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.

[Lisa Raitt, Conservative, Minister of Labour]

Mr. Speaker, before I commence my speech, I want to pick up on something the member for Dartmouth—Cole Harbour said.

He mentioned Davis Day, which is on June 11, and it is celebrated in mining communities across Nova Scotia. It is a very important day in the culture that I come from. However, it is also important to note that it is a day when a very tragic incident happened. It was the day when William Davis was shot in cold blood as a result of protests at the mines because employees were not receiving wages and, indeed, were being asked to take a further cut.

My take from Davis Day, however, is one that is even more important, which is that it only escalated to that level of violence after the government refused to intervene, even though the families and the men asked it to do so. That is valid. The Government of Canada should intervene when it is appropriate to do so in the public interest.

This government has been given a strong mandate by Canadians to complete our economic recovery. As Canada's labour minister, it is my view that the Government of Canada must take decisive action now before further damage is done to our economy. That is why our government introduced in the House Bill C-6, An Act to provide for the resumption and continuation of postal services.

After eight months of collective bargaining and mediation, a labour dispute between Canada Post and more than 50,000 employees, represented by the Canadian Union of Postal Workers Urban Operations Unit, has resulted in a work stoppage. It is an event that, if left unresolved, could jeopardize Canada's economic prosperity.

Today I will discuss the specific details of this proposed legislation, but, first, there are some important facts that will help put this extraordinary legislative measure in its proper context.

Canada Post is one of Canada's largest corporations and delivers a service that many Canadians count on. It supports 70,000 full-time and part-time employees and contributes $6.6 billion to our country's GDP. A reliable postal service without interruption is an important part of what keeps our economy running smoothly.

As a result of a labour dispute between Canada Post and more than 50,000 of these employees, the service is now interrupted and at a standstill. However, this labour dispute has been simmering for many months and, now that postal services have stopped, this dispute is having more of an impact on the Canadian public, not just Canada Post and its employees. It could affect the livelihood of many Canadians across the land.

Contrary to the assertions of the opposition, we do not take back to work legislation lightly, but this measure is necessary. All other avenues have been exhausted. This is the right thing to do. There is too much at stake for Canadians and our economy on the whole. We must and we will act now.

I will take a few minutes to outline the potential economic risks entailed by this work stoppage. I will also talk about the intent of the proposed legislation.

As I indicated, a reliable postal service is far more than just personal mail. It is a fundamental part of doing business in Canada and the economic risks of no longer having that service are significant. Canada Post is an integral part of what keeps Canada in business and what puts money in the pockets of its citizens. Many small and large businesses rely on Canada Post to issue bills, to process orders and to receive payments. This is a service that matters.

There are Canadian families waiting for their tax refunds or HST rebates to arrive. There are citizens in the far north who rely on the mail for essential goods, like prescription eyewear, dental products, drugs and legal documents, and there are those who still make payments by mail. They will tell us that there is much at stake in this dispute.

Quite frankly, Canadians and businesses should not have to deal with this kind of uncertainty. They should not be the ones expected to bear the brunt of a labour dispute that shows no sign of being resolved through the collective bargaining process.

Just as important, our economy cannot afford to deal with a postal disruption brought by the lockout. Consider the costs that we are all having to pay. It has been nearly 14 years since Canada last had a work stoppage at Canada Post. A work stoppage could result in losses to our economy of between $9 million and $31 million per week. That means every day, more jobs at risk, more productivity lost, more challenges for business and more uncertainty for consumers.

Therefore I ask the following question. Can we afford to have this happen, especially when Canada's recovery from the recession is really starting to gain speed? I think the answer is clearly no.

As I said, every other avenue has been exhausted to help bring a full and lasting resolution to this dispute. Let me tell the House what has transpired over the last eight months.

On October 4 of last year, the union, CUPW, served the employer notice to commence collective bargaining for the purpose of renewing their collective agreement, the first step in the process. The parties negotiated directly from October 2010 to January 2011. On January 21 of this year, the union filed a notice of dispute and requested services of conciliation from the federal government. I appointed a conciliation officer on January 31 to help the parties reach a resolution. Through February and March, the conciliation officer met with the parties and on April 1 the conciliation period was extended until May 3, 2011 to get us through the general election. During that time, the conciliation officer continued to meet with the parties. As per the Canada Labour Code, the parties were released from conciliation in early May, and on May 5 a mediator was appointed. Throughout the month of May, the mediator from the labour program's federal mediation and conciliation service met very frequently with the parties. Unfortunately, despite all these efforts, an agreement between the parties remained elusive.

We need to take decisive action now. Canadians deserve no less.

