Mr. Speaker, I rise today to introduce the West Coast Ports Operations Act. It is legislation aimed at bringing about the resumption of longshore operations in the west coast ports. I should say in introducing this bill that I feel a sense of real regret and some frustration in
having to once again intervene in the collective bargaining process.
I am certain that hon. members will comprehend why the decision is necessary once I lay out in very brief fashion the details of the dispute and the extensive efforts that went into trying to resolve it.
The dispute which gave rise to the introduction of this legislation involves the British Columbia Maritime Employers Association which represents ship owners, stevedoring firms and agents, the longshore industry on the west coast of Canada, and the International Longshoremen's and Warehousemen's Union, involving some 2,300 full time workers and about 1,300 casual workers. They were covered by a collective agreement which expired December 31, 1992.
During that period we offered very extensive conciliation services to the parties and progress was made in a number of areas, but there were still some outstanding areas, particularly those relating to wage differentials and some degree of security.
The parties were advised of a decision I took on January 19 not to provide further conciliation procedure and to let the parties resume honest bargaining between themselves. I did so because the issues were not complex in nature. The two sides should have been able to achieve a complete resolution of the contract dispute. However in direct negotiations that were held on January 22 and January 26 the parties failed to resolve their differences.
Members of the longshoremen's union commenced legal strike activity at the port of Chemainus on Vancouver Island on January 27. The following day the employer indicated it would not request the union to supply labour at any of the west coast ports as of 8 a.m. on January 29. In response the union initiated strike action at other B.C. ports during the afternoon of January 28. On January 29 all longshoring operations ceased.
Indications from the parties at the time indicated that because there was not much dividing them, there could be an early resolution of the dispute. We believe there was a desire to settle this on an amicable basis.
I am fully aware, and I think all members are, of the enormous economic importance the Vancouver west coast ports carry. It is the major outlet of foreign export markets for this country. Its cessation as an active outlet has already brought a number of major impacts to the Canadian economy, in particular the grain economy of western Canada.
Some 25 grain ships are in west coast ports awaiting loading and a further 38 ships are due to arrive over the next two weeks. The major escalation in requirements to have our exports moved was one of the reasons for bringing in this legislation.
The scheduled loadings represent approximately 2.1 million tonnes of grain or close to $500 million in exports. In addition at least five container ships containing 5,000 containers have been diverted from the port of Vancouver. Other commodities such as lumber, potash, sugar and minerals have also been affected by the work stoppage and the diversion of other commodities to other ports.
The cessation of longshoring activity has had a chain reaction among many other workers. More than 170 grain handlers have been laid off, 200 rail employees and some 190 federal grain inspectors have been notified of lay-off status. Firms such as B.C. Sugar Refinery and Cominco have indicated they will be facing reduced operations or lay-offs in the very near future.
Given the impact which these early hours or days of the strike affected, we immediately appointed a mediator on February 1 to provide the parties with a further opportunity to deliver on their commitment to resolve the dispute. Mediation talks began on February 2 and carried on till the following morning. Talks resumed on the afternoon of February 3. Again, despite these extensive efforts the parties remained in a dispute on the issue of wages and the talks adjourned.
As one who strongly believes in collective bargaining, including the rights and responsibilities it places on the parties, I was reluctant to allow the two parties to abdicate their responsibilities to the Canadian public.
On February 4 I requested again that the parties return to the negotiating table with the assistance of the mediator, as well as the director general of the Federal Mediation and Conciliation Service.
I have told the parties involved how disappointed I was that they had been unable to reach an agreement to date. I also indicated that I expected that they do their utmost to settle their differences without further delay so that grains and other Canadian goods might again be shipped abroad.
Mediation talks resumed in Vancouver on the afternoon of February 6. Unfortunately, even though we had applied both mediation and persuasive techniques, I must again report that the British Columbia Maritime Employers Association and the International Longshoremen's and Warehousemen's Union failed to arrive at a settlement of their contract dispute.
As a result the legislation brought in today calls for immediate resumption of longshoring operations on Canada's west coast on the coming into force of the act, which I hope will be soon.
It provides for a mechanism of settlement of the remaining issues in dispute through the process of final offer selection. The
passage of the bill by hon. members will see import and export cargo moving to west coast ports and the contract dispute between the two parties referred to an arbitrator for the purposes of selecting the final offer of one of the parties on the items remaining in the dispute.
I have heard some members say we should begin to take action immediately to look at declaring grain handling and other aspects of our west coast port economy to be essential services. I resist these measures. I still believe strongly that the collective bargaining process provides the best protection of rights and obligations for both sides to end a dispute.
We have seen in this particular game that both sides played a very dangerous game of poker with very high stakes, putting in real risk not just their own livelihood but also the economic health of Canada.
The reputation of Canada as a reliable shipping partner has been put in some jeopardy and ongoing efforts by the port of Vancouver to attract new shipping lines in the face of stiff competition from U.S. ports has also been put at risk.
I would say, however, it is appropriate that we begin to look in a more broad and open way at some of the questions of industrial relations in Canada at the present time. It is important to recognize that as we try to re-gear our economy and come to grips with a number of new economic and competitive situations, the vital issue of labour relations is part of that examination. As I indicated in a speech to the House a week or so ago we have already taken actions in conjunction with the Canadian Labour Congress and others to set up a special group to look at the issue of work and its distribution.
