Madam Speaker, clause 24 of Bill C-66 adds a provision to the Canada Labour Code which would require an employer succeeding another as the provider of certain services to the air transport industry to pay employees remuneration not less than that which the employees of the previous contract were entitled to receive under the terms of a collective agreement. On the recommendation of the Minister of Labour the governor in council can extend the application of this provision to other industries.
The Reform Party has put forward Motion No. 11 to remove this requirement from Bill C-66. This provision has been included in the bill to address important labour relations matters which not only affect workers in this sector but also impact on the safety of the flying public.
Rather than remove the provision, we are proposing MotionNo. 12 to amend it to address some legitimate concerns which have been raised by representatives in the air transportation sector with respect to its current scope. The amendment we wish to make to clause 24 would limit the immediate application of this provision to employers providing airport security screening services.
We ask members of the House to approve this amendment as it will promote competition based on efficiency gains and enable contractors with unionized employees to answer tender calls; reduce staff turnover and ensure that the personnel assigned to the protection of the flying public have the proper training experience; protect the remuneration of unionized workers who can be penalized when their employer loses a service contract.
What this provision does not do is limit the right of employers in the air transportation sector or any other sector to contract for services. As is presently case the right to contract out services would remain subject to the terms of any collective agreement to which the employer is party. The requirement to maintain remuneration levels would only apply to successor contractors.
At present when a business subject to the Canada Labour Code decides to change contractors at the expiration of a service contract there is nothing in the code that protects the employees of that contractor. Consequently, if those employees were unionized and it succeeded in entering into a collective agreement they often lose the monetary benefits they have negotiated and in some cases they lose their jobs. As well, the employees of the employer that wins the service contract often have poor wage conditions.
We recognize that the air transport industry has a legitimate interest in containing costs and staying competitive. Still, the Canadian air transport industry has itself recognized that the turnover of employees assigned to security service contracts has a negative impact on its ability to maintain a skilled experienced work force. Because of problems caused by the practice of awarding successive contracts for services for security services in the air transport sector, the Department of Transport in its capacity as administrator of major airports reached an agreement with the Canadian airlines in 1988. Under the terms of the agreement the airlines were required to include in contracts for preboard security screening services a clause guaranteeing the employees wages and benefits would be maintained if the level provided for in the contract had existed before the call of tenders.
This agreement which was revised in 1992 resulted in a reduced turnover rate for security personnel, improved working conditions and a better security screening system. It is this policy which the bill now seeks to codify. The Standing Committee on Human Resources Development heard the submissions made by the Air Transport Association of Canada which raised concerns about the
new obligations included in the bill. In the association's view since the agreement entered into with the Department of Transport in 1988 solved the problems associated with tender calls for security services, it would be pointless and unwarranted to formalize the agreement as proposed in section 47(3).
Although we commend the airlines for their co-operation in honouring the agreement of the Department of Transport since 1988, we must not lose sight of the fact that some airports have not been administered by the Department of Transport for a few years now. Their numbers are growing.
As a result, Transport Canada has less direct influence to ensure that this policy is respected. With the proposed amendment to clause 24, the provision will apply in the immediate term only to security screening services.
This will codify the contractual obligations that air transport employers have been honouring for eight years and have been recognized as a reasonable method of correcting the problems associated with contract free tendering for security services.
The proposed amendment addresses the concerns raised by the TAC about the advisability of applying this provision to other services contracted out by its members such as fuelling and ground services.
In the association's view, applying this provision to such services could cause more labour relations problems than it would solve. It is usually the airlines that provide these services with the help of unionized personnel.
In view of the submissions made to the committee and the objectives of this provision we are proposing to limit its application to security screening services.
However, the governor in council will retain authority to extend the application of this section to other services and other industries under federal jurisdiction on the recommendation of the Minister of Labour if problems similar to those which arose as a result of changes of contractors providing preboard security screening services in the airport sector occur.
I urge members to support the government motion and retain the requirement in clause 24 of the bill but with a restricted application. This will ensure that workers in the security screening sector are treated with equity. With respect to the remuneration, it will also contribute to ensuring the safety of the flying public.
In addition, there will be a mechanism available to address problems should they arise in other sectors.