This act provides for the resumption and continuation of mail services at Canada Post. First, it brings an end to the growing uncertainty that has characterized so much of this dispute in the last several months. As well, consistent with the recent settlements in the federal public service, it imposes a four-year contract and provides new pay-rate increases. The pay outcome will be a 1.75% increase as of February 1, 2011; a 1.5% increase in February 2012; a further 2% increase in February 2013; and a further 2% increase again in February 2014.

The act also provides for final-offer selection, which is a binding mechanism on all matters still in dispute and outstanding. Furthermore, in making this selection of a final offer, the arbitrator is to be guided by general principles that take into consideration the need for terms and conditions of employment that are consistent with those in comparable postal industries and that provide the necessary degree of flexibility to ensure both the short- and long-term economic viability and competitiveness of the Canada Post Corporation. It also takes into consideration the need to maintain the health and safety of the workers and to ensure the sustainability of their pension plan.

More specifically, the terms and conditions have to take into account two things: first, that the solvency ratio of the pension plan must not decline as a direct result of a new collective agreement; and second, that the Canada Post Corporation must, without recourse to undue increases in postal rates, operate efficiently, improve productivity and meet acceptable standards of service. It is a decisive approach and it is aimed at resolving this labour dispute.

In the absence of solution that is crafted by the parties themselves, which we have spent many hours trying to achieve since the rolling strikes of June 1 and which we would have preferred to see, this proposed legislation takes the steps that are necessary to safeguard our recovering economy and to ensure that Canadian families and businesses do not wind up suffering as a result of a dispute they had no part in creating.

Our government has put procedures in place to ensure the efficient delivery of services and benefits to Canadians, such as the use of courier delivery, early release of some benefit payments and in-person delivery through regional Service Canada centres. These are things we needed to do to ensure that Canadian citizens are still served by the Government of Canada during this postal stoppage.

However, by introducing this proposed legislation, we are not taking sides in the matter. What we are doing, and what all parties in this House have a responsibility to do, is working on behalf of all Canadians because that is what they expect of us. We are showing leadership in this matter. That means taking decisive action to keep business in Canada moving.

In conclusion, I would reiterate that we are taking extraordinary measures. We are doing so because no workable solutions have been found to resolve the dispute at Canada Post. Parliament has an obligation to respond in turn and we have to act in the best interests of the country. Canadians, quite frankly, deserve much better than delays or excuses or random rhetoric. They have a right to expect that Parliament will do the right thing to protect our economy and to ensure that the business of Canada keeps moving.

I would ask all members of this House to join me in meeting our collective responsibility to Canadians and support this proposed legislation.

Motion that debate be not further adjourned

[Marc Garneau, Liberal, Westmount—Ville-Marie, QC]

Madam Speaker, I would like to correct something the minister said. Back in 1997, the Liberal government did in fact introduce back-to-work legislation after almost two weeks of strike. We do believe that sometimes there is good reason to put in an arbitration process when it is clear that the bargaining process is not working.

Here we have Bill C-6 which makes a mockery of arbitration. It is very prescriptive. It does not allow arbitration in good faith in the normal sense. Why does the government not implore the management to lift the lockout, get the unions to get people back to work on a full-time basis and allow the bargaining process to occur? If it does not work after a reasonable amount of time, unlike the NDP that does not believe in arbitration, we do believe there is a place for it. Why does the minister not allow that process to occur?

Canada Post

[Bob Rae, Liberal, Toronto Centre, ON]

Mr. Speaker, to the Prime Minister on the so-called act to provide for the resumption and continuation of postal services, Bill C-6.

Everyone recognizes, including the workers involved, that we want to see a resumption of postal services. The workers themselves have offered to go back to work.

Why then does that legislation completely limit the discretion of the arbitrator to find a fair agreement, deny the employees the ability to negotiate on salaries and, in fact, impose a salary regime for three years which is less than what the employer was prepared to pay?

Resumption and Continuation of Postal Services Legislation

[Steven Blaney, Conservative, Minister of Veterans Affairs]

Mr. Speaker, our government is introducing in the House Bill C-6, An Act to provide for the resumption and continuation of postal services. This bill will provide as well for an impartial arbitration process to finalize the terms of a new collective agreement.

Our government agrees that employers have a right to freely negotiate collective agreements. I am sure that all members of Parliament are of the same mind on this fundamental principle of labour relations in Canada. The current federal system governing labour relations puts the emphasis on mediation and conciliation and is generally effective at resolving the disputed issues in labour agreements.

In these negotiations, though, we have done everything possible to resolve the outstanding issues but our efforts have been in vain. The parties still have not managed to find a basis of agreement, and under the circumstances, we must consider the repercussions of a work stoppage in a broader context.

