Bill C-6 (Historical)

Restoring Mail Delivery for Canadians Act

An Act to provide for the resumption and continuation of postal services

This enactment provides for the resumption and continuation of postal services and imposes a final offer selection process to resolve matters remaining in dispute between the parties.

Restoring Mail Delivery for Canadians Act

[Steven Fletcher, Conservative, Minister of State (Transport)]

Mr. Speaker, I listened intently to the member's comments. Tonight we are talking about Bill C-6, a bill to bring the mail back to Canadians. This is an important piece of legislation. It needs to be passed in a timely manner.

I appreciate at least the sentiment expressed in the member's comments. One way to express that through action is for the opposition to allow the legislation to move forward. The parties will have an opportunity to bring forward their points of view before an arbitrator, and the arbitrator will choose which one is appropriate.

The process outlined in the legislation tonight is very transparent. It would allow for an opportunity to deal with the issues that are raised by the opposition, but more importantly, it would also allow Canadians to receive their mail, create the economic synergies that we need to have during this fragile economic recovery, and provide people with what they need in their day to day lives, which is the mail.

Will the member please accept the legislation so we can deal with the issues she has raised and get a sustainable framework so Canada Post can do what it has been asked to do by the stakeholders and the Canadian people?

[Ted Hsu, Liberal, Kingston and the Islands, ON]

Mr. Speaker, I have received a number of comments by email. For example, I have received comments from people who are waiting for cheques by mail.

I visited the picket line back home in Kingston and talked to the president of the local. Workers there say they want to work but they are locked out.

Everyone finds Bill C-6 unbelievable and believes it is a bad bill. I think a lot of Canadians agree with both points. They have heard what we have said tonight, but they are waiting.

They are waiting and they are starting to hear the same things over and over again.

What more can we do for them tonight, or even this morning?

[Steven Fletcher, Conservative, Minister of State (Transport)]

Mr. Speaker, I listened to the Leader of the Opposition provide his remarks on this legislation. I have a lot of respect for him. I actually agree with many of the sentiments he expressed, although I disagree with some of the specifics about which he also talked.

Notwithstanding some of the perhaps intellectually disingenuous conclusions and analogies made in parts of his speech, his speech underscored that as Canadians, regardless if we are members of the NDP, the Conservatives, Liberals or whichever party, there is much more that brings us together and unites us than divides us.

Today we are discussing Bill C-6. The bill is intended to bring together Canadians in the united cause of getting their mail service back. I am pleased to speak to Bill C-6, An Act to provide for the resumption and continuation of postal services in Canada.

Our government believes that parties of all labour disputes should be allowed to find their own solutions. Most of the time this happens. Our government does not take back to work legislation lightly. Back to work legislation is a last resort when all other avenues have been exhausted. Unfortunately, the two parties have not been able to reach an agreement, despite being at the negotiating table since last October.

This is not the first time Canadian citizens and businesses have had to suffer the effects of a work stoppage involving postal services. In fact, I remind my colleagues that in 1997, back to work legislation was used to resolve a dispute at Canada Post. This legislation also included guiding principles and wage rates.

Our government does everything possible to help the parties in a labour dispute resolve their differences without a work stoppage. However, I will spend a few minutes reviewing the impact of Canada's postal system on our country's business sector.

When people consider the importance of Canada Post, they often think in terms of individual Canadians, as they should. Canada Post is an iconic Canadian corporation. It unites Canadians from coast to coast to coast, whether urban or rural, in houses, condos or apartments. Be it families, seniors, students, kids or their grandparents, Canada Post is a uniting force in our country.

Canada Post also has a significant number of businesses that it affects in various industries across the country that rely on traditional mail services to fulfill their commercial undertakings and achieve profitable results.

Although Canadian businesses are recovering from the setbacks faced in the 2008 recession, we are still in a fragile state. We only need to look around the world to see how fragile the situation is. Though Canada has exited the economic downturn stronger and faster than most of our companions in our—

[Jack Layton, NDP, Toronto—Danforth, ON]

Are we allowed to sing? I imagine that at times, it might improve the tone of the debate.

The labour code represented a major step forward for workers of the day. We will not sit idly by and watch the Conservatives turn back the clock and strip workers of vested rights they fought so hard to achieve.

I am simply not going to sit and watch the Conservative government follow in the footsteps of the U.S. Republicans and their Tea Party friends.

We have all been watching occurrences in Wisconsin, where the governor yanked collective bargaining rights from 175,000 public employees and nullified their rights to decent conditions, gender equality and fair pensions. The governor is not even hiding that this is an attempt to cut down the number of workers. It is not just in Wisconsin, but Ohio, Indiana and Idaho are all attacking workers, using the excuse of austerity.

