moved:
That, in the opinion of this House, the government should consider abolishing the Regional Rates of Pay, now in force for certain federal government employees, in accordance with its stated policy of pay equity.
Mr. Speaker, it is a good way to start off on a Monday morning, dealing with an issue that is not just temporal or philosophical. This is an issue that fundamentally affects far too many public servants right across our country.
I do not know if it is luck or what it is, but this is the third time in two Parliaments I have been lucky enough to have my motion drawn for debate. The first time was in the second session of the last Parliament, in June 1990 and again in the third session in September 1991 a similar motion was also drawn for debate.
It is an issue that is near and dear to my heart. It is an issue that has affected, over the years, tens of thousands of federal employees. And it is an issue, once again, that I believe should be brought to the attention of the people who are elected to represent these public servants. As members of Parliament we are supposed to be affirming in the House the equality of employees, the equality of individuals, the equality of opportunity and the equity of people's labour.
I will talk a little about the regional rates of pay so that people understand exactly what they are. In years gone by, the federal government through the collective bargaining process, came to an agreement with its federal public employee unions that there should be regional rates of pay.
This was done at a point in time when the economies were much different than they are today. It was done at a time when one could argue that there were vast differences in economic conditions in various parts of the country, say in Winnipeg, in Halifax, in Sydney and St. John's, Newfoundland.
As total or global packages were negotiated it was agreed that there should be regional rates of pay. It meant that employees of the federal government who did a similar or identical job would get paid at a different rate based on where they lived.
As time went on, initially the rates grew in numbers. With the development of our economy, with the genesis of the economy and the consolidation of transportation infrastructure across the country, it became increasingly apparent that to continue a discriminatory wage practice based solely on a single factor of the employee living in a certain area was clearly discriminatory.
Over the last 15 years through successive collective agreements each and every time there has been the global negotiation, the number of regional rates has collapsed.
They have gone from a high of 35 or 40 down to today where only 8 or 9 regional rates of pay are left. That is solid recognition that individuals' pay should be based on their qualifications and the job they do and not on where they live. Their fundamental wage package should not be based on where they live any more than it should be based on their language, colour, gender or culture. It is discriminatory. Today it still stands as a discriminatory practice. What does this mean? It means quite a bit to the people who are affected by these discriminatory wage rates.
During the 1988 federal campaign one of the big issues in the Halifax-Dartmouth area was dealing with the general trades and labour group at the ship repair unit in Halifax. Its members were in a legal strike position. Treasury Board and the Tory government of the day in their haste to go to the electorate forgot to designate
them as essential employees. Therefore for the first time ever the potential was that those employees might be in a strike position.
One major stumbling block for those unionized workers in the negotiations going into the campaign was the regional rate of pay. They were doing the same job at the ship repair unit in Halifax as was being done in British Columbia. They had the same job classifications, the same jobs and were working on the same classes of ships, but in some cases the wage differential was as high as 28 per cent.
The regional rate of pay was made an issue in the campaign, that it was a discriminatory practice. They were not seeking a commitment from the government of the day to collapse it all at once. They wanted a commitment that it would be recognized over the next one or two collective agreements that the rate should be collapsed.
In 1989 a ships crews strike tied up the St. Lawrence Seaway. The government was not concerned until there was a freeze-up and the possibility that commerce going up the St. Lawrence Seaway would stop. At that time the ships crews strike caused legislation to come before this place to break the strike and put them back to work.
What was the issue that caused that ships crews strike? It was the wage differential between the two regional rates. There was a west coast rate and an east coast rate and the dividing line went right down the middle from the Arctic Ocean. Conceivably, if a ship was in trouble in the Arctic it could be responded to by ships crews from either the east coast or the west coast. If they both got to the troubled ship at the same time, there was as much as a 20 per cent or 25 per cent wage differential. They were doing the same jobs on the same ships on the same high seas, sometimes in 15-metre swells. They were going out to save lives and there were two different wage rates which were based on where they lived.
