Bill C-29 (Historical)

Port of Montreal Operations Act, 2021

An Act to provide for the resumption and continuation of operations at the Port of Montreal

This enactment provides for the resumption and continuation of operations at the Port of Montreal and imposes mediation as the process for resolving matters remaining in dispute between the parties. It empowers the mediator-arbitrator to impose arbitration as the process for resolving matters that cannot be resolved through mediation. Finally, it sets out the elements that are to be included in the new collective agreement between the parties.

Port of Montreal Operations Act, 2021

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

Madam Speaker, the minister told us that the government is not taking sides in this labour dispute. However, introducing a back-to-work bill when unionized workers have the right to strike is taking sides. That kills the employer's incentive to negotiate in good faith.

That is what we saw on Sunday when the minister irresponsibly announced the bill even before the general strike began.

Why do the Liberals always side with the employer?

[Filomena Tassi, Liberal, Hamilton West—Ancaster—Dundas, ON]

Madam Speaker, again, we are not taking sides in this instance. We have had mediators at that table who have done an incredible job in supporting both parties in an unbiased way, to offer support and to try to bring the parties together to come to a resolution. There have been two and a half years of negotiations.

In this legislation, there are potentially 21 days for mediation. The parties can still sit down and mediate this with the appointment of an arbitrator or a mediator—

[The Assistant Deputy Speaker (Mrs. Alexandra Mendès), Liberal, Alexandra Mendes]

Resuming debate, the hon. member for Kelowna—Lake Country.

[Tracy Gray, Conservative, Kelowna—Lake Country, BC]

Madam Speaker, I will be splitting my time with the member for Calgary Midnapore.

I would like to acknowledge today as the National Day of Mourning, a day we honour the memory of workers who have been killed, injured or suffered illness as a result of workplace incidents.

As I rise today to speak to Bill C-29, I am once again hit with an unwelcome feeling of déjà vu. There have been empty words and empty promises, and now empty railcars and empty trucks are leaving the Port of Montreal. I feel an unsettling realization that we have been here many times before with the current government. The government delays, gets pressed up against the timeline and then things are a rush and a crisis. Once again, our supply chains are at a standstill, and importers, exporters and workers are once again faced with uncertainty.

When activist-led rail blockades brought transportation networks to a standstill early in 2020, the government sat idly by. We heard it took an average of four days to just catch up for every day our transportation networks were down, and the cost to our economy was in the hundreds of millions of dollars. We heard concerns from businesses and workers about getting essential goods across the country, concerns that are especially relevant now, during the pandemic. Farmers cannot wait for seed or for fertilizer.

If the government chose not to take the situation at the Port of Montreal seriously when it first started over two years ago, it should have adjusted course last year when a strike lasting 19 days took place. This strike resulted in $600 million in losses for our exporters and wholesalers, and left workers with a lot of uncertainty. This should have been a wake-up call to the government to take meaningful actions to provide professional assistance to help the parties come to an acceptable agreement.

In March 2021, a German international shipping and container transportation company said in an email to customers that it expects “terminal performance in the port will be severely impacted”. This was based on just the potential risk of a shutdown.

In an article in March 2021, in Automotive News Canada, Brian Kingston, head of the Canadian Vehicle Manufacturers’ Association, is quoted as saying, “The situation in Montreal is deeply concerning.” He further went on to say, “We just came out of a massive economic downturn and having a critical piece of our transportation network shut down will not help the Canadian economy recover”.

On April 5, Pulse Canada sent a letter to the Minister of Labour urging immediate action. In the letter, they note that they had been advocating since February for the government to take “every approach necessary to mediate a negotiated agreement” and that “it was imperative to avoid a labour disruption that would damage [our industry], our international reputation, and the wider Canadian economy.” The letter further outlined how, even then, the industry was experiencing significant damages with customers asking them to avoid the port at all costs. The letter notes that these costs can be as high as $1,600 per container to utilize another port, not to mention costs associated with the logistics of such an endeavour. Avoiding the port means not only disruptions, but less work and potentially permanent job losses.