Their real goal is to maximize profits by mistreating workers. The Canada Post Corporation Act does exactly the same thing: a profitable company is saying that it cannot afford to pay new hires. This Conservative government is complicit with the employer by proposing this legislation. Simply put, its inspiration is coming from the wrong place.

I will summarize our essential position.

First, we must not be dividing Canadians in this place by talking about 55,000 postal workers and 33 million other Canadians. It is time we started to see each other as all part of the same people who are trying to accomplish the same goals for our families. That is what this is about. Therefore, I am asking that we see less of this divisive politics, particularly in this debate because many Canadians will be following it.

I do not want those who deliver the mail or who sort it on our behalf, each and every day, to feel that they are somehow less than anyone else.

Second, this bill attacks the workers' basic right to negotiate their working conditions. That cannot happen.

Third, this bill will increase disparities in our society. If we begin to see numerous bills such as these in different areas of our economy and society, disparities will increase. This approach is completely unacceptable, not only to the New Democratic Party, but also to the great majority of Canadians.

People must be wondering if they and their families will be the next ones to suffer from the Conservative government's tactics. If the government can do this to Canada Post workers, will it do the same to other workers? Is there a list? Are there several other companies with the same type of contract? Will CEOs be celebrating tonight, tomorrow or this weekend because they can use the same tactic that Canada Post used? That is unacceptable.

To conclude, I want to reiterate once again that we can put an end to this dispute right now. The Prime Minister can ask Canada Post to take the locks off so that these people can return to work. My team and I are once again offering to work and create amendments to the bill so that we can end this debate and so that proper bargaining can take place.

That is all I can say at the moment.

I therefore move:

That Bill C-6 be not now read a second time but be read a second time six months hence.

[Lisa Raitt, Conservative, Minister of Labour]

moved that Bill C-6, An Act to provide for the resumption and continuation of postal services, be read the second time and referred to a committee of the whole.

Mr. Speaker, today I rise to introduce the second reading of the bill entitled “An Act to provide for the resumption and continuation of postal services”.

A work stoppage is under way, a vital service is gone and Canadians have some urgent questions: How did this happen? How did things get this far? Do we not have mechanisms to resolve labour management conflicts?

We certainly do and they actually work quite well, and over 90% of the time.

In this country, employers and unions that represent employers are able to negotiate the terms and conditions of employment through the process of collective bargaining. This usually involves compromise on both sides and these negotiations almost always result in a settlement that is acceptable to both sides. We do not hear much about these proceedings because there is usually nothing very dramatic about the signing of a collective agreement.

However, what if the talks fail? This occasionally does happen. However, all should not be lost because the Canada Labour Code does provide for a series of measures the government can take in order to help the parties in a dispute get past their differences and avoid a strike or a lockout.

So what happened in the case of Canada Post?

I can assure Canadians that we did everything within our power to help Canada Post and the union to come to an agreement. We used every tool at our disposal.

I will take members back to the fall of last year. Negotiations between the parties began in October 2010 and the goal was to get a settlement before the existing collective agreement expired at the end of January. Despite some concessions made on both sides, the two parties could not agree on some crucial points. Therefore, on January 21, 10 days before the contract expired, the parties informed me that they were deadlocked.

As I said, in a case like this, there are steps the government can take. The first step is to send in a conciliator and, if conciliation fails, to appoint a mediator.

In the case of Canada Post and CUPW, the government followed the usual process as set out in the Canada Labour Code and we spent a lot of time with both sides. I want to stress, in case there is any doubt on this point. that this government does not play favourites and we appoint experts who are impartial. The job of conciliators and mediators is not to impose the kind of agreement that would be most agreeable to the government. Their role is to help the parties find their own solution.

I will go back to the chronology. After 60 days of conciliation, there was still no agreement between Canada Post and the union. Considering the stakes involved, both parties agreed to extend the conciliation by a further 32 days. Even after 92 days of effort by a conciliator, an agreement in this case was not forthcoming so, on May 5, I appointed a mediator. The parties entered a 21-day cooling off period, as prescribed in the Canada Labour Code, and still there was no progress. Instead, on May 30, the union filed a 72-hour strike notice and, on June 3, the postal workers walked out. Finally, on June 15, the employer declared a lockout.

I said at the beginning that Canadians have questions. The next question they have is: What will happen now?

If the last postal disruption, which occurred in 1997, is anything to go on, the damage to the economy could be significant. Businesses that rely on the mail will be severely affected. If the strike is prolonged, some of those businesses could go under, jobs could be lost and some of the job losses could be permanent.

Can we afford this disruption at a time when our economy is still recovering?

Many of our citizens depend on the services of Canada Post to receive essential government information and benefits. In fact, everyone will be affected by the work stoppage but people with disabilities, elderly people and people who live in remote communities will be hurt the most. This strike will cause undue real hardship to many Canadians.

