moved that Bill C-35, an act to amend the Canada Labour Code (minimum wage), be read the second time and referred to a committee.
Mr. Speaker, let me first say that I am very pleased to present Bill C-35, amending part III of the Canada Labour Code to increase the federal minimum wage rate.
In the 12 years I have been sitting in the House, I have never missed an opportunity to stand up for the most vulnerable in our society. The bill we are studying today goes precisely in this direction. I will not go as far as to describe it as a revolutionary measure that will change the life of millions, but it is a long-awaited amendment, because the federal minimum wage rate has not been changed for ten years. It is $4 an hour since 1986.
With Bill C-35, our government wanted to kill two birds with one stone. First, it provides that, as of next July 17, the federal minimum wage rate will really increase. It also includes a mechanism ensuring that, from now on, the rate will be automatically adjusted according to the economic realities of the various regions of our country. After studying several different formulas, our government chose to align the federal minimum wage rate with those established by the provinces and territories. This dynamic initiative is quite logical, practical and fair.
It is logical, because 98 per cent of the workers that are paid the minimum wage rate are employed in industries regulated by provincial or territorial legislation. Every province or territory regularly adjusts its minimum wage rate to meet regional requirements. Indeed, the economy and some of the market conditions
vary from region to region. And so does the minimum wage. Thus, across Canada, it varies between $4.75 and $7 an hour. If we had established a federal minimum wage, we would have gone against this reality.
Our formula is also practical, because it simplifies the process for keeping these rates up to date. By harmonizing our rate with the provincial rates, we avoid having to make statutory changes on a regular basis to reflect change in each of our regions.
Therefore, this initiative reflects our government's commitment to simplify government processes and reduce red tape wherever possible. Besides, business people will no longer have to worry about rate differences between both levels of government. Their employees will always be sure to get a pay equivalent to that of their peers.
This is unquestionable proof that the Canadian government is willing to co-operate with the provinces in order to give taxpayers good service quickly and at the best possible cost. We have always said that we should analyze which jurisdiction is in the best position to deliver a service, and adapt our operating procedures accordingly.
This is what we did in the case of Bill C-3 and this is what we are doing now with Bill C-35.
I hope my colleagues opposite, and especially members of the Bloc Quebecois, will recognize that we are serious and consistent in our approach. We have always said that Canadian federalism was flexible and dynamic. Here we have further proof that we can improve our operations without resorting to useless and unproductive jurisdictional squabbles.
Bill C-35 clearly reflects the strong commitment of the government to decentralization and to eliminating duplication and overlap. This amendment to the Canada Labour Code increases the federal minimum wages in a new and innovative way by aligning them with provincial rates based on regional economies. This clearly demonstrates our strong commitment to work with the provinces and territories to establish which jurisdiction is in the best position to deliver a specific service to Canadians.
In this case it is clear we are happy to harmonize our rates with those of the provinces and territories and to follow their lead in setting an appropriate increase in the future.
I strongly believe that everybody will gain from this simple and dynamic initiative. I also believe this new system will be practical, efficient and reliable.
However, should it be proven otherwise, the federal government will be ready to intervene to protect the interests of minimum wage workers. Those workers are generally not unionized and have little bargaining power with their employers. We retain the power to set our own federal minimum wages in the event that a province withdraws this floor or sets it an an unreasonable level.
I can say that Bill C-35 is based on the indisputable principles of justice and equity. It eliminates any possible discrimination between workers under federal jurisdiction and those under provincial or territorial jurisdiction.
It also allows for more balanced and sounder competition between businesses in any given region because now the obligations will be the same for everyone.
As far as equity is concerned, I would like my colleagues in the House to note that the new minimum wage rate will apply to all employees under federal jurisdiction, whatever their age. You will remember that in some Canadian provinces rates for young people and adults still differ. However, in order to be fair to our young workers, we chose to implement one single rate, that of the adult workers, to all businesses under federal jurisdiction.
Before the government decided to harmonize the federal minimum wage with that of the provinces and territories, it did what it always does: it consulted the major stakeholders.
The provincial governments welcomed the proposal, which will simplify the procedure and guarantee fair treatment of all workers in a given region.
On the management side, there were no opposition since the vast majority of employers under federal jurisdiction are already paying their employees the equivalent of the minimum wage in force in the various regions of the country.
The unions supported this measure because it implements the long awaited increase of the federal minimum wage and it also provides for automatic adjustments in the future.
All the interested parties recognize that this proposal is reasonable and that it takes into account the realities of today's labour market.
