate rights and prevent its workers from striking, then what incentive does the employer have to negotiate in good faith and try to find a solution? That is the major problem.

They should give negotiation a chance.

We have a Conservative government that is always on the side of the employers and never on the side of the workers of this country. Workers have a fundamental right to exert economic pressure and strike if they need to in order to force employers to recognize problems and find solutions.

The minister just said that a negotiated deal is always better than an imposition of anything. Why is she imposing back to work legislation again and again? It is the seventh time that the Conservatives would do that since they were elected in 2006. It is a bad habit that they have; they take a side every time and break the balance of power between the two parties. We are saying to give the workers a chance to negotiate and to exert their rights.

The Minister of Labour just said that the recent decision of the Supreme Court had nothing to do with the right to strike. I contradict that. I have a quote from a Supreme Court judge in that decision from a few weeks ago. Judge Abella wrote the following:

Where good faith negotiations break down, the ability to engage in the collective withdrawal of services is a necessary component of the process through which workers can continue to participate meaningfully in the pursuit of their collective workplace goals. In this case, the suppression of the right to strike amounts to a substantial interference with the right to a meaningful process of collective bargaining.

This is exactly what the decision of the Supreme Court is about. It is about the fundamental right of workers to exert some pressure on an employer to improve their working conditions.

If those workers are refused the right to strike, that is an interference of their fundamental rights. This is exactly what the Conservative government is doing, again and again.

It is a sad day. The right to strike in this country is under attack. Unions were considered illegal organizations before 1872. We are asking whether the government wants to go back to that point in time. Every time that it can crush workers and their unions, the government does it systematically. It has done it with Bill C-525, Bill C-377, and Bill C-4, other attacks on health and safety issues.

It is a sad day for democracy. It is a sad day for the workers of this country. It is a sad day for the labour movement. Workers can count on the NDP to defend their rights because we will protect the freedom of negotiation and collective bargaining. This is a value that we on this side of the House cherish and care about. Workers know that in a few months they will have the opportunity to have the first social democrat, pro-union, pro-worker, government in this country. It is coming.

I would like to reiterate that the labour minister told us that the Supreme Court's recent decision had nothing to do with exerting economic pressure or the right to strike. However, Justice Abella indicated in the ruling given a few weeks ago that the suppression of the right to strike interferes with the right to a meaningful process of collective bargaining, a process that provides an opportunity to get results.

In this case, it is extremely dangerous for the entire labour movement and for all workers to have a government that systematically takes the employer's side and tramples on workers' rights.

It is critical with the CP issue, and when there is a threat of back-to-work legislation hanging over their heads, to ask why the employer would negotiate in good faith. The employer knows it has good friends in power in Ottawa. The government will be on the employer's side and will force workers to go back to work. There is no reason for the employer to negotiate and look for a compromise.

Our concern is also the safety issue that is on the table for Canadian Pacific workers. It is a safety issue for everybody in this country: for the workers, first and foremost, of course, but also for everybody else. It is a question of the hours of work being too long, and extreme fatigue. We are talking about conductors who are driving freight trains that can be four kilometres long. We can imagine the consequences if the conductor is too tired to be aware of the dangers or everything that is going on.

This is not only the vision of the union. It is a problem that has been recognized by Transport Canada, and even by the companies. Transport Canada's own analysis of CP and CN employee scheduling records, from six different rail terminals across Canada, concluded that on the timing and length of each shift, assigned through an unpredictable on-call system, extreme fatigue was rampant.

In 4% of cases, employees were already extremely fatigued at the start of their shift because they did not have enough hours to sleep. It is a shame.

The government is not acting to correct that situation. Canadians should know that their safety is being put at risk by the government. We want that to change.

Forty-five percent of employees became extremely exhausted during work, and nearly all, 99%, were fatigued at least once during a month.

It was the same problem, the same issue, three years ago when employees of CP went on strike for a couple of days. After that, of course the Conservative government came here to vote on back-to-work legislation. The workers at that time were promised that the situation would be fixed: “Do not go on strike, we will negotiate and fix it.”

However, three years later, it is the same story. The same problems are still there. Extreme fatigue is still a problem for members of the Teamsters who are working for CP. Nothing has changed. We are back here again in the House of Commons, talking about back-to-work legislation.

My guess is that in three years we will be back again, because the issue will still not have been solved. There is no incentive for CP to solve the problem. The Conservatives are not helping. The Minister of Labour is not helping.

I think it is worth repeating, because the main issue in dispute here is not that workers want higher pay or want to extort more money from their employer. This is not about money. Incidentally, Canadian Pacific is an extremely profitable company. It has nothing to complain about; business is good. The discussions and debates are really about a matter of public safety. People need to be aware of that, because this is about the problem of too much overtime and the fatigue this causes. Canadian Pacific workers, the train operators, are not getting the rest they need, which leads to extreme fatigue.

What do the workers want? To be able to stop working and go home after 10 hours of work. All they are asking for is to not work more than 10 hours. What is this, the 19th century? Right now, train conductors have to work up to 12 hours straight before they can get a real rest. This is 2015; this is shameful. This Conservative government is doing nothing. In fact, it is actually helping rail companies perpetuate this practice.

Consider the potential consequences if a conductor driving a four-kilometre-long train is tired, does not have the necessary reflexes, and is unable to read the terrain or the dangers up ahead. Recent tragedies have shown us how important rail safety is. Everyone needs to know that this is a public safety issue and that the Conservatives are doing nothing about it.

A few minutes ago, I said that three years ago, CP workers, Teamsters members, went on strike for a few days on the issue of fatigue on the job and lack of breaks. The Conservative government forced them back to work. They were told not to worry, that this would be resolved, that there would be negotiations and recommendations would be made. Nothing was done. Today, in 2015, three years later, these same workers are going back on strike on the same issue of fatigue at work because nothing has been resolved. Now, we have another bill that is going to force them back to work again.