How much money did they get? This whole strike was caused because the ships crews from the east coast region were making between $19,000 and $21,000 a year. They wanted their pay package to go up to what it was on the west coast, about $22,000 to $23,000 a year. That was what caused the strike.
When it went to binding arbitration after the legislation passed the House, the first thing that happened with the tripartite panel was that it collapsed the regional rate of pay. It saw it as discriminatory. The panel then went on to other non-monetary issues. The history with the last three or four cases that went to binding arbitration where the regional rate was an issue is that it was immediately seen as discriminatory and was collapsed.
The east coast ships crews after they saw what happened at the tribunals told me: "The next time we are not going to bargain in good faith. We will just tie it up and hope it goes to binding arbitration because the binding arbitration process will find the rates discriminatory and will collapse them".
There is a principle here which we should listen to carefully. It is the principle of equal pay for work of equal value. That is it, straight, clean and simple. Some will argue that if you live in Halifax you should get paid less than if you live in Winnipeg. If that is the case, why are 91 per cent of federal employees in Canada paid under national rates of pay? That means that while the ships crews or the ship repair unit charge hand in Halifax get paid up to 28 per cent less than their west coast counterparts, other employees of the federal government are working in the same area and are getting identical rates of pay as their counterparts who are doing identical jobs in Toronto, Sudbury, North Bay, Victoria, Vancouver and St. John's.
It does not make sense. It cannot be argued that a regional rate of pay has to be maintained so that it does not disrupt the local private labour market when at the same time 91 per cent of the employees are on national rates of pay. It simply does not make sense and is discriminatory.
The government of the day of which I am a member will say that we are in a period of restraint. I understand that. Collective bargaining was suspended in the 1994 budget. That was not something I supported then and it is not something I support today. It is wrong. I support the collective bargaining process. I said it when that legislation came forward in the House and I will say it again today.
The government indicated that once it got beyond its $900 million or $1 billion in savings which it was trying to accommodate by the wage freeze and the suspension of collective bargaining, any further savings would be reallocated back into the pay packet. It would perhaps talk about the increments but certainly it would look at some of the pay equity issues.
I implore the government today to see this not as one of those issues that affects just a few people. This is an issue of pay equity. Just as the government has committed itself at the earliest opportunity to address those inequities in pay equity as it is traditionally defined, I ask the government today to also extend that definition to regional rates of pay.
What does it mean? The best numbers I have are from September 1994 and they have changed. In September 1994 there were 211,823 employees on the federal public service payroll. There were nine groups that were still under regional rates of pay which amounted to 23,233 people. That means 9 per cent of the Public Service of Canada is being discriminated against based on no other factor than where they live.
Should we tell the charge hand down in Halifax who is being paid 13.7 per cent less than the west coast charge hand that he should work only 86.3 per cent as hard as the individual on the west coast? Should the general trades and labour individual who is paid
13.2 per cent less work 13.2 per cent less hard? No. The performance evaluations they face are exactly the same no matter where they live. I submit that their pay rate should also reflect that similarity.
How much would it cost? To completely eliminate regional rates of pay in one round of negotiations would cost the government less than 1 per cent of its total pay envelope. It would cost less than 1 per cent to stop discriminating against 9 per cent of its federal employees.
As the government moves toward a time when it can reinstate collective bargaining, when it can start treating public servants with the type of respect they deserve, one of the number one priorities is pay equity. One of the number one priorities within pay equity is addressing the discriminatory practices of regional rates of pay.
Looking around the Chamber there are members from all over the country. There are members from the west coast, from the great province of Quebec, from New Brunswick, from Saskatchewan, from Ontario. There are members from every province and territory in this place. All of us are paid the same based on the job we do for the people of Canada, not based on the place we represent.
I close by urging members of the House to agree with the motion before us. Tell the government it is imperative that the horrendous discriminatory practice of regional rates of pay must go and must go quickly.