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House of Commons Hansard #128 of the 41st Parliament, 1st Session. (The original version is on Parliament's site.) The word of the day was labour.

Topics

Continuation and Resumption of Rail Service Operations LegislationGovernment Orders

12:25 p.m.

Conservative

John Carmichael Conservative Don Valley West, ON

Mr. Speaker, we are currently debating the procedural motion which would allow the quickest possible passage of the restoring rail services act. Clearly, there are some members in the House today who would argue that we should allow the strike to drag on longer and allow for further bargaining between the two parties. Could the Minister of Labour please explain the necessity to expedite the passage of this bill for the benefit of all Canadians?

Continuation and Resumption of Rail Service Operations LegislationGovernment Orders

12:25 p.m.

Conservative

Lisa Raitt Conservative Halton, ON

Mr. Speaker, in 1995, CP Rail, CN and VIA were in the midst of a strike and a work stoppage that lasted seven to nine days. At the time, most economists agreed that during that strike of seven to nine days, serious damage to the economy could be had. Indeed it was in the billion-dollar range. We know from precedents that this is the effect of a rail strike on the Canadian economy. That is why we are acting now.

Continuation and Resumption of Rail Service Operations LegislationGovernment Orders

12:25 p.m.

NDP

Alexandre Boulerice NDP Rosemont—La Petite-Patrie, QC

Mr. Speaker, I am rising once again in this House to defend the rights of Canadian and Quebec families and the fundamental rights of workers. This government is a repeat offender in attacking the rights of workers to associate and bargain freely. In this case, 5,000 workers and their families are being affected. These people are being attacked by a government that cannot stop interfering and sticking its nose into matters that are none of its concern. The government does not do the things it should do, but when it should be doing nothing, there it is, in the wrong place at the wrong time. This has an effect on people's lives and on the living and working conditions of Canadian workers. This is unacceptable to us in the NDP, the official opposition.

I would like to point out a paradox that would be amusing were it not for its serious impact on workers and on the future of labour relations in this country. The paradox has to do with the Conservative government's ideology, which includes allowing the market to decide everything, the state not intervening, small government and no redistribution of wealth through social programs. In other words, laissez-faire economics. It is the notion that society will manage best if there is no intervention. Yet, bizarrely, the Conservatives' ideology no longer applies when it comes to the rights of workers; the government intervenes, and intervenes quickly—too quickly.

It is strange, because the Conservative government is looking a lot like the leaning tower of Pisa: it always leans on the same side. It always leans on the side of the shareholders, never on the side of working people and their families and their interests. I am going to try to demonstrate this, but the Minister of Labour has made a good start on that today by showing her true colours: the colours of a Conservative government that could not care less about people’s working conditions or their right of association, their right to use pressure tactics, their right to speak or their right to negotiate a collective agreement without having big brother, in the form of the federal government, coming along and saying no. They have to get back in line and get back to work, and they no longer have the right to speak or to bargain freely, because the government has changed the rules of the game. This is not the first time it has done this, and we will come back to that.

This bill, which we have not seen yet and whose content is unknown to us, is a matter of great concern on more than one front. It is a matter of concern because this government reoffends repeatedly, attacking free bargaining and working people’s right of association; this is not the first time it has done it. This violates the bargaining framework that has been in place in Canada for about a century. It upsets the balance of power between the parties, because in negotiations between an employer and an association of employees, each side has the ability to put pressure on the other. The employer has the right to lock out and has its management rights; the employees have their association and a collective agreement, and the right to use pressure tactics, including the right to strike. But we get the impression that under this government, the right to strike is being eroded away. Every time someone is inconvenienced, a stop is put to all of that. The people are told to get back in line and shut up, and told they no longer have a choice.

The right to bargain means the right to use pressure tactics. Last week, the Minister of Labour came out publicly and went to the media to announce, not even 24 hours after the workers went on strike, that if there was no negotiated agreement there would be special back-to-work legislation. What did the minister accomplish when she did that? She told the private company and the employer that there was no longer any motivation to bargain in good faith, because the legal and constitutional threat that the workers were using had disappeared. There is no longer a balance of power. The employer has no incentive to find a negotiated solution that would be reasonable for both parties.

In so doing, this government attacked not just those 5,000 families, but also the right to strike and to use pressure tactics. That upsets the historic balance between employer and union in labour relations in Canada, and this is not the first time it has done this. It is strange to note that the Conservatives do not do this when it is to preserve jobs. We will recall what the Minister of Transport had to say, not so long ago, when it came to the 2,400 jobs at Aveos.

The Conservative government responded that it would not interfere because Aveos was a private company.

As far as I know, CP is also a private company. How is it that the Conservative government cannot save 1,800 jobs in the Montreal area, but can rush to the aid of a very profitable company that wants to attack its employees' working conditions and pensions? In this case, the Conservative government is acting as quick as a flash, jumping in with both feet and imposing its will on the parties.

Last Wednesday, the minister told the head of CP that he did not have to negotiate any more because she was going to take action and force 5,000 people to return to work. That was the Conservative government's message—the same message it gave to Canada Post and twice to Air Canada. Today it is attacking the rights of CP workers.

In just over one year, on four occasions, this Conservative government has interfered in collective bargaining, favoured the employer and attacked the rights of workers by shoving down their throats concessions regarding their working and living conditions.

That is not acceptable to us in the NDP. We are concerned about this and so are the workers and their families across this country. Who will be next? The postal workers have paid the price. For the first time, the official opposition put up a fight in this House to defend their rights and allow them to negotiate longer. The Canada Post employees remember. They still congratulate us on the work we did as the official opposition, even though the Prime Minister's Office killed the agreements that had been reached at the bargaining table.

The Conservatives attacked the rights of the Air Canada pilots. They also attacked other Air Canada employees, like the mechanics. This time, it is the 5,000 workers at Canadian Pacific who will pay the price. For the NDP MPs, this is unacceptable. We are wondering who will be next. Which groups of workers will have to suffer once again the unnecessary, irresponsible, and unjustified interventions of this government, which jumps at every opportunity to impose cutbacks on the workers and hurt the economy in the same breath? I will come back to that.

There are not a lot of figures on this file, but there are some that are very important: 570 is the millions of dollars in profits that Canadian Pacific made in 2011. This is not a company that is struggling.

I had the honour of representing Quebec membership for years and with my union background, I can tell you that when a company is in real difficulty, the union and the workers' associations are able to sit down and come up with solutions. Concessions are negotiated. I have seen it happen. When the company is doing well, the employees can do well. When it is in difficulty, the employees are careful, they tighten their belts, they can accept freezes, they can spread things out. The workers know the score. They are not stupid.

