Lloyd Axworthy

[West Coast Ports Operations Act, 1994, February 8th, 1994]

Mr. Chairman, I take the hon. member's representation. I should point out that Premier Roy Romanow of the province of Saskatchewan endorses that position exactly as he stated in the Saskatchewan legislature yesterday and it unanimously passed the Saskatchewan legislature.

I would be very happy to provide a copy of that to the member from Burnaby.

[West Coast Ports Operations Act, 1994, February 8th, 1994]

Mr. Chairman, I am quite intrigued by the point of view raised by the hon. member who is making a great plea for fairness but clearly expresses a bias on one side. He is hardly expressing what I would call a fair objective analysis of the situation.

It is his right to do that but now he is putting me in an untenable position. If I was to take his position, I would be showing bias to the other side would I not? By his own verbal gymnastics he has been able to totally defeat his purpose. Now he has said that if I adopt his position that is bias on one side versus the other.

Clearly and obviously in the interests of fairness I cannot adopt the hon. member's suggestion.

[West Coast Ports Operations Act, 1994, February 8th, 1994]

Mr. Chairman, first of all, I would like to say that the remarks made by the hon. member for Mercier were impressive, in either official language. I did listen to her. Whether she is speaking French or English, the message is the same, if I understood her correctly.

I think the hon. member is beginning to stretch the point. There is no evidence of bias in this case. The role of the mediator is to make recommendations on what he or she thinks would be the best judgment. To suggest that it demonstrates a bias is simply saying whether it is a judgment call or not. I do not think they side with one party or the other. It would be unfortunate to cast aspersions on a mediation service which over the years has done very well by this country and has served in a very neutral and objective fashion.

I also believe that if the hon. member would look carefully at the legislation she will see there is equal opportunity for both sides at the start. Both sides have the right to recommend the selection of the arbitrator who would decide on final offer selection. We invite both parties to come together to find a person of their mutual choosing so there would be no suggestion there was any one side. On the other hand we also have to declare that we do not, as I carefully pointed out before, fall into using the arbitration methodology which has proven in the past to become another form of avoidance by the parties to the dispute.

I would argue it is very important to use final offer selection for the cases to follow. If we simply agreed with the hon. member and went back to the traditional forms of arbitration then it would give the message to all others who are facing similar disputes that once again they can rely on that crutch, that artificial lifeline and we would not have more relevant and realistic labour relations discussion in some of these crucial areas.

I want to assure the member there is no bias and if the parties in dispute use the final offer selection as it is set out in this legislation they will find out it is to their advantage.

It was put to both sides, employer and employees, the necessity of making a judgment based on the best interests of their overall industry. If there is a dispute how do we divide the spoils? To what extent do we ensure there is fair compensation for employees at the same time we retain the economic viability of the industry itself?

We should not be debating these questions in the House of Commons. We are not the experts. We are not party to it. We should not be arguing whether it should be 65 cents or 72 cents. It is not our business. We are not the stakeholders nor should we presume to take over their responsibilities. What we should be doing is putting together a procedure that we think will arrive at a fair solution and in this case because of the inadequacies of the past by using arbitration I would not want to return to that methodology at this time.

[West Coast Ports Operations Act, 1994, February 8th, 1994]

Mr. Chairman, let me say first that throughout this bargaining and dispute, both officials of this department and myself have not taken any sides and have retained very strict neutrality, as has been the tradition of this department. I think it is wrong to suggest otherwise.

We feel that collective bargaining itself has both rights and obligations to it and in order to be exercised properly those of us who represent the third party, which in this case is the public interest, must ensure that there is no particular bias.

The fact that along the way the employer in this case sort of suggested that the final offer of selection might be one means of settlement does not mean to say that it is a bias in favour of the employer. Quite the contrary as I said to my hon. friend for Winnipeg Transcona. It was an NDP government in Manitoba, which I may say was not known as a friend of management necessarily, that proposed that as an endorsement. Similarly in the province of Ontario we have had final offer selection.