No one is happy to see people forced back to work, but we are living in unusual times that require us to take action. We must act quickly to avoid a lengthy interruption of postal service, which is an essential cog in the Canadian economy at a time when the economic recovery is still fragile.

Before speaking about the economic repercussions of this work stoppage and our responsibility to act—as several of my colleagues have done today—I would like to share some basic information about the dispute and explain how the process has led to the situation in which we find ourselves.

The negotiations between Canada Post and the members of the Urban Postal Operation unit of the Canadian Union of Postal Workers started in October 2010. The collective agreement governing nearly 50,000 postal workers expired on January 31, 2011. After more than eight months, the parties have failed to reach an agreement despite the efforts at negotiation, conciliation and mediation.

On May 30, the union gave the employer strike notice effective June 3. On that date, the Canada Post employees began their pressure tactics by launching rotating strikes. The Minister of Labour has played a proactive role from the beginning. On several occasions, she tried to bring the parties together in order to restart the negotiations. Despite all her efforts, the employer and the union have not managed to reach an agreement. On June 15, management declared a lockout, thereby putting an end to the rotating strikes. Since then, postal service has been paralyzed.

We therefore find ourselves in the very unfortunate situation of a work stoppage in which the employer and the union have not managed to reach an agreement, and their positions remain very far apart. This is not only unfortunate but very concerning. Canadians from coast to coast are quite anxious about the consequences for the economy and the effects on them. They feel caught between management and the employees. All Canadians are affected and penalized by this labour dispute, whether in regard to their companies or families or to seniors all across the country, including in Lévis—Bellechasse et les Etchemins, or whether living in urban or rural areas, because Canada Post plays a key role in our society.

We all remember the 1997 labour stoppage at Canada Post lasting two weeks. At the time, the Canadian Federation of Independent Business estimated that the stoppage had cost small and medium-sized businesses $200 million a day.

Even though the postal service has lost ground since 1997 to technologies like email, fax as well as electronic billing and banking, small and medium-sized businesses still rely heavily on the postal service for billing and processing orders. By May 18, when the federation released an open letter to the management of Canada Post, the federation and its 108,000 small and medium-sized businesses were already sounding the alarm.

They said, over a month ago, that they were concerned about continually rising costs at Canada Post and their impact on SMEs, which they say will push even more businesses to look for alternatives for their mail and will have a negative impact on Canada Post.

They went on to add that “for other small businesses, a lengthy mail interruption may negatively impact their firms”. Consider magazines, newspapers and other periodicals, for example. A majority of their circulation depends on the postal service provided by Canada Post. During a postal interruption there are no other practical and viable ways to distribute those publications.

This means that the periodicals industry will be hard hit if this postal interruption lasts any longer. And this is not the only example. A prolonged work stoppage would have negative repercussions for many other industries and segments of the public, whether it be our families, our seniors or our veterans. Some businesses are on high alert and are calling on the government to live up to its responsibilities.

Receiving cheques and accounts payable and delivering customer invoices, as well as sending and receiving important documents, are all disrupted by this dispute. Canada is barely starting to show signs of recovery after the economic crisis that hit the entire world hard. We are in a good position, thanks to the stability of our banking system and the extremely positive impact of our government’s economic action plan, and our economy is indeed continuing to grow more rapidly than the economies of the other industrialized countries.

In fact, we have had 2.9% growth this year, and growth is estimated to be 2.6% next year. But it is still fragile. We are facing a number of challenges, including major budget cuts, not to mention that the global economic recovery is moving slowly and there continue to be risks in the markets.

Canada is not on an island, and is not immune to the fluctuations and crises taking place in other parts of the world. We cannot allow ourselves to rest on our laurels. At this stage, we have to do everything we can to stimulate economic growth and job creation. That is what we have undertaken in the Speech from the Throne. We have said very clearly that our government “will continue to focus on jobs and growth”.

A lengthy interruption of postal services could counteract all the efforts made, not only by our government but also by our businesses, our associations, our community organizations and all Canadians, to promote the recovery and strengthen the foundations of our economy.

The figures speak volumes: it is estimated that each week Canada Post employees are on strike represents losses of $9 to $31 million for the Canadian economy. Each additional day of lockout causes significant commercial and financial losses for Canada.

The parties have had ample time to reach an agreement: over eight months. It would be irresponsible for us to allow matters to take their course at the risk of the situation becoming poisoned and this work stoppage going on for a long time.

The Canada Labour Code applies to federally regulated employees in key economic sectors. Part I of the Code deals with the rights and responsibilities of employers, unions and the Minister of Labour in the collective bargaining process, specifically when parties are unable to resolve their differences.