CP Rail made $570 million in profit in a year. What is the government doing? It is dipping into workers' pockets in order to pay the company's U.S. shareholders. That is what is happening today. It is shameful and unacceptable. We are fed up with seeing this government interfere in free bargaining and attack fundamental rights, as they are doing once again today and tomorrow.

With $570 million in profit, this company is hardly in trouble. If the government had let the parties bargain freely, they could have found a solution. There is optimism in the early stages of bargaining. But when the government stuck its nose into the process, the employer started to get the message that it did not need to do anything. It could just sit back and wait for special legislation, which is very sad.

In the past quarter alone, CP made $142 million in profit. This is a company that is in very good shape financially. In the past four quarters, shareholders have received the largest dividends in CP's history. We are talking about historic amounts. In 30 years, CP shareholders had never received dividends as large as they received in the past four quarters.

The message that sends is that even if your company is doing well, you have the right to attack workers' working conditions. The government will not only let you, it will encourage you. That is what the government is doing today.

This gives us an idea of the real situation at CP Rail. We are told that there are problems with the pension plan. All pension plans have problems, and I will come back to this later. But the pension plan negotiated by the Teamsters and CP was 96% funded last year, and that is a very high rate. The plan is healthy. Yes, workers get good pension benefits, but that is because they put a lot of money into the plan. CP workers put twice as much money into their pension plan as other rail workers, including those at CN. Obviously, at the end of the day, they benefit from that, which is a good thing.

What is retirement? It means deferred wages, money that people set aside for their senior years, and this is a good thing. Canadian Pacific was asking for huge concessions, and the union, which was also at the negotiating table, was prepared to compromise. There was some openness in that regard. When the company talked to the union and met with it, that is what it told us. It knew it was facing a challenge, but I would also point out that this company is extremely profitable and financially sound. We must not forget that.

The Minister of Labour and the Conservative government have only a single argument: the impact this will have on the economy. I have not heard anything else from the minister. The first thing I would say to that is this: if you use pressure tactics and it has no impact, you do not hold much balance of power. When the minister announced the special legislation, the strike was not even 24 hours old. This really pulls the legs out from under workers. It pulls the rug right out from under them and violates their rights, once again.

If this has any impact on the economy, it is because of the balance of power. That is how the labour relations system functions in this country. Of course it should have an impact. When the employer imposes a lockout, that also has an impact on workers. When workers resort to pressure tactics, of course it has an impact. If that were not the case, they would not be called pressure tactics, because there would be no balance of power. Our system is built on that principle.

I would like to respond to the minister's argument about the economic impact of the job action. Reducing Canadian Pacific workers' pensions by up to 40% will have an economic impact because it will reduce salaries and pensions overall. That is dangerous because we need people, seniors with good pensions who can keep spending money in their communities. If these people have no income other than OAS, which they will not receive until they turn 67, what impact will that have on our cities, towns and communities? These people will be poor and will no longer be able to spend money the way they used to in restaurants, corner stores and clothing shops or on travel and tourism.

A company that racks up a $570 million profit in a year, then asks its workers to agree to cuts of up to 40% of their retirement benefits is indecent. The NDP understands why workers are not okay with this. These people have contributed to their retirement plans and do not want the benefits to decrease.

The icing on the cake is that 2,000 non-unionized workers—mainly Canadian Pacific managers—contribute to the same pension plan. Yet, they receive the same benefits despite the fact that they contribute half as much as the unionized workers. That means one thing: this is an attack on people's ability to spend and have a satisfactory retirement. It is a very important issue, not only for the workers of Canadian Pacific, but also for the entire population.

In passing, I wish to salute the campaigns of the Canadian Labour Congress and the FTQ that, for several months, have been urging the government to invest and inject money into the public pension plans.

Indeed, that would be the most effective and healthy way of ensuring that retirees and seniors live decent lives. These are simple and affordable solutions that could save all seniors from the grips of poverty. Therefore, it is important to invest in the guaranteed income supplement, and also to invest in the public plans, the Canada and Quebec pension plans.

These tools exist, but the Conservative government is ignoring them and prefers to give free reign to a company that intends to slash the benefits of its workers. For us, that is unacceptable because it will have repercussions on the economy and on the lives of families and future retirees. When people invest a lot of money in a retirement plan, they expect to receive benefits; that is natural. It is a pity that the government is encouraging management to move in this direction. That is what this legislation does today. It is not good for the economy, nor is it good for communities and families.

Here are a few examples of the draconian effects that Canadian Pacific's demands will have on Canadian middle-class families. Indeed, the attacks on unionized workers are very much attacks on the middle class. The middle class is primarily a creature of the union and labour movement because, before people became organized and fought for their working conditions and their rights, they faced exploitation that was even worse than we see today. Yet, there is a sense that the middle class is crumbling because labour unions are being attacked. Once again, the Conservative government is pushing this ideology.

Here is an example: an employee who is 50 years old with 30 years’ service for Canadian Pacific would lose $9,900 every year to the end of their life. The changes proposed by the employer and encouraged by the Conservative government would cause that person a loss of nearly $10,000 a year. A locomotive engineer aged 50 with 30 years’ service, who lives and works in British Columbia and has five years left to work before being able to retire would see their pension cut by $9,900 a year, if Canadian Pacific gets the concession it is demanding. That employee will have invested their entire adult life in that career; they are preparing to retire and have no alternative to replace that income to entitle them to a pension that Canadian Pacific is trying to take away from them. That employee made higher contributions than the contributions paid by employees of any other railway company, and now the government would give the employer preference by acquiescing in the significant concession that Canadian Pacific is demanding from its Canadian and Quebec employees. This is shameful. This is not the way to treat people. This is picking the pockets of working people and their families so the company, which is already making a profit, will make even more profits. A profit of $570 million in one year is not enough; it has to have $600 million or $700 million. How are they going to achieve that? They are going to hit the workers over the head, they are going to lower their working conditions and cut their pensions. What that will do is impoverish our society; it will impoverish the whole of our real economy. That is what the Conservatives seem to forget. They are blind to this phenomenon.

