Mr. Speaker, I am here today to ask the House to support the quick passage of an act to provide for the continuation and resumption of rail service operations.
As the House will recall, last June there was a three day strike by Air Canada's customer sales and service agents. I am glad to say that it was resolved by the parties, and the harm to Canadians was limited.
In June of 2011, our government introduced and passed the Restoring Mail Delivery for Canadians Act because of the economic importance of reliable mail delivery.
Because the government took action, Canadian workers and businesses, as well as citizens, were spared the hardship that a prolonged interruption in mail would have caused. In March, the government passed an Act to Provide for the Continuation and Resumption of Air Service Operations to prevent a work stoppage at Air Canada involving the International Association of Machinists and Aerospace Workers and the Air Canada Pilots Association. This legislation protected the Canadian economy and the public.
Today, we are again faced with a work stoppage that could do enormous damage to our economy. Once again, we have to take measures to protect our national interests in this period of economic uncertainty.
Talks have failed to result in a new collective agreement between Canadian Pacific, CP Rail, and the Teamsters Canada Rail Conference, TCRC, which independently represents the running trades employees and the rail traffic controllers.
The work stoppage at CP Rail is causing confusion and doubt where stability and certainty are needed in our recovering economy. Stability and certainty are essential to keeping Canada in business. If my hon. colleagues were to ask their constituents, as I have asked mine, or if they were to ask almost anyone in Canada right now, they would hear what I have been hearing as well, that we cannot afford this work stoppage because the risks are too great. As parliamentarians, we have a responsibility to act. Therefore, we have to take a stand for Canada's economy.
Like other industrialized economies around the world, Canada has faced challenging economic times. Our economy has weathered the global storm well. Our government is proud of its record for sheltering Canadians from the worst effects of the downturn and laying the foundation for a strong recovery. We all read the papers and know that our country is not immune to the changes in the world economy. There could be more turbulence. As of April 2012, our unemployment rate was 7.3%, a definite improvement from last year.
We need to be careful if we are to maintain our progress and promote economic growth. We cannot afford to have major labour disruptions. We have so much potential. A labour stoppage in any key sector of our economy would be a serious impediment to our growth and recovery. A work stoppage that detrimentally affects a major freight transportation sector is no exception. Rail is a vital cog in keeping Canada among the top performing world economies. Trade represents 35% of our GDP. In Canada, the rail transport service contributes significantly to the Canadian economy.
Let me provide some facts to make the point of how vital rail services and shipping are to the Canadian economy.
A 2009 report prepared by the University of Toronto's Rotman School of Management estimates that four key Canadian bulk shipping industries, oilseed and grain farming, coal mining, wood products manufacturing, and pulp and paper and paper products manufacturing, contribute over $81 billion to Canada's GDP. These industries also account for nearly a million jobs.
The rail-based transportation system in Canada is complex and interconnects a range of stakeholders, such as shippers, terminal operators, transloaders, ports, shipping lines and trucks, which are all part of a very competitive supply chain. Problems occurring in one part of the supply chain can affect the stakeholders across it. An effective supply chain is critical to meeting the government's objectives related to strategic gateways and trade corridors, such as the Asia-Pacific gateway, and is key to continuing our country's high economic success.
The Minister of Labour has heard from numerous stakeholders who are urging the government to ensure that this strike does not continue for any prolonged period of time. I would like to read just a few quotes from some of the correspondence that she has received from stakeholders.
The president and CEO of the Mining Association of Canada wrote that, in the minerals and metals sector, experience has shown that a rail stoppage impacts the ability of companies to bring essential inputs to their mines and smelters, and to move finished products and byproducts to their destinations. The association requested that the government take action to head off this potential work stoppage before it damages the economy.
The Association of International Automobile Manufacturers of Canada and the Canadian Vehicle Manufacturers' Association jointly wrote, “CP Rail plays a vital role in the shipment of both parts and components into Ontario vehicle manufacturing facilities, as well as a significant role in the shipment and distribution of finished vehicles from ports of entry to local dealerships across the country...The integrated North American auto industry is presently experiencing a positive but fragile economic recovery.” Any disruption to CP Rail service will have an immediate and dramatic impact on its collective membership and their operations in Canada.