I do not think final offer selection in itself is attached to either side of the dispute, labour or management. It is just an important technique. The reason we are proposing it in this bill has nothing to do with the particular proposal of management in this case. We felt it was a better technique than arbitration which was tried in the past and failed. It has not succeeded in restoring a more legitimate useful process among the bodies.

As I outlined in my speech we had four different occasions when Parliament had to bring back the grain handlers in the port of Vancouver. In each case arbitration was used and it clearly did not have a kind of leavening effect. The chastening effect might be a better way of describing it.

What the hon. member for Mercier is proposing could well apply should a dispute arise at the port of Montreal. This provision in the bill sends a message to those in Montreal, namely that they should work out a solution through the collective bargaining process.

That is the reason. I think we are trying to say to a number of parties to the dispute that final offer selection is a way of continuing responsibilities.

In this case arbitration would not work. It has proven not to have been usefully exercised in the past to gain some kind of long term new set of labour relations. That is why I would appeal to the member.

I recognize in the amendment that she has proposed, which she was kind enough to share with me, that in effect it is just another form of arbitration. It is a not a variation on final offer selection. It really is a slightly revised version of arbitration itself. Therefore I think it would not serve the purpose of this act nor would it serve the purpose of the hon. member who as she expressed would hope to try to avoid a dispute of this kind in the port of Montreal or other areas.

As I said earlier in my remarks, I am quite happy to work with members to develop some propositions, policies and guidelines that we can better use, particularly in the transportation industry which is vital to this country. I would be very anxious to do that because I think we need to do it, but in this case I think it would be more effective and more appropriate if we use final selection which I believe is a fair device. Both sides have an equal right to present what they consider to be the most effective solution. Both sides have an equal right to win. Both sides have an equal possibility of losing. There are no flaws whatsoever in this proposal. It is fair to both sides.

[West Coast Ports Operations Act, 1994, February 8th, 1994]

Mr. Chairman, while the movement of grain is a major and vital part of the port of Vancouver activity, it is not the exclusive, sole activity. There are many other commodities that move through the port of Vancouver such as potash, sugar and other raw commodities from western Canada which are considered just as vital to those who produce them.

Also, because of the containerization in the port itself and the clear diversion that was taking place, I think the employer was basically saying it would be wrong and the reason why we do not endorse a single shot or single item settlement is it would in fact be discriminatory against many others who have serious economic stakes in the port of Vancouver.

One of the reasons, as I said in my remarks, for bringing in the legislation at this time is the reputation that Canada must establish in its west coast ports for reliability. In this case we have already noticed the shift of many container ships into the American ports to the south. If we just allowed the grain movement to take place by itself those other items would have provided damage to their own producers, their own manufacturers and would have have continually eroded the positioning of the port of Vancouver which is also in the vital interest of Canada to maintain as a viable port.

[West Coast Ports Operations Act, 1994, February 8th, 1994]

Mr. Chairman, the hon. member from Transcona himself said earlier in the debate that the idea of final offer selection has very valuable precedents and that colleagues of his in the province of Manitoba introduced such proposals as a way of

trying to provide a more extended and active way of developing a collective bargaining process.

I would say that the Government of Canada, which is always interested in learning and adapting to useful ideas presented at the provincial level, would feel that final offer selection in this case makes a lot of sense, particularly because in the one case the issues in dispute are not complex. They are basically monetary ones of a very limited nature.

Second, as I tried to say in my opening remarks, because there are similar disputes of this nature brewing on the horizon, it would be very important for us to indicate that rather than having Parliament continually do a bailout of parties in the dispute that we once again try to, while the work stoppage may be harmful, restart or restore elements of collective bargaining, which in this case really requires both parties to make their best efforts to come out with what they think is the most reasonable, rational, effective solution. Then there is a certain risk that they play that they would not be accepted, but it is a way of putting some discipline, some pressure and some persuasion on the parties to get down to a serious calculation of what would be in the best interest of their industry in a collective way.