Here is another example: an employee who is 40 years old with 20 years’ service for CP would lose more than $27,000 a year. That is appalling. A conductor aged 40 with 20 years’ service who lives and works in Saskatchewan and has about 15 years left to work before being able to retire would see their pension cut by more than $27,000 a year, if Canadian Pacific gets the concession it is demanding. That employee will have invested their entire life and be preparing to retire. They will have no other choice, no other option. They counted on this; it was their nest egg. I would point out that this employee has paid higher contributions than the contributions paid by employees of any other railway company in the country, but the government is giving the employer and its concession demands preference, once again. It is shoving substantial losses of income down these people’s throats, when these women and men, who work hard, who provide a service to our economy, will be losing their pensions. In the NDP, we think they deserve more respect than that.

Here is another example: a 30 year old employee with 10 years of service with CP would lose more than $30,000 a year upon retirement. An Alberta train conductor who is 30 years old with 6 years of service will still need to work another 25 years before retiring. His pension will be cut by $30,000 a year. He will have invested in this fund throughout his life, because there was no other alternative available, no other option. The Conservative government is going to make this young worker pay the price, and his living conditions will be affected by the special bill that the Minister of Labour is about to introduce in the House.

And it is unfortunate, because I would have liked to have had the opportunity beforehand to ask her whether she was going to have the courage to introduce the bill today so that we could see exactly what the details were. Or did she feel that it would be better instead to wait another day, given that the motion on the subject was clear in any event: she is planning to spend only 3.5 hours of debate in this House on the matter. We will have 3.5 hours to discuss very important special legislation that will have a major impact on the lives of 5,000 people in this country.

Pension plans are an essential factor for the redistribution of wealth and equity in our societies. Unfortunately, we have a government that is not doing anything to improve or protect pension plans.

I am going to relate a family anecdote. My grandfather Urgel—I think I am allowed to use his name—worked for the Singer company for 44 years in a big factory; it was a big company in Saint-Jean-sur-Richelieu. He worked at the forge with his friends. When he retired, the company left with the pension fund. He was left with nothing. There were legal proceedings for years, even decades. By the time the workers finally won their case, my grandfather had died. He never got his money.

Why is this government going down the same road and attacking Canadians' retirement plans? Why is it unable to do anything to help them? Why, when a company declares bankruptcy, are the workers not at the top of the list of creditors? Why are the banks and shareholders the ones who collect the money and why are there only ever crumbs left over for the workers? We have a government that is heading in the wrong direction, that makes bad economic choices, that always favours the same people, when people are in need and people in the middle class are having a hard time making ends meet. The middle class is shrinking and the Conservative government is not helping.

From 1980 to 2009, the purchasing power of the middle class has remained unchanged. The richest 20% became 38% richer. Over a period of roughly 30 years, their incomes increased by nearly 40%. The poorest 20% have seen their incomes drop 11.5%. The poor are poorer today than they were in 1980 because they had greater purchasing power then than they do now. The middle class has stagnated; there was no increase. Middle class incomes did not go up. If their income does not increase, how are they supposed to cope when the price of fuel, milk and meat increases, when the cost of groceries and rent goes up? What does this mean? This means that there are people who are poorer today. The middle class is poorer today than it was 30 years ago.

Shoving special legislation down our throats is not going to improve the situation or change anything. The government giving tax credits to the oil companies at every turn is not going to help Canadian and Quebec families. The government tells us it gives families tax credits, but, again, those families have to have enough income to pay income tax in order for such credits to be of any benefit.

Allow me to come back to the issue of the Canadian Pacific negotiations, because they are at the centre of today's discussion and of this infamous bill that the Minister of Labour will be introducing.

I want to speak about fatigue management. Canadian Pacific workers are constantly on call. They must be reachable by telephone 24 hours a day, seven days a week. There is a real problem at Canadian Pacific, that of fatigue management. There was a pilot project that lasted five years. This phenomenon, which affects hundreds of workers across eastern Canada, was studied. The issue was studied because there is a real problem with fatigue at work. Solutions were found, but nothing was done.

Today, we have a government that is helping an employer perpetuate a dreadful situation where employees working conditions subject them to extreme fatigue. Canadian Pacific workers have put forward legitimate demands at the bargaining table.

Just imagine: what was the demand for a person who has worked several weeks full-time? Two 48-hour break periods per month, real breaks, just to sleep. From time to time, it feels good to be able to sleep at night, and not during the daytime, because it is not the same quality of sleep. The workers documented this, had a study done, and came up with concrete solutions.

It is 2012 and we still have to fight to get days off, to be able to say that enough is enough, that we have worked long enough, and that we would like to spend a couple of days at home. The fact is that Canadian Pacific workers are unable to plan anything at all because they are always on call. Why not come up with a freely negotiated solution that says these workers will have two 48-hour periods per month when they can guarantee that they will be at home with their family and their loved ones? That is not asking too much. These demands are entirely reasonable.

What is this Conservative government doing? It is making it possible for the employer to perpetuate this situation. Canadian Pacific workers will continue to be tired. This not only has an impact on workers, their families, their family and community life, it also has consequences in terms of public safety. It is not in anybody's best interests to have people who are overtired managing trains. It may end up causing accidents and derailments. It is impossible to know what might happen.

We know that CP transports goods and sometimes dangerous goods. The trains sometimes go through residential areas, towns. Do we really want to have exhausted people working on or around those trains? Personally, I want CP workers who are healthy, proud of what they do and able to work under normal conditions. But they cannot at present. The Conservative government is totally insensitive to this.

This special back-to-work bill, the fourth in a year, will have an impact on public safety. That is shameful. It is shameful because not only does it send the wrong message and violate workers' fundamental rights, but it delays solving the real problems at CP.

Just imagine what will happen if this bill is passed and CP workers are forced back to work, even though they were exercising a legitimate and legal right. Imagine the poisoned work environment. This is not in anyone's interest, not even the company's. Problems that are not resolved today will still be problems tomorrow.

What the government is doing is putting things off, seeking a short-term solution and violating workers' rights. This will mean downgrading working conditions and reducing pensions, wages and leave; that is the message the Conservative government is sending today. This will leave scars on CP workers, and the problems that are not resolved will resurface with even more resentment, even more acrimony, because people will be frustrated. Forcing people back to work is never a good solution for the medium or long term. The government should have let the parties negotiate freely. The bargaining had not been going on for years. This strike is not very old.

The minister did not even wait 24 hours to issue her threat and hoist her sword of Damocles over the heads of Canadian Pacific workers. That is not a responsible way to behave. For once, we would have agreed with the Conservatives government's tendency to do nothing, to let the two parties continue negotiating. The government could have let the two parties—on the one hand, a strong union representing hundreds, thousands of workers, and on the other, a company just as strong, important to the country and profitable, which is a good thing—reach an agreement. Still, given that the company is profitable, it should treat its workers well because they are entitled to their fair share.