The Port of Montreal is essential for Montreal, Quebec and Canada.

This port is the second-largest in the country and is responsible for approximately 19,000 direct and indirect jobs. The roughly 40 million tonnes of cargo that passes through every year, which represents billions in economic activity, travels across the entire country, including to my home province of British Columbia and into my community of Kelowna—Lake Country.

What is troubling is that the concerns I mentioned above are not the first time Canada’s trade reliability has been called into recent question. I have heard this from numerous stakeholders, with the uncertainty of jobs and investment on the line, but after the government's track record, it is clear to see why.

Trade, like so many other important things, seems to be continually an afterthought for the current government. It is truly unfortunate, and it does businesses and workers across the country a serious disservice. With one in five jobs in Canada dependent on trade and nearly a third of our GDP relying on our exports, the government needs to do more. However, as we saw in the recent budget, there was little importance placed on trade, instead of working to secure our future.

We see time and again how little importance the Liberal government places on ensuring exports can get to market. We saw this with the rushing of the CUSMA legislation, and the recent example of the Canada-U.K. trade continuity agreement. The U.K. is our fifth-largest trading partner and third-largest export market. Implementing that agreement was critical to businesses and workers across Canada who rely on trade with the United Kingdom.

The government had years to get a new trade agreement signed with the U.K. after the U.K. had voted to leave the European Union, which meant that the terms of the existing CETA agreement would no longer apply. What did the Liberals do? They did not lead. They mismanaged the file, and even left it to the eleventh hour to introduce legislation.

This failure was embarrassing and caused needless and avoidable uncertainty. The Liberals left it to the last week of the last month of the last year to table the legislation. This led to missing the deadline and having to sign a memorandum of understanding. The memorandum was about to expire with no plans by the government to put it on its legislative agenda. Therefore, Conservatives showed leadership and sought unanimous consent, which we received, in order to move the legislation along so that our Canadian businesses and workers were not again left with uncertainty.

Government actions, or inactions, have once again led to uncertainty. The Minister of Labour, who is responsible for employees at the Port of Montreal, made unfortunate comments suggesting the government may bring forth back-to-work legislation should a resolution not be reached, and here we are now. We have heard that these comments took the wind right out of the sails of the negotiating position of the workers in the Port of Montreal.

Instead of making legislative threats, the government should have been actively involved in the negotiations and doing everything possible to secure an agreement and create certainty and stability. We heard from the minister that government representatives attended many meetings. It does not matter how many meetings are attended; what matters is results.

The union representing the workers called the minister’s comments “an affront to all workers in the country.” Marc Ranger, the Quebec director of the Canadian Union of Public Employees, stated, “Fundamental rights are being denied. This is shameful for a government that calls itself a defender of the middle class.”

As much as it pains me to say it, there is a clear pattern here. What is definitely noticeable is that the certainty of business is so important. It is very important for the free flow of goods to be maintained.

We find ourselves in another avoidable situation caused solely by the government's complete and continuous mismanagement of its files. Right now, at a time of so much uncertainty, we know that businesses and workers need predictability. We need to give certainty and predictability at a time when, over a year into this pandemic, there is still so much uncertainty.

While the pandemic is still occurring, businesses are still in jeopardy and are still really hurting across the country. This ultimately leads to layoffs. Farmers cannot wait. Other businesses cannot wait. Workers cannot wait. With one of the worst records on unemployment in the G7, we need to do all we can to keep our current levels of trade, our businesses viable, and workers employed. It is of utmost importance that the free flow of goods is maintained.

Whole provinces are locked down due to this third wave of COVID-19, due to poor decisions and mismanagement of the pandemic over the past year, including on vaccine procurement. Businesses and families are struggling. Costs are going up. Importers and exporters are having to make tough decisions due to uncertainty. Food security is at risk without a dependable and reliable transportation and supply chain system. We have heard that medical supplies are at risk being distributed.