Ideally, the parties will be able to prevent and resolve issues in dispute by themselves. However, a deadlock may arise during the bargaining process and result in a labour dispute with implications that are extremely damaging to the national economy. When this kind of situation arises, Parliament has a duty to act, as it has in the past when similar situations have occurred.

In the past 60 years, our Parliament has used this instrument 32 times. Under the legislation we are proposing, a four-year collective agreement may be put in place. This new collective agreement would include wage increases phased in over the four-year period. In addition to ensuring the immediate resumption and continuation of postal services, the bill we introduced yesterday would make arbitration the method for resolving issues that remain bones of contention between the parties.

The onus will be on the arbitrator to choose between the final proposals made by union and management. It should be noted however that this legislation in no way prevents the parties from continuing the bargaining process and reaching an agreement, which is what occurred in 1997. Our government lives up to its responsibilities and is pressing both management and labour to reach an agreement.

The bill specifically provides that parties may agree to enter into new collective agreements at any time. It is our fervent hope that the parties continue to negotiate to resolve this conflict before the arbitrator has to step in and make a determination.

Lastly, the act would come into force 24 hours after royal assent, thereby giving workers an opportunity to fully acquaint themselves with the requirements and implications of the legislation. This is an exceptional measure that has come at a time when economic recovery is still fragile. I can assure the House that this decision was not made lightly, as I have made clear. We are aware, however, that there is no benefit to delaying the process and that Canadians expect our government to live up to its responsibilities. We are determined to take the necessary steps to protect the interests of Canadians and of our economy.

In closing, in order to safeguard our economic recovery and the well-being of Canadians, I would encourage all members of the House to support our government’s actions to put an end to this dispute, thereby ensuring the resumption of regular mail services throughout the country.

[Randy Hoback, Conservative, Prince Albert, SK]

Mr. Speaker, this is the first time I have risen in the House this session and I want to take the opportunity to thank my constituents in the riding of Prince Albert for their support again in this election. It was a hard-fought battle and I really appreciate their support.

Today I rise to support the legislation introduced by the Minister of Labour. Bill C-6, An Act to provide for the resumption and continuation of postal services will protect our economic recovery and help the CUPW and Canada Post Corporation come to a lasting settlement.

Our government would prefer the two parties to resolve their issues and come to an agreement on their own. The best solution is when an employer and a union can come to a solution themselves. In fact, over 90% of labour negotiations in Canada are settled without ending in work stoppages. Failing an agreement, our goal is to be fair to the 50,000 urban postal workers while taking into account the welfare of all vulnerable Canadians and small- and medium-size businesses that depend on regular postal service.

Canada Post plays a significant role in Canada's economy. It spends about $3 billion a year on goods and services, thereby supporting an additional 30,000 jobs in the economy. It contributes $6.6 billion to the country's GDP and directly employs over 70,000 full- and part-time employees. A prolonged work stoppage could have some really negative effects on our economy.

Canada Post's three most important business lines are mail, parcels and direct marketing. The direct marketing sector represents $1.4 billion of Canada Post's revenue. During the economic slowdown or downturn, this sector suffered severe financial losses. A prolonged work stoppage would impact the sector by preventing large Canadian retailers from reaching their customers. This could result in decreased sales, which could translate into reduced employment.

The Canadian magazine industry would also be severely compromised, as it relies on Canada Post for most of its distribution.

Canada Post offers an essential lifeline to Canadians in rural and remote areas. Even where rural letter carriers are not necessarily affected by the current bargaining dispute, rural communities could still be affected as there would be no sorting or bulking distribution of post to rural communities for delivery.

People with disabilities have transportation and accessibility barriers that may affect their ability to receive goods and services. Shopping online and catalogue shopping still rely on the postal service to get goods from sellers to buyers.

I have received letters from constituents. It was interesting to receive a letter before the lockout and one afterward from the same constituent, which I would like to read for the record. The letter before the lockout read:

Please Sir, if there is anything you can do to stop this strike, I would really appreciate it. I am a small business owner here in Prince Albert, SK. We literally ship and receive 100's of packages every month through Canada Post. This strike could shut us down affecting my own single income family, my sister & family and my parents. We pay between $6-$13 to ship through Canada Post...to ship the same package through UPS/Canpar, etc is between $33-$46. This would put us out of business.

I urge you to please do whatever is in your power to stop this strike from going forward.

Thank you!