Another issue that this bill raises—and this has come up over and over again in the House over the past year or more—is the fact that just as this government seems driven to attack workers' rights and working conditions, so it seems driven to silence MPs.

The motion we are debating here today is basically another gag order, because it sets out very specific guidelines for the discussions and because the government does not appear very willing to listen. I will read the motion:

(a) the said bill may be read twice or thrice in one sitting;

(b) not more than two hours shall be allotted for the consideration of the second reading stage of the said bill, following the adoption of this order;

(c) when the bill has been read a second time, it shall be referred to a Committee of the Whole;

(d) any division requested in the committee shall be deferred until the end of the committee's consideration of the bill;

(e) not more than one hour shall be allotted for the consideration of the Committee of the Whole stage of the said bill;

Wow, one hour.

There are 308 members in this House, all parties combined. I do not have a calculator, but if we divide one hour by 308 members, that does not allow much time for everyone to speak, although when we are in Committee of the Whole, we should be able to propose amendments to the minister's bill.

Thus, at second reading, two hours of debate will be allowed, but during the Committee of the Whole, only one hour is granted. The motion continues:

(f) not more than one half hour shall be allotted for the consideration of the third reading stage...

It is a good thing we do not have a fourth reading, for it would get only 15 minutes, since the Conservatives are cutting the time in half each time.

Canadians and Quebeckers are starting to get a little tired of the government’s arrogant and condescending attitude, because we are seeing the gag being used repeatedly in this House. We have seen it several times. If my calculations are correct, today is the 21st gag in a year. That is a record I would not be proud of if I were a Conservative member, because it is an infringement of members’ freedom to speak to bills as fundamental as those.

We have seen this with other bills. Debate on Bill C-38, a bill that amends 69 acts and is 450 pages long, was gagged. That bill will therefore be considered by only one committee, the Standing Committee on Finance. In Bill C-38, the government is amending a lot of things and attacking a lot of rights. One third of the Act to implement certain provisions of the budget relates to environmental assessments. As they say, the connection escapes me. The bill also amends the Fisheries Act and fish habitat provisions. That is going to be considered by the Standing Committee on Finance. I imagine that the Standing Committee on Finance has invited a lot of fish habitat experts—or at least I hope it has—because that is a consequence of this bill.

Why is the government refusing to listen to parliamentarians, to members? Because it does not want to hear the amendments; it does not want to have suggestions; it does not want to agree to amendments; it does not like opposition; it does not like democracy; it does not like debate; it does not like discussion. One thing is clear: to the Conservative government, democracy means 35 days every four years.

We know that once the election is over, if we happen to have the misfortune of getting a Conservative majority government, it has no further need to listen to anyone and it does what it likes.

Excuse me, but that is not a healthy, living democracy. There has to be dialogue with the public, with the people. There has to be discussion with colleagues in Parliament. Unfortunately, we have a government that has a closed mind and even gags its own members, who might like to speak occasionally, but have to close ranks.

Recently, we had a few examples of someone who dared to think for themself, dared to use their critical thinking skills and say that it was perhaps a little extreme to impose a gag for a 450-page-long bill with consequences for a multitude of issues and subjects. But they were immediately brought to heel. Bam.

On the opposition side, perhaps we would also like to hear what the Conservative members have to say, what they are talking about, what they think. Do they think it is healthy in a democracy to have a bill of this kind shoved down the throats of parliamentarians—on which they are unable to express their views?

Unfortunately, the special back-to-work legislation is another demonstration of this. We have a government that will not take responsibility when workers lose their jobs. It says that nothing can be done; these are market forces at work; and it is really sad.

I really liked it when the Minister of Transport expressed his sympathy and his sadness about the 2,400 Aveos workers, even though the Air Canada Public Participation Act had provisions forcing it to maintain jobs, primarily in Montreal as well as other cities across the country. Now the minister is refusing to enforce it because Air Canada created a subcontractor, Aveos. Because of that, the legislation does not apply anymore and the government can wash its hands of the whole thing.

When that is the issue, the Conservatives sit on their hands and do absolutely nothing. However, when it is a question of people exercising their right to freedom of association, freedom of expression, to use pressure tactics and a possible strike, then, what does the government do? It does what it did before. It brings out the big guns and boom. It tells people to get back into line and go back to work, because it does not want any repercussions. The company is doing well, but it does not have to make any concessions. It is always the same ones who have to make concessions; it is always the workers who have to compromise their working conditions and their living conditions. For us in the NDP, the official opposition, this is not a fair and equitable standpoint. This is not the kind of society we want to live in. Why can they not simply let the parties express themselves and give free reign to the balance in union-management relations that we have found in this country? The collective agreement with CP had not expired very long ago and, before the government got involved, the negotiations were going well. The company is profitable and is able to talk with its employees. However, with the threat of special legislation hanging over them, I say again, the Minister of Labour has destroyed that balance and unfortunately given the advantage to just one side, the management side.

The official opposition—the NDP—is incensed and opposes this bill that attacks workers' rights. We are starting to get fed up with the attitude of this government, which gives tax breaks to big corporations that do not need them and does nothing to help people who have trouble paying their bills and providing for their day-to-day needs. That will be the fate of the CP workers if this bill passes and their pensions are affected and reduced in this way, as is expected. We are anxious to see what exactly is in the bill because we do not yet know what it contains. Will the government impose arbitration? Will it side with the employer? We are anxious to find out. We would have liked the Minister of Labour to introduce her bill today, but she does not seem to have the courage to do so.

I will close by simply saying that the official opposition vehemently opposes a special bill that forces workers to return to work, attacks their fundamental rights and worsens the working and living conditions of thousands of Canadians. It is unacceptable and we condemn it.

Continuation and Resumption of Rail Service Operations LegislationGovernment Orders

1:05 p.m.

Portage—Lisgar Manitoba

Conservative

Candice Bergen ConservativeParliamentary Secretary to the Minister of Public Safety

Mr. Speaker, it appears that every time this kind of impasse is reached between a company in Canada that keeps the economy going and is so important to our economy and the union, the opposition takes a pie in the sky attitude of hoping everything works out and of hoping for the best. It does not seem to matter how much it costs in terms of money and production.

My riding is obviously a strong riding in the agricultural sector. The railway service is so important, not just to immediate growth but to future growth in terms of markets and customers knowing they can depend on the producers in my riding.