Unlike other countries that are well into recovery, Canada is still full-on dealing with an economic and health crisis. Parliamentarians now have this difficult situation today, having to look at back-to-work legislation because of the government’s failure to facilitate an agreement between the parties.

[Mario Simard, Bloc, Jonquière, QC]

Madam Speaker, I thank my colleague for his speech.

I know that a typical Conservative is perhaps not the type of parliamentarian who is the most open to labour unions. However, I would still like to ask my colleague a question.

During question period, the member for Beloeil—Chambly proposed a solution. Workers are ready to go back to work tomorrow morning and put an end to the dispute, if the government would make it clear to the employer that it is not to make any more changes related to work scheduling. That is a solution that could easily be implemented and that would spare us from having to take the blame for implementing special legislation.

Would my colleague agree to go with such a pragmatic solution?

[Tracy Gray, Conservative, Kelowna—Lake Country, BC]

Madam Speaker, it is important to note that the government was at the table assisting with these negotiations and, as we have heard, after many meetings, in the end, there was no facilitated agreement.

We need to be pro-Canadian economy, and if there is no agreement and the port is not open, we have heard how that is going to affect businesses all across the country. This is the government that, at the table, was not able to come to an agreement and facilitate an agreement.

[Elizabeth May, Green, Saanich—Gulf Islands, BC]

Madam Speaker, I oppose the legislation before us, and I will make that clear.

When I think about the various ways in which this debate tonight is being politicized, I recall what really did affect British Columbia, affected a lot of my constituents and I am sure those in Kelowna—Lake Country as well. It was the failure of the Harper government to anticipate that when the Conservatives got rid of the Canadian Wheat Board we would lose the ability to have wheat supplies and grain that had to move on trains. I am sure the hon. member will remember December 2014 when we had acute shortages of grain, which was because of a decision made by the previous government.

Our supply chains in this country are really important, but it is not all one-sided. Always, I think, collective agreements need to take place. We need to allow both sides to negotiate and not force workers back to work.

[Tracy Gray, Conservative, Kelowna—Lake Country, BC]

Madam Speaker, here is the situation that we are in right now. We know that the supply chains are really stretched. We have gone through a difficult time. It all started a year ago, as I mentioned, when we did have rail lines that were down. We have gone through this pandemic. We are hearing that there are container shortages, and this just exacerbates the problem.

Because we are so stressed right now, we do not really have the luxury to be waiting. There are also timelines here where we have farmers who need fertilizer and seed, and they cannot wait. If they do not plant within a certain time period, they do not have a crop. We have heard that there are medical supplies that have to get across the country as well. So, we do not have the time to—

[The Assistant Deputy Speaker (Mrs. Alexandra Mendès), Liberal, Alexandra Mendes]

One last question, the hon. member for Langley—Aldergrove.

[Tako Van Popta, Conservative, Langley—Aldergrove, BC]

Madam Speaker, businesses in my riding of Langley—Aldergrove, almost as far away as we can get from the Port of Montreal, are being negatively impacted by labour disruptions at the Port of Montreal.

I was talking to Mr. Van Noort of Van Noort Bulb Co. Ltd. the other day. He imports bulbs from the Netherlands for sale across North America. This is, of course, a very seasonal product. His business has already been negatively impacted by pandemic-related supply chain challenges, and the strike is the last thing they need.

I wonder if the member has a comment about how important it is to have good labour relations in this country.

[Tracy Gray, Conservative, Kelowna—Lake Country, BC]

Madam Speaker, absolutely, this just shows how important our supply chains are, and we cannot wait.

