Jean-Pierre Blackburn

[Railway Continuation Act, 2007, April 17th, 2007]

Mr. Chair, I would like to move another amendment to clause 2. It reads:

That Bill C-46, in Clause 2, be amended by replacing line 23 on page 1 with the following:

“Union, or any other trade union certified by the Canada Industrial Relations Board to represent the employees.”

[Railway Continuation Act, 2007, April 17th, 2007]

Mr. Chair, were you talking about clause 2? If so, I would like to present two amendments.

The first amendment reads as follows:

That Bill C-46, in Clause 2, be amended by replacing line 13 on page 1 with the following:

December 31, 2006 and the BC Rail agreement referred to in the protocol signed by representatives of the employer and the union on February 24, 2007, and includes any related;

[Railway Continuation Act, 2007, April 17th, 2007]

Mr. Speaker, during this dispute between the two parties, we made our conciliation services and then our mediation services available, providing the parties with the best people we could offer. They worked hard and an agreement was reached between the representatives of the union and of Canadian National. However, perhaps because of a dispute between unions—this is the right of the workers—the workers decided they were not satisfied with the agreement. They had a 3% annual increase, they had a $1,000 signing bonus and they had one year to discuss. They refused this.

Balance is important here. It is extremely important. One party cannot crush the other. Both parties must come to an agreement that is in the best interests of everyone, to keep the country running smoothly. With this in mind, we must now take—

[Railway Continuation Act, 2007, April 17th, 2007]

Mr. Speaker, the Canada Labour Code allows employees to strike. It also allows employers to order a lock-out. That is the principle of balance enshrined in the act. When there is a strike, which the unions are entitled to engage in, and which they call, we have an opportunity to conduct conciliation, followed by mediation and, ultimately, arbitration. At present, that is in the law and that is what we are going to do. We are going to allow the parties to do it. We are going to force them to bargain so that they can reach an agreement.

If one of the parties wants to abuse its powers, thinking that it can force the other to come around to its view, then it risks hitting a bump in the road. Why? Because under our legislation, after three months, if the parties have not agreed, if they have not reached an agreement, they will have to submit their offer. The union will submit its offer based on what it wants, CN management will submit its own offer, and the arbitrator will decide. The arbitrator will select offer A or offer B, but not something between the two.

No one wants to find themselves in that situation. We believe that it is in the parties' interests to sit down, bargain and come to an agreement, while keeping our economy functioning. That is what our legislation does, it provides for our system to function properly.

[Railway Continuation Act, 2007, April 17th, 2007]

Mr. Speaker, if the anti-strikebreaker bill that the hon. member introduced had come into force, the employees would not have been able to return to work between February 24 and April 10, even though the parties had reached an agreement in principle around February 24, because they would have had to wait for the results of the vote to be made known. We would have been without trains for two months.

How could the country function without trains? Would the hon. member please explain to the House why she could possibly want this to happen? Even though replacement workers can be used, it is not always easy to find them. People do not necessarily have the skills needed for the job. It is not easy to find people. That is why it is important to maintain a balance between employers and employees in the Canada Labour Code. It is working quite well.

Despite everything, though, sometimes particular situations arise where it becomes apparent that the parties do not want to reach an agreement and we cannot ensure that there will be good service for the economic health of the country and we have to assume our responsibilities. That is what we are doing here.

[Railway Continuation Act, 2007, April 17th, 2007]

Mr. Speaker, what does the hon. member want? Would he like the Canadian economy to be paralyzed for months and months because of a strike, because from the union's standpoint at Canadian National, we know there was a dispute between the American union and the Canadian union? Would the hon. member like the economy to be paralyzed and for us to wait indefinitely?

People are writing in to us. Some of them may even come from his own riding.

This includes Potash Corporation of Saskatchewan, Sultran Ltd. in Calgary, Superior Propane in Calgary, Western Grain Elevator Association, West Fraser Timber in Vancouver, Nutrinor in Saint-Bruno, Keystone Agriculture Producers in Winnipeg, Tembec in Abitibi, Canpotex in Saskatoon, Canadian Chemical Producers' Association in Ottawa, the Canadian Federation of Agriculture in Ottawa and others.