I wonder what the opposition would say concerning a real solution to this problem, not just this pie in the sky, let us hope it all works out and everybody gets along. Government needs to take real action and real leadership on issues like this, but it seems the NDP is not prepared to take any kind of real action. What it really wants to do is just hope for the best.

Could the member opposite tell me what he would tell the farmers in my riding, as well as the forestry industry and the automotive industry across the country, about real solutions and not just hoping it all works out?

Continuation and Resumption of Rail Service Operations LegislationGovernment Orders

1:05 p.m.

NDP

Alexandre Boulerice NDP Rosemont—La Petite-Patrie, QC

Mr. Speaker, I want to thank the hon. member for her frank question.

To use an expression that we hear around here from time to time, I do not agree with the premise of the question, quite simply because it is irresponsible and completely bizarre to have a minister interfere directly in the bargaining process of a profitable private company, when she should let the parties continue to negotiate. The strike is less than 24 hours old and right away the Conservatives have to pull out the threat of back-to-work legislation and completely disrupt the bargaining process. An agreement might have been reached, a solution might have been found that might have provided an answer for the people in her riding and for those who need goods to be transported. Nonetheless, if it is action they are looking for, where is the government's action to save the jobs at Aveos?

Continuation and Resumption of Rail Service Operations LegislationGovernment Orders

1:05 p.m.

Liberal

Kevin Lamoureux Liberal Winnipeg North, MB

Mr. Speaker, the Liberal Party has expressed a great deal of concern about the way in which the government is trying to bring things through, in what we would argue is an inappropriate fashion, to draw this matter to a close.

Through this resolution, the government is suggesting that the bill, whenever we see it, would ultimately pass second reading and then the House would go into committee of the whole. Going into committee of the whole would not allow representation from management or union reps, for them to be able to come to Ottawa to share and express their concerns with the government first-hand, given the government's determination to get directly involved by bringing this legislation forward.

Does the member support our not going into committee of the whole but rather taking this matter outside committee of the whole, so individuals other than members of Parliament could make presentations and answer questions pertaining to this important issue?

Continuation and Resumption of Rail Service Operations LegislationGovernment Orders

1:05 p.m.

NDP

Alexandre Boulerice NDP Rosemont—La Petite-Patrie, QC

Mr. Speaker, I want to thank the hon. member for that very relevant question.

Indeed, we in the official opposition, in the NDP, share this concern. We have a bulldozer government. It is bulldozing again with this special legislation. As a result, it will be up to us here in this House to sort this out. We will be unable to invite people and hear what people from the general public, civil society, businesses, unions, and universities might have to say on the impact of such legislation. Everything is staying in the House. The government is rushing it all through in three and a half hours and does not want to hear a thing from anyone.

My colleague's question is quite simple: could we, once in awhile, take the time to do things properly?

Continuation and Resumption of Rail Service Operations LegislationGovernment Orders

May 28th, 2012 / 1:10 p.m.

NDP

Raymond Côté NDP Beauport—Limoilou, QC

Mr. Speaker, I congratulate my colleague from Rosemont—La Petite-Patrie on his speech. I very much liked the image he used, at the start of his speech, of the government as a repeat offender. It seems to me that that is quite apt. As a member of the Standing Committee on Justice and Human Rights, I have noticed that the government members talk quite a bit about repeat offenders. They always wonder how best to deal with recidivism.

My colleague was very eloquent and stated the facts very clearly. In short, this government is completely abandoning the people of this country. I know what I am talking about, because my riding went through the brutal closure of a plant that is due to reopen soon. However, the workers still do not know under what conditions the plant will reopen. I am talking about the Stadacona plant of White Birch Papers, which is owned by foreign investors.

Something else that has not been considered is the fact that many companies have unfortunately come under foreign control. Workers then lose many benefits, and much of the company's profits goes out of the country.

Could my colleague elaborate on this? This is another truly distressing aspect of what the government is doing, and it may raise the review threshold under the Investment Canada Act to $1 billion.

Continuation and Resumption of Rail Service Operations LegislationGovernment Orders

1:10 p.m.

NDP

Alexandre Boulerice NDP Rosemont—La Petite-Patrie, QC

Mr. Speaker, under the pretext of wanting to stimulate investment, the government is handing our raw materials, our natural resources and much of our industrial sector over to foreign investors.

I share my colleague's concern. We are losing control of our own economy. We have a government that is deaf and blind when it comes to maintaining an important manufacturing structure in Canada. It is letting jobs go to other countries. When plants close, the government is sympathetic, but sympathy is not enough. We want jobs and a real job creation plan for Canada.

Continuation and Resumption of Rail Service Operations LegislationGovernment Orders

1:10 p.m.

Conservative

Leon Benoit Conservative Vegreville—Wainwright, AB

Mr. Speaker, the member opposite is not supporting the government's back-to-work legislation, and he is doing that on some blind ideology. I have a couple of things about which I would like him to think and comment.

A few thousand rail workers are holding captive thousands of farmers who need fertilizer right now to finish putting their crops in the ground. This is an urgent thing. Much of this fertilizer is shipped by rail. These same farmers have to sell their crops, which are shipped by rail, and they truly are captive shippers. They have no choice. In most cases they do not even have the choice of CN Rail because the rail tracks run across western Canada in particular, a CN track, a CP track, CN-CP tracks, so there really is no competition when it comes to rail movement. These are bulk goods that require rail movement to be moved in an economically viable fashion.

I would normally agree with the member that workers and management should work out a deal, but in this case, where many captive shippers whose income and livelihoods are damaged so much by this stoppage, why is he only focused on those few workers? Why is he not focused on the several thousand farmers and others who are hurt badly by this work stoppage?

Continuation and Resumption of Rail Service Operations LegislationGovernment Orders

1:10 p.m.

NDP

Alexandre Boulerice NDP Rosemont—La Petite-Patrie, QC

So few workers, Mr. Speaker? Five thousand workers? Five thousand families in this country are hit by this company, and the government is taking sides with the company. Come on.

I imagine that the farmers he is talking about are those who were in favour of maintaining the Canadian Wheat Board. The government should not listen to them, only when it suits.

It is really practical from our side, from the NDP side, to let the parties freely negotiate. Of course there is some pressure. That is the name of the game. However, the government is going to scrap all the bargaining balance we have built in this country. It is so sad.

Continuation and Resumption of Rail Service Operations LegislationGovernment Orders

1:15 p.m.