After the lockout, the same person sent me a letter, which read:

I would just like to say that I'm incredibly disappointed that Canada Post was allowed to lock out the workers and especially with no notice to the Canadian public. While I was not in favour of the CUPW strike, I did feel that at least they gave the public notice and mail was still flowing even if it was slower. Canada Post stated that they would decrease to 3 days a week delivery, but then suddenly dropped all deliveries. This was completely unfair to the Canadian public and businesses. They should not have been allowed to do this with no notice whatsoever. I have a lot of mail stuck in the system now that I would have shipped other methods. I am incredibly disappointed with how Canada Post has dealt with this. The CUPW was at least working to not interrupt all of the Canadian public & businesses. It was Canada Post who did that. For this reason, I am very disappointed. I would hope that this policy would be looked at into for future reference. It should not be legal for a crown corporation to completely shut down business.

Here we see someone who has actually been impacted by the slowdown and the shutdown. Here we see what can happen to a small business when all of a sudden it does not have the service. That is why we have to look at what the minister has done and move forward quickly to make sure that we do not lose these jobs, people and small businesses. Some of the most vulnerable aspects of our economy could be affected by a prolonged work stoppage.

The Canada Labour Code has been built on labour legislation and a policy that promotes the common well-being and rights of employers and workers. It does this through negotiations of terms and conditions of employment and the constructive settlement of disputes.

Since the Conciliation Act of 1900, the labour program has had a mandate to help prevent and resolve labour disputes. Canadian labour relations have benefited from neutral third parties who conciliate, mediate and arbitrate. That was the case in the recent CUPW and Canada Post dispute.

The collective agreement covering all units of approximately 50,000 postal workers expired January 31, 2011, despite the fact that the parties have been bargaining since October of the previous year.

A conciliation officer was then appointed and met with both parties throughout February and March. The conciliation period was extended from April 1 to May 3, 2011.

On May 5, a mediator was appointed, and throughout the month an officer of the labour program's Federal Mediation and Conciliation Service frequently met with both parties. Despite all this work, a work stoppage is now in effect.

We can let events control us until the economy goes into a tailspin, or we can take decisive action on behalf of Canadians. This is what the legislation proposes to do.

First of all, it puts an end to the growing uncertainty around Canada postal services. The act also imposes a four-year contract of new pay rate increases. This will mean a 1.75% increase as of February 1, 2011, a 1.5% increase as of February 1, 2012, a 2% increase as of February 1, 2013, and a 2% increase as of February 1, 2014.

It also provides a final offer selection, a binding mechanism, on all outstanding matters.

Furthermore, in making the selection of 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 and that will provide the necessary degree of flexibility to ensure the short- and long-term economic viability and competitiveness of Canada Post, 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: (a) the solvency ratio of 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 to undue increases in postal rates, operate efficiently, improve productivity and meet acceptable standards of service.

It has been nearly 14 years since the last Canada Post work stoppage. Every avenue has been explored to help bring a full and lasting resolution to this dispute.

In the absence of a solution reached by the parties, something that was clearly hoped for, the proposed legislation will bring quick resolution to the dispute. It will safeguard our economy and ensure that Canadian businesses and vulnerable Canadians do not suffer.

Our government has taken steps to ensure the efficient delivery of federal services and benefits to Canadians. We have reserved courier services, set up the early release of some benefit payments, and provided in-person delivery through regional Service Canada Centres.

We are doing this because Canadians want leadership. As parliamentarians, we have an obligation to act on behalf of Canadians.

We need to keep our economy working and build on our recent gains. We must maintain the momentum. Let us support the proposed legislation and bring peace to Canada's postal services for the months and years to come.

In my riding it is very important that we see this dispute come to a settlement. In talking to farmers or small businesses or people in small towns, a lot of their invoicing, a lot of their billing is actually done through the mail. When they cannot send a bill, they cannot get paid. They cannot pay their supplier. It is a domino effect that needs to end.

The only way this can end is through this proper legislation. I encourage my colleagues to support it. Let us get on with doing the business of the people of Canada and let us get these two parties back to work.

[Ed Komarnicki, Conservative, Souris—Moose Mountain, SK]

Madam Speaker, I rise in the House today in support of Bill C-6, An Act to provide for the resumption and continuation of postal services. I, too, have heard many of the comments, including some of the entertaining, at times, logical comments made by the member for Toronto Centre. However, this is in fact a very serious matter--

[Yvon Godin, NDP, Acadie—Bathurst, NB]

Madam Speaker, I am pleased to participate in this debate, but under the circumstances, I am certainly not happy that it is taking place, given the current crisis.