Should we allow the Conservatives to remain in power, I would not be surprised if people have to deal with a CP strike in three years. Unfortunately, if the Conservatives are still in power, they will again force them to go back to work. However, even Transport Canada recognized the issue of workplace fatigue for train conductors. It is not the Teamsters, the union, the CLC, but Transport Canada that is talking about this. Investigations of six different train terminals across the country led Transport Canada to conclude that the problem of extreme fatigue was rampant across Canada. In 4% of cases, employees are even extremely fatigued at the start of their shift, at the start of their work day, because they often do not get enough rest between two shifts. Fully 45% of employees are extremely tired or even exhausted while on the job. Forty-five per cent. Almost everyone, 99% according to Transport Canada, is tired at least once a month.

That has an impact on the workers. Obviously, it is bad for their health, their family life and their work. It puts everyone at risk.

The NDP does not want train conductors to experience fatigue at work. That is basic and straightforward. We do not understand why the Conservatives are still refusing to resolve this issue.

Even our neighbours to the south, the United States, where private enterprise is king and people despise regulations, have more regulations governing hours of work for rail company employees than we do. That is bizarre.

Why have the Conservatives never managed to fix this problem? We do not understand, but it puts huge swaths of our communities at risk.

Over the past five years, there have been at least seven accidents that, thankfully, did not cost any lives, but that happened because train conductors were tired at work. This is a real problem.

We have to find a solution, but we will not find a solution by preventing workers from exercising their right to take job action or go on strike. We know that because this is like groundhog day: it is the same old story over and over again.

I want to emphasize the fact that it is a real problem. The extreme fatigue of CP workers is real. Transport Canada has revealed that in the last five years, at least seven accidents or incidents were caused by fatigue of drivers or conductors of those trains. It is a real problem, but the government has no solution. Its only way to act is always ideological, always against unions, always against workers and against the safety of Canadians.

It is really sad. It is another case of the Conservatives going against international law. There is a labour organization in Switzerland that recognized that the right to strike is a fundamental right in modern societies. Once again, the government is going against the last decision of the Supreme Court and against international law.

On this side of the House, we think that workers can organize, defend their rights, and improve their working conditions. It is not the job of the government to oppose that, because it helps to build better communities. We always hear the Conservatives talk about the middle class and how they will defend the little guys of the middle class, but the middle class is, for the most part, a creation of the labour movement in this country and in all countries. Without the labour movement we would have no middle class.

If we want to defend the middle class, we must give the workers the tools to negotiate, to gain something in collective agreements, and to make sure that they are working in safe places. We must make sure that we do not put the safety of citizens of this country at risk.

Not only is the current federal government going against the Supreme Court's recent decision in the Saskatchewan case, but it is also going against regulations of the Geneva-based International Labour Organization, which considers the right to strike and the right to free collective bargaining to be fundamental.

However, this is not surprising coming from an extremely ideological Conservative government that always responds in the same way when Canadian workers try to exercise their rights and improve their working conditions. This government pulls out the big guns and beats them back, telling them to shut up and get back to work. It does not want to listen to them; they are annoying.

What is important to this government is that companies continue to rake in profits, regardless of how or why and regardless of the rules, even if it makes people sick.

The Conservatives often like to say they are standing up for the middle class. However, the middle class is mainly a creation and a consequence of union struggles by workers who got organized, defended themselves at their workplace and negotiated better collective agreements.

If we are talking about the middle class, we must also talk about the tools that workers created to improve their situation. The NDP will always be there to stand up for workers and their families, for workplace health and safety and for public safety.

Unfortunately, again today, we see that the Conservative government is violating workers' rights and putting public safety at risk. I hope that all of us in the House will oppose this back-to-work bill—yet another one—and stand up not only for workers, but also for the middle class and public safety.

Use of an Unparliamentary Expression

[Claude Patry, NDP, Jonquière—Alma, QC]

Mr. Speaker, yesterday evening in the House, during my speech on Bill C-39, I used an English word that anglophones define a certain way. I will not repeat it in the House. As a francophone, to me that word means “to be taken for a ride” or “to be had”.

Since we are in the House of Commons and some of my colleagues were offended, I would like to withdraw the word and apologize to all of my fellow MPs.

Rail Transportation

[Garry Breitkreuz, Conservative, Yorkton—Melville, SK]

Mr. Speaker, last night the House of Commons moved to end the strike at CP Rail by passing Bill C-39. Labour stability in the rail sector is critical to the functioning of a Canadian economy, our continued economic recovery and the confidence of Canadians businesses and the Canadian public.

In my riding of Yorkton—Melville, the exports of grain and potash are essential to the economy. The work stoppage at CP Rail is costing the Canadian economy $540 million each week it continues and will put the jobs of thousands of other Canadians at risk if it is prolonged.

Could the Minister of Labour please give the House an update on the status of Bill C-39?

Restoring Rail Service Act

[The Deputy Speaker, NDP, Denise Savoie]

Mr. Speaker, the committee of the whole has considered Bill C-39 and has directed me to report the same, without amendment.

[Gord Brown, Conservative, Leeds—Grenville, ON]

Madam Chair, I rise this morning, which is after midnight here in Ottawa, to support Bill C-39, An Act to provide for the continuation and resumption of rail service operations.

Each of us is aware that our economy is still recovering from the events of the last several years. We continue to fare better than many others through the global economic downturn, true, but when it comes to our ongoing recovery, we are still not completely out of the woods. In fact, it would be simple arrogance for any country to assume that it is untouchable. In times like these, a disruption in a key industry is a simple ripple that can quickly turn into a tidal wave. The strike at CP Rail is having serious consequences for our economy.

Even while we sit here this morning discussing legislation, it is still our hope that CP Rail and the Teamsters Canada Rail Conference, the TCRC, can find a way to settle their differences. As the House knows, according to Transport Canada, CP Rail moves almost $50 billion worth of freight every year. The House must do what it can to help find a positive solution for everyone involved.

Efficient rail services are essential for us to play a competitive role in the world's economy. Rail brings products from across the country to and from our ports, and from our ports we send goods to locations around the world.

According to Transport Canada, in 2010, CP Rail handled 74% of potash, 57% of wheat, 53% of coal and 39% of containers within Canada. This represents $5 billion worth of potash, $11.1 billion worth of grain and $5.25 billion worth of coal. Clearly, the issue we are discussing here this morning is bigger than us. It is about our place in a worldwide trade network. The railway was once hailed for connecting the country and now it connects us to the world.