The next question in their minds is: What is the government going to do about it? The answer is that we have made the difficult decision to end the strike with back to work legislation and binding arbitration.

When collective bargaining actually fails, employers have the ability and the legal right to bring pressure on the unions in order to settle the matter. The unions also have the right to withdraw their labour in order to make sure that there is a settlement at the end of the day.

In this case, we are unable to see a resolution. That is why we introduced this resolution in order to give the parties a way forward so that they conclude their collective agreement at the table.

It is the culmination of a long process. I have worked with the union and I have worked with management for a long period of time. The reality of the situation is Canadians cannot go on without postal services for much longer. The government has no alternative but to introduce back to work legislation and that is what we have done today.

Resumption and Continuation of Postal Services Legislation

[Judy Sgro, Liberal, York West, ON]

Mr. Speaker, I listened intently to the comments of my colleague, but I have to ask him quite sincerely if he has actually looked at the clauses in Bill C-6? Has the hon. member looked at it from the objective of having to be fair to all sides of this issue? How can the hon. member stand there and defend legislation that clearly has only one objective, which is to break the back of the union?

Has he has actually read the clauses and is he comfortable with them? On this side of the House we are looking for compromises on various sides of the issue. Compromise means both sides. It does not mean just one side.

Has the hon. member looked at the clauses in Bill C-6 and can he tell me that he is able to live with himself when he votes for this legislation?

[Hélène LeBlanc, NDP, LaSalle—Émard, QC]

Madam Speaker, I congratulate my hon. colleague on the speech he made with all the passion we expect from him.

Could Bill C-6, which is before the House, not create a dangerous precedent with respect to the potential erosion of public services in the future?

[Hélène LeBlanc, NDP, LaSalle—Émard, QC]

Madam Speaker, I would like to thank my colleague, who gave a good summary of the current situation, with all the passion we expect from him.

I would like to know whether the steps undertaken in Bill C-6 create a dangerous precedent with respect to the erosion of public services and collective bargaining.

[Claude Gravelle, NDP, Nickel Belt, ON]

Madam Speaker, since the members of the government have been quoting emails constantly today, I would like to quote from an email that I got just a few minutes ago.

The email is from George, who said, “Since Canada Post has locked out the workers and thus stopped the mail service in Canada, creating great hardships on businesses and families, does it seem just for the Government of Canada to punish its workers with Bill C-6? Indeed, since the full mail stoppage is caused by the management of Canada Post who directly answers to the Government of Canada, should the Government of Canada not be directing Canada Post to remove its lockout?”

[Larry Miller, Conservative, Bruce—Grey—Owen Sound, ON]

Mr. Speaker, I thank my good friend and colleague from Cape Breton—Canso. I have been in his riding before. It is a very beautiful part of the world but it has a distinction very similar to mine, which is that it is very rural. Therefore, I am sure he understands how the people and constituents of his riding will suffer because of this stoppage.

With regard to the workers wanting to go back to work, I have had many Canada Post employees also tell me that they would like to go to work but it was after they realized that going on rotating strikes would force a lockout. I think a lot of them, in so many words, are regretting that.

The bottom line is that yes, we all want them back to work, but we do not want them to go back and start their rotating strikes, which is quite likely to happen.

We are here with Bill C-6 and I again urge my colleagues to support it today.

[Larry Miller, Conservative, Bruce—Grey—Owen Sound, ON]

Mr. Speaker, it gives me pleasure to speak to this issue. I wish that we were not here having to deal with this, but unfortunately we are.

I would like to thank the Minister of Labour for bringing forward the legislation on Monday evening. This measure is certainly necessary under the circumstances to restore an essential service to all Canadians.

I have a very rural riding. Since the start of the rotating strikes and then the lockout, I have been inundated with comments from rural constituents of mine, particularly those who run small- and medium-size businesses. That is the heart of Canada.

Before I carry on, I just want to read an example of the kind of comments I am getting. This comes from Rebecca, who said:

As a small business owner of a fledgling internet store, I can very honestly say that this stoppage of mail has almost killed my business.... I am receiving zero orders, and my customers are taking their business elsewhere. Using a courier for delivery is far too costly for me at this time. I hope that your majority government can bring this dispute to a timely completion.

That is a prime example of the kind of comments I am receiving.

After the minister tabled the legislation on Monday, that evening a poll done by an independent source found that 70% of Canadians are in support of this legislation. Many of the residents in my riding share the same sentiment.

I ask my hon. colleagues to think about the last time they experienced a power failure, a temporary loss of water, a shutdown of the elevators in their building, or a problem with their computer networks. We have all been through something like that. Even a very brief loss of a service or a system we depend on can cause a lot of stress. The longer that service is unavailable, the more it affects our quality of life.

