International Trade Committee on March 15th, 2012

[Bev Shipley, Conservative, Lambton—Kent—Middlesex, ON]

Thank you.

I'll be quick, because I think my time is really short.

Mr. Masswohl, I want to follow up. Mr. Easter made some comments that were mostly incorrect, but some were actually good directions.

When you're looking at the tariff reductions of 5%, 10%, and 20%, they are in genetics. We know that countries around the world seek Canadian genetics, whether it's in beef or dairy. I came from the dairy industry.

Then you talked about 20% on, I think you said, prepared beef. Where do you see the growth happening for the greatest benefit to the beef industry in particular?

[John Masswohl]

It was 21% to 28% on processed products. Those would be things like sausages, deli meats, and those sorts of things.

The thing about these markets is that it is a combination of what they'll take. We think there really is a good opportunity for the high-value cuts in the Middle East. And in order for us to send product there, they really have to be willing to pay for it. We know there are some good opportunities, some high-value customers, in those markets. Then again, there are opportunities for a lot of the offal products and a lot of things Canadians and North Americans don't generally like to eat. There are several hundred products in an animal, and a lot of these markets abroad are really going to add a lot of value to those things.

[Bev Shipley, Conservative, Lambton—Kent—Middlesex, ON]

That's the added value. We need to be able to market as much of that animal as we can from the producer. I have one quick—

[The Chair, Conservative, Rob Merrifield]

Your time is up.

[Bev Shipley, Conservative, Lambton—Kent—Middlesex, ON]

Is it over?

[The Chair, Conservative, Rob Merrifield]

Yes, it's actually evaporated.

[Bev Shipley, Conservative, Lambton—Kent—Middlesex, ON]

Thank you.

[The Chair, Conservative, Rob Merrifield]

We'll have to move on to Madame Péclet.

[Ève Péclet, NDP, La Pointe-de-l'Île, QC]

Good morning.

I will continue in the vein of my distinguished colleague's remarks.

My question is for the Nygård International representative.

When you outsource to companies with factories in Jordan, do you carry out follow-up activities or do you leave that up to a third party, such as the Jordanian authorities, the company or the subcontractor itself? Do you conduct any follow-up activities to ensure that the subcontractors are upholding the principles of corporate social responsibility?

[Patricia Chapdelaine]

Yes, of course we do, and I do that in many ways.

First of all, I must personally approve factories, and they must sign our compliance policy. On the ground, I have staff. It doesn't matter which country it is. As already mentioned, in Jordan I have three people stationed there, and I have two other people who go there continuously.

[Ève Péclet, NDP, La Pointe-de-l'Île, QC]

Could you give us an overview of the measures you have taken to prevent situations like the one that took place and my colleague referred to from recurring?

[Patricia Chapdelaine]

I get reports once every six weeks. That is ongoing. We also see the reports, now, that come from the committee associated with Better Work Jordan. I am also constantly in communication with the management of the factory. We check in also with the Ministry of Labour to ensure, for one thing, that IBG is on the golden list.

These are the measures we take. And as I say, we have also spoken to our staff and have said that if they see anything, you know, any type of abuse—although I have never seen it, for sure—improper working conditions, or health and safety issues, they are to let us know right away.

[Ève Péclet, NDP, La Pointe-de-l'Île, QC]

I have with me an article published in the Jordan Times in December 2011. The article talks about an IBG delegation. A number of workers were on strike and were claiming that their employer was violating their rights.

I am not accusing you of anything. I am however telling you that it is clear the measures are perhaps not strict enough. They are not remedying the situation. We are about to sign a free trade agreement with a country where workers are being trafficked and where people are having their passport taken away.

Can you confirm to me that all your subcontractors respect human rights and that workers have the right to unionize?

Can you confirm to me that, if we were to sign that free trade agreement, there would be no similar situations in the future? The article was published on December 21, 2011. Workers were on strike at that time.

[The Chair, Conservative, Rob Merrifield]

It's just an article; it may not be true. Go ahead and answer.

[Patricia Chapdelaine]

I'm sorry, I was not aware of that article. I'd have to defer to both—

[The Chair, Conservative, Rob Merrifield]

Where was the article from?

[Ève Péclet, NDP, La Pointe-de-l'Île, QC]

It was from The Jordan Times in December.

[The Chair, Conservative, Rob Merrifield]

Okay. That's fine.

[Patricia Chapdelaine]

My colleague who is sitting with me has said that was a false report.

[Sharon Clarke, Director, Communications and Public Relations, Nygård International]

It was refuted.

I'm Sharon Clarke, director of communications and public relations, Nygård International.

That is an old article you have by Hani Hazaimeh. He actually refuted it after it came out. There is another article we can provide to you that says the NLC report was false.

[The Chair, Conservative, Rob Merrifield]

Could you supply that report to the committee?

[David I. Hudson]

Yes, NLC did terrible—

[Patricia Chapdelaine]

We also have a letter from NLC to JC Penney saying that what they reported was incorrect.

[The Chair, Conservative, Rob Merrifield]

Go ahead.

[Ève Péclet, NDP, La Pointe-de-l'Île, QC]

Can you assure us that human rights will be respected and you will do everything in your power to prevent situations like this from reoccurring? That's my question—yes or no?