Mr. Speaker, before I begin, I would like to inform you that I will be splitting my time with the member for Brampton Centre.
I rise to participate in this debate with regret. Since our election in 2015, our government has been working with organized labour and employers in finding ways Canadians can work together to address the issues facing our nation. Let me be absolutely clear. Our government is committed to free collective bargaining, and believes a negotiated agreement is always the best solution.
I listened very carefully to the Minister of Labour as she outlined the steps she has taken on behalf of our government to help Canada Post and the Canadian Union of Postal Workers reach a collective agreement. Federal mediators assisted the parties throughout the negotiations, a special mediator was appointment to help break the impasse and voluntary arbitration was also offered. The Minister of Labour told us that she and her colleague, the Minister of Public Services and Procurement and Minister of Accessibility, reached out directly to both parties. The special mediator was brought in once again to try to help the parties resolve their differences and reach agreements that work for everyone. All these efforts have not yet broken the impasse.
At the same time, rotating strikes have been disrupting Canada Post operations in more than 200 communities across the country. That is certainly true in my riding of Brampton West, where Canada Post has an office on the same street as my constituency office. Those strikes have been under way since October 22. We are all aware of the serious impacts these strikes are having on Canadians and Canadian businesses.
Let me begin with the people who are most impacted. Canada Post is an iconic Canadian institution which has been connecting Canadians for more than 250 years. Even though more and more Canadians communicate by email and social media, we know Canadians have a strong connection to personal letters, parcels from loved ones and holiday cards, especially during this time of the year.
Canada Post has a network of over 6,200 post offices across Canada, which serve as a vital link for many rural, remote and isolated communities, especially in our northern regions. Nearly nine million Canadians, 30% of our population, live in those areas. I think of all those families who depend on Canada Post. I have received many calls, emails and visits from constituents who have been tremendously impacted by the strike.
We simply cannot ignore the impacts any disruption in mail and parcel services would have on our fellow Canadians, especially during this time of the year. For instance, Canadians living in the north received nearly twice as many parcels per capita as other Canadians in 2017. Any alternatives, such as courier companies, are simply too expensive. In some remote northern areas, there are no alternatives. I am also thinking of Canadians with disabilities and all those with mobility challenges who rely heavily on Canada Post. We are talking of approximately two million Canadians, nearly 50% of seniors.
Our government heard their concerns clearly and loudly when we put an end to the conversion of home delivery to community mailboxes. It seems to me our most vulnerable citizens bear a disproportionate impact when access to important services is interrupted. For me, it is a matter of fairness and equity.
I will now turn to the negative impact on Canadian businesses of all sizes that rely on Canada Post to deliver their invoices and payments. I have heard from the business community in my riding of Brampton West as well.
The rotating strikes have already caused significant delivery delays. Orders have been cancelled. Small and medium-sized businesses have far fewer resources to weather the impact of any disruption in their cash flow. This translates directly into less business, lost sales and fewer jobs. There are also reports of declines in e-commerce demand, reduced seasonal employment and indications that making alternative arrangements for shipping has been costly, especially damaging when businesses are normally getting ready for their busiest season and hiring more staff, including students, to handle the influx.
I want to speak briefly about parcel services. The growth in e-commerce has been one of the greatest trends over the past decade or so. According to Statistics Canada, Internet-based sales from all retailers rose 31% to $15.7 billion in 2017. It has generated significant business for Canada Post. This was confirmed by the independent task force that completed an in-depth review of Canada Post. I would encourage members to read the analysis entitled, “Canada Post in the digital age”. It states, “Canada Post segment parcels revenue increased by over $400 million between 2011 and 2015, representing an average annual growth of 7.8%. Volume growth has been driven by e-commerce, and has such been growing consistently over the last five years.” This upward trend is going to continue.
We also know that up to 40% of Internet sales take place in the fourth quarter, which is bearing the brunt of the rotating strikes. Not to be overlooked is the disproportionate impact on the smaller companies that operate as e-sellers. They operate on very thin margins, which means that many of them cannot afford the higher cost of shipping through courier companies.
We also cannot ignore the impacts beyond our border. As we heard, Canada Post has asked its international partners to halt mail and parcel shipments to Canada as it continues to deal with a major delivery backlog that has grown as a result of the rotating strikes. As a trading nation, our reputation as a reliable market for commerce and trade is of paramount importance. That is why our government is taking action and is prepared to move forward with legislation that would require the parties to continue postal services and return to work.
As Parliamentarians, we have an obligation to do our best to help protect the public interest, the well-being of our fellow Canadians and the future of our Canadian businesses. Our government has shown tremendous faith in our collective bargaining process. We have allowed both parties to carry on their negotiations in the hope that they would find common ground and reach an agreement, and we continue to hope that will happen.
The strikes are having a very serious impact on Canadians and Canadian businesses that depend on the services provided by Canada Post. We must be ready to act and take action now, otherwise the impacts of the rotating strikes will only continue to escalate and compound over the coming weeks.
This legislation is a last resort and, as the Minister of Employment, Workforce Development and Labour has indicated, it is not something our government takes lightly. However, having exhausted all other possibilities, we believe it is the only option.