I must say, that in my work as Minister of Labour, I am impressed by the spirit of co-operation in our sector. I am delighted by it, because I am convinced that it is through dialogue and consultation that we will maintain effective and harmonious labour relations in Canada.
I think this attitude also reveals that labour and management are aware of the great challenges we must fact together at the dawn of
the new century. Their sense of responsibility and maturity are the envy of a number of other industrialized countries.
I therefore set myself the objective of channelling all this goodwill positively in order to amend our Canada Labour Code and to adapt it to the new realities of the labour market in Canada. We are currently working very hard to modernize part I of the Canada Labour Code, which concerns the labour relations process and structures in industries under federal jurisdiction.
Already, the members of the task force under Andrew Sims have agreed on a whole range of recommendations. Rarely have we seen the process of consultation achieve its objectives so successfully, and we must congratulate all those who have helped build this impressive consensus.
One major question, however, remains unanswered: the use of replacement workers during a legal strike. The members of the Sims committee have made two different suggestions. Other options were suggested by different experts, but I wanted to see for myself the mood of the people.
This is the reason why, during the month of April, I participated in consultations all over the country. Almost all stakeholders mentioned the problem of substitute workers and the relevance of a potential federal act respecting strike breakers. I took good note of their opinions, recommendations and warnings.
Consultations on Part I being completed, I am determined to go ahead rapidly. Officials at the bureau of legislation review are currently preparing the amendments I want to submit very soon to my colleagues in cabinet and to Parliament.
At the same time, our analysis of Part II of the labour code, which deals more specifically with health and safety in the workplace is progressing rapidly. Dozens and dozens of changes have been proposed and in this case also, an important consensus has developed. There is consensus on 90 per cent of the changes. There remain only a few questions for the minister to answer.
Finally, we are starting to study Part III of the Code on labour standards. This is the part I consider most crucial for the coming years. Everywhere in the country, a great nervousness and a strong concern can be felt in the face of the rapid changes occurring in the workplace.
This is why the second priority I have chosen as Minister of Labour is the workplace of the future. The shift from an industrial society to the information age, globalization, demographic changes and the imperatives of budgetary control is causing tremendous worries in society. How we work and how we prepare for our working lives are changing profoundly and irreversibly.
To begin with, fewer and fewer people are working year round, nine to five, Monday to Friday, for one employer on common premises according to established rules. Over the past decade the number of self-employed Canadians has grown twice as fast as traditional job opportunities. In Canada more than three quarters of a million men and women are working out of their homes, and that number is expected to double in the next five years. Furthermore, two-thirds of these home based workers are employed by a company which has its headquarters somewhere else.
At first glance some of these facts appear disturbing. It is true a large number of workers are resigning themselves to self-employment, part time jobs and home based jobs because they have been unable to find traditional work. Sometimes they accumulate two or three part time jobs.
However thousands of Canadians deliberately choose this type of work. Usually they do so to more effectively balance family and work related responsibilities. A growing number of workers are doing so to improve the quality of their lives or to make better use of their creativity, expertise and spirit of entrepreneurship.
Obviously, this more individualized and independent approach to work does not suit all workers. Therefore, in co-operation with the private sector, we must continue to do everything possible to create jobs of all kinds.
At the same time, we must seriously look at the challenges to industrial relations in Canada because of the new trends.
Several questions come to mind: What should be the role of the government when work becomes more individual than collective? How do we define the workplace when a considerable number of employees work at home? How do we better protect transient workers who do not enjoy a continuous employer-employee relationship? How can freelancers and contract workers have access to some kind of social benefits, of security? How do we prevent abuses on both sides?
These are questions we must answer very quickly. The Sims report touched on the subject in its last chapter entitled Beyond the Code . Last year, the Donner report carefully studied the whole issue of work distribution. Several researchers in the area of industrial relations are also working on this issue.
This is why I thought it would be appropriate to take a few minutes during our debate to raise the awareness of my colleagues regarding these issues and to ask them to take part in the brainstorming I want to have on the future of work. This is an issue which has a direct impact on Canadians. It is at the basis of our ability to adapt to change and compete in a global economy in the years to come.
In the meantime, I would invite all hon. members to fully support Bill C-35 before us now. This is a simple piece of legislation aimed primarily at bringing justice and fairness to those who are at the bottom of the pay scale. They are entitled to the dignity of work. They deserve our support and our help. We have the duty to provide it to them.
I trust you will find there is unanimous consent, once my colleagues opposite have stated their position, to go into committee of the whole, proceed with the report stage and third reading and refer the bill to the Senate.