When any crucial element in our infrastructure breaks down or is put out of commission, some people will suffer more than others. The poor, the elderly and people with disabilities are less able to adapt. They have fewer alternatives. There are even fewer alternatives for rural Canadians, like my constituents in my very rural riding of Bruce—Grey—Owen Sound.

When a basic service or system breaks down or is withdrawn, everyone looks to the government to respond as quickly as possible to restore it, even if drastic action is necessary.

Our government believes that this work stoppage, if prolonged, has the potential to cause a lot of economic hardship. It will cause a lot of damage to our economy as many businesses in this country are just beginning to get back on their feet and the loss of postal services will just knock them down again. It will also cause grief to ordinary people who depend on the mail.

There are some who say that we can live without postal services for a while. This may be true, because there are always alternatives. Yes, there are some people and some businesses that will be able to weather this situation in relative comfort because they do have those alternatives. But those alternatives are not available or affordable for everyone, especially rural Canadians. There is no reason ordinary Canadians who are not involved in the dispute between Canada Post and CUPW should have to suffer.

Lightning or a surprise strike is unpredictable; nobody can really prepare for it. However, this work stoppage was not unforeseeable nor was it inevitable. Our government certainly did everything possible to prevent a strike or a lockout. We worked with Canada Post and CUPW for months to try to help them reach a settlement. Our efforts were unavailing.

Now Canadians want us to act, because the cost of this strike to our economy and to our society have become unbearable. The Government of Canada is not helpless. We have the means to solve this problem. I want to emphasize that we have legal means provided for in the Canada Labour Code. We have the right and the responsibility to use our powers to legislate an end to the work stoppage and to appoint an arbitrator. It is time to act.

That is why our government has introduced Bill C-6 and we are taking decisive action on behalf of all Canadians.

The bill imposes a four year contract and new pay rate increases; yes, increases. That will mean a 1.75% increase as of February 1, 2011; 1.5% as of February 2012; 2% as of February 2013; and 2% as of February 2014. It also provides for final offer selection, a binding mechanism on all outstanding matters.

In making the selection of a final offer, the arbitrator would be guided by the need for terms and conditions of employment that are consistent with those in comparable postal industries. The arbitrator would also strive to ensure the short and long term economic viability and competitiveness of the Canada Post Corporation, maintain the health and safety of its workers and maintain the sustainability of its pension plan.

The terms and conditions of employment must also take into account that the solvency ratio of the pension plan must not decline as a direct result of the new collective agreement and that the Canada Post Corporation must, without recourse, undo increases in postal rates, operate efficiently, improve productivity and meet acceptable standards of service.

Canadians have been patient but enough is enough. Canada is recovering slowly but steadily from the deep recession. That is why I am asking my hon. colleagues to join me in supporting Bill C-6. Let us help Canada Post refocus and build a postal service for the 21st century. Let us keep Canada working. Let us protect rural mail delivery.

I want to point out to my hon. colleagues that this has a far more adverse effect on rural mail delivery than any us may be realizing. I want hon. members to think long and hard about that. It is rural mail delivery that will suffer the hardest and the longest because of this. That is another reason that we need to pass this legislation.

I talked about many of the people I have heard from in my riding. The other people I have heard from are seniors on a very fixed pension. I will not get into the details of their pension, but Joel and Greta write:

For elderly people on a fixed income...it is hard to comprehend that people making in excess of $50,000--are not happy. I have a grandson who was tickled pink to find a summer job, 3 days per week @ $12.00 per hour.

They point out the hardships, but basically, if we read the underlying facts, it points out the fact that their grandson, who is just entering the workforce, realizes how lucky he is to have a job in these times.

I have another one from Kathie, who writes:

I am very much looking forward to the end of the postal problem. I have a very small business and I have $2000 in invoices not received. If I am one sample of small business in Canada, we cannot afford to continue the labour problem.

I do try to side with the working people.... But small business in Canada needs their service.

So I urge parliament to legislate the end of the lockout....

In another one I have, Lisa talks about urban versus rural, which I spoke about. She writes:

It's easy to get to an Urban group box they are on every corner it's not in Rural areas. People would have to drive miles to get their mail. This isn't fair. Thank you for your support.

The reason I read those is to point out, not only the problem with this work stoppage and the problem we are having overall, but to point out the difference between urban and rural. Many of my colleagues on both sides of the House come from very rural ridings just like I do, and their people will suffer long term.

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

Mr. Speaker, I would like first to say I will be sharing my time with the hon. member for Vancouver East.