Just yesterday our office received 78 phone calls from people asking us to please proceed with this. They need security in transportation and they need the economy going well. We answered the people from across Canada. We said that it was their responsibility, my responsibility and our responsibility to act for the health of the country

[Railway Continuation Act, 2007, April 17th, 2007]

moved that Bill C-46, An Act to provide for the resumption and continuation of railway operations, be read the second time and referred to a committee.

Mr. Speaker, the Canada Labour Code and our labour legislation allow us to strike a balance between the parties' rights to collective bargaining and the use of tools such as strikes and lockouts. When the parties do not reach an agreement within a reasonable timeframe and the Canadian economy is seriously affected as a result, the government not only should act, but has a duty to act. We are at that point now.

As you are aware, the tentative settlement reached on February 24 between Canadian National and the United Transportation Union was not ratified by 79.44% of the employees. I therefore must introduce the Railway Continuation Act, 2007, today. This bill provides for the immediate resumption or continuation of the railway operations of the Canadian National Railway Company.

The members of this House know that the February strike at Canadian National by the 2,800 members of the United Transportation Union had an enormous impact. This work stoppage had serious economic consequences across the country. The Canadian Wheat Board, chemical producers, the Port of Vancouver, auto manufacturers, farmers, potash mines and forest and automotive industry stakeholders have all told us how the strike affected their operations.

It is hard for me to take this step today. I would have preferred it if the parties had reached an agreement themselves, and that is why I did everything possible to help Canadian National and the union in their negotiations. But as many members know, the negotiations were long and complicated, lasting 19 months. I would like to take a few minutes to describe the process.

The collective agreements in question cover 2,800 drivers, yardmasters, and trainmen and yardmen. Bargaining to renew these collective agreements has been taking place since September 1, 2006, when the notice to bargain was given. I appointed two conciliators on November 20, 2006, and meetings have been taking place since December 14. The collective agreements expired on December 31, 2006, and failing an agreement the parties were released from the conciliation process on January 19, 2007, that is, three months ago. I then appointed two mediators to try and help the parties to conclude an agreement before they acquired the right to strike or lockout. However, on February 5, 2007, the union announced that the members had voted in favour of a strike to support the union’s demands, and the strike began on February 10.

Canadian National management then attempted to continue offering essential services, such as food and fuel delivery in remote regions, but it was all very difficult. On February 20, I decided to send our senior mediator to Montreal and I asked the parties to work with her to try and reach an agreement. I am referring to Elizabeth MacPherson. Fourteen days into the strike, the parties found some common ground with our other mediator, Laurent Lessard, and Ms. MacPherson, and the workers went back to work. We appreciate the fact that they acted promptly for the sake of railway transportation operations and the resumption of economic activity. They did not delay and we took note of this.

However, last week on April 10, a majority of the union membership rejected the tentative settlement reached between both parties. CN rail workers have since resumed strike action, engaging in rotating withdrawals of service.

Many Canadian businesses struggling to recover from the last strike will once again face costly disruptions. We all know that in just a matter of a few days in February the strike was felt right across this country.

In the Pacific region, mill owners were faced with not having enough raw materials or no means of shipping their finished products. In the north, Canadian workers, owners and investors in the mining industry waited anxiously for much needed fuel. In the prairies, where grain owners have already been reeling from a difficult fall and winter season, the strike meant that no grain was moving.

In Ontario and Quebec, factories and industries struggled to find ways to manage having inventory accumulate while contending with slowing supply lines. In some cases workers were laid off or given reduced work schedules. Continuous uncertainty in the supply chain is the very element we are up against as a result of the rejection of the tentative agreement.

There seems to be little chance of ratifying an agreement at this time. The government and the millions of Canadians who have already been affected by the CN Rail dispute will not stand for any more disruptions to our economy and to our livelihood.