Liberal

Kevin Lamoureux Liberal Winnipeg North, MB

Mr. Speaker, it is with pleasure that I rise to put a few words on the record about what we believe are very important issues that all Canadians no doubt are concerned about.

I appreciate the question that the member opposite posed, but only in the sense that we within the Liberal Party have always advocated how important it is for us to look at the larger picture. In fact, members will recall that the leader of the Liberal Party, last fall, talked abut the importance of jobs and how we need to put more focus on creating jobs. We talked about the importance of our railway lines just last week. I had the opportunity to talk about railway safety and the important role railways play across our country from coast to coast to coast in providing good quality jobs and the leadership that is required from management and so forth to ensure not only that those jobs are going to be there but that the company as a whole is going to be able to survive, to build and to ultimately provide opportunities for all Canadians.

When we talk about our railway system, we look at the benefits, whether it is the potash, the wheat, the coal, the imports or the exports of manufacturing products all over our country from international to national. We all recognize and appreciate the critical and vital role our railway workers play, and have played, in building us to the nation we are today. There is no doubt that a vast number of Canadians are watching with interest, in terms of what is happening with this potential strike situation and how the government is dealing with the issue at hand. Having said that, the workers themselves have a great number of concerns, as does the management group.

What I would like to talk about is this particular government's and this Minister of Labour's approach in dealing with labour issues. This is not the first time the government has brought in labour legislation, in essence forcing people to go back to work, and it has been at a great cost.

A number of years ago, I used to be a critic for labour in the province of Manitoba. One of the things I recognized is that there has to be a balance between labour and management and the dialogue that occurs there. I would argue that a minister of labour not only has a responsibility to talk about at least a free balanced collective bargaining process but also an obligation to ensure, as much as possible, that it is in fact being adhered to.

In one of her statements, she made reference to the fact that she believes she is providing balance. I take great exception to that. Many members of this chamber take great exception to the minister saying she believes in a balanced, fair collective bargaining process because, as I pointed out in my question, the government, especially since it has achieved its majority, has made it very clear that it does not support balance when it comes to a collective bargaining process. That has been more to the detriment of the worker than the corporations.

What I would like to do is to highlight a couple of those issues that clearly demonstrate that the government does have a very strong bias that is anti-worker.

Members will recall that not too long ago, we actually had back-to-work legislation for Canada Post workers. Members will recall that they actually had negotiated some salary increases—and that would have been in January 2011, I believe—where some consensus and concessions were given in which there were going to be some increases to salaries.

Well, the Conservatives brought in back-to-work legislation a few months later that actually rolled back those salaries to which union and management had agreed. The government was more than eager to support and show its bias toward Canada Post in bringing in that back-to-work legislation.

The government has brought in back-to-work legislation twice in relation to Air Canada. I have stood up on numerous occasions in this House to tell the government that it needed to hold Air Canada to account for being in violation of the Air Canada Public Participation Act. Thousands of jobs were lost and the government allowed Air Canada to just walk away from it. There was no accountability for those jobs being cut and lost. The Conservatives said it was third party because it was Aveos.

Let us look at what the legislation that was passed inside this House said. Those jobs were supposed to be there in Winnipeg, and I represent a good portion of that city, Mississauga and Montreal. What did the government do? It sided with Air Canada Corporation and chose not to apply any pressure on that company when it came to making it fulfill a legal requirement that was passed in the House of Commons years ago.

What did the government do when there was a threat of a strike not once but twice? Even before the moves toward getting into a strike situation, the government threatened back-to-work legislation. True to form, it brought in back-to-work legislation. This is why I believe that the government has no real credibility.

The minister can stand inside this chamber and say she believes in a fair bargaining process, but I would suggest that actions speak louder than words. In this case, we will find the government does not support fair and balanced labour negotiations between unions and management.

People need to be concerned about that because we are talking about going forward with future negotiations that might be taking place in other sectors as well. We have a minister who is very biased, who works against unions and has not demonstrated an interest in hearing what unions have to say.

On Friday and Saturday this past week, I was walking with some CP Rail workers along some lines on McPhillips, Jarvis and two different spots on Keewatin. I had the opportunity to meet with workers who have made a career out of being engineers and conductors and others. These are individuals who are very proud to be working for CP Rail. Yes, they have some general concerns regarding the ownership issue in terms of Canadian content on boards and how that might be shifting over to other jurisdictions, particularly to individuals coming in from the U.S. to take control, or management issues. There are some very serious concerns regarding that.

While we were walking the line, the types of issues they were talking about were best said in a document they provided to me. I indicated that I would likely get the opportunity to address the House. I figure it is good for me to raise these issues because I feel very comfortable in knowing that the government and this particular Minister of Labour are definitely listening to what CP Rail is saying. However, I am not convinced that she is listening to what the workers have to say. Again, I believe there needs to be balance.

As much as I am very interested in hearing, and my door is always open to what CP management would have to say, I would like to share with the minister some very specific comments that I believe individuals who have been walking the line want this minister and the Prime Minister to be aware of. These are the types of concerns they are talking about at the table. I am going to go through about six points.

The first point is that CP wants to reduce future pension income for active employees. The amounts vary by income but are they up to 40%. Without a doubt, at all three locations where I walked, that was the biggest concern raised. The workers are very much concerned about their future when it comes to retirement. They want to know that they will have a good, viable pension after they have had the opportunity to put in their 30-plus years, or whatever number of years it might be. That is not so different from what many other Canadians want to have, pensions. The union has been asking for that.

The next point is that CP wants to devalue past pensionable service of unionized employees.

The next point is that CP wants to reduce retirement health care benefits and eliminate benefits at age 65, a reduction of over $20,000 per member.

The next point is that CP refuses to address the fatigue management proposals, or adequate time off to recover from the effects of fatigue or problems related to earned days off.

Another point is that CP refuses to address pooled regulation language affecting earning ability and stability.

Another point is that CP refuses to address its own sharp practice regarding seniority freeze to temporary managers and insists its own DB pension benefits must continue to escalate and they must receive more.

Those were some of the points that had been provided to me as I walked along the line.

There is one point that I will quickly make reference to, but I understand there has been some significant leeway on this. The CP demands represent excessive concessions to work rules, such as 12 hours without rest, working double subdivisions, raising the 3,800 monthly mileage maximum, extending road switcher limits to 50 miles and no wage increases for 2012.

I believe much of the last point has been in good healthy discussions, and we hope that will in fact continue.