Today is a dark day for Canada. The tabling of Bill C-6 is a blot on respect for democratic rights and workers’ right of association. This day will not go down in history as one where the government showed great respect for Canadians and for the rights of union members. The good news is that maybe the Conservative government has finally been unmasked. The mask has fallen away, revealing its true face. Unfortunately, it is not a pretty sight to behold. What we see is a government that is authoritarian, arrogant and contemptuous of working people, who just want to do their jobs in a reasonably healthy, safe environment. Instead of extending them a hand and pushing for real negotiations with the postal workers’ union, the government gets out its bazooka and bludgeon and tries to force the employees back to work by means of a special act, which even imposes salary conditions while not allowing the arbitrator to make a decision in full knowledge of the facts after drawing comparisons with the market and the economic situation at Canada Post.

I want to emphasize that this is a crazy, surrealistic, even Kafkaesque situation. I would encourage my colleagues to read The Trial by Kafka. It is very interesting and there are some strong parallels with the situation in which the postal workers now find themselves.

Since their negotiations were going nowhere and the employer was insisting on cutbacks in the collective agreement—I will talk a little later about the health and safety problems and the discriminatory treatment, especially in regard to the pension plans, which are a topic of great concern to many Quebeckers and Canadians these days—the union wanted to start applying gradual pressure. It did not want to launch a general strike because it did not want to paralyze the system. It wanted to use gentle pressure tactics at first, affecting one city at a time for 24 hours. The rest of the country would continue to function. This would get the employees talking and raise the awareness of Canadians, and the media would take an interest. That is how a dialogue is started with the public to move the issue along while pressuring the employer in a way that is legal, peaceful and progressive.

After only a few days, what did the employer do? The employer is a crown corporation and the government is ultimately responsible for it. The employer imposed a lockout. It shut down Canada Post across the country. It created the problem itself. The Conservative government is telling us that this is a terrible situation that is jeopardizing the economic recovery and the economic health of the country. But it is the one that created this situation by locking out the employees. If it is responsible for this paralysis, why is the government now riding in like a knight in shining armour to save the day and solve the problem, saying that everything will be fine, that it will bring in special legislation to force workers back to work? That is absurd. The Conservatives are the ones who stopped the delivery of regular mail across the country. Why do they not stand up and urge Canada Post to put an end to the lockout and to return to the bargaining table? This would enable members from Quebec to return to Quebec to celebrate Saint-Jean-Baptiste Day tomorrow with their constituents.

I would imagine that Michel Chartrand is rarely quoted in the House of Commons, but the Conservative government cannot invoke its own turpitude. It created this situation. It must take responsibility and put an end to the lockout in the interests of the unionized workers and their rights, and also in the interests of the people and the small and medium-sized businesses of this country.

The situation is even more absurd, since Canada Post is a remarkable, efficient, economical and profitable public service. Let me be clear: the private sector does not offer an alternative way to move such a high volume of mail every day from coast to coast. This is the best way we have to ensure that Canadians can send mail to other Canadians and to people around the world.

As well as being efficient, it is economical, because it is a public service that does not cost a lot of money. If we draw comparisons with many other countries, like Finland, Germany and the Netherlands, the price of regular stamps to send a letter in Canada is lower than in most other OECD countries. Furthermore, and this needs to be emphasized and repeated, last year, Canada Post made about $281 million in profits.

Why attack the rights of workers? Why create a pension plan that will be less beneficial for new employees? Why risk the health and safety of workers when we have a public firm that works well and makes money to boot? Where is the problem? Why does the Conservative government want to force these people to take a step backwards? Why attack the working conditions of 50,000 people across the country? Why attack the living conditions of 50,000 families across the country? Is that how the Conservatives plan to treat workers and their families over the next four years? Is this how the Conservative government envisions the future for workers and the working class: moving further and further backwards? That is unacceptable.

Another very important aspect of all this, beyond working conditions, is that we are dealing with the fundamental issue of respecting people's rights. In the Canadian federation, certain rights are enshrined in the Canadian Charter of Rights and Freedoms. I think it is important to remember this. Canadians have the right to associate. They have the right to organize. They have the right to express themselves. They have the right to negotiate freely and to exert pressure, as set out in the Canada Labour Code. And that is what the Conservative government is attacking. It wants to destroy these rights. It wants to sweep them under the rug and tell people, “Hey, you have no choice; now get back to work”.

This is a threat to respect for the rights of all Canadians. All of the groups that are making demands, talking, protesting, getting organized and trying to peacefully improve things are worried today. Has history taught us that this is how progress is made? Is this how we moved past the middle ages, the industrial age and the widespread exploitation of workers? No, those things happened because people got together, joined forces, organized themselves and defended themselves, which resulted in social policies, social rights, the right to unionize, to bargain collectively, to have a labour contract that the employer must respect and to strike. That is why today, workers and Canadians are better off than they were a century or a century and a half ago.