I will take this opportunity to bring this back to a company in Brockville in my riding of Leeds—Grenville. It is not just about a company in Brockville. It is about companies across the country that are being impacted with the strike. I will talk specifically about the company in Brockville called Canarm. It is a global marketer and manufacturer of lighting, air moving and related products supplying residential and agricultural markets. The company has five satellite manufacturing plants in Ontario, as well as a distribution centre in Montreal. It is a privately owned company and it has over 300 full-time employees. I heard from the company last week, even before we got into this strike. What the company has been telling me over the last few days is that it is very concerned about what is going on. I will read what they sent me. It says:

On the distribution side of our business we currently have 10 containers, representing $600,000 in sales on rail with CP and not moving. We have 25 containers in Port in Vancouver which represents $1.500,000 in sales that cannot move now because of the strike. This product is all seasonal product (ceiling fans) on their way to retailers for summer promotions to Canadian consumers. Every day represents lost sales that we are not able to get back. If the strike progresses too long the retailers will be moving in to fall products and we may be forced to take the product back because it was not delivered on time. We would also be forced to lay off workers at our Montreal distribution facility because of lack of work for them.

Further, we also import component parts from the orient which are assembled in our Brockville manufacturing facility. This product is industrial commercial ventilation equipment used in the construction of condominiums and office buildings. Should the strike continue beyond the 2-3 week mark we would also be looking at layoffs here, which could put up to 75 or 80 people temporarily out of work.

Jim Cooper, the president of Canarm, said:

It is difficult enough to be a successful manufacturer in Canada today without the distraction of a national rail strike. In order to be successful we must have all elements of our supply chain working in sync. This rail strike is extremely disruptive to our business and we need to see our product moving on the rail as quickly as possible in order to continue to meet and fulfill our obligations to our customers.

The fact is that we need to move as quickly as possible so that we are not having companies like Canarm laying off employees.

As I said before, it is not just about Canarm in Brockville. It is about companies across this country that are relying on supply chain operations and the smooth movement of goods.

Here is the situation as it stands now. I want to reassure the House that the labour program has been involved throughout the process. The TCRC represents 4,200 running trades employees and about 220 rail traffic controllers. Running trades employees include locomotive engineers, conductors, baggagemen, brakemen, car retarder operators, yardmen, switch tenders, yard masters, assistant yard masters and locomotive firemen

Last fall, the TCRC and CP Rail representatives started negotiations for both units. On February 17, 2012, the Minister of Labour received notices of dispute from the employer for both units. About two weeks later, on March 2, the labour program appointed two conciliation officers to help the parties work through the process. The parties were released from conciliation on May 1 and on May 16 and on May 22, the Minister of Labour met with the parties but to no avail. On May 23 of this year a strike began.

The parties have been unable to resolve their differences even with the help from the Federal Mediation and Conciliation Service. That is why our government is proposing Bill C-39. It would end the work stoppage and provide the parties with an interest-based binding arbitration process to help them resolve their conflict.

Today, the world's economies are interconnected. I have already spoken about how this is impacting a company, a major employer, in my riding. Yes, the flow of products and goods is a crucial part of keeping our economy strong, but it is also about keeping the world economy strong.

We are but one link in a global chain. Think about our contribution to the Asia-Pacific Gateway and trade corridor. Without rail transport, our link is weak, more than weak. Without rail transport, the chain is broken. Simply put, without rail transport our economy suffers.

Canadians want responsible leadership from their parliamentary representatives. The sooner the bill is passed the sooner Canadian businesses and investors will be reassured. I call on my fellow members to support this bill.

I also have a few questions for the minister.

We have heard from other members. We have heard from the member for Vancouver East and the member for Cape Breton—Canso. I would like to ask the minister to comment on the speeches by those members and how she felt about what they had to say.

[Lisa Raitt, Conservative, Minister of Labour]

Madam Chair, in an ideal world parties in a dispute would settle their differences quickly and amicably. They would work hard to understand the other's point of view. Moreover, they would appreciate that their disagreement could have far-reaching consequences for people not directly involved. Armed with this knowledge and insight, they would compromise for the mutual benefit of all concerned.

Unfortunately, our world is far from ideal. Despite months of negotiations between the parties, we are now in the midst of a work stoppage at CP Rail. This strike is resonating far beyond the confines of the rail industry as well.

Given its impact on our economy, the government is acting today in the national interest. However, our actions have generated a predictable course of objections. We have been accused of misusing our powers and undermining the right to collective bargain. We have been told that we are moving too quickly. Finally, it has been suggested that the problem is not serious enough to warrant back-to-work legislation. None of the objections hold water.

Since 1950, the Government of Canada has consistently intervened with back-to-work legislation in the railway industry where there is a work stoppage. Our actions today follow the time honoured footsteps of many previous governments, governments that were equally concerned about the impact of shutting down all or part of our rail industry.

I have been asked if I think the government is undermining the collective bargaining process many times by people in the opposition. Quite frankly, the answer is clearly no. I would like to make it perfectly clear that this government remains firmly convinced that collective bargaining is a far better way to resolve disputes than emergency legislation. It is significant that there is nothing in the legislation to prevent the parties from modifying any provision in the collective agreements, either new or changed.

It has been almost five months since the expiration of the collective agreements covering rail traffic controllers and the running trades employees. Like all concerned, the government hoped that CP Rail and the two units could reach agreements and settle their differences, but that has not been the case.

On February 17, I received notices of dispute for CP Rail for both units. Subsequently, on March 2, the labour program appointed the same two federal conciliation officers for both units to ensure consistency for the process. In other words, far from undermining the collective bargaining process, the government has taken steps set out in the Canada Labour Code to help the parties try to resolve the differences. Despite these efforts, the parties remain at an impasse. Therefore, on March 1, they were released from conciliation.

I met with the parties twice in May to offer them extended mediation to help them reach agreements or at least move forward on some of the remaining issues from the bargaining table. At the bargaining table, there were serious issues such as pensions, wages, benefits and working conditions. Regrettably, the assistance was not accepted and on May 23 the strike began.

