moved:
Motion No. 19
That Bill C-9 be amended by
(a) replacing the heading before line 1 on page 79 with the following:
“Comparable Employee Benefits”
(b) adding after line 8 on page 79 the following:
“138.2 A person who has entered into an agreement under subsection 80(5) and every port authority shall take all reasonable steps to negotiate with the President of the Treasury Board a pension transfer agreement in accordance with section 40.2 of the Public Service Superannuation Act in respect of employees referred to in paragraph 130(b), 132(b) or 135(1)(b), as the case may be.
138.3 For the purposes of sections 138.4 to 138.6, “employee benefits” includes coverage and benefits in respect of employer-sponsored pension plans and of life, income protection, health care and dental care insurance plans.
138.4 A person who has entered into an agreement under subsection 80(5) shall, in respect of an employee referred to in paragraph 130(b), provide employee benefits that
(a) begin on the day of the transfer under paragraph 80(6)(f) or, if there is transitional coverage provided in respect of the person under section 40.1 of the Public Service Superannuation Act, on the expiry of the period of transitional coverage;
(b) are comparable to the employee benefits of the employee immediately before the transfer under paragraph 80(6)(f) and at a rate of contribution by the employee not greater than the rate that was applicable in respect of the employee immediately before that transfer; and
(c) end on the day on which an agreement to the contrary comes into force between the person and the bargaining agent representing the employee or, in the case of an unrepresented employee, the person and the employee.
138.5 A port authority shall, in respect of an employee referred to in paragraph 132(b), provide employee benefits that
(a) begin on the day on which the port authority is continued under subsection 12(1) or, if there is transitional coverage provided in respect of the port authority under section 40.1 of the Public Service Superannuation Act, on the expiry of the period of transitional coverage;
(b) are comparable to the employee benefits of the employee immediately before ceasing to be an employee of the local port corporation and at a rate of contribution by the employee not greater than the rate that was applicable in respect of the employee immediately before ceasing to be an employee of the local port corporation; and
(c) end on the day on which an agreement to the contrary comes into force between the port authority and the bargaining agent representing the employee or, in the case of an unrepresented employee, the port authority and the employee.
138.6 A port authority shall, in respect of an employee referred to in paragraph 135(1)(b), provide employee benefits that
(a) begin on the day on which the port authority is deemed to be incorporated under subsection 12(1) or, if there is transitional coverage provided in respect of the port authority under section 40.1 of the Public Service Superannuation Act, on the expiry of the period of transitional coverage;
(b) are comparable to the employee benefits of the employee immediately before ceasing to be an employee of the Canada Ports Corporation and at a rate of contribution by the employee not greater than the rate that was applicable in respect of the employee immediately before ceasing to be an employee of the Canada Ports Corporation; and
(c) end on the day on which an agreement to the contrary comes into force between the port authority and the bargaining agent representing the employee or, in the case of an unrepresented employee, the port authority and the employee.”
Mr. Speaker, I am very pleased to take part in the debate on the fourth group of amendments.
In drafting the Canada Shipping Act, the government has made human resources a priority. It has made an effort to ensure that all affected employees, whether unionized or not, would be treated fairly and it made sure the Canada Labour Code would be rigorously adhered to at all stages, in both the spirit and the letter.
In Bill C-9, the government has taken the position that employees of federal organizations which will be commercialized, divested or sold will be covered under comparable replacement pension arrangements. This is thoroughly consistent with past practices.
Under Bill C-9 the government has taken the position that employees of a federal organization which will be commercialized, divested or sold will be covered under comparable replacement pension arrangements. This is thoroughly consistent with past practices.
For example, recently transport employees at major airports have been offered comparable pension plan coverage to that of the public service plan. Similar arrangements were made for employees affected by the transfer of air navigation services to NavCan. The transfer provided employees with a parallel pension plan where employees were no worse off as a result of their move out of the public service.
By adding employment related provisions to its agreements with these new employers, the government has been able to exert direct influence to ensure that employees have been treated fairly with regard to offers of employment and replacement benefit packages.
During the Standing Committee on Transportation's examination of Bill C-9, an additional amendment was adopted to guarantee that ports employees will be able to take advantage of the transitional provisions recently established in the Public Service Superannuation Act on an equal footing with the seaway employees.
When Treasury Board has given its approval to this new clause, affected employees will be able to continue to participate in the federal pension plan for a time after divesting, so as to allow the new employer time to create, register and implement a new pension plan.
There may be some discussion today about whether or not transferred employees should continue to be covered under the government's superannuation plan, but I point out that some of my colleagues may propose that, when transferring to a new retirement plan, affected employees should be able to transfer their accumulated benefits.
I am pleased to say the government has responded to many of the concerns raised to date on the issue of superannuation benefits to transferred employees. Motion No. 19 in fact proposes to amend the bill so that it covers all employees transferred to a number of different situations: the seaway, a not for profit corporation, a former local port corporation, and former non-corporate ports which are the divisional ports managed by Canada Ports Corporation.
Harbour commissions are the only group not included in this list. They are not affected by these questions because of existing coverage under their private benefit plans.
Motion No. 19 will ensure that new employers will have to offer benefits that are comparable to what the employees had immediately before the new employer took over and keep the comparable benefits in place unless the employer and the employees mutually agree to change them.
It will also set in place contribution rates that are not higher than what was paid by the employees immediately before they were taken over by the new employer. They will also begin their benefit plans when they take over the employees or immediately after any transitional coverage under federal plans. Finally they will take all reasonable steps to negotiate a pension transfer agreement with the Treasury Board.
The government has moved a long way toward meeting some of the objectives of my colleagues on the other side. We cannot, for reasons stated, move all the way to accommodate them but I think we have made our best effort in the spirit of co-operation to get the bill through.