[West Coast Ports Operations Act, 1994, February 8th, 1994]

Mr. Speaker, I rise today to introduce the West Coast Ports Operations Act. It is legislation aimed at bringing about the resumption of longshore operations in the west coast ports. I should say in introducing this bill that I feel a sense of real regret and some frustration in

having to once again intervene in the collective bargaining process.

I am certain that hon. members will comprehend why the decision is necessary once I lay out in very brief fashion the details of the dispute and the extensive efforts that went into trying to resolve it.

The dispute which gave rise to the introduction of this legislation involves the British Columbia Maritime Employers Association which represents ship owners, stevedoring firms and agents, the longshore industry on the west coast of Canada, and the International Longshoremen's and Warehousemen's Union, involving some 2,300 full time workers and about 1,300 casual workers. They were covered by a collective agreement which expired December 31, 1992.

During that period we offered very extensive conciliation services to the parties and progress was made in a number of areas, but there were still some outstanding areas, particularly those relating to wage differentials and some degree of security.

The parties were advised of a decision I took on January 19 not to provide further conciliation procedure and to let the parties resume honest bargaining between themselves. I did so because the issues were not complex in nature. The two sides should have been able to achieve a complete resolution of the contract dispute. However in direct negotiations that were held on January 22 and January 26 the parties failed to resolve their differences.

Members of the longshoremen's union commenced legal strike activity at the port of Chemainus on Vancouver Island on January 27. The following day the employer indicated it would not request the union to supply labour at any of the west coast ports as of 8 a.m. on January 29. In response the union initiated strike action at other B.C. ports during the afternoon of January 28. On January 29 all longshoring operations ceased.

Indications from the parties at the time indicated that because there was not much dividing them, there could be an early resolution of the dispute. We believe there was a desire to settle this on an amicable basis.

I am fully aware, and I think all members are, of the enormous economic importance the Vancouver west coast ports carry. It is the major outlet of foreign export markets for this country. Its cessation as an active outlet has already brought a number of major impacts to the Canadian economy, in particular the grain economy of western Canada.

Some 25 grain ships are in west coast ports awaiting loading and a further 38 ships are due to arrive over the next two weeks. The major escalation in requirements to have our exports moved was one of the reasons for bringing in this legislation.

The scheduled loadings represent approximately 2.1 million tonnes of grain or close to $500 million in exports. In addition at least five container ships containing 5,000 containers have been diverted from the port of Vancouver. Other commodities such as lumber, potash, sugar and minerals have also been affected by the work stoppage and the diversion of other commodities to other ports.

The cessation of longshoring activity has had a chain reaction among many other workers. More than 170 grain handlers have been laid off, 200 rail employees and some 190 federal grain inspectors have been notified of lay-off status. Firms such as B.C. Sugar Refinery and Cominco have indicated they will be facing reduced operations or lay-offs in the very near future.

Given the impact which these early hours or days of the strike affected, we immediately appointed a mediator on February 1 to provide the parties with a further opportunity to deliver on their commitment to resolve the dispute. Mediation talks began on February 2 and carried on till the following morning. Talks resumed on the afternoon of February 3. Again, despite these extensive efforts the parties remained in a dispute on the issue of wages and the talks adjourned.

As one who strongly believes in collective bargaining, including the rights and responsibilities it places on the parties, I was reluctant to allow the two parties to abdicate their responsibilities to the Canadian public.

On February 4 I requested again that the parties return to the negotiating table with the assistance of the mediator, as well as the director general of the Federal Mediation and Conciliation Service.

I have told the parties involved how disappointed I was that they had been unable to reach an agreement to date. I also indicated that I expected that they do their utmost to settle their differences without further delay so that grains and other Canadian goods might again be shipped abroad.

Mediation talks resumed in Vancouver on the afternoon of February 6. Unfortunately, even though we had applied both mediation and persuasive techniques, I must again report that the British Columbia Maritime Employers Association and the International Longshoremen's and Warehousemen's Union failed to arrive at a settlement of their contract dispute.