Unfortunately, the parties did not manage to reach an agreement. As a result, they have caused serious economic problems in our country by initiating work stoppages. As the government, we took the necessary steps and acted for Canadians and our economy.

This government respects the rights of unions to strike and the right of employers to lock out their workers as is set forth in the Canada Labour Code. We would most assuredly prefer not to interfere with affairs of CP Rail, but we are not prepared to stand idly by as a work stoppage cripples vast sectors of our economy.

To the question from the opposition on moving too quickly with the legislation, I think not. I realize that the parties have tried to settle their various disputes, but this government is faced with a situation that requires immediate and decisive intervention.

The parties have had ample time to reach an agreement and they have received help from experts in mediation. At this point, we cannot expect that they will see eye to eye any time soon. We cannot wait any longer, not when our economy hangs in the balance.

The Leader of the Opposition said today that he believed it was not even a question of acting too soon. He would prefer not to act at all but that we encourage both sides to continue negotiating, even during a work stoppage with their talks halted.

Why is that? I submit that is because he does not understand that this work stoppage is a real threat to others outside the rail industry. I hope he does not believe that in our globalized economy, where markets can turn on a single tweet, that freight rail has become a relic because we completely disagree with that.

CP Rail has grown into a vast network of some 22,000 kilometres operating in 13 American states as well as six of our own provinces. For many farmers and miners, freight rail is the mode of choice to get their products to market and CP Rail is the company to which they most frequently turn. In 2010, according to Transport Canada, CP Rail transported 74% of our potash, 57% of our wheat and 53% of our coal. All totalled, the value of freight moved by CP Rail in Canada is nearly $50 billion, each and every year.

In 2009, a report by the University of Toronto's Rotman School of Management indicated the important role played by four Canadian bulk shipping industries that used freight rail. Oilseed and grain farming, coal mining, wood products manufacturing and pulp and paper and products manufacturing contribute together more than $81 billion to Canada's GDP. Moreover, they keep one million Canadians at work. In other words, freight rail remains indispensable to our economy.

It is not just important to the 15,000 or more people who work at CP Rail. It is also clearly vital to the farmers, miners and forestry workers who depend upon rail to move their products across the continent and beyond and to all those whose jobs are linked directly or indirectly to the rail industry.

If this work stoppage is prolonged, it will translate into further job losses. With no trains running, the implications of this work stoppage are widespread. In addition to affecting farmers, miners and forestry workers, it is also impacting auto workers. Auto parts are the third largest container import good that comes through Port Metro Vancouver. This work stoppage, this strike, is halting the shipment of these parts to manufacturers in Ontario. Without these parts, assembly lines will slow down or stop and that will result in lost production and layoffs.

Do not forget that through partnerships with other modes of transport like shipping or trucking, the silence on train tracks can vibrate far beyond our own waters and our own borders. CP Rail is a vital link in moving freight to and from Canada's west coast ports, which are such an important part of the Asia–Pacific gateway. This work stoppage is preventing our ability to keep products moving, it undermines Canada's reputation as a reliable place to do business and it is a setback from which it could take years to recover lost businesses and lost investments.

We have two class I railways in our country and it is true that Canadian National does have some capacity to move freight. CN estimates were that it could pick up nearly 10% of CP Rail's grain traffic, but probably less for other sectors. However, the fact remains that about 20% of CP traffic simply does not have direct access to CN's rail network.

We cannot count on CN to pick up the slack during this work stoppage and VIA Rail cannot help fill the void because it is designed to transport passengers, not freight. Most important, we cannot rely upon a speedy conclusion to negotiations that have dragged on without success and finally broke down this weekend. We must act.

First, there is 60 years of parliamentary precedent for a government to introduce back-to-work legislation in a rail industry work stoppage.

Second, the bill does not circumvent the collective bargaining process, especially considering all the support we have given to help these two parties reach a solution.

Third, we are not acting too quickly. The stakes are much too high to wait for the parties to have a change of heart.

Finally, the rail industry is not a self-contained sector that we will simply leave to its own devices. It is an integral part of the economy, it is linked to other modes of transportation and the producers who depend on rail to deliver their goods demand our respect. The work stoppage at CP Rail is having serious repercussions and this government is not prepared to let it continue.

There is no question it is best for parties in a labour conflict to resolve their differences, but the parties in the CP Rail dispute have been trying now for some time without success and there is no reason to think they will be successful in the days ahead.

In this time of global economic uncertainty, Canadians have given our government a strong mandate to protect the national interest. When we look closely at the implications of a strike at CP Rail, we see billions of dollars and more than a million jobs hanging in the balance. Therefore, in the best interests of all Canadians, the government is acting. We are asking for support to pass Bill C-39, which will end the work stoppage and also provide the parties with an interest-based binding arbitration process to help them resolve their conflict without a strike.

It is not an ideal world, yet I still urge hon. members to set aside their differences for the benefit of all Canadians and join with us to give this bill a rapid passage.

[The Chair, NDP, Denise Savoie]

I would like to open this session of the committee of the whole on Bill C-39 by making a short statement regarding the proceedings.

Pursuant to an order made earlier this evening, not more than one hour shall be allotted for the consideration of the committee of the whole stage. At the expiry of this period, any proceedings before the committee of the whole shall be interrupted, and, in turn, every question necessary for the disposal of the stage under consideration shall be put forthwith and successively without further debate or amendment. No division shall be deferred.

During the consideration of the bill during committee of the whole the general rules of debate are as follows. Members shall speak for not more than 20 minutes at a time and are not permitted to split their time. While there is no formal period for questions and comments, members may use their time to either speak or ask questions and the responses will be counted in the time allotted to that member.

Finally, members may speak more than once and need not be in their seats to be recognized.

The committee will now proceed with the clause-by-clause study of the bill. Pursuant to Standing Order 75(1), the study of clause 1 is postponed. I am now going to open clause 2 for debate.

The hon. Minister of Labour.

[Jacques Gourde, Conservative, Parliamentary Secretary to the Minister of Public Works and Government Services]

Mr. Speaker, a responsible government must show leadership and act in the best interest of the majority. This means that it must occasionally make difficult decisions and take necessary measures to resolve specific situations. That is what we are doing tonight.

