Mr. Speaker, Canadians may not even realize just how great the railways impact on the economy. I want members to consider these facts. Canada has the third largest rail network in the world and it handles the fourth largest volume of goods in the world. Two-thirds of Canada's rail traffic moves transborder and overseas trade. In fact, 40% of Canada's exports rely on rail transportation. With no trains running, the implications of this strike are widespread.
Let us take a look at Canadian Pacific Railways book of business.
Transport Canada reported that in 2010 CP Rail handled 74% of all potash, 57% of all wheat, 53% of all coal and 39% of all containers within Canada. In terms of revenue on an annual basis, this represents $5 billion worth of potash, $11.1 billion worth of grain and $5.25 billion worth of coal.
In addition to moving the potash, the wheat and the coal, the bulk commodities, this work stoppage is also impacting the manufacturing sector, the auto industry specifically. Auto parts are the third largest container import good that enters Canada through the west coast ports. This work stoppage is preventing these parts from being shipped to manufacturers here in Ontario.
Along with some members of our caucus, last evening I met with representatives of car manufacturers who told me that without the parts they need, assembly lines will slow down or stop, resulting in lost production and, depending on the duration of the work stoppage, possible layoffs affecting all auto manufacturers.
In regard to container traffic, $200 million of cargo is traded through the port of Vancouver alone every day. That cargo is destined for Canada's economic trading partners and the homes of hard-working Canadian families.
The economic impact stretches even further as Canada's rail companies paid $787 million in fuel last year, property taxes, sales and other forms of taxes in 2010, and over $2.5 billion annually in wages and benefits. That is the money that circulates through the entire Canadian economy. I think members can understand why our government is so concerned about the work stoppage at CP Rail and the fact that activity has been ground to a halt.
I want to be clear. Resorting to a work stoppage is not the norm for labour relations here in Canada. In fact, it is just the opposite. When the labour program is engaged through mediation and conciliation officers, 94% of negotiations and disputes are actually resolved without a work stoppage. We do see this, undoubtedly, as the better option.
When parties choose to resolve their differences, both the employers and the unions carefully consider the importance of maintaining the strength, the viability and the competitiveness of their operations. When parties choose to resolve their differences, they are recognizing that work stoppages and labour instability leads to long-term and generally detrimental impacts on the future of their company, on job prospects for new employees, on the customers they serve and on the national economy. However, that has not happened in this case and we are on day seven of a work stoppage.
There is no denying that negotiated agreements work. As we have always said, the best and the longest lasting solution to any labour dispute is when the parties come to an agreement at the table. However, there are instances when the parties are just too far apart to reach a compromise.
Let us look at the current dispute. In the case before us between CP Rail and the Teamsters Canada Rail Conference, there have been repeated efforts to break the impasse and the parties have tried to reach contracts for all the people who are involved. The TCRC, the teamsters, and the CP Rail representatives actually started negotiating in October and November 2011. The main issues in this round of bargaining for both units are important. They are pensions, health care benefits and working conditions.
However, by mid-February of this year I received notices of dispute from the employer for both units indicating that they needed some labour intervention. We provided the parties with the services of two conciliation officers for both unions' bargaining units. It made sense to have the same conciliation officers for both units so that we could have some consistency in the process.
Unfortunately, reconciliation was not achieved and, quite frankly, things have not progressed toward negotiated agreements. As such, the parties were released from conciliation on May 1.
On May 16, I met with the representatives in Calgary where I proposed a five point plan that would have provided extended mediation services for 120 days to the parties, as well as have a third party expert in pensions at the table, which would have delayed the possibility of a work stoppage. This was in recognition of the difficulties the parties had in terms of negotiations. Unfortunately, the union rejected this offer and the work stoppage began on May 23.
Even after the strike commenced, we provided assistance to the parties every single day.
However, on Sunday, May 27, the mediators tabled draft terms for voluntary arbitration that represented, in their view, a compromise solution to help address the impasse and avoid back-to-work legislation. In very short order, in under an hour, both parties rejected this compromise voluntary arbitration.
As a result, the officials from Labour Canada withdrew their services because, in their opinion, they determined that the positions of both parties were so entrenched that no forward motion was possible.
In situations where no resolution is in sight, where a strike is ongoing and the lives of Canadians and the health of the economy are being affected, the government has no option but to act. Indeed, the government has an obligation to act, which is why our government is introducing Bill C-39. It would end the work stoppage but it would also provide the parties with an interest-based arbitration process to help them resolve their conflict with the help of an arbitrator.
I can assure my hon. colleagues that this was not our first choice. Members on this side of the House do believe in the right to collective bargaining and would much prefer to see labour disputes resolved by the parties involved, as it is done a vast majority of the time. Our government only intervenes in situations where the public interest is seriously threatened, which is the case today.
History will show that, in 1995, the Liberal government at the time was faced with the same economic situation as a result of a rail labour dispute. It was during the debate on the back-to-work legislation in 1995 that the Liberal labour minister, Lucienne Robillard, stated in the House of Commons:
We would be lacking in our duty to the people of Canada if we allowed a work stoppage in the railway sector to threaten the stability of our economy and the jobs of the thousands of workers affected by this dispute.
It is this duty to Canadians and to our economy that I am asking for this House to support Bill C-39, an act to provide for the continuation and resumption of rail service operations. It is because there is so much at stake for individual rail workers, the company, businesses and their employees who depend upon CP's services and, quite frankly, ultimately, the economic recovery itself.
I would ask hon. members to ask their constituents, particularly the businesses in a constituency. I know what they will hear. They will hear that we cannot afford an extended work stoppage in one of Canada's most important transportation systems. The risks to jobs, to corporate profits and Canada's global competitiveness, frankly, are too great. Like other industrialized economies around the world, Canada is coming out of a difficult economic period.
While our government is proud of our record of sheltering Canadians from the worst effects of the downturn and laying the foundation for recovery, we all read the papers every day.
We all know our country is not immune, however, to currents in the world economy, events beyond our borders over which we have no control. We have uncertainty in Europe at the moment, and there very well could be more turbulence in the days and months ahead. Therefore now is not the time to risk our economy, especially considering that we are making steady progress in creating jobs and restoring consumer and investor confidence.
I do want to remind my hon. colleagues that as of April 2012 our unemployment rate has dropped to 7.3%. That is a definite improvement over last year. That is no wonder, because we added 58,000 new full-time jobs last month alone. However, to maintain this progress and to promote economic growth we need to be vigilant. We cannot afford to allow labour disruptions to continue in a major industry so crucial to domestic trade and our international exports. A labour stoppage in this key sector of our economy would be a serious impediment to our recovery and growth, because quite frankly, the domino effect throughout the economy of a prolonged work stoppage at CP Rail could mean major losses at home or abroad.
What needs to be understood is this. There is much more at stake here than issues on a bargaining table. The employees represented by the Teamsters want to be treated fairly and they want our respect for their rights under the Canada Labour Code. Our government clearly understands this. However, Canadians have rights too and Canadians gave us a strong mandate to protect the economy. This strike affects more than CP Rail and its workers. It affects Canadian businesses, Canadian exporters, Canadian farmers, Canadian miners and Canadian ports, and it affects Canadian families. A prolonged strike puts other people's livelihoods at risk. It is those people's interests that we are acting for in proposing this legislation.
In opposing the bill, the opposition is putting its pro-union ideals squarely ahead of two things, common sense and the national economy. Its vision is narrow and it only stands up for special interests. I urge all hon. members to pass this bill as quickly as possible.