As a result the legislation brought in today calls for immediate resumption of longshoring operations on Canada's west coast on the coming into force of the act, which I hope will be soon.

It provides for a mechanism of settlement of the remaining issues in dispute through the process of final offer selection. The

passage of the bill by hon. members will see import and export cargo moving to west coast ports and the contract dispute between the two parties referred to an arbitrator for the purposes of selecting the final offer of one of the parties on the items remaining in the dispute.

I have heard some members say we should begin to take action immediately to look at declaring grain handling and other aspects of our west coast port economy to be essential services. I resist these measures. I still believe strongly that the collective bargaining process provides the best protection of rights and obligations for both sides to end a dispute.

We have seen in this particular game that both sides played a very dangerous game of poker with very high stakes, putting in real risk not just their own livelihood but also the economic health of Canada.

The reputation of Canada as a reliable shipping partner has been put in some jeopardy and ongoing efforts by the port of Vancouver to attract new shipping lines in the face of stiff competition from U.S. ports has also been put at risk.

I would say, however, it is appropriate that we begin to look in a more broad and open way at some of the questions of industrial relations in Canada at the present time. It is important to recognize that as we try to re-gear our economy and come to grips with a number of new economic and competitive situations, the vital issue of labour relations is part of that examination. As I indicated in a speech to the House a week or so ago we have already taken actions in conjunction with the Canadian Labour Congress and others to set up a special group to look at the issue of work and its distribution.

We should begin to take a look, perhaps through House committees, at other aspects of our labour relations, to bring them into line with present day realities, especially when we look at many of the challenges facing the economy to ensure that we may provide better ways for parties in disputes to come together.

The parties involved in the west coast dispute failed to recognize the benefits of the various approaches that were offered to them and consequently have left the government with no recourse but to step in and bring about a resumption of longshoring activities. While the process of arbitration is not a new concept in resolving contract disputes, the concept of final offer selection has not previously been utilized in conjunction with federal legislation to settle strikes.

The bill before hon. members today provides the parties with seven days from the coming into force of the act to provide the minister with the name of a person who is mutually acceptable to each side to serve as an arbitrator for the final offer selection process. Failing agreements by the parties the bill provides for the minister to appoint a person who he or she considers to be an appropriate arbitrator.

The proposed legislation provides for the arbitrator, within time limits which he or she establishes, to receive from the parties a list of those issues agreed upon, a list of those matters remaining in dispute, and the final offer in respect of those issues in dispute. The list of issues agreed on and the final offer on the remaining issues are to be submitted in contractual language.

The arbitrator within 90 days of being appointed shall determine the matters on which the employers association and the union were in agreement, determine the matters which were in dispute and select a final offer of one of the parties on all of the issues in dispute. The arbitrator is required to issue an award to the parties in the form of a new collective agreement which will be binding on the parties until December 31, 1995.

The legislation provides enforcement procedures for any instance of non-compliance with the provisions contained therein. All the costs incurred by the crown relating to the appointment of the arbitrator and the carrying out his or her duties is recoverable on an equal basis from both parties.

Members may ask, why a final offer selection in this particular case? For the benefit of those members who are not familiar with the bargaining relationship, I would point out that these two parties, the BCMEA and the ILWU are no strangers to the introduction of legislation to terminate work stoppages and provide for the resolution of contract disputes. Although the last two rounds of bargaining have resulted in settlements without work stoppages, the parties have exhibited a sad record of labour relations in the past and have been subject to special legislation in Parliament on four previous occasions, 1972, 1975, 1982 and 1986.

In addition to relying on government to relieve them of their collective responsibility to settle their differences, the parties have become far too comfortable with the standard third party arbitration features of past legislation for the resolution of remaining issues in dispute.

The provision of final offer selection procedures in this legislation puts the onus back on the parties and once again requires them to make clear, economic, rational decisions on behalf of their members, their companies and the public interest at large. It does not take away the responsibility of coming to decisions themselves which so often in the past they have declined to do. They will have to make judgments about what they think is a proper settlement and what would be a proper accommodation.

