Mr. Speaker, I am grateful to you and to the Minister of Labour for giving me the opportunity to speak in support of Bill C-35.
This is an act to amend the Canada Labour Code to automatically align the federal minimum wage to the levels applied in the provinces and territories.
When I first realized that the federal minimum wage had not been raised in 10 years, I was totally amazed. A lot of things have changed in our country since 1986, both economically and socially.
All these years, the four dollar an hour federal minimum wage has not increased, and in principle is still at the same level as it was in 1986.
In the meantime, every single province and territory has upgraded its minimum wage and in some cases more than once. This means that all workers under federal jurisdiction who have been paid at the $4 an hour rate will immediately receive an increase.
We know that wage increases are much more important for those who are at the bottom of the economic ladder. For them, as for most people, every penny counts. We each have to stretch them to the maximum to make ends meet.
As former minister of labour for Prince Edward Island, I can assure members that the government has made the right choice by aligning the federal minimum wage to the rate applied in each province and territory.
The provinces clearly have the lead on this issue, as they govern 98 per cent of all minimum wage earners in Canada. It is a fact that industries under federal jurisdiction such as transportation, telecommunications, banks and some crown corporations have very few workers at minimum wage.
Indeed, recent estimates show that less than one-tenth of one per cent of the Canadian labour force falls into this category. The federal government could have followed the traditional approach and introduced a flat increase to set the minimum wage in the middle of the range of provincial and territorial rates and the government could have taken the path as it has done in the past.
Indeed, the government could have just done what past governments have done. But then, by the time the new rate would have been in effect, a number of provinces could have increased their own rates. A number of the provinces, including my own province of Prince Edward Island, have raised their minimum wage rates since this bill was introduced in the House last May.
The status quo was not a viable option either because the federal minimum wage was falling far out of line with overall social and economic conditions. This is very important because our government is committed to helping those who are most in need. We mean this.
This is why the Minister of Labour has seriously analysed the situation and has chosen a method setting the federal minimum wage that fulfils three important objectives: to ensure its continuing relevancy; to promote fairness by ensuring that workers, whether subject to federal or provincial labour laws, are entitled to the same minimum wage within the same labour market; to provide more incentive for people to seek work while balancing and limiting the negative impact of job creation.
We recognize that the economic realities and the labour market conditions are very often different from one region to the other. We also know that these factors are clearly reflected in the way different provinces set their minimum wage.
Adopting provincial territorial minimum wage rates maintains this balance across regions without punishing or rewarding anyone. Let us look at the figures.
Today the provincial and territorial minimum wage rates vary from $5 an hour in Newfoundland and Alberta to $7 an hour in British Columbia. This is a huge difference. But then, who would argue that the cost of living is not different in these regions of the country? This is a perfect example of why aligning the federal rate to the provincial rate is the best way to go.
I would like to address the issue of the efficiency of this bill.
I believe all members of this House want to make legislative and parliamentary procedures still more flexible and efficient. Each week we meet people in our riding offices with complaints about the current system. They feel it is too slow and a source of confusion, with too much duplication and overlap. I know this, because far too many such cases are brought to my attention.
Here is an opportunity for all of us to do something concrete and positive to streamline government activities. From now on there will be no need to amend the federal minimum wage regulations in order to adjust the federal minimum wage to the reality. It will be automatically updated on a regular basis in line with territorial and provincial increases.
I was also happy to hear the minister note that the new rates will apply equally to adults and to young workers. I must admit that I have great difficulty in accepting that a person should be paid less just because of his or her age. I also believe that such a practice may likely be discriminatory under the Canadian Charter of Rights and Freedoms. I therefore strongly support section 178(2) of the bill which states that where provinces have set rates according to occupation, age or work experience the general rate will apply. If there are different rates based on age, the highest minimum wage rate will apply to those in federally regulated industries.
I would also like to say a few words about the process the government followed with this bill. We had serious consultations will all of the stakeholders before choosing this formula. Every-
body has had the chance to express their view before the final decision was made, and the general reaction is very positive.
Sometimes employers become very apprehensive when they hear talk about raising the minimum wage. They are often afraid that these costs will hurt their competitiveness. Not in this case. The federally regulated employers, transportation, communication as well as the Canadian Bankers' Association have indicated they do not oppose the government's initiative. Indeed, business leaders recognize that it makes a lot of practical sense to harmonize federal and provincial rates since federal employers have done so in practice for some time.
Labour organizations welcome the move as a small increase long overdue. They would like to see a bigger raise in the minimum wage and of course so would everyone. But in this field we all have to move according to a pay set by the economic strengths and weaknesses of a specific labour market. In this specific case we have not met any significant opposition for the simple reason that Bill C-35 brings into force what has by and large already been practised across the country.
As the Minister of Labour was saying earlier, we are bringing the legislation in line with reality. There is also good support for this initiative because everyone recognizes that by harmonizing the federal rate with the provincial and territorial ones we will end the stagnation we have seen over the last 10 years.
Of course, some will say that the federal government ought not to transfer such responsibilities to the provinces and territories, because it would run the risk of ending up weaker as a result. We are not, however, giving up our authority, for we are retaining the legislative power to establish a different rate, if this decision were taken.
Should a province or a territory decide to bring down its minimum wage or set it to a level we estimate would be too low, the federal rate will stay at the higher level. We are not passing our responsibilities to the next jurisdiction.
What we are doing is working hand in hand with the provinces and territories to find the best and most efficient way to keep the federal minimum wage in line with reality in each and every province and territory of our country.
This initiative has been taken with the full knowledge and co-operation of all provincial and territorial governments which know that this bill will improve the system and better reflect the realities of our current marketplace. The bill has gone through the scrutiny of the Standing Committee on Human Resources Development and is coming back to us without a single amendment.
This shows clearly that the formula is the right one and that the consultation process was absolutely appropriate to develop a large and a strong consensus.
Given the Government's creative strategy with respect to the federal minimum wage, I feel that the future looks most encouraging.
In his speech at second reading of this bill the Minister of Labour told us about his plan to overhaul the Canada Labour Code in order to make it a more useful tool to move and adjust to the new realities of the workplace.
I am very confident that the minister will be successful. He will succeed because he is dedicated to dialogue and consultation. He will succeed because he is facing the problems head on in search of a practical, efficient and permanent solution. Bill C-35 is an excellent example.
Amending the Canada Labour Code is an important task because it sets the basic rules for the workplace for thousands of Canadians.
Today we are taking a small step to improve the working conditions for some Canadian workers who are under the jurisdiction of the Parliament of Canada. They are the ones at the bottom of the economic ladder. They work hard for their pay. They are proud workers. They participate in society and they contribute to society.
That is why I support Bill C-35. I am confident that every member of the House of Commons will also show their support.