We are overcoming the impasse in the labour dispute between Canadian Pacific Rail and the two Teamsters Canada Rail Conference bargaining units, one representing running trade employees and the other rail traffic controllers.

The government introduced Bill C-39 to ensure the continuation and resumption of Canadian Pacific services. Why? Because Canada's ongoing but fragile economic recovery simply cannot withstand the impact of a prolonged Canadian Pacific work stoppage.

Allowing the dispute to get out of hand would deal a severe blow to our economy, which is just now getting back on its feet. If there is one sector in which a work stoppage can have serious economic repercussions, it is the rail transport sector.

In a country with an area of almost 10,000 km², railways have been and continue to be a preferred means of transportation, especially when it comes to transporting freight. Agricultural products, forest products, chemical products, metallurgical products or everyday consumer goods—a host of industries rely on the approximately 22,000 km of railway that Canadian Pacific uses to transport and deliver the materials needed to manufacture those products and take them to markets. Any interruption in the Canadian Pacific services has an impact on other sectors and their workers.

As an article in the Canadian Press from January 26, 2012 said, and I quote, “The Canadian Pacific Railway transports coal, fertilizer, grain, vehicles, consumer goods and other products across North America. So it is commonly viewed as a barometer of economic health.”

In a very competitive and increasingly interdependent global market, all inputs count, all deadlines are critical and jobs are fragile. Without our intervention to ensure continued service, a growing number of businesses and workers would be affected.

It has to be remembered that Canada is one of the countries in the world that relies most heavily on international trade. We depend on international trade to ensure our prosperity.

Think about it. By virtue of its geographical position, our country is a crossroads between North America and the burgeoning economies, such as those of China, India, Korea, and Japan.

The rapid, safe and uninterrupted flow of goods along our supply chain and transportation network is a decisive factor in ensuring the vitality and success of our trade.

Most of Canada's bulk commodities and a lot of our manufactured products are transported by rail to their export destination. According to Transport Canada, in 2010, Canadian Pacific alone transported 74% of the potassium, 57% of the wheat, 53% of the coal and 39% of containers across Canada. Moreover, our railways are used to transport many imported products.

For example, the major increase in shipping trade over the past 15 years, especially by container, has been largely driven by Chinese exports. These containers are shipped to destinations in Canada and the United States through efficient intermodal gateways and corridors, which are a key factor in competitiveness.

The Canadian Asia-Pacific gateway and corridor offer world-class maritime, rail, road and air transportation infrastructure.

These are important assets, and we have set ambitious goals regarding this gateway and corridor with a view to bolstering Canada's economic outcomes.

However, the success of these initiatives depends on cooperation by all partners, including CP Rail. When a single link in the chain is broken, everything grinds to a halt. A work stoppage means that Canadian Pacific's activities cease, thereby blocking the flow of goods through the Asia-Pacific gateway and corridor.

To give listeners an idea of the importance of Canadian Pacific to our transportation infrastructure and supply chain, the value of freight transported by the company is estimated at approximately $50 billion. Clearly, any extended work stoppage at Canadian Pacific would foil our efforts to make the Asia-Pacific gateway and corridor a reliable segment of our transportation infrastructure, which would be extremely damaging to our economy and our reputation globally.

One thing is certain, an economy in which goods do not flow properly would be quickly compromised, and the alternatives are extremely limited. There are only two class 1 railway freight transportation companies in Canada: Canadian Pacific and Canadian National.

What is a class 1 railway? It is one of the largest goods piggybacking services based on operating revenue. For those like me who are unfamiliar with railway vocabulary, let me explain specifically what piggybacking is. It is the process of transporting truck trailers on special railway flat cars. CN has confirmed that its capacity to increase traffic would be very limited.

For example, for grain, CN could only handle no more than 10% of Canadian Pacific's freight. As for VIA Rail, well, it could not mitigate the negative impacts of a work stoppage at Canadian Pacific, because it is designed for passenger travel. A work stoppage would also have a negative impact on VIA Rail activities, because some of its trains travel on tracks that belong to Canadian Pacific. No trains could travel on these tracks without the approval of the rail traffic controllers.

We are here debating the merits of this bill because the very stability of railway traffic and the future of our economy are at stake. Negotiations between Canadian Pacific and the Teamsters Canada Rail Conference, which began in October and November 2011, are at an impasse because of major differences.

The collective agreements for the running train employees and the rail traffic controllers units expired on December 31, 2011. On February 17, 2012, the Federal Mediation and Conciliation Service received a notice of dispute from Canadian Pacific. Shortly thereafter, two conciliators were appointed to work with the parties—one for each unit—to ensure that the process was consistent.

For those unfamiliar with the Federal Mediation and Conciliation Service, it was established to help employers and unions subject to the Canada Labour Code resolve and prevent disputes. It therefore makes conflict resolution services available to employers and unionized employees in the form of assistance from conciliators and mediators.

The mandate of these third parties is precisely to help the parties reach agreements. It is true that it would have been preferable for these parties to have been able to resolve their dispute themselves. Everything possible was done to bring them closer together. Unfortunately, there are no signs of a favourable outcome.

[Kellie Leitch, Conservative, Simcoe—Grey, ON]

Mr. Speaker, Statistics Canada figures confirm that in April of this year employment increased by 58,000, mostly in full-time work. This was the second consecutive month of notable gains on the jobs front for Canadians. Moreover, confidence among Canada's business leaders, a leading indicator for future economic growth in job creation, edged up in the first quarter of 2012. According to The Conference Board of Canada, business leaders showed increasing optimism over the future performance of their firms and the Canadian economy.

We can add to these glowing statistics the support for our economy contained in the Jobs, Growth and Long-term Prosperity Act recently introduced by the Minister of Finance. As a result of our government's efforts, Canada has an economy that is the envy of many other countries in the western world. At a time of global financial uncertainty, at a time when sluggish world demand is impeding job growth, why would we allow anything within the boundaries of our own country to jeopardize our economic prospects? Why would we deliberately undo the good work that has protected our economy so far?

Canadian Pacific Railway is one of the iconic components of Canada's vast transportation system. Founded in 1881, the railway itself is a phenomenal engineering feat. It is one of the reasons we exist as a nation, uniting Canada from coast to coast.

