Thanks, everybody, for having us here. We really appreciate the opportunity to present on Bill C-5.
I would like to give apologies, because our presentation is only now at our translation department. We will send it electronically so that folks can have it, although I did bring the English version for your translation department.
Today, as already mentioned, I am here representing Unifor, Canada's largest energy union. My remarks, I would add, are supported by both the Newfoundland and Labrador and Nova Scotia federations of labour, which were both active in their provinces with respect to consultations over the last decade dealing with an offshore oil and gas safety regime.
Over 20,000 of Unifor's more than 300,000 members work in the energy sector across Canada, including over 700 workers in Newfoundland and Labrador's offshore oil industry on both the Hibernia and Terra Nova platforms.
It is an industry, as you in this room will know, that has known its share of tragedy over the years: the sinking of the Ocean Ranger drill rig in February 1982, and the perishing of 84 workers; and in March 2009, the crash of Cougar flight 491, with the loss of 17 workers.
The joint federal-provincial commission of inquiry report into the Ocean Ranger disaster noted that “the shock wave created by the loss was felt particularly throughout” our province. It also noted, “In that tightly-knit maritime community there were few who did not discover a link, direct or indirect, to one of those lost in the tragedy.”
Similar words and sentiments were repeated following the crash of flight 491. Perhaps this is why workplace safety in the Newfoundland and Labrador offshore is such a matter of public concern as well as worker concern.
Unifor is very pleased that we finally have, with the federal enactment of this bill, real safety laws for our offshore that can be enforced rather than the guidelines that were in place for the last two decades. A safety regime tailored to the unique challenges posed by working in the offshore is a positive step, but there is still substantial room, in our opinion, for improvement with respect to building a responsive, proactive, and preventative occupational health and safety culture in the Newfoundland and Labrador offshore oil industry.
First and foremost, it's quite unfortunate that the legislation does not address what we believe is still critically needed in our offshore, an independent, powerful, stand-alone authority in charge of safety and the environment, as was recommended by Commissioner Robert Wells, who I believe you may have heard from last week as a witness.
In this regard, Canada is still far behind industrialized oil economies such as Norway, the U.K., and Australia. Even the United States has made a move to separate safety and environmental enforcement from the management of the offshore oil and gas industry with the creation of the Bureau of Safety and Environmental Enforcement.
The U.K. moved in this direction after the Piper Alpha disaster and subsequent public inquiry by Judge Cullen. An explosion and fire on the U.K. platform in 1988 killed 167 men. It is still considered the world's worst offshore oil disaster. It raised the issue of competing or conflicting regulatory mandates and what we today call regulatory capture.
The inquiry recommended that the responsibility for enforcing safety should be removed from the department of energy and placed with the health and safety executive, because having both production and safety overseen by the same agency was viewed as a conflict of interest. This has now become the standard in most oil-producing countries or industrialized ones.
In 2005, Australia, also heeding the advice of Justice Cullen, created the National Offshore Petroleum Safety Authority, an independent offshore safety agency. In 2012 they added environment to its responsibilities.
In June of this year, the head of the Australian safety and environmental agency, Jane Cutler, noted that the Piper Alpha disaster and inquiry and recommendations by Lord Cullen have had a huge impact on safety regulation and enforcement in her country.
She noted, “An entrenched industry and regulatory culture is very difficult to change even when faced by clear evidence of the need to improve the human and organizational aspects of their safety programs. There is resistance to change even when there is a clear opportunity to refocus regulatory programs to emphasize the role of human, organizational and management influences on offshore safety.”
She said that as we move forward we must ensure that “safety and environmental management are treated with the same degree of seriousness as profit and loss”.
Norway is perhaps the world leader with respect to offshore safety and the environment and in its involvement of all stakeholders in developing and implementing a world-class safety culture for the offshore oil industry. In 2004 it created the Petroleum Safety Authority. In both phase one and phase two of his inquiry report, Commissioner Wells was very clear about the need for such an independent safety authority. He said, “Vigorous oversight and prompt action can avert accidents and prevent injury and loss of life.”
