Mr. Speaker, as I finished yesterday, I was talking about the history of the Port of Montreal and the dispute that has led us to this legislation. The government made a strong and concerted effort to help both parties come to an agreement over two and a half years. We did this because we firmly believe that the best agreements are the ones reached at the bargaining table. However, in some cases, despite our best efforts, the parties remain at an impasse and turn to their last resort, which is to take job action. Those are exactly the circumstances that we are facing now.
Let me explain why this work stoppage is so detrimental. The Port of Montreal is the second-largest container port in Canada. As I mentioned, every year it handles over 1.6 million 20-foot equivalent units and 35 million tonnes of cargo, representing approximately $40 billion in goods.
The Port of Montreal is central to the economic well-being of Canadians across the country, in particular in Ontario and Quebec.
The work stoppage at the Port of Montreal is causing major and permanent damage to Canada’s economy, further disrupting the supply chains, which are already considerably affected by the COVID-19 crisis.
The longer this work stoppage lasts, the more likely it is that commercial activities cannot resume, which would cause lasting damage.
We must act quickly, since the negative impact on the economy will only increase and become significantly worse in the coming days.
The port is an enormous operation involving enormous costs and the potential for enormous loss. We are not just talking about temporary losses either. Some shippers forced to reroute shipments to other ports may not return. Others may not return in the short term. This means that economic harm could continue long after any work stoppage has ended.
As I mentioned, the rerouting of container cargo is a major factor. The redirection of cargo has been occurring for weeks, even before any job action had begun. Some businesses have been rerouting containers to other ports in Canada, such as Halifax. Others have been going to ports in the United States, such as Boston, to avoid becoming stranded in Montreal.
It is not only rerouting cargo that is a problem. There is also a cost that comes with the delay of imports. Interruption to supply chain flows can be particularly costly to manufacturers and retailers, especially in the case of a more prolonged dispute. We also have to consider export delays. Missing delivery deadlines, potentially losing sales and wasting products, such as perishable goods that cannot be properly stored or handled, all spell out significant losses.
A prolonged work stoppage would also have a serious impact on jobs. The port sustains tens of thousands of jobs. This includes both direct jobs, such as people who work for terminal operators, and indirect jobs, such as people who transport goods to and from the port, and those who work for companies that are serviced by the port. The first workers who are expected to experience job impacts are those in employment that directly support ongoing operations at the port. This includes terminal operators, tugboat operators, freight forwarders and truckers, among others.
As the stoppage continues, these impacts are expected to spread to indirect interests, such as local companies that provide services to the port, such as refuelling services to vessels and tugboats. A backlog at the port would have additional impacts, such as reduced hours or temporary layoffs on workers and businesses that are unable to reroute necessary production inputs through other ports, particularly those in the manufacturing, construction and sales sectors.
In short, the longer a work stoppage continues, the more damage will be done. The work stoppage at the Port of Montreal is resulting in economic loss to the Canadian economy and it will grow more with each passing day that the work stoppage continues. The fact of the matter is this is a loss no one can afford these days. All of this comes at a precarious moment in Canada's economic recovery from the ongoing pandemic. Supply chains have been disrupted for over a year now and industries are working hard to recover from and manage these complexities.
Following the job action notice from the parties on April 12, Canadian Manufacturers & Exporters issued a news release calling on the government to step in. In its news release it stated that some manufacturers had already incurred millions in additional costs every week as a result of redirecting their containers to the Port of Halifax. This was before the work stoppage even began. It noted that while industry will have to absorb these costs and delays, it will ultimately hurt consumers. We must take these warnings seriously. While our government agrees that the best agreement is always one that is reached by both parties at the bargaining table, the fact is that is not always possible.
Our government provided considerable and ongoing support and encouragement to the Maritime Employers Association and the Syndicat des débardeurs, also known as CUPE Local 375, during the collective bargaining process to help them reach an agreement satisfactory to both parties.
As I said before, our federal conciliators and mediators have been working with the parties for more than two and a half years. They provided support at more than 100 bargaining sessions. Unfortunately, in cases like this, despite our best efforts, the parties have been unable to reach an agreement. The reality is that the negative impacts of a work stoppage on the economy could be severe, widespread and long-lasting. There has been no agreement, and there is no end in sight.
For all these reasons, our government must protect the Canadian economy and minimize losses to businesses. That is precisely why we are tabling back-to-work legislation. Once it has received royal assent, the bill will order an immediate return to work and the resumption of operations at the Port of Montreal. The most recent collective agreement will be extended until a new one is adopted.
We have tried all other avenues. We have put our conciliators and mediators at the table. They have much skill, but it has not worked. We cannot stand by and do nothing. We cannot allow thousands of Canadian jobs to continue to hang in the balance.
Believe me, introducing legislation to end the dispute was a difficult decision. We were very much hoping for a different outcome. Unfortunately, we find ourselves in an impossible situation. It is at times like these that we must balance the needs of workers with the needs of the Canadian economy, and while we continue to hope the parties will reach a deal before this legislation is adopted, we must move forward with it in the meantime.
It is absolutely necessary that we keep this port open and fully operational. National and regional economies depend on it for both the immediate and distant future. We cannot afford such an economic loss, and we cannot afford to sully our reputation as a reliable trading partner.
In conclusion, I ask the members of the House to give careful consideration to the points I have brought up today. I ask them to think about the severe and lasting damage we are facing here, both in the short and long term. I ask them to do what needs to be done to get the Port of Montreal fully working again and pass this legislation now.