I listened to the Parliamentary Secretary to the Minister of Human Resources and Skills Development. I asked her why the government's bill sets out a 1.75% salary increase, which is less than Canada Post's offer of 1.9%. Now she is inviting the parties to return to the bargaining table to reach a collective agreement; otherwise, the government will pass legislation. What planet is she living on? Canada Post is saying to itself that if there is no settlement, it will not need to grant a 1.9% salary increase because the government will legislate that it be set at 1.7%. Is that bargaining? In reality, the government has taken away any possibility of bargaining. With its proposed bill, it is interfering directly with negotiations instead of finding a bargaining mechanism.

I understand that people need Canada Post's services and that this is hurting small and medium-sized businesses. I am aware of that and I have been receiving calls about it. But we need to understand what has happened here. Negotiations were under way, but the parliamentary secretary felt that they were taking too long. But sometimes that is what is needed in order for a settlement to be reached. That is how bargaining works. When the two parties come to an agreement, labour relations are better than if the government forces things by passing legislation. That is not the government's role. Let us be clear: many people today do not believe that unions should exist. I invite those people to go to countries where there are no unions, where people are paid minimum wage, which is not the same as it is in Canada. It is a form of slavery. Is that what the government wants?

This bill to force a return to work demonstrates a lack of respect for working men and women who were able to form a union under a statute of Canada. Unionization is a right. Today, the Conservative government is taking away that right. It did the same thing last week with Air Canada after only one day of strike action. The government used the economic recovery as an excuse, saying that it had received a strong mandate from Canadians to do whatever it wants.

Yes, the Conservatives received a majority mandate here in the House of Commons, but they did not in the rest of the country. Only 40% of Canadians said that they wanted to be governed by the Conservatives. I believe it may have even been 39.9% or 39.8%. That is 39% or 40% of 61% of voters. That is not even 100% of voters; it is a mere 40%. Before unions existed, people took to the streets to improve their situation. Workers had to take to the streets. There was fighting in the streets, blood was spilled and people lost their lives to improve their families' situation and to have the right to free bargaining.

So what happened? The government said that this must stop, that it was going to pass laws allowing workers to form unions and negotiate collective agreements. The government said that it was going to give workers the legal right to call a strike, which prevented all the bloodshed in the streets. That is what happened.

Do we want to go back to the way things were? Is that what the Conservative government wants? Canada Post is not going bankrupt. Canada Post made $281 million in profit. Canada Post's most recent financial report is two months overdue. I would like to see the latest numbers. I would like Canada Post to give them to us. Perhaps Canada Post made more than $281 million in profit.

At a certain point, Canada Post employees decided to hold rotating strikes. Employees in Montreal went on strike for one day and those in Toronto, Vancouver, Bathurst and Halifax, for example, each also took their turn at conducting a one-day strike.

Canada Post also decided to deliver the mail only three days a week. The Minister of Labour stated publicly on the news yesterday that she did not receive any comments from Canadians while the employees were working only three days a week or when they were on a rotating strike. She received maybe 30 emails on this subject and that was it. There was no problem.

What did the government want? The employees did not want to stage a general strike, so Canada Post, a crown corporation, responded with a lockout. Once the lockout was imposed, the government would decide to force the employees back to work and to take away their benefits. The government is proving this right now, with this bill.

What did Canada Post employees and the Canadian Union of Postal Workers say? They told the government and Canada Post to reinstate and respect their old collective agreement. They asked for their health benefits to be reinstated and said they would go back to the bargaining table without any rotating strikes. They asked that all workers be called back to work. Canada Post refused. I personally went to see the Minister of Labour to ask her why the crown corporation was not told to do that alone, that is, to go back to the bargaining table to try to resolve the conflict between the two parties and to reach a collective agreement.

The government refused to tell Canada Post, a crown corporation, to go back to the bargaining table and respect the collective agreement. Was it because the government does not want to interfere with a crown corporation? Yet at the same time, it is introducing a bill that is not good for workers.

What does this mean for other non-unionized workers who do not support what is happening here? Let us think about that. If Canada had no unions, if they all disappeared tomorrow, we can only imagine the abuses that would take place. Has anyone thought about that? The workers did not want to take away people's right to receive mail, since letter carriers were willing to go back to work if Canada Post would respect their old collective agreement.

I would remind the House that an agreement could have been reached to allow Canadians and our SMEs to start getting their mail again.

I remember when I worked as a miner in the Brunswick mine in 1976. In an 18-month period, six people were killed underground. I remember what we were able to do with the union: change the country's laws to give the families of the miners who got up and went to work in the morning the right to see their family members come home in the evening and to ensure better working conditions in order to prevent miners from getting killed.

