Good afternoon.
I would like to thank John Rafferty and the NDP for introducing this very important bill. I would also like to thank the committee for this opportunity to speak to you today on Bill C-501, a forward-moving bill that will correct a lot of the injustice that affects our members today.
I am Joe Hanlon, a representative of the United Steelworkers Local 2010. Nationally our union, the United Steelworkers, represents about 280,000 members, of whom about 50,000 work in the forest industry. Our local represents approximately 6,000 members in a large number of communities across northern Ontario. The vast majority of our members work in the forest industry, or, should I say, used to work in the forest industry: we have about 4,000 members who are laid off. Our members and their families and communities have been devastated by the recession. We are talking about thousands of people who are unemployed, people with families, who have lived most, if not all, of their lives in these communities.
These are members who believed in the system. They believed that if their operation ever shut down, they would receive termination and severance pay to assist them through difficult times. That is the part of Bill C-501 that I would like to speak to.
Others have spoken on, or will speak on, the importance of pension. Don't get me wrong: that is extremely important also, because people believe that as they grow older and retire, their pension will be there for them in the future. Why not? It was part of their wage package, and we all expect to be paid properly. It's the same as termination and severance pay, which is also part of the agreement employees have with their employer. Employers have to give their employees notice of layoff or pay them in lieu of notice. What is also understood and agreed is that should a temporary layoff extend into a long-term layoff or a closure, the employee will receive severance pay for each year of service.
The reality is that employees don't want termination and severance pay; they want jobs. However, at this time they need to pay their bills and support and clothe and feed their families. How do they do that? They cannot get another job, especially because a vast majority of our members live in one-industry towns. Their EI has run out. They have used up all their life savings and cashed in their RRSPs. They can't sell their house. No one wants to move to a community where there's no employment. Some people have lost their homes. They've lost their automobiles. They have had to stop their children's education. Families have split up. People have turned to drugs or gambling or both. Unfortunately, some have paid the ultimate price and have taken their lives.
A lot of our members have exhausted everything except termination and severance pay, because their employer has not given it to them. Some employers have threatened bankruptcy, while others have gone into bankruptcy. Some employers have worked out arrangements to pay in instalments or to pay a lesser amount. No matter what, a large number of employees are not getting what they have earned or deserve for the years of dedicated service to their employer.
Let me give you some examples. JF Thompson is a woodlands operation that couldn't continue to operate. The company shut down with no notice of termination and no severance pay. When the employees requested payment, the employer threatened bankruptcy. Our members in the operation agreed to a settlement based on 29 cents on the dollar for what they were owed.
We have members with the Buchanan group of companies. They were employed at McKenzie Forest Products, Atikokan Forest Products, Dubrueil Forest Products, Nakina Forest Products and Solid Wood Products and have not received any termination and/or severance pay, even though some of these operations have been closed for over three years. Some members are waiting for the operation to reopen, while others have moved on with their lives. The members who are not returning want their termination and severance pay, and rightfully so. However, the company says it has no money. The unfortunate thing is that these companies will more than likely declare bankruptcy in the near future. Again, employees are left with nothing.
We had employees at Dorion Fiber Tech, Sturgeon Timber, and Atway who requested termination and severance pay, only to be told that the company had no money to pay them. They had enough money to declare bankruptcy, which they did, and our members received nothing for all the years they had devoted to their employer.
We had two members at AbitibiBowater in Thunder Bay apply for severance on the same day. Because one wanted to place his into an RRSP, he needed to get forms filled out at the bank. In April of that year, without warning, AbitibiBowater applied for CCAA, only days following their application for severance. The member who wanted his severance put into RRSPs will receive about 35 cents on the dollar, while the other member, who received his cheque prior to the filing of CCAA, received 100%. Where is the justice?
There are other examples of employees not receiving the money that is owed to them. We are only a small local in the bigger picture; if this is happening in one local in northern Ontario, imagine all the people who are being affected across Canada. We need to ask ourselves how this can happen in our country. How can we let employers walk away from their employees, walk away from their agreements and commitments?
Nevertheless, that is why we are here. We are here to correct the injustice that workers are facing. We are here to ensure that we are doing everything in our power to move workers to the front of the line. Why not? Employees have made many sacrifices in their working careers to help build these companies. Employers have made profits from the hard work and dedication of their workers over the years. Now that we have a downturn in the economy, workers need to be recognized for their sacrifices, not made to suffer more.
That is why I'm here. I'm here on behalf of workers to ask all parties to unite to support and pass this important bill. Bill C-501 will ensure that workers receive what is owed to them, not only termination and severance pay, but also in pensions.
Thank you.