In the 21st century CP Rail remains a crucial player in Canada's economy. Each year CP Rail moves freight in Canada valued at approximately $50 billion. According to Transport Canada, CP Rail annually carries about $11.1 billion worth of grain, $5 billion of potash and $5.25 billion of coal.

I would like to tell the House how the CP Rail work stoppage is harming Canadian businesses. In October 2009 the University of Toronto's Rotman School of Management report estimated 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 more than $81 billion to the Canadian GDP each year and account for close to 1 million jobs.

I find it staggering to contemplate the losses these four sectors of our economy will suffer as a result of the disruption in CP Rail shipping services. These services are very essential for these key sectors of our economy.

It is no mere metaphor to describe CP Rail's 22,000 kilometre network as a lifeline of our nation's economy. Moreover, its capacity for facilitating trade within Canada and other nations is enormous. This is a rail network that operates in six provinces and 13 states. It extends to the U.S. industrial centres of Chicago, Newark, Philadelphia, Washington, New York and Buffalo. Agreements with other carriers extend CP's market reach east of Montreal within Canada, and throughout the United States and into Mexico. By moving freight to and from Canada's west coast ports, CP Rail is also a vital link to the markets in Asia through the Asia Pacific gateway.

This work stoppage is preventing our ability to keep products moving in and out of Canada and undermines Canada's reputation as a reliable place to do business. This is a setback from which it could take years to recover lost business and lost investments. Is the House prepared to stand by and allow a vast number of Canadian businesses to continue to be harmed as a result of the CP Rail work stoppage? As with any company, every lost day of business could weaken a firm that is already coping with reduced revenues.

A rail work stoppage has created an unsettling business climate. Businesses do not like uncertainty. When businesses do not feel confident about the future, they may postpone opportunities to expand, or change their shipping suppliers altogether. They may even lay off some of their employees. At a time when we want to build jobs and nurture our economic recovery, can we actually sustain this risk? Do we want this stoppage at CP Rail to jeopardize our work and achievement to date and put our recovering economy in peril?

The answer must be a resounding no. The time for action must be now. The legislation will end the work stoppage at CP Rail and provide the parties with an interest-based arbitration process to help them resolve their outstanding issues. The failure to reach a collective agreement has not been for lack of trying. The Government of Canada has done its utmost throughout the negotiation process to encourage the parties to reach an agreement. However, despite assistance from the Federal Mediation and Conciliation Service, the parties have been unable to resolve their differences.

I would like to take this opportunity to commend the Minister of Labour and the mediators and conciliatory officers from the labour program for their efforts to assist the parties under the Canada Labour Code.

Canadians can take pride in the fact that 94% of labour negotiations in this country are settled without a work stoppage ever taking place when the labour program's professional mediators and conciliatory officers get involved. This would definitely be the preferred option for resolving the disputes under consideration today. Sadly, this preferred option is not one that was chosen for this dispute between CP Rail and its running trades employees and rail traffic controllers.

I will emphasize again that intervening in these disputes is not the option we would choose if circumstances were otherwise. The Minister of Labour always encourages parties to work together to find mutual solutions to their differences. Most regrettably, it would seem that the will to come together for such a resolution does not exist with the parties in this case.

Our government fully recognizes that free collective bargaining is the basis for sound industrial relations. This is also clearly stated in the preamble of the Canada Labour Code. That code gives the parties the right to strike and lock out. Intervention is only in situations when the public interest is negatively affected. This is true, for example, when the national economy is affected by a work stoppage, as it is in this case.

Let us keep the statistics that are crucial in mind. CP Rail handles 74% of potash containers, 57% of wheat containers, 53% of coal and 39% of other containers in this country.

I would like the House to reflect on just a few questions. First, can we afford to let Canadian businesses and our economy continue to suffer? Second, can we let down the people of Canada who are counting on us to act? Third, can we deliberately undermine our enviable position of being one of the few nations in the western world to weather the global economic downturn?

To my mind, the answers to these questions are self-evident and that is why we must act now. I urge the members of this House to join me in doing the right thing. Let us give our full support to Bill C-39 to protect our economy.

[Kellie Leitch, Conservative, Parliamentary Secretary to the Minister of Human Resources and Skills Development and to the Minister of Labour]

Mr. Speaker, I will be splitting my time with my colleague, the member for Lotbinière—Chutes-de-la-Chaudière.

I am pleased to have this opportunity to speak in support of Bill C-39, an act to provide for the continuation and resumption of rail service operations. Our government has received a strong mandate from Canadians to protect our economy and create jobs and we are delivering on that commitment.

Statistics Canada confirmed that in April employment—

[Jean Rousseau, NDP, Compton—Stanstead, QC]

Mr. Speaker, I would like to congratulate my colleague from Rosemont—La Petite-Patrie on his extraordinary speech. He has always stood up for the rights of workers, and we will support him. We are proud to see that he is carrying the torch in the fight against Bill C-39 today.

He said something extremely important about industrial peace.

It is essential in labour relations. This peace was never given a chance, either in this situation or in those involving Air Canada and Canada Post. By the way, I want to point out that the Conservative Party has lost the support of tens of thousands of workers who, I promise you, will remember.

This industrial peace is essential to a healthy work environment. What will happen in three or four years when people come to the bargaining table to bargain in good faith? What will happen then?

[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.

[Lisa Raitt, Conservative, Minister 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--

Act to Provide for the Continuation and Resumption of Rail Service Operations

[Brent Rathgeber, Conservative, Edmonton—St. Albert, AB]

Mr. Speaker, it is an honour for me to rise and contribute to the debate on Bill C-39, the restoring rail service act.

Let me come right to the point. Our government has decided that it is necessary to bring in legislation to end the work stoppage at CP Rail. I am speaking of the work stoppage resulting from the outside disputes between the Canadian Pacific Railway, CP Rail, and the Teamsters Canada Rail Conference, the TCRC.

The TCRC represents 4,200 running trades employees at CP. The running trades include locomotive engineers, conductors, baggagemen, brakemen, car retarder operators, yardmen, switch tenders and locomotive firemen. It also represents 220 rail traffic controllers.