To do otherwise in my opinion would curtail the responsibility and onus of each of the parties in this dispute. It would also provide a message to other parties who are now beginning to engage in collective bargaining or who have already reached strike deadlines that this government wants to have both parties

in any dispute, in any port, in any transportation system or anything under federal jurisdiction, to rely on their own best efforts to resolve their differences and come to some conclusion. We will not provide a constant crutch for them to find an easy way out of their responsibilities which under our labour relations laws they have been expected to assume.

To summarize, the BCMEA and the ILWU have shown an inability to resolve the obstacles standing in the way of settlement and the resumption of longshoring operations. The legislation will restore port operations on the west coast, get the ships and export and import cargoes moving and at the same time allow the two sides to come back and assume responsibility and arrive at a resolution.

As I indicated at the outset of my remarks, the introduction of legislation of this kind is not a pleasant task for a minister responsible for labour matters in this government. However, as the minister I have a duty to intervene when the parties fail to make the system work and in so doing inflict considerable harm on those not directly involved in the dispute.

There had been reason to hope that labour and management at the port of Vancouver had moved away from the dismal patterns of the 1970s and the first half of the 1980s when Parliament was forced to provide for resolution of their disputes on a continual basis. The negotiation of settlements in the last two rounds gave some reason to believe that the pattern had changed and that the parties were entering a new era of constructive labour relations. Sadly once again it shows that old habits die hard. Therefore, we hope the legislation will provide a strong reminder, a wake up call if you like, that we want a new regime and a new set of labour relations in this country.

My wish, and one which I am sure is shared by members of the House, is that the current difficulties do not represent a reversion to previous form. The parties will endeavour to find better ways of resolving their differences. They owe it to themselves, the competitive future of the west coast ports, and to the wider community of the country that relies on this vital gateway for world commerce.

In sending forth this legislation I want to express my appreciation to members on both sides who have given their unanimous consent that this legislation can proceed with dispatch and with the kind of urgency that many people in the economy would respect.

I recognize that there will be questions and we will certainly be prepared to entertain them once we get into committee of the whole. I would only add to my appreciation my request that members do consider strongly that once they have had the opportunity to express themselves in second reading that we move on to consideration in committee of the whole and hopefully toward third reading.

I understand that our colleagues in the other place are quite prepared to deal with the legislation this evening so it can go into effect and we can then take the final step. I do so with the strong invitation and willingness to sit down with members opposite to talk about how we might at a future date, not too far in the future but reasonably so, come to grips with how we could have a broader examination of labour relations and use their wisdom and judgment of the past on how we might proceed with a different kind of regime and proposals and policies that might help avoid situations that we now face with this legislation.

With that, I urge all hon. members to provide for prompt passage of this legislation to allow for the immediate resumption of activities in the ports.

[West Coast Ports Operations Act, 1994, February 8th, 1994]

moved that Bill C-10, an act to provide for the maintenance of west coast ports operations, be read the second time and, by unanimous consent, referred to committee of the whole.

[Government Appointments, February 8th, 1994]

Mr. Speaker, I would request the hon. member to be a little bit more specific because the department has such extensive activities.

We are in the business, for example, of appointing arbitrators in the Department of Labour. We consult business and labour to get nominations in these areas. We also appoint people who act as referees under the Unemployment Insurance Act. Again we consult the stakeholders in those areas to get recommendations, as we do from the general public.

The hon. member will be glad to know that in many cases these openings are put forward for gazetting, where they involve people like the chairman or vice-chair of the Canada Labour Relations Board.

We are reviewing ways to make sure it is an open process. I would point out to the hon. member that we take great pride in the competence of our arbitrators, our UI board of referees and I think the record of the people serving in those posts bears out that confidence.

[West Coast Ports Operations Act, 1994, February 8th, 1994]

moved for leave to introduce Bill C-10, an act to provide for the maintenance of west coast port operations.

(Motions deemed adopted, bill read the first time and printed.)