Commissioner Wells was also very clear about the importance of communications and engagement with workers and the public with respect to safety in the offshore oil industry. It's been three years since the release of his report and still the full spirit and intent of his recommendations have not been implemented.
I can share some examples with you about this, but I don't think my seven minutes are going to allow for time, so if someone wants to use their question in that regard, I can certainly fill in.
There are two examples I would raise with respect to that point.
First is the July 2011 near crash, the severity of which was not reported to workers or to the people of Newfoundland and Labrador by the regulator or the operators. At that time the helicopter carrying crew offshore came within 38 feet of crashing in the ocean. It had dropped 152 metres in 32 seconds. Workers and the public only found out about the severity of this incident just this fall, two years after it occurred, and only because of the investigation by the Transportation Safety Board. It is also thought that this incident may have had a different result had the near crash occurred at night. You're probably aware that we still do not have night flying in the Newfoundland and Labrador offshore. This is also an issue that I could speak to in any questions you might have.
Recommendation 12 of the Wells inquiry dealt with the issue of night flying, something that has been banned since February 2012 in the offshore of Newfoundland and Labrador and Canada. He did not recommend a return to night flights, but rather recommended that criteria be worked out for cases when night flying might be imperative or during an emergency. This was not exactly the direction that was given to the offshore helicopter implementation committee at the time when Commissioner Wells filed his report. Instead, quite a large caveat was allowed around recommendation 12.
Unifor believes that an independent safety and environmental authority would respond to such cases in a different and more proactive role and fashion. In our opinion, an independent, proactive, and vigilant safety and environmental authority would begin to restore the faith of workers in the role of a regulator in protecting and acting to improve safety in the offshore oil industry. It would avoid the very real danger of regulatory capture.
There are two other points I would like to raise.
The first deals with the issue of right to refuse, which is in proposed section 205.05 in clause 45 of Bill C-5. The language in Bill C-5 is very important and quite strong. We advocated improving this given the dangers in the offshore, but we do raise a matter of concern. That is, in Bill C-4, which I know your committee does not deal with, there have been changes made to the federal labour code with respect to the right to refuse. We are quite concerned that this could impact on this legislation. We would encourage you to keep the language that is currently in this bill, because it is a lot stronger than what we've seen in Bill C-4. Hopefully, you will not make amendments to that part of the bill.
My final point deals with proposed section 205.118, which is the establishment of an advisory council for the offshore oil and gas industry. It refers to a stakeholder advisory council.
We would strongly urge that both the federal and provincial governments ensure that the union representing workers offshore be invited to recommend their own representatives to this committee. This will ensure accountability.
We would also suggest that these worker representatives report back to the workplace safety committees on the council's initiatives and activities. These and other matters do not necessarily require a legislative amendment, but could be achieved in the mandate of the advisory council.
It has been our experience that such a body could provide a proactive approach to safety oversight in the offshore, similar to the tripartite structures in other oil jurisdictions, such as Norway. The Norwegian Petroleum Safety Authority notes that collaboration between employers, unions, governments, and workers are important cornerstones in efforts to establish and develop health and safety in their industry: “From an ethical perspective, it is crucial that people exposed to risk participate in decision-making processes which affect such exposure.”
How workers are currently engaged in the offshore needs to change. While we have seen some small steps in this regard, with the new management at our regulator, it is essential that structures with clearly defined roles and responsibilities be put in place to ensure an ongoing, proactive safety dialogue.
In conclusion, we are pleased that we finally have this safety regime for workers of the offshore oil industry, but we do believe that a stand-alone, powerful, and independent safety and environmental authority is not only necessary but also essential in advancing safety in the Newfoundland and Labrador offshore oil and gas industry.
Thank you.