I am also speaking to people from companies in my riding, such as irrigation companies that are waiting to get missing parts from Europe. This is across the country, and we do not have the time. There are timelines when businesses need product, and if they do not get it, then workers are going to be laid off. So—

[The Assistant Deputy Speaker (Mrs. Alexandra Mendès), Liberal, Alexandra Mendes]

Resuming debate, the hon. member for Calgary Midnapore.

[Stephanie Kusie, Conservative, Calgary Midnapore, AB]

Madam Speaker, the member for Kelowna—Lake Country is also our shadow minister for export promotion and international trade; I will probably step on her toes a bit, talking about supply chain. She was also the 2006 RBC Woman Entrepreneur of the Year and, like me, she is an alumni of the University of Calgary, so to her I say:

[Member spoke in Gaelic]

[English]

“I will lift up my eyes” is a translation from Gaelic.

I will also be stepping on the toes of our shadow minister for infrastructure, the member for Regina—Qu'Appelle.

Unfortunately, this is a situation today where the government could not fail. The stakes were just too high for the government to fail. We have talked about it a lot today, but I will repeat some of the core facts again.

The Port of Montreal is the second most important port in Canada. The previous 19-day work stoppage last summer cost wholesalers over $600 million in sales over a two-month period. It took three full months to clear the backlog created by the stoppage. I am also sure we have heard previously today that every day the port is shut down, the economy loses $10 million to $20 million. The words of my leader earlier this week are true: Because of the Prime Minister's failure to get a deal done, jobs and contracts are at risk and millions of dollars will be lost.

I am going to approach this from the transport perspective today, as I am the shadow minister for transport. I am going to look at three things in particular: imports, which affect the cost of living; exports, which affect our economy; and then processes and infrastructure, which of course also affect our economy.

When we are talking about imports and the cost of living, and Canadians are seeing the cost of living increase, RBC expects that groceries alone will go up 2% to 2.5% in 2021. We can look at a couple of things. The first thing is the change in demand that we have seen over the last year. Canadians have been at home throughout the pandemic. They are unable to travel. They are unable to go to the theatre or to their favourite restaurants, as a result of several lockdowns, and so we are seeing a much greater demand for consumer goods. Of course, this is putting additional pressure on our supply chain.

The second thing, and this has been brought up previously, is the container shortage which is having significant impact on supply of goods. For example, India, the world's second-largest sugar producer, exported only 70,000 tonnes in January, less than a fifth of the volume shipped a year earlier. In addition, Vietnam, the largest producer of the Robusta coffee beans used to make instant drinks and espresso, is also struggling to export. Shipments dropped more than 20% in November and December, so we are seeing very big changes in supply there.

As well, we are hearing that:

The strike at the port isn’t necessarily going to shut down (auto) production, it’s just going to make the supply chain even more inefficient and increase costs.... Canada, as a manufacturing jurisdiction, we have to constantly compete with the United States and Mexico. And a critical component of being a competitive manufacturing jurisdiction is having a reliable trade infrastructure.

That was in the Financial Post.

We have seen action from the U.S. government in regard to the container shortage, but not here. Perhaps that is the reason why the Freight Management Association of Canada sent a letter to the Minister of Transport, using the example that, “pulse growers and lumber exporters are 'losing international sales' while shipping companies are sending empty containers back to Asia”.

One last example I will give of the strain on supply is right here in my hometown of Calgary. Bowcycle cannot import enough bicycles. Have members tried to buy a bicycle last spring or this spring? I have, for my son. They are almost impossible to come by, but these are the problems we are seeing as a result of the government's inability to handle supply chains and to handle our port capacity. That is why it was so critical that this deal get done.

Port backups are described as the worst ever, and delivery times are the longest in 20 years of data collection. In addition, a federal maritime commissioner described the west coast backups as the worst that we have ever seen.

Finally, I have the following quote:

In December, spot freight rates were 264% higher for the Asia to North Europe route, compared with a year ago, according to [a] risk intelligence solutions manager at [a] supply chain risk firm.... For the route from Asia to the West Coast of the U.S., rates are up 145% year over [last] year.

