moved that Bill C-24, an act to provide for the resumption and continuation of postal service, be read the second time and referred to a committee of the whole.
Mr. Speaker, I rise today to speak to Bill C-24, the Postal Services Continuation Act, 1997, legislation directed at bringing about the resumption of postal service in Canada.
Hon. members will be aware that the work stoppage which began at Canada Post Corporation on November 19 followed a lengthy period of negotiations. Despite the efforts of the parties, the two sides were unable to reach a resolution to their differences.
As hon. members will recall, I had stated on several occasion in the House that the collective bargaining process as part I of the Canada Labour Code had to be allowed to work.
I am a firm believer in the democratic concept of free collective bargaining. Naturally I am disappointed that in this case the parties failed to accept their responsibilities under the process and achieve a settlement. I am also mindful of the resulting economic harm which the work stoppage has had on Canadian businesses and charities. However, I have no regrets in having provided the parties with every possibility to resolve the dispute themselves.
Fortunately the Canadian experience has been that these occasions are relatively few and far between. The vast majority of labour negotiations, in excess of 90%, are settled without resort to work stoppage action by either of the parties. That underscores the faith which governments at various levels have expressed in the collective bargaining system.
The dispute which has led to the proposed legislation involves negotiations for the renewal of the collective agreement between the corporation and the Canadian Union of Postal Workers which covers some 45,000 employees. The previous collective agreement which was reached in direct negotiations expired on July 31 of this year.
Following six weeks of direct negotiations between the two sides, the union filed a notice of dispute pursuant to section 71 of the Canada Labour Code. While the union expressed a preference for no further assistance from my department, I felt the interest of all parties would be well served by the appointment of a conciliation officer to assist the parties in their deliberations. This was done on June 20, 1997.
The parties decided to continue with direct negotiations prior to the conciliation officer joining in the discussions on August 19. Following a series of conciliation sessions, the union asked the officer to report to me, ending their involvement. On September 18 CUPW rejected a global offer made by the employer three days earlier.
After careful consideration of the situation, I decided to provide the parties with a second stage of conciliation assistance and appointed Mr. Marc Gravel, a well-respected third party neutral, as conciliation commissioner on October 7. Mr. Gravel held meetings on October 14 and continued to explore avenues of settlement with the parties until the end of the month.
In his report to me, the conciliation commissioner indicated he was unable to help the parties resolve their differences. He suggested the parties needed the pressure of a strike or lockout deadline to conclude a settlement. He also recommended that they urge the parties to negotiate their dispute promptly, diligently and in good faith and that they make the services of the Federal Mediation and Conciliation Service available to them. I released the commissioner's report to the parties on November 10 and they acquired the legal right to strike or lockout at 12.01 a.m. on November 18.
During the week that followed the release of the commissioner's report the parties met on several occasions in direct negotiations. These meetings continued following a nationwide strike action by CUPW on November 19.
After speaking with both parties and being given their assurances that they still desired a negotiated settlement of the dispute, I appointed the director general of the Federal Mediation and Conciliation Service, Mr. Warren Edmondson, as mediator in the dispute. As I indicated, this action had also been endorsed by the conciliation commissioner in his report.
Mr. Edmondson's reputation as a professional in the dispute resolution field is well known. His presence in the proceedings provided the parties with an opportunity to demonstrate their resolve to arrive at a new collective agreement.
Unfortunately, neither of the two parties displayed the flexibility necessary to move toward a resolution of the dispute. The mediator after some four days of intense meetings determined that there was very little chance of a settlement.
After speaking with Mr. Edmondson on Friday, I decided that the time had come to bring the work stoppage to an end and restore postal services to Canadians. It is for that reason I stand before the House today to introduce this bill which provides for the resumption of postal operations and a dispute resolution mechanism to settle the outstanding issues.
Bill C-24 contains two main features: a resumption of regular postal operations and the appointment of a mediator-arbitrator to resolve the issues remaining in the dispute between the employer and the union with minor exceptions.
The bill will implement a new collective agreement of three years duration expiring on July 31, 2000. It will provide for a wage increase of 1.5% effective February 1, 1998, a further 1.75% effective February 1, 1999 and an additional 1.9% effective February 1, 2000. The three year term is in line with most collective bargaining agreements being signed these days. The wage increases are not unreasonable given the current level of settlements in the public sector.
The remaining issues will be referred to the mediator-arbitrator who will be guided by the need for economic and service related goals for the corporation as set out by the government, while taking into account the need for good labour-management relations between the employer and the union.
The guiding principles contained in the legislation are designed to ensure that the mediator-arbitrator recognizes the directions which have been provided to the employer by the Government of Canada in terms of financial performance and service standards, while at the same time balancing these issues with the importance of good labour relations within the workplace. Most experienced arbitrators take such factors into account and this clause is included in the legislation for greater certainty.
There may be questions as to why the legislation provides for a mediator-arbitrator given the fact that mediation was already provided to the parties in an attempt to resolve the dispute. There are basically two reasons for this. The first is that there are still a large number of complex issues outstanding between the two sides. Second, the process contained in the legislation offers the parties one last opportunity to resolve these issues themselves at the bargaining table.
As I indicated, both the union and the employer maintain their position that they would prefer to reach a settlement by themselves. Both sides are aware that failure to reach an agreement at this stage will result in the issue being determined by arbitration. Anyone with a knowledge of labour relations understands that the best collective agreement is one which the parties are able to arrive at through the bargaining process rather than one imposed by a third party.
I regret having to take this action particularly after providing the parties with the full range of assistance available to me as Minister of Labour. I personally remain convinced that the collective bargaining system can and does work for the majority of Canadian employers and unions. However, these parties have been unable to demonstrate the required flexibility to make the process work for themselves.
When I appointed the mediator I indicated that we would carefully monitor the mediation process and assess the situation as it progressed. We have done that and have determined that the time is appropriate to act to end this work stoppage which is beginning to harm Canadian businesses, charities and Canadians at large.
No doubt we will face criticism from various corners for this action, by the labour movement for our legislative intervention in the bargaining process, and from the business community and various segments of the public for not having acted sooner in the dispute. But I believe strongly that our actions in this dispute reflect the will of the majority of Canadians.
We have given the free collective bargaining process, a key element of our democratic society, an opportunity to work free of interference. The Canada Labour Code gives the parties the right to strike or lockout. Early intervention to take away the right would be contrary to the spirit of the law and would discourage the parties from any serious attempts at settling their own differences.
However when it became evident that the parties were unable to effectively work within that process, we acted to protect the interest of Canadians. I would urge hon. members to support this action and restore postal service to this nation.