The Conservative bill does not give the arbitrator the freedom and opportunity to decide on the best salary increase for Canada Post employees. This is unusual, new and very, very strange. We think that it adds insult to injury by setting salary increases that are lower than the employer's last offer. Should it not be the arbitrator, along with the two parties, deciding on the appropriate salary increases? How is it that the government is trying to save money by using special legislation that strips an arbitrator of the powers he usually has to settle this type of dispute?

If the employer felt it could offer these salary increases, then why is the Conservative government getting involved and imposing lower increases than the employer was offering? The employer itself acknowledged it could offer more and show more respect for the workers. Forcing the arbitrator to decide on lower salary increases is akin to stealing $35 million out of the pockets of Canada Post employees over the next four years. Just imagine what future labour relations are going to be like in that sector. Imagine how motivated these men and women are going to be if a labour contract is shoved down their throats. Is that how the government shows respect for those who provide good service across the country?

I think the government should react and respect the Canada Post employees, forget this special legislation, lift the lockout, ask both parties to negotiate and allow Quebec MPs to celebrate their national holiday.

[Phil McColeman, Conservative, Brant, ON]

Mr. Speaker, I was at the point of saying that the last thing we would like to see is this situation deteriorate any further and see businesses fail, unemployment increase and our economy go into a tailspin. Canada Post, a crown corporation, has more than 70,000 full and part-time employees. It is one of the largest employers in Canada. Every business day, it delivers service to 14 million addresses. Canada Post spends about $3 billion a year on goods and services and it contributes $6.6 billion to the country's GDP.

The Canada Post direct marketing sector accounts for $1.4 billion of its revenue. During the recent economic recession, this sector suffered financial losses. So many businesses still rely on Canada Post to get their business done and connect with their clients and customers across the country and internationally. While many aspects of business can often be accomplished online, not everything can be done in the absence of the mail. Mail service is still essential to the functioning of many small and medium-sized businesses and even large corporations.

Canada Post provides a crucial connection for Canadians in rural and remote areas.

Seniors are finding this work stoppage very difficult to deal with. Many of my colleagues have heard from seniors in their constituencies who would like to see an end to this work stoppage. A prolonged work stoppage at Canada Post may well affect some of the most vulnerable sectors of our economy.

How would Canada Post be affected as a viable business? Over the past decade, with the growth of the Internet, email, electronic billing and electronic funds transfers, there has been a corresponding decline in personal mail. However, small and medium-sized businesses still rely on the postal service for direct marketing, billing and filling orders. It is this sector of the business that could be jeopardized with a long-term work stoppage. Right now there is co-dependence. Now is not the time to put them at risk.

What is at stake is our economic recovery. All the job losses incurred during the global economic recession have been recovered. Our government has a responsibility to act on behalf of all Canadians to ensure the momentum continues. We have a process in place to deal with labour conflicts in the federal domain. It is called the Canada Labour Code and it has been followed each step of the way in this conflict.

The collective agreement covering CUPW and Canada Post expired on January 2011. Both parties have been bargaining since October 2010.

When those talks stayed at an impasse, a reconciliation officer was appointed. Throughout the month of May, a mediator from the labour program's Federal Mediation and Conciliation Service met frequently with the parties. The Minister of Labour even met with both party leaders. Despite all these efforts at mediation and conciliation, CUPW announced, on May 30, its intent to strike. On June 3, the Canadian Union of Postal Workers walked off the job. On June 15, 2011, the employer declared a lockout.

The postal workers have now been without a contract since January 2011, despite many rounds of bargaining. Of course, there are always cases when collective bargaining hits an impasse and the parties involved reach a stalemate. When this happens, the parties can request the Minister of Labour to appoint an arbitrator.

It is certainly not the preference of the government to intervene in labour disputes. Our government respects the right of free collective bargaining, which includes the right to strike or a lockout. However, when employers and unions choose a course of action that has harmful effects on the economy and the country as a whole, then it is incumbent on Parliament to stand up for the country and to protect our economic recovery.

That is why our government has introduced Bill C-6. We are taking decisive action on behalf of all Canadians.

What would the act do? It would impose a four-year contract and new pay rate increases. That would mean a 1.75% increase as of February 1, 2011, 1.5% as of February 2012, 2% as of February 2013 and 2% as of February 2014.

It also means, for final offer selection, a binding mechanism for all outstanding matters. In making the selection of a final offer, the arbitrator is to be guided by the need for terms and conditions of employment that are consistent with those in comparable postal industries. It will also strive to ensure the short and long-term economic viability and competitiveness of Canada Post Corporation, maintain the health and safety of its workers and the sustainability of the pension plan.

The terms and conditions of employment must also take into account: (a) that the solvency ratio for the pension plan must not decline as a direct result of the new collective agreement; and (b) that the Canada Post Corporation must, without recourse or undue increases in postal rates, operate efficiently, improve productivity and meet acceptable standards of service.