I would like to talk a little about the history of the dispute at CP Rail. As members know, the collective agreements for these two groups expired on December 31 of last year. Negotiations for a new collective agreement for both units began in October 2011. In March of this year, the labour program appointed conciliation officers to help the parties conclude an agreement. However, sadly in my view, these efforts were unsuccessful.

On May 1 of this year, the parties were released from conciliation. On May 16, the Minister of Labour offered the parties extended mediation to help them reach agreements, or at least move forward on some of the remaining issues from the bargaining table that included pensions, wages, benefits and working conditions. However, sadly, this offer was declined.

On May 22, the Minister of Labour again met with the parties. While she was able to get the parties to agree to maintain commuter rail services, the parties were unable to reach an overall collective agreement. On May 23 of this year, the strike began. That brings us to the unfortunate situation we are faced with here tonight in this House. The strike has caused a complete shutdown of CP Rail due to the lack of personnel trained and certified to work as conductors, engineers and rail traffic controllers. The legislation we are proposing would resume services at CP Rail.

What are reasons for this legislation? We understand that labour dispute legislation is rarely popular. Canadians are rightfully concerned about preserving the right to strike or lockout. Of course we have heard a great deal about that from our friends on the other side of the House. We do not come to this legislation easily. We regard it as a last resort, but certainly a necessary last resort for reasons that I am going to briefly outline.

Our government has compelling reasons for intervening in this particular case. Most important of these reasons is that a continued work stoppage at CP Rail will seriously and possibly irreparably damage the Canadian economy.

We have used this argument before to justify pre-emptive, back-to-work legislation, but the danger was real then and the danger is real today. Our recovering economy is still fragile and it cannot afford a sustained work stoppage in a major transportation mode.

I am not exaggerating when I say that CP Rail is a major transportation mode. Let me give this House an idea of some of its operations. We can think of CP Rail as a ribbon of steel that extends from the Port of Metro Vancouver to the Port of Montreal, with connections to the U.S. industrial centres of Chicago, Newark, Philadelphia, Washington, New York City and Buffalo. We are talking about a 22,000 kilometre railway network.

CP Rail operates in British Columbia, my home province of Alberta, Saskatchewan, Manitoba, Ontario and Quebec, as well as in 13 American states. Through agreements with other carriers, CP Rail extends its market reach east of Montreal into the Maritimes, and south throughout the U.S. and all the way into Mexico.

According to Transport Canada, in 2010, CP Rail handled the shipment of 74% of Canada's potash, 57% of Canada's wheat and 53% of Canada's coal. Let me put this in dollar figures. Every year CP Rail moves $5 billion worth of potash, $11.1 billion worth of grain and $5.25 billion worth of coal. The total value of freight moved in Canada by CP Rail every year is $50 billion.

These numbers are so large that they are difficult to comprehend, but I think Canadians can understand that when the movement of commodities like wheat, coal and potash is interrupted, reverberations are felt throughout the entire economy.

The Minister of Labour has met with some key stakeholders, including CN Rail, VIA Rail, Port of Metro Vancouver, TSI Terminal Systems Inc., Potash Corporation Inc. and Teck Resources, which is a coal company. When she asked them how they would be affected by a CP Rail work stoppage, they confirmed it would be devastating to their businesses.

The different transportation modes in this country are all linked to each other and function best as part of an integrated whole. The rail-based logistics system is complex and involves a range of associated operations, including terminal operators, transloaders, ports, shipping lines and trucking firms. When even one of these operations shuts down, the problem can cause congestion and delays that affect all of the other modes of transportation. That is what we are currently faced with.

Many Canadian enterprises depend on efficient and reliable rail services. The sectors that use rail transport contribute significantly to the Canadian economy. The four key industries that use bulk shipping are oilseed and grain farming, coal mining, wood products manufacturing, and pulp and paper. These industries add more than $81 billion to Canada's GDP annually and account for close to one million jobs.

It is not an over-exaggeration that a work stoppage at CP Rail is particularly bad news for the forest industry, which is still struggling to recover from the economic downturn. It is a hard blow to the automotive industry because imported auto parts travel by rail. It is also a serious hardship for Canadian wheat producers. Work stoppages in the rail industry are very disruptive to the flow of products like these. It often takes several weeks for operations to recover after disruptions.

CP Rail is also a vital link in moving freight to and from Canada's west coast ports, which are an integral part of the Asia Pacific gateway. The work stoppage is preventing our ability to keep products moving between Canada and Asia and threatens Canada's reputation as a reliable place to do business. There are no good alternatives to rail.

Now that CP Rail is sidelined, are there other rail companies that are able to take over? The answer is no. The ability of CN Rail to handle additional freight is quite limited. For example, for a commodity like grain, CN estimates it can pick up less 10% of CP Rail's capacity. VIA Rail could not mitigate the damage caused by this work stoppage because it is a passenger rail service that is not equipped for freight. Rail is a relatively cheap and efficient way to move bulky products. In fact, most commodities that are currently moved by rail cannot be transported by alternative means, such as truck or barge. Even when there are alternative carriers, the cost and requirements of switching may be restrictive.

This work stoppage could not only lead to shutdowns and layoffs in many industries, but the added costs of transportation would be passed on through the supply chain to the Canadian consumer, leading to higher retail costs for many of the goods that I have just outlined. Just to give one rather obvious example, a prolonged work stoppage at CP Rail could affect every Canadian simply by raising the price of bread.

The government does not use this type of legislation without careful deliberation. Our government's use of legislation to end labour disputes in the rail industry is not unprecedented. In fact, the Government of Canada has taken this step eight times since 1950, which would show the importance of rail movement to Canadians.

The last time there was back-to-work legislation involving CP Rail was in 1995 when minister of labour Lucienne Robillard introduced Bill C-77, the Maintenance of Railway Operations Act. The act ordered a resumption of operations at CN, CP and VIA Rail and the establishment of mediation-arbitration commissions for each of the bargaining units.

The Canada Labour Code specifically recognizes that free collective bargaining is the basis for sound industrial relations. When collective bargaining fails, the code gives the parties the right to strike and lockout. Government intervention is used only in situations where the public interest or the national economy is threatened. That is the case here.