I can tell members that the Honda plant in my riding definitely reiterates this. We have a challenge ahead of us if we do not get the rail moving.
The Western Grain Elevator Association wrote that “this work stoppage will have a significant impact on the grain industy. Many of our elevator locations are serviced only by CPR. In the event of a work stoppage, these elevators will have no options available to them in the transportation of grain products. This will lead to the inability to supply our international customers and prohibit producers from delivering to those facilities. If we cannot at the very least move this product in a timely way to our customers, the associated lost opportunities and added costs will be significant.”
Finally, the Forest Products Association of Canada wrote to the minister and outlined the following:
As most of the industry’s mills are located in remote areas where rail service is the only viable transportation mode, other forms of ground transportation are either too costly or unavailable to provide our companies with relief, making our sector particularly vulnerable to even the shortest disruptions in service.
The association wrote, “In addition, the industry does not have the capacity to stockpile finished product nor can it continue production without certain input materials. As a result, any service disruption will undoubtedly lead to the industry incurring significant cost and will quickly result in mills shutting down temporarily.”
Some companies have already had to shut down production lines or lay off workers. Already the effects of the strike are hurting businesses, and it is not even a week in.
I have quoted from just a small handful of stakeholders and businesses that have called on the government to act quickly to prevent a prolonged strike that would do damage and have significant effects on the Canadian economy. We need to act now to protect Canadian jobs and the Canadian economy. Let us consider what this work stoppage means to businesses. We have heard quotes from a few of them that by stopping the trains, the strike is negatively impacting our trade opportunities. Businesses are losing sales at home and abroad.
Will businesses be able to recoup these sales? There is no way to know. Are businesses able to adapt and find alternative solutions? Again, we cannot say.
Work stoppages create ripple effects, or to put it another way, a chain reaction of damage that has far-reaching effects, possibly creating layoffs all the way down the line. Even a short work stoppage is very costly. Lost income, lost opportunities, lost jobs are all the unintended consequences of a work stoppage. They are devastating for both workers and businesses in a time of economic challenge. The losses caused by this shutdown of rail services are not only borne by the railway and its employees. They are borne by hard-working Canadians and their families all across the country. Jobs are at stake. The viability of businesses is on the line. We cannot afford to let this continue.
Let me say a few words on the recent history of collective bargaining at CP Rail. The Teamsters Canada Rail Conference independently represents 4,200 running trades employees and about 220 rail traffic controllers. Their collective agreements expired on December 31, 2011. The TCRC started negotiating with CP Rail in October 2011.
On February 17, 2012 the Minister of Labour received notices of dispute from the employer regarding both the running trades employees and the rail traffic controllers. The main issues in this round of bargaining deal with pensions, health care benefits and working conditions. The parties were released from the conciliation process on May 1, 2012 and acquired the right to strike or lockout on May 23, 2012.
On May 16, the Minister of Labour offered the representatives from CP Rail and the TCRC an extended mediation process to help them resolve issues and reach agreements. Again on May 22 the Minister met with both parties in an attempt to encourage and facilitate an agreement. Regrettably, this additional assistance was not accepted. On May 23 the work stoppage began.
I want to inform this House that our government would like nothing more than for the parties to reach an agreement on their own. However, the Minister of Labour has offered the parties the tools provided through the Canada Labour Code, but to no avail. These disputes have gone on too long. The government has not stepped in prematurely. As I said earlier, the parties have been asking for assistance from the labour program since February and they have received assistance. However, it has not resulted in a collective agreement. This work stoppage will have a significant effect on Canada's trade. Millions of Canadians are affected directly or indirectly.
There is more at stake here than the issues on the bargaining table. CP Rail and the TCRC, independently representing the running trades employees and rail traffic controllers, have had ample time to reach a negotiated agreement on their own. They will also be afforded all the tools available to rebuild and improve labour relations, such as preventive mediation services offered by the labour program. This work stoppage has gone on long enough, and for every day that it continues, our economy and trade relationships are jeopardized.
I ask my fellow parliamentarians to stand up for Canadians and support the motion and the legislation. We need to move forward and take action so that we can ensure that Canadian jobs and the Canadian economy are protected.