We should begin to take a look, perhaps through House committees, at other aspects of our labour relations, to bring them into line with present day realities, especially when we look at many of the challenges facing the economy to ensure that we may provide better ways for parties in disputes to come together.
The parties involved in the west coast dispute failed to recognize the benefits of the various approaches that were offered to them and consequently have left the government with no recourse but to step in and bring about a resumption of longshoring activities. While the process of arbitration is not a new concept in resolving contract disputes, the concept of final offer selection has not previously been utilized in conjunction with federal legislation to settle strikes.
The bill before hon. members today provides the parties with seven days from the coming into force of the act to provide the minister with the name of a person who is mutually acceptable to each side to serve as an arbitrator for the final offer selection process. Failing agreements by the parties the bill provides for the minister to appoint a person who he or she considers to be an appropriate arbitrator.
The proposed legislation provides for the arbitrator, within time limits which he or she establishes, to receive from the parties a list of those issues agreed upon, a list of those matters remaining in dispute, and the final offer in respect of those issues in dispute. The list of issues agreed on and the final offer on the remaining issues are to be submitted in contractual language.
The arbitrator within 90 days of being appointed shall determine the matters on which the employers association and the union were in agreement, determine the matters which were in dispute and select a final offer of one of the parties on all of the issues in dispute. The arbitrator is required to issue an award to the parties in the form of a new collective agreement which will be binding on the parties until December 31, 1995.
The legislation provides enforcement procedures for any instance of non-compliance with the provisions contained therein. All the costs incurred by the crown relating to the appointment of the arbitrator and the carrying out his or her duties is recoverable on an equal basis from both parties.
Members may ask, why a final offer selection in this particular case? For the benefit of those members who are not familiar with the bargaining relationship, I would point out that these two parties, the BCMEA and the ILWU are no strangers to the introduction of legislation to terminate work stoppages and provide for the resolution of contract disputes. Although the last two rounds of bargaining have resulted in settlements without work stoppages, the parties have exhibited a sad record of labour relations in the past and have been subject to special legislation in Parliament on four previous occasions, 1972, 1975, 1982 and 1986.
In addition to relying on government to relieve them of their collective responsibility to settle their differences, the parties have become far too comfortable with the standard third party arbitration features of past legislation for the resolution of remaining issues in dispute.
The provision of final offer selection procedures in this legislation puts the onus back on the parties and once again requires them to make clear, economic, rational decisions on behalf of their members, their companies and the public interest at large. It does not take away the responsibility of coming to decisions themselves which so often in the past they have declined to do. They will have to make judgments about what they think is a proper settlement and what would be a proper accommodation.
To do otherwise in my opinion would curtail the responsibility and onus of each of the parties in this dispute. It would also provide a message to other parties who are now beginning to engage in collective bargaining or who have already reached strike deadlines that this government wants to have both parties
in any dispute, in any port, in any transportation system or anything under federal jurisdiction, to rely on their own best efforts to resolve their differences and come to some conclusion. We will not provide a constant crutch for them to find an easy way out of their responsibilities which under our labour relations laws they have been expected to assume.
To summarize, the BCMEA and the ILWU have shown an inability to resolve the obstacles standing in the way of settlement and the resumption of longshoring operations. The legislation will restore port operations on the west coast, get the ships and export and import cargoes moving and at the same time allow the two sides to come back and assume responsibility and arrive at a resolution.
As I indicated at the outset of my remarks, the introduction of legislation of this kind is not a pleasant task for a minister responsible for labour matters in this government. However, as the minister I have a duty to intervene when the parties fail to make the system work and in so doing inflict considerable harm on those not directly involved in the dispute.
There had been reason to hope that labour and management at the port of Vancouver had moved away from the dismal patterns of the 1970s and the first half of the 1980s when Parliament was forced to provide for resolution of their disputes on a continual basis. The negotiation of settlements in the last two rounds gave some reason to believe that the pattern had changed and that the parties were entering a new era of constructive labour relations. Sadly once again it shows that old habits die hard. Therefore, we hope the legislation will provide a strong reminder, a wake up call if you like, that we want a new regime and a new set of labour relations in this country.
My wish, and one which I am sure is shared by members of the House, is that the current difficulties do not represent a reversion to previous form. The parties will endeavour to find better ways of resolving their differences. They owe it to themselves, the competitive future of the west coast ports, and to the wider community of the country that relies on this vital gateway for world commerce.
In sending forth this legislation I want to express my appreciation to members on both sides who have given their unanimous consent that this legislation can proceed with dispatch and with the kind of urgency that many people in the economy would respect.
I recognize that there will be questions and we will certainly be prepared to entertain them once we get into committee of the whole. I would only add to my appreciation my request that members do consider strongly that once they have had the opportunity to express themselves in second reading that we move on to consideration in committee of the whole and hopefully toward third reading.
I understand that our colleagues in the other place are quite prepared to deal with the legislation this evening so it can go into effect and we can then take the final step. I do so with the strong invitation and willingness to sit down with members opposite to talk about how we might at a future date, not too far in the future but reasonably so, come to grips with how we could have a broader examination of labour relations and use their wisdom and judgment of the past on how we might proceed with a different kind of regime and proposals and policies that might help avoid situations that we now face with this legislation.
With that, I urge all hon. members to provide for prompt passage of this legislation to allow for the immediate resumption of activities in the ports.