As we recover from the economic downturn, it is more important than ever that we encourage co-operative and productive workplaces.

Let us recognize that this has not been an easy situation for the postal workers and for Canada Post. Our hope is that both parties can now turn this around and make the most of this agreement. I would urge them to focus on making Canada Post relevant to Canada for the 21st century.

I also ask my hon. colleagues to join us in supporting the bill.

[Phil McColeman, Conservative, Brant, ON]

Mr. Speaker, I am proud to represent my government in its support of Bill C-6, An Act to provide for the resumption and continuation of postal services.

This legislation, once enacted, will bring an end to the work stoppage at Canada Post. The labour dispute between Canada Post and CUPW relates to the renewal of collective agreements covering some 50,000 workers, including plant and retail employees, letter carriers and mail service couriers.

It is always better when two parties can reach a collective agreement at the bargaining table without the need for Parliament's intervention. The best solution in any labour dispute is one where the parties resolve differences on their own.

The Minister of Labour has been clear and has, at every occasion, encouraged both parties to reach an agreement on their own. In this case, however, the parties are too far apart, and that is too bad. The last thing we want to see is the situation deteriorate and see business—

[Kerry-Lynne Findlay, Conservative, Parliamentary Secretary to the Minister of Justice]

Mr. Speaker, I rise today to speak in support of Bill C-6, An Act to provide for the resumption and continuation of postal services.

This bill would bring an end to the work stoppage involving Canada Post and about 50,000 members of the Canadian Union of Postal Workers, Urban Operations Unit, or CUPW.

As my fellow members know, the government has used every tool available under the Canada Labour Code to bring the two sides together, without success. This legislation would end the strike. It would impose a four-year contract and new rates of pay. The legislation also provides for final offer selection, a binding mechanism on all outstanding matters.

Furthermore, in making the selection of a final offer, the arbitrator would be guided by the need for terms and conditions of employment that are consistent with those in comparable postal industries and that would provide the necessary degree of flexibility to ensure the short and long-term economic viability and competitiveness of the Canada Post Corporation, maintain the health and safety of its workers and ensure the sustainability of its pension plan.

The terms and conditions of employment must also take into account that the solvency ratio of the pension plan must not decline as a result of the new collective agreement, and that the Canada Post Corporation must, without recourse to undue increases in postal rates, operate efficiently, improve productivity and meet acceptable standards of service.

The best solution in any dispute is always the one that the parties reach themselves. It is always better when employers and unions can negotiate contracts at the bargaining table without the need for Parliament to intervene. We have come a long way since the 1920s.

No member of this House is pleased about having to vote on this kind of legislation. However, it is absolutely vital that we do intervene. Parliament must act. In a moment I will talk about what is at stake for our national economy, but first I will take a little time to summarize the events that brought us to this point. I will start with some background on this dispute.

Canada Post is a crown corporation that employs more than 70,000 full and part-time employees. Every business day, Canada Post delivers approximately 40 million items. That adds up to 11 billion pieces of mail every year. Canada Post has to be reliable and efficient and offer services at a reasonable price if it is going to keep its customers. It also has to generate revenue and control expenses, like any other business.

For its part, the union, naturally, wants the best possible deal for its members in terms of salary and working conditions. The dispute between Canada Post and CUPW relates to the renewal of collective agreements covering some 50,000 postal workers, plant and retail employees, letter carriers and mail service couriers. The latest collective agreement expired on January 31, 2011.

Negotiations for a new agreement began in October 2010. Major and complex issues had to be addressed at the negotiating table, including the introduction of a short-term disability plan and Canada Post's interest in moving toward a two-tiered wage approach.

On January 21 of this year, the parties informed the Government of Canada that they had reached an impasse. The Minister of Labour immediately appointed a conciliator to help the parties resolve their differences. When no progress was made after the initial 60-day conciliation period, it was then extended by another 32 days.

A solution was still not forthcoming and on May 5 a mediator was appointed. Throughout the month of May, an officer from the labour program's federal mediation and conciliation service met frequently with the parties.

Despite this lengthy process and the breadth of federal government support, on May 30, CUPW gave 72-hours notice of its intent to strike. On June 3, the Canadian Union of Postal Workers started rotating strike action and, on June 15, 2011, the employer declared a lockout.

I heard the member opposite talk about what our minister and our government have done with respect to this matter. This gives a very good idea of the lengths that have been gone to over many months to attempt to resolve this dispute in a different way.

The postal workers have been without a contract since the end of January of this year despite many rounds of bargaining. The two sides have been unable to close the gap between their positions. It is unfortunate when employers and unions cannot find a way to reach settlements that are in their mutual interest.