Consider what happened at the Westray mine in Nova Scotia, when 26 miners were killed in the mine. The bodies of 11 of those miners are still in that mine today. The company violated every health and safety law. Even when the mine closed, the employees joined the steelworkers' union. They fought by bringing bills here to the House of Commons because under the law, the government could not even prosecute company presidents who were not in Nova Scotia for failing to meet health and safety requirements. We called it the Westray bill, to ensure that these people could be brought to justice. If the union had not fought for the health and safety of the miners, we would not have this legislation that every worker in Canada benefits from today.

I know the people of this country need their mail. We understand that. Postal workers understand that. They are professionals.

We all see people from Canada Post delivering our mail. These people are professionals. They work hard. We just need to look at the conditions they work in. On a hot day during the summer, they are outside with their backpacks delivering our mail. Even during a storm in the wintertime these people bring our mail to our door. We have to respect these men and women who work hard for us. They deserve a pension plan. The new generation deserves to have the same thing our parents and their parents fought for.

The government should not have introduced a bill to take away the workers' rights, their pension plans or their health benefits. The government has no business doing that or getting involved in the way it has.

Canada Post was ready to give a 1.9% increase to its workers, but in Bill C-6 the Conservative government is bringing that down to 1.75%. The government is telling postal workers that if they do not want that increase, they should get back to the table and negotiate a contract. And why does the government expect Canada Post to get back to the negotiating table and negotiate a contract when it will get a better one forced by the Conservative government of this country?

I do not know what is wrong with the Conservative government. Why does it hate the workers? Why is it attacking the workers through the bill? Why is it saying that a postal workers' agreement should be compared with those in other industries? I do not know if I sleep on a different planet, but I thought that Canada Post was the only industry in our country bringing Canadians their mail. Who is Canada Post going to be compared to? The United States? Mexico? Is it going to be compared to Brazil? What comparison will the arbitrator make?

If the government believes in workers, if it respects workers, then why is there not even one little paragraph in the bill taking the side of the workers? There is not one paragraph in the bill where the government sides with the workers.

Other workers might be next. Today it is Canada Post, tomorrow it will be somebody else, and it could be those in the private sector too. I say this because the government became involved last week with Air Canada in the same way. Other workers can sit back and wait, because this will happen to them. One day people will say enough is enough.

The government wants to save money for what? It gives big tax breaks to big corporations. We just need to look, for example, at Air Canada. The president and CEO of Air Canada paid himself $7 million and will leave with a pension of $350,000. That is no problem for him. The banks made profits of $20 billion and paid $11 billion in bonuses, yet the Conservatives have given them a break. The Conservatives are running out of money to give their big friends.

I respect the workers. The one thing the government should do is to get out of the negotiations. The government should provide a mechanism for the negotiations and tell the parties to get back to the negotiations, respect the old collective agreement and get to a contract. However, the government does not seem to believe in that. It will negotiate a contract and make sure that the parties do not negotiate one, and it will use the economic recovery as the reason and “take care“ of the workers for Canada Post.

Why? It is because the Conservatives are the friends of big business, not of the working men and women who get up in the morning and build this country. These men and women have the right to receive a pension and a decent living. They have that right. They earned their pension plans. They earned those benefits.

The Conservative government should be ashamed of itself. Yes, it got support. Yes, it is a majority government.

However, did the Conservatives ever tell all workers what they would do with them if they ever got elected? Did we see in their platform their intention to legislate people to work with a lesser collective agreement than their employer would give them? Did they say that? No, according to the union. It is not honest for the Conservatives to do that.

Just give the people free bargaining and the mechanism to do it. That is the way to go.

The government's behaviour is shameful. It is setting a precedent for which everyone will pay dearly. I cannot say enough that I do not understand why the Conservative government hates workers so much or why it is slapping them with a bill like this. I hope that in the coming days, the government will receive motions in amendment, will recognize what the workers do and will be able to find solutions.

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

Madam Speaker, just weeks ago our government indicated in the Speech from the Throne that our priority remains focused on jobs and growth. We also noted that the global economy remains fragile and risks to our recovery persist.

After many months of collective bargaining and mediation, a labour dispute between Canada Post and more than 50,000 employees representing the Canadian Union of Postal Workers urban operations unit has resulted in work stoppage, an event that, if unresolved, could jeopardize Canada's economic prosperity.

Canadians gave this government a strong mandate to complete our economic recovery. It is my view that the Government of Canada must take decisive action now before further damage is done to our economy.

Our government introduced Bill C-6, An Act to provide for the resumption and continuation of postal services. The measures in this proposed legislation are in response to an extraordinary situation facing Canadian families, workers and businesses.

For many Canadians Canada Post remains a vital part of how we connect to each other, even in this digital age. It is also an important part of small and large businesses across Canada. Reliable postal services aid in putting money in the pockets of families and Canadians in need. They play a role in how bills get delivered and paid on time, and ensuring that parcels arrive at their destinations.

As we can see, there is far more at stake here than just mail delivery or good labour relations between Canada Post and its unionized workers. As a result of this long-simmering labour dispute, this has now become a matter that puts Canada's fragile economic recovery on the line. That is a risk that Canadians do not want to take, nor is it one that they should have to endure. They are counting on the Government of Canada to act and that is why we introduced this proposed legislation.

I will take a couple of minutes to outline the intent of this bill, along with the proposed economic risks entailed by this work stoppage. I will also explain why it is important that we take decisive action now rather than wait any longer.

This act would provide for the resumption and continuation of mail services at Canada Post. It would bring to an end the growing uncertainty that has characterized so much of this dispute for the last several months. The act would also impose a four year contract and new pay rate increases. It 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 would also provide a final offer selection, a binding mechanism on all outstanding matters.

Furthermore, 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 and that will 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: first, that the solvency ratio of the pension plan must not decline as a direct result of the new collective agreement; and second, that the Canada Post Corporation must, without recourse to undue increases in postal rates, operate efficiently, improve productivity, and meet the acceptable standards of service. It is a decisive approach aimed at resolving this labour dispute. While the measures it calls for are not an ideal way of resolving this dispute, it would do what is necessary to safeguard Canadian families, businesses, seniors and workers.

Some might argue that we should wait, that we should let collective bargaining run its course no matter how long it takes. That is unwise. The risks to our economy are too great to ignore. Since talks between CUPW and their employer broke down, our country is now facing a potentially serious situation. Let us be clear about what has happened as a result of this labour dispute at Canada Post.

An integral part of what keeps Canada in business and what puts money in the pockets of many citizens is slowing to a standstill. Ask the small business owners who invoice and get paid through the mail. Ask a company that relies on the mail to issue bills, process orders and receive payments. Ask Canadian publishers and direct marketers whose livelihoods rely on the mail. Ask taxpayers who are waiting for their tax refunds and HST rebates to arrive. Ask citizens in the far north who rely on mail as an essential service of goods, such as prescription eyewear, dental products, drugs, legal documents, and still make payments by mail.

Our citizens cannot afford to be left waiting. They certainly should not be the ones who should bear the brunt of a labour dispute that shows no sign of being resolved through collective bargaining.

As of June 17, the minister received a total of 1,800 letters and email enquiries. Of those, 1,027 requested back-to-work legislation: 692 Canadian citizens; 328 businesses; and 7 charities. The remainder represents 561 employees and 212 citizens expressing concerns.

The Canadian National Institute for the Blind stated:

With 70 per cent of its funding coming from donations, more than half of which arrive through the mail, CNIB is now facing an estimated loss of $250,000 in much-needed funding for this time of the year.

The charity has also experienced $30,000 in unexpected costs associated with communicating its contingency plan to clients, donors and library users.

One stakeholder, a leading provider of integrated mail and document management systems, is requesting a rapid intervention of the government to ensure reliable postal services and supporting the view of Canada Post as an essential service.

Many Canadians are beginning to see the repercussions of a work stoppage and are requesting a government intervention for the resumption of postal services.

It has been nearly 14 years since Canada last had a work stoppage at Canada Post. The numbers speak for themselves. A work stoppage could result in losses to our economy of between $9 million and $31 million per week. The work stoppage at Canada Post is expected to have an immeasurable impact on our economy.

Canada's gross domestic product could shrink by up to 0.21% for every day of work stoppage. That means every day more jobs at risk, more productivity lost, more challenges for businesses and more uncertainty for consumers.

Every other avenue has been tried to help bring a full and lasting resolution to this dispute. Parliament must do the right thing and intervene.

The parties have negotiated for direct collective bargaining from October 2010 to January 2011. When those talks stayed at an impasse, a conciliation officer was appointed. The conciliation period was extended into early May and during that time, the conciliation officer met again with the parties. Throughout the month of May, a mediator from the labour program's Federal Mediation and Conciliation Service met frequently with the parties.

Unfortunately, despite all of these efforts, an agreement between the parties has yet to be reached.

While the best solution may have been the one that the parties reached themselves, we must do what is necessary to protect our recovering economy and safeguard Canadian families, workers and businesses. We must act now to keep the businesses of Canada moving. That is what this proposed legislation would do.

It is my hope that all members of the House will join me in meeting our shared responsibility to Canadians and give this proposed legislation the support it deserves.

Restoring Mail Delivery for Canadians Act

[Lisa Raitt, Conservative, Minister of Labour]

moved for leave to introduce Bill C-6, An Act to provide for the resumption and continuation of postal services.

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