The legislation that we are moving forward today, the Railway Continuation Act, 2007, ensures the continued operation of CN Rail. This act also extends all previous collective agreements between CN and the UTU until the coming into force of new collective agreements to replace them.

The bill also provides for that the final offer selection process will be used to settle the issues in dispute by the parties. What is a final offer? Following three months’ negotiations between the parties, if there are still points of disagreement, the arbitrator will ask each party to make its offer, and the arbitrator will choose either the union’s or the employer’s proposals. There will not be an amalgam of the two proposals; it will be one or the other.

This forces the parties to reach an agreement. This is what we call the final offer. I repeat:, the arbitrator must choose between the employer’s final offer and the union’s. The arbitrator’s decision becomes the new collective agreement. It should be pointed out, however, that passing this bill does not in any way prevent the parties from continuing to negotiate and reaching an agreement. The bill actually expressly provides that the parties can at any time agree to conclude new collective agreements. We hope that the parties will continue to negotiate to resolve this conflict before the arbitrator has to decide the issue, but without paralyzing the economy and while continuing to work for everyone’s sake.

With this legislation, arbitration costs may be recovered in equal parts from the employer and the union. Furthermore, the legislation states that any contravention may result in fines of up to $1,000 for individuals, up to $50,000 for officers of both parties, and up to than $100,000 for the employer and the union if they do not respect the stated conditions.

The act would come into force 24 hours after it receives royal assent, making it possible for workers to be fully informed of its provisions and consequences. I would like to ensure that the members of this House truly understand that our government supports the collective bargaining process, which is fully covered by the current provisions of the Canada Labour Code. A settlement negotiated by the parties is always preferable to a solution imposed by the government. But when nothing works, it is our duty and our responsibility to act in the common interest and in the interest of the sound management of the economic well-being of our country.

The case before us is a good example of the importance of providing a balanced and stable legislative framework. The Canada Labour Code was thoroughly reviewed in 1999. Unions and employers were very involved in the exercise, which led to the amendments adopted in 1999. The current provisions of the code are the result of compromise and consensus, resulting in the well-balanced framework of the Canada Labour Code, part I. The results are evident: the government has not had to use back-to-work legislation since that time. Before the act was amended in 1999, this instrument of last resort— that is, back-to-work legislation— was used much more frequently. In fact, CN and the United Transportation Union have since renewed their collective agreement without a work stoppage.

In 2000, they reached an agreement through a conciliation process. Similarly, in 2003, an agreement was reached with the help of mediation. However, the current situation has become unique, which is why we must act. Railway operations are crucial to the Canadian economy and the well-being of all Canadians. Railway operations have become essential, not as defined by the Canada Labour Code, because this is not yet affecting the health and physical well-being of the public, but in the sense of the health of the economy. Railway operations play a crucial role in the functioning of Canada's economy. Additionally, our government is determined to ensure that Canada's reputation as a leader in the global economy is not tarnished, and that our country continues to be perceived as a place where businesses can depend on a railway network that is a reliable and efficient means of transport.

It is our responsibility to intervene when the stability of our economy and the livelihood of thousands of workers are at risk. Government intervention in this dispute is now inevitable. This is why we are proposing this bill here today. The provisions of the bill would allow for a fair and rapid resolution of the dispute. Our message is clear: we have made every possible effort to allow for settlement through collective bargaining, but we are not willing to stand by and watch this labour disruption jeopardize the Canadian economy.

I urge all members of this House from all political parties—the Liberal Party, the Bloc Québécois, the NDP—and independent members to support this position, in order to pass this bill as quickly as possible.

I would remind the House that, regardless of this bill, there is nothing to stop the two parties from reaching an agreement. If they manage to do so, that agreement would take precedence. We must take action. We cannot continue to endure rotating strikes. The 14-day strike in February meant $1 billion lost in exports. Thus, it meant $1 billion out of $5 billion for the month of February.

I would like to reiterate that we encourage Canadian National, the employees and the union to negotiate and reach an agreement themselves. We must