Those are the types of concerns of which we believe the Minister of Labour needs to be made aware. She has not really demonstrated that she has listened to what the workers have had to say. We know, and feel comfortable in saying, that the minister is prepared to advocate on behalf of CP Rail.

We are concerned with regard to the whole issue of balance. That is the reason why I thought it might be appropriate to read into the record some of the concerns individuals who walk the line have and suggest that the government be more sensitive to those needs.

I want to highlight a couple of other things before I go onto the whole process issue. One is in regard to how very important the role that CP Rail, along with CN, plays in our economy. We recognize that and acknowledge it.

Being a prairie member of Parliament, I know full well, whether it is Saskatchewan and potash, or the three Prairie provinces and wheat, or coal or other mineral distribution, how critically important the role of CP Rail is in getting that distribution out throughout the world. We recognize that.

I made reference to the fact earlier that we had many imports that came into our country, through Vancouver and other ports. They are very dependent on having CP Rail there for them to transport those goods. We acknowledge that. We recognize the important role that CP plays in our economy. However, that does not give the government the right to walk all over union workers.

The minister made reference to the previous Liberal government. If the members look into it, they will find that there was much greater leniency in what the Jean Chrétien government did back then. Let us not try to kid anyone. I believe political parties of all stripes, whether at the provincial or federal level, have seen the merit of having to bring in some form of legislation to ensure people go back to work or companies are re-established so the broader interests of the community are served. I do not believe the government has provided that opportunity to CP Rail and the CP union. Both knew full well that the government would bring in this type of legislation, even though we have not seen the legislation.

The government is so predictable on that point. The government has not provided that balance of fairness, which takes away from the free bargaining process. I encourage the government to revisit its commitment to that process because it is definitely lacking, and that is putting it as politely as I can.

As I pointed out, we do not actually have the legislation before us, but we have a resolution about how that legislation will be dealt with. I mentioned this in the form of a question earlier. One of the biggest concerns the Liberal Party has is that the minister has suggested that after it has completed second reading, it go into a committee of the whole and that there be a one-hour time limit put on that committee. We do not know how many clauses will be in the bill. We do not know what the actual content of the bill will be. All we know is that it will have something to do with back to work for the CP workers. We do not know anything more than that. The point is that the Conservatives are saying that the legislation, once brought in sometime this week and then forced through second reading, will go into a committee of the whole.

The problem with committee of the whole is we will have a very limited ability to garner experts outside of other members of Parliament to contribute to a very important debate. If this bill were to go to any other committee outside of committee of the whole, where we could call upon witnesses to come before the committee, we believe that would be far healthier for the system. Even though the legislation is somewhat premature at best, at least having it go into a committee, we could have CP management and union representation present to express the concerns they have with regard to the legislation and to maybe talk about the importance of having fair, balanced labour relations in our country. This would be of great benefit to all Canadians.

The government says that this is about every Canadian. I suggest that going into a committee outside of committee of the whole would ensure that those Canadians, whom the government says it wants to protect, would have more direct input as to what would take place with the legislation.

Continuation and Resumption of Rail Service Operations LegislationGovernment Orders

1:35 p.m.

Conservative

Leon Benoit Conservative Vegreville—Wainwright, AB

Mr. Speaker, I listened to the member opposite and there are two points I want to quickly bring out.

First, he and the NDP colleague who spoke before him both talked about the importance of having witnesses from labour and management appear at a committee. I have heard from union members and I have heard from farmers who have been affected by the rail stoppage already. Many farmers are concerned about the damage that will be done, damage that will never be recovered from and losses that will never be regained. I have heard from people on both sides of the issue. I do not know what the MPs opposite are doing and why they are not meeting with people from labour and management and getting that information. Why are they not prepared to bring this to the House? That is part of our job as MPs.

Second, the member opposite acknowledged the impact on farmers and all the other industries that depended on CP Rail to move bulk shipments, but then said that this was between labour and management. It is not. There are individuals who are affected directly by this, but they have no place at all at the table. That is why our government is giving them a voice in this process.

Would he comment on those issues?

Continuation and Resumption of Rail Service Operations LegislationGovernment Orders

1:35 p.m.

Liberal

Kevin Lamoureux Liberal Winnipeg North, MB

Mr. Speaker, the member's government, his Minister of Agriculture, brought in legislation just last year which in essence would kill the Canadian Wheat Board. That was in opposition to over 20,000 plus farmers who wanted to retain the Canadian Wheat Board. Any potential strike CP could have had would have had nowhere near as much impact on the grain farmers in the Prairies as killing the Canadian Wheat Board.

Looking at it from the point of view of whether it is potash or the Wheat Board, we recognize the important role that CP plays in the distribution of those commodities. We do not question that. What we do question is the Minister of Labour's ability to ensure that there is some sense of fairness when it comes to the whole issue of negotiations at the labour table. She has demonstrated a bias that is anti-union. That is very hurtful for the industry as a whole, whether it is the railway industry, the airline industry or our postal system.

Continuation and Resumption of Rail Service Operations LegislationGovernment Orders

1:35 p.m.

NDP

Alexandre Boulerice NDP Rosemont—La Petite-Patrie, QC

Mr. Speaker, I would like to thank my colleague for his speech and ask him a very simple question.

This government keeps interfering in the free bargaining process that exists in this country, and attacking workers' right to organize and to bargain. Canada has established labour relations, 99% of which are peaceful in this country, and yet we have a government that systematically hammers workers' rights and always sides with employers.

Is my colleague concerned about the context in which Canada's workers will be allowed to exercise their rights? Are we currently witnessing the breakdown of free bargaining in this country?

Continuation and Resumption of Rail Service Operations LegislationGovernment Orders

1:35 p.m.

Liberal

Kevin Lamoureux Liberal Winnipeg North, MB

Mr. Speaker, let us look at the government's track record since it achieved a majority government. We can talk about Air Canada that has had back-to-work legislation imposed on it twice. We can talk about Canada Post and its back-to-work legislation. Now we anticipate back-to-work legislation for CP Rail. Canadians should be concerned. I know we are concerned with regard to the manner in which the government has chosen to directly get involved in a way that gives the clear impression, and I would ultimately argue the reality, of taking a bias in favour of the business over the unions. I do not believe that is healthy for our country in the long term.

The Department of Labour and the Minister of Labour should be attempting to foster and improve labour relations at all the different levels, while at the same time looking at what is in Canada's best interest.

Continuation and Resumption of Rail Service Operations LegislationGovernment Orders

1:40 p.m.

Green

Elizabeth May Green Saanich—Gulf Islands, BC

Mr. Speaker, we are debating time allocation on a bill we have not yet seen. We have a sense of déjà vu. We also debated time allocation on a bill we had not seen with regard to the Air Canada pilots strike. In this light, I noted the hon. member called the current approach of the Minister of Labour predictable. My concern is that it is predictable to management as well as to those of us on the opposition benches. As it is predictable to management, it decreases the likelihood of collective bargaining rights being respected and collective bargaining working.

Does the hon. member for Winnipeg North share my concern?

Continuation and Resumption of Rail Service Operations LegislationGovernment Orders

1:40 p.m.

Liberal

Kevin Lamoureux Liberal Winnipeg North, MB

Mr. Speaker, there is no doubt it is an attitude issue. In good part, the government has brought in legislation that would have a very serious and severe impact on thousands of workers. This talks volumes about the government's ability or desire to have a fair process. The government's track record has demonstrated that it is not prepared to ensure that the system is fair. The legislation being brought in and the manner in which it is being brought in does not surprise me. This is a government that has moved some form of time allocation some 20-plus times since it achieved its majority government in just over a year, which is unprecedented. People of all political stripes in the House should be concerned.

It is time Conservative backbenchers start reining in the Prime Minister and their cabinet. Collectively, they could have a voice if they chose to use It.

Continuation and Resumption of Rail Service Operations LegislationGovernment Orders

1:40 p.m.

Simcoe—Grey Ontario

Conservative

Kellie Leitch ConservativeParliamentary Secretary to the Minister of Human Resources and Skills Development and to the Minister of Labour

Mr. Speaker, I want to take issue with what my colleague stated about the minister listening. Unlike opposition members, who listen only to their union bosses, the minister has met with all the parties. The minister has spoken with Canadians. She and our government are taking action now to protect Canadian businesses, to make sure Canadian farmers have an opportunity to move forward with their farms, to make sure the auto workers in my riding at Honda have an opportunity to ship parts into the plant and ship their products out.

Unlike opposition members, who refuse to move away from the cozy relationship with their union bosses, which, do not get me wrong, my constituents have an issue with, I wonder why they will not stand up for Canadians and protect the $500 million a week that this strike may cause to be lost, taking away jobs from Canadians and causing damage to the Canadian economy. Why will they not protect Canadian jobs?

Continuation and Resumption of Rail Service Operations LegislationGovernment Orders

1:40 p.m.

Liberal

Kevin Lamoureux Liberal Winnipeg North, MB

First off, Mr. Speaker, I would say that my door is always open if members of CP want to chat with me about their concerns. I suspect the minister has talked with CP officials. I am not convinced that she has listened at all to what the workers have been saying.

I take exception when the member talks about this caring attitude. I would like to make it very clear that the CP workers she is referring to also take a great deal of pride in where they work. They take a great deal of pride in the work they do for our Canadian farmers and the transportation of products. Yes, it would be nice to see the parties resolve this on their own in a very quick fashion. Unfortunately, the government has sent a very clear message that they do not have to negotiate an agreement because it is going to bring in legislative measures that would prevent any strike from continuing. There are no good faith negotiations when a government says it does not matter whether there is an agreement, because it is going to be legislating workers back to work. It is an issue of fairness, something that escapes the government.

Continuation and Resumption of Rail Service Operations LegislationGovernment Orders

1:45 p.m.

Simcoe—Grey Ontario

Conservative

Kellie Leitch ConservativeParliamentary Secretary to the Minister of Human Resources and Skills Development and to the Minister of Labour

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.

Continuation and Resumption of Rail Service Operations LegislationGovernment Orders

1:55 p.m.

Calgary Centre-North Alberta

Conservative

Michelle Rempel ConservativeParliamentary Secretary to the Minister of the Environment

Mr. Speaker, I was interested to hear my colleague talk about the ripple effect impacts of this strike on the Canadian economy. When I was in my riding last week, I heard about a business that had a turbine that was stuck and how that was affecting its workers.

I wonder if my colleague could go into a bit more detail on why this legislation is important in the context of the ripple effect on the rest of the Canadian economy.

Continuation and Resumption of Rail Service Operations LegislationGovernment Orders

1:55 p.m.

Conservative

Kellie Leitch Conservative Simcoe—Grey, ON

Mr. Speaker, CP Rail is a complex logistics system and the work stoppage is disruptive to the flow of goods across the country and to international destinations. A work stoppage at CP has the potential to cause this ripple effect throughout the entire Canadian economy.

According to Transport Canada, in 2010 CP Rail held $5 billion worth of potash, $11.1 billion worth of grain and $5.25 billion worth of coal. Stopping the inputs and the potential outputs from manufacturers and the individuals who work at these plants is substantive. This puts Canadian jobs at risk and the Canadian economy at risk.

We need to take action now. We need to put this legislation in place and bring people back to work so that we can get the rail service moving. We need to ensure that all of the other vital businesses in Canada are supported, that their workers are supported and that people can continue with their Canadian jobs.

Continuation and Resumption of Rail Service Operations LegislationGovernment Orders

1:55 p.m.

NDP

Jamie Nicholls NDP Vaudreuil—Soulanges, QC

Mr. Speaker, I am very concerned. Today we often heard a distinction made between a company and its workers. The word “corporation” comes from the Latin corpus, which means that it is the body of the people. As we can see here today, the body is sick.

Just 11 days ago, Pershing Square Capital Management took control of Canadian Pacific's board of directors. One person is happy about this and it is not a Canadian—it is a New Yorker. Bill Ackman is very pleased that the government is doing what he wants and passing special legislation to increase the company's profits for shareholders. At present, the only thing about Canadian Pacific that remains Canadian is its name.

Why does the government continue to protect a company that is currently being run by Americans? Why will it not promote the rights of workers here in Canada? Does it not see the valuable contribution that our workers make to the Canadian economy?

Continuation and Resumption of Rail Service Operations LegislationGovernment Orders

1:55 p.m.

Conservative

Kellie Leitch Conservative Simcoe—Grey, ON

Mr. Speaker, I mentioned earlier how the Minister of Labour was listening. The Minister of Labour has not just been listening to unions and union bosses but has been listening to all the parties as well as to Canadians. She and this government are acting to ensure that we are protecting Canadians, protecting Canadian jobs and protecting the Canadian economy. We are moving forward to ensure there is no work stoppage and that this strike does not continue, so that Canadian jobs are protected.

I encourage my colleagues opposite to finally step up for Canadian workers and Canadian businesses and ensure we get the rail service working again quickly.