As we know, in March 2012, the government brought in an act to provide for the continuation and resumption of air service operations to prevent work stoppages at Air Canada by the Air Canada Pilots Association and the International Association of Machinists and Aerospace Workers. We did that to protect the public interest. The government will continue to use its legislative powers to protect Canadians from strikes and lockouts that could paralyze Canadian infrastructure.

Labour stability in the railway transportation sector is critical to the functioning of the Canadian economy and to our continued recovery. Therefore, in a country as large as Canada with such vast distances over which products must be moved, it is imperative that the rail lines continue to operate. For those reasons, I urge all hon. members to support the quick passage of Bill C-39.

[Joy Smith, Conservative, Kildonan—St. Paul, MB]

Mr. Speaker, I would like to speak about the current work stoppage at Canadian Pacific Railway involving its engineers, conductors, real traffic controllers and others. I am very pleased to do this because I feel very passionately about the fragile economy happening in Canada and the first responsibility of the government to see that people have jobs, get back to work and cause the economy to continue to grow and flourish.

I would also like to take this opportunity to present to the House a potential solution to this conflict. Bill C-39 is that solution.

As members of the House know, CP Rail and the Teamsters Canada Rail Conference have been actively negotiating since last fall. However, I am very sorry to say that during that time no progress has been made. As we all know, work stoppages in any of our key industries will negatively affect our economy, particularly while the world continues to struggle through the economic downturn. I think we can all agree that things are still shaky and that we are still recovering.

To be frank, no country's economy can afford a disruption in one of its primary industrial transport industries. This fact, together with the mandate Canadians have given us to protect our national interests in this period of economic uncertainty, makes the need for action clear.

We continue to encourage CP Rail and the TCRC to reach an agreement through the negotiation process. However, even with help from the Federal Mediation and Conciliation Service, the parties have been unable to resolve their differences. Therefore, we need to act now to stop this work stoppage. CP Rail is only one of two class I freight railways in Canada. It does significant business. According to Transport Canada, CP Rail moves almost $50 billion in freight in Canada every year.

This work stoppage could have a deep impact and does have a deep impact.

In 2010, CP Rail handled the shipment of 74% of potash, which we just heard a few minutes ago from my hon. colleague, and many other kinds minerals and products go via rail. On an annual basis, this represents $5 billion worth of potash, over $11 billion worth of grain and over $5 billion worth of coal. That is a lot of industries.

While the economic impact of this work stoppage could be considerable, we must also consider the well-being of our citizens. For many Canadians, at first glance, rail transport is almost like an invisible industry, until people are sitting at a railway stop and watching freight cars up to 14,000 feet long go past the crossing. If they looked a little closer, what would they see as the train rolls by?

CP carries materials related to agriculture, manufacturing and heavy industry. This means a lot of trains are full of grain, coal, cars, trucks, steel, lumber, et cetera, and countless amounts of manufactured goods. Virtually everything in people's houses today likely moved on a train at some point. Think about it. It means products that make people's lives easier, more pleasant, more efficient and safer, even products that are necessary for food production.

However, rail freight is not only about products that make our lives easier.

CP Rail trains also carry the basic building blocks for products that are critical to the well-being of Canadians. For example, they carry potash, an ingredient used in fertilizers that allow us to feed our citizens and export food around the world. It is essential to agriculture because it improves, among other things, nutrient value, food texture and disease resistance of food crops. Fruits, vegetables, rice, wheat, sugar, corn, soybeans, even cotton all benefit from potash.

From that one example, everyone can see just how important it is that we resume the CP Rail services as soon as possible. We rely heavily on this mode of transport to keep the supply of goods moving across the country.

I would like to provide the House with some quotes taken directly from stakeholders that have written to the government, urging action to prevent a prolonged strike at CP Rail.

The Vancouver Board of Trade wrote to the Minister of Labour to say:

“Canadian Pacific is a critical supplier for many industries in British Columbia and, in many cases, there are no practical alternatives to maintain continuity in shipments to customers and suppliers. Even a short disruption in service will have significant impacts on business — directly on immediate sales commitments and very quickly thereafter on production...At this delicate state of our economic recovery, any service disruption stands to undermine the confidence placed by our interprovincial and international customers in doing business in this region”.

Spectra Energy has also voiced concerns over its natural gas operations being affected by a strike. It said, “CP Rail provides the critical rail services Spectra Energy requires at Empress, Regina and Winnipeg”. Winnipeg is where I come from and we have seen the train roll in every day until now. It went on to say:

“The rail strike has immediately eliminated Spectra Energy's capability to ship its product by rail at these terminals, and should the rail strike not be resolved in the very near future, Spectra Energy will be required to shut down its Empress plant. This has the potential to result in the loss of approximately 200 well-paying direct jobs linked to Spectra Energy's Empress, Regina and Winnipeg network”.

It is clear that the well being of our citizens associated with the work stoppage will impact Canadians all across the country. We cannot stand by, as a government, and watch, while the supplies that we need to create goods and sustain agriculture sit idle. Protecting the well-being of Canadians is one of the government's most basic responsibilities, and it costs $500 million a week for this strike. That is a lot of money going down the drain. I assure members that we take this responsibility very seriously.

Intervening in a labour strike is always a last resort. With CP Rail and two of its unions still at odds and with a strike currently taking place, we are left with few options. As I mentioned before, we have to consider Canadians. We also have to consider another key factor, the impact on the Canadian economy.

I do not need to remind members of the House that we continue to live in a climate of global economic uncertainty. We are proposing this legislation today to protect our still recovering economy.

I am not sure hon. members realize just what CP Rail means to Canada's economy. An October 2009 report by the University of Toronto's Rotman School of Management estimated that four key Canadian bulk shipping industries, oilseed and grain farming, coal mining, wood products and manufacturing and pulp and paper and paper products manufacturing contributed over $81 billion to the Canadian GDP each year.

Canadians are looking to the government to sustain and grow the economy. That is our principal mandate, and Canadians should expect nothing less.

We must take decisive action to resume rail services. I ask the members on all sides of the House for their support for the bill and for the good of the Canadian economy and Canadian families.