Mr. Speaker, it has been more than 20 years since the Canada Labour Code was amended. Over that period, the Canadian labour force changed dramatically thanks to the rapid growth of technology.
For the most part, the code has served us well. Only a few changes are needed to improve the operations of the Canada Labour Relations Board and to ensure that strikes or lockouts do not negatively impact on the health, safety and economic well-being of Canadians.
It has been evident from the legislation presented by this government that there is a tendency to go overboard, gun registration being a case in point.
In the case of Bill C-66, the government is intruding on the rights of workers, employers and the Canadian public far more than is necessary. In its attempt to be all things to all people, this government has foisted a flawed bill on the Minister of Labour.
Even though the Canada Labour Code governs the activities of only 700,000 workers, federally regulated industries are often the lifeline for Canadian manufacturers, producers and processors. They are primarily service oriented, involved in free movement of goods, services, capital and people across Canada. Because of the unique nature of the federal system, alternative sources are not often available.
The goal of any legislation and regulation should be to create an environment which encourages economic growth.
The government should seize the opportunity to fulfil one of its red book promises, that being the one called jobs, jobs, jobs, by making sure that the Canada Labour Code allows businesses and their employees to operate on a level playing field.
We know that taxes kill jobs. The government infrastructure programs and other make work projects do not create permanent jobs. Vague labour legislation and regulations that are made on a case by case basis will not create jobs either.
With the unemployment rate at 10 per cent, 1.4 million people unemployed and more than 1 in 4 Canadians worried about losing their jobs, one would think the government would do its utmost to ensure a stable environment for conducting business.
Last week the Minister for International Trade released a study showing that after-tax costs of setting up a business in Canada average 6.7 per cent less than in the United States. This is good news for Canadians and could be a catalyst for job creation for businesses looking for a place to expand and invest.
The government should be helping by offering a secure and dependable infrastructure that would allow them to get their products to market and receive their raw materials unimpeded. Instead, Bill C-66 would only muddy the waters and become more of a deterrent than a booster of economic growth and job creation.
It is in the interest of all Canadians that we have reliable access to essential services, to keep the employment within our borders and to establish and maintain a reputation worldwide as reliable exporters of goods.
Stable labour relations will promote investment and reinvestment. Bill C-66 does not clarify what constitutes an essential service, nor does it spell out what constitutes undermining a union when replacement workers are used in a strike or a lockout. This is not fair to workers, employers or third parties who often have the most to lose in labour disputes that occur in federally regulated industries.
Scores of witnesses appearing before the industrial inquiry commission on industrial relations at west coast ports testified about the repercussions experienced by farmers and producers when strikes or lockouts prevent their crops and products from reaching markets.
Those witnesses convinced the members of the commission who in turn proposed a number of workable recommendations to solve the problem. Unfortunately the drafters of this legislation did not follow the commission's advice and came up with what at best could only be called a watered down or partial solution.
This half measure would ensure that grain, once it reaches port, would be loaded on ships. There is no provision, however, to ensure that grain reaches the port if there is a labour dispute elsewhere in the system. If that happens Parliament will be called upon to legislate everybody back to work.
Over the last 20 years Parliament legislated an end to 19 strikes in the transportation and grain handling sector. It is in the interest of labour and management producers and processors to resolve disputes without parliamentary intervention.
In the face of the growing importance of the global economy there is a need for continuous reliable shipping through Canada's ports and transportation sectors. The costly interruption of government business is not required. While there is a need for regulation by various levels of government it is not practical to put emergency measures in place each time labour and management are unable to reach a satisfactory agreement. Resolving the differences of these two groups can be achieved without interrupting the regular flow of government proceedings.
A permanent and fair resolution process must be put in place, removed from the whims of government. We need permanent legislation that would provide both sides with predictable rules and a timetable by which to negotiate. Canada has a world class transportation system and communications infrastructure that should not be vulnerable to closure.
A disruption in the day to day operation of vital transportation sectors inhibits the national economy from functioning. The potential impact of even a short work stoppage in many federal operations is catastrophic to Canadian business and to the Canadian economy as a whole. A strike in either the rail or truck sector cripples the automotive industry which must move finished products, raw materials and parts throughout North America on a daily basis.
Westerners rely heavily on the railways. Each year approximately 80 million tonnes of products, most of which are bulk commodities such as grain, coal, sulphur and potash, leave the prairies by rail on their way to consumers in domestic and international markets. Prairie shippers provide CN and CP rail with 50 per cent of their originating tonnage and contribute almost the same portion in revenues.
While it is impossible to put a price on the damage done to our reputation as a reliable exporter, the direct costs from the 1994 west coast ports dispute are said to have amounted to over $125 million. The estimated indirect costs, loss to future business and so forth, were in excess of $250 million and threatened $500 million in grain sales.
The risk to Canadian jobs must be minimized. Not only will a significant number of jobs be lost in the export sector if these disputes cannot be resolved, but jobs and the ports will be at severe risk when alternative means to ship goods are utilized. The use of U.S. ports could result in a loss of cargo and jobs in Canadian ports.
I recommended final offer selection arbitration many times in this House and to the Sims task force and the west coast ports inquiry commission. Final offer arbitration is a tool to effectively and permanently resolve labour issues that fall under federal jurisdiction. It does not favour one side or another and here is how it works.
If and only if the union and employers cannot make an agreement by the conclusion of the previous contract, the union and employers would provide the minister with the name of a person they jointly recommend as arbitrator. The union and employer would be required to submit to the arbitrator a list of the matters agreed upon and a list of the matters still under dispute. For disputed issues each party would be required to submit a final offer for selection. The arbitrator then selects either the final offer submitted by the union or the final offer submitted by the employer; all of one or all of the other. The arbitrator's decision would be binding on both parties.
The measures contained in Bill C-66 will not, however, achieve the balance that the minister seeks. It will not promote harmonious relations between the two, nor will it ensure the uninterrupted flow of commodities to market.
If Canada is to be a major player in the global marketplace, it is incumbent upon us as legislators not to interfere but to provide logical, sound legislation under which workers and management can operate.