Again, we are seeing a decrease in supply, resulting in the cost of living being driven up as a result of the government's inability to handle its supply chains. Let us talk about the impacts, which I know that my colleague who spoke previously heard about, in terms of stakeholder quotes, as well as in conversations with stakeholders.

Karen Proud, CEO of Fertilizer Canada stated:

Hundreds of thousands of tonnes of fertilizer enter Canada through the Port of Montreal during the spring seeding season. These fertilizer products are destined for farms across [Ontario and Quebec and the Atlantic provinces] … and ensure that farmers are able to produce the crops that keep our grocery aisles full.

These products are now in jeopardy as the result of the strike at the Port of Montreal, so we are seeing the impact of the government's inability to manage the port's supply chains and, unfortunately, this dispute is having on our exporters.

Brad Chandler, CEO of Hensall Co-op stated that, “Hensall Co-op is Canada's largest exporter of edible dry beans and non-gmo soybeans.... We have established relationships with customers in over 40 countries.” These relationships are currently at extreme risk. That is what businesses need right now. They need certainty. They need stability through supply chains. The government is not providing the means for these exporters to have it and it is putting the economy at risk.

Greg Cherewyk, President of Pulse Canada said that, “it was imperative to avoid a labour disruption that would damage the Canadian pulse and special crops industry, our international reputation, and the wider economy.” That is another example of the failure of the government to manage supply chains and this dispute.

Finally, from Ron Lemaire, President of the Canadian Produce Marketing Association, “There is also significant concern that a labour stoppage at the Port of Montreal would aggravate backlogs in other shipping modes, including rail as shipments are forced to be diverted, particularly as Canada continues to grapple with the economic impacts of the COVID-19 pandemic. It is of utmost importance that the Government of Canada use every tool at its disposal to avoid job losses, increased food insecurity and higher food prices, all which could result from a strike.”

Let us talk then for a couple of minutes about processes and infrastructure of our supply chains which touch closer to the transport file.

KPMG recently made some recommendations in regards to how businesses can adapt to these supply chain challenges. What are businesses doing? They are examining micro supply chains. They are starting to reduce risks, rather than costs, which is a scary thought to consider that businesses are doing this. The KPMG CEO outlook survey indicated that around two-thirds of CEOs believe that their supply chains are in need of a complete redesign. The government should take note from these CEOs.

Many stakeholders believe that the government does not have a handle on its supply chains. Were I the minister of transport, my first task would be to map out all modes of these supply chains, so that we would understand completely where the faults lie. In addition, stakeholders believe that the government does not use data and metrics to the greatest benefit possible, in an effort to amplify and maximize our supply chains.

Finally I will go to infrastructure. In conversations with the Port of Vancouver, unfortunately, I must say that the expansion of the Port of Vancouver, which is so desperately needed, is currently under review with the current environmental minister. Increasing capacity is crucial. Many members of the Port of Vancouver board believe that they will run out of capacity by the mid-2020s. Our infrastructure capacity gap is growing and other countries believe that our ports do not have the capacity for the current demand of goods.

In closing, I will say that the government and the Prime Minister's actions have been too little, too late. I have seen it with the aviation sector. I have seen it with the supply chain capacity and, unfortunately, we have seen it here with the Port of Montreal dispute resolution.

[Louise Chabot, Bloc, Thérèse-De Blainville, QC]

Madam Speaker, my question is the following.

My colleague spoke at length about the impact on the economy and supply chains, yet workers are part of this chain.

In her opinion, what is the impact of this bill on the workers?

[Stephanie Kusie, Conservative, Calgary Midnapore, AB]

Madam Speaker, I thank my colleague for her question. She raises a good point.

There are no winners. The workers lose, the union loses, the businesses lose, and, ultimately, Canadians also lose.

Unfortunately, there are no winners.