However, the reality is that sometimes collective bargaining fails. When that happens, the parties have several options. They can jointly request that the Minister of Labour appoint an arbitrator. Employers can also bring pressure to bear on the union by locking out workers and trying to continue business without them. Workers can pressure the employer by withdrawing their labour. All of those options are of course legal as long as certain conditions are met.

Under normal circumstances, the Government of Canada does not intervene in labour disputes of this kind. We respect the right to free collective bargaining, which includes the right to strike or lockout. Parliament will stand aside as long as the people most affected are the parties to the dispute themselves and there is no threat of serious harm to the national economy or public health and safety.

When employers and unions choose a course of action that has serious consequences on the country as a whole, this situation changes. Parliament can no longer stand aside. Parliament may then decide that the right of the parties to exert pressure through a strike or lockout has to be weighed against the rights of all Canadians in all provinces and territories.

The losses caused by a shutdown of postal services are not borne only by Canada Post and its employees. They are borne by hard-working Canadians and their families across the country. Jobs are at stake and businesses are on the line. Whole sectors of the economy will be affected and the ripple effect will reach everywhere.

Bringing in back to work legislation is always a difficult decision, but in this particular case we feel we have no alternative. We must do what is necessary to keep Canada and the Canadian economy running. That is the strong mandate we were given in the last election.

We need to consider what a strike means in the mail order sector. By definition, these businesses depend on reliable postal services. They could hardly exist without them. Many of these enterprises are mom and pop operations run out of someone's home. Not all of them can afford to switch to courier services. If the strike continues, many small businesses will go under. As all parties in the House have been expressing support for small businesses, they should support this government initiative.

This is not speculation. Interestingly, my notes have me saying that I am sure everyone here remembers the mail strike of November 1997. However, mindful of many young parliamentarians, I would say that everyone over a certain age perhaps remembers that mail strike of 1997. It lasted for 15 days and many small and medium-sized businesses suffered or went under.

Reliance on postal services has diminished somewhat since 1997 due to the advent of the Internet and the increased use of faxes, email, electronic billing and electronic funds transfers, but small and medium-sized businesses still rely heavily on postal services for billing and order fulfillment. A work stoppage at Canada Post is hitting small and medium-sized businesses much harder than large corporations.

Again, if the opposition members are determined, as they have stated, to champion small business, I encourage them to proudly support the legislation.

Is it fair that hard-working Canadian entrepreneurs are held hostage by a postal dispute? Small- and medium-size businesses are engines of growth, and every day they make a significant contribution to Canada's recovery from the recession, a recovery, by the way, that is still fragile.

The 15-day strike in 1997 did a lot of damage. The strike we are now experiencing could cost our economy a lot more. I will give some figures.

Members of the House may not be aware that directly or indirectly Canada Post contributes $6.6 billion to this country's GDP. We know that past mail strikes have had a crippling effect on the economy in a very short period of time. Can our economy afford such a heavy blow when some sectors are still struggling?

The Canadian direct marketing industry, for example, suffered serious financial losses during the economic downturn. How would it cope with a prolonged postal strike?

What about the Canadian magazine industry? Those businesses have no practical cost-effective way to get their product to customers in the absence of postal service. For them, this postal strike could be nothing short of a disaster.

I could go on and on. If we do not do something soon about the postal strike, Canadian businesses will suffer. They already are. Canadian consumers will suffer. They already are. People who just want to communicate with family and friends will suffer.

I have a couple of examples of emails that I have received from constituents in my riding. One of them, which is addressed to me, says:

Canada Post does definitely affect the economy! A good portion of Canadians many of them Seniors, and the disabled, rely on Canada Post to deliver cheques, bills, bank statements, etc. Without the mail, they are stuck.

Another email came from a resident of Vancouver, B.C. I assume she thought that this might fall on deaf ears with her Liberal member of Parliament. She wrote in the subject line “I really need your help”, and said in the email:

I live in Vancouver, BC, I have a big problem, my young sister is going to marry on 01 of July this year in Mexico, in 15 days. My husband and I appl[ied] for visas to go to Mexico. Citizenship and Immigration Canada [says that] you need to send an Xpresspost from Canada Post to receive your documents faster. After 20 days of waiting they are all ready but I have a stranded envelope in a Canada post office in London, Ontario...with the passports and visas [for] my daughter, my husband and [me]. For the decision of putting down the labours in Canada post, I'm going to lose the opportunity to see my family and go to my sister's wedding. I have very important documents that are going to Mexico my country. Please help me to receive this envelope. I hope you understand....

She also said:

I really care about the problem between Canada Post and the CUPW but they really need to think of mine too.

We cannot do everything, even in this modern world, by email. For the sake of all Canadians, we must act now and pass the legislation. We must not wait until jobs are lost, until businesses start closing, and until the damage is too severe to be repaired. We must act now.

I hope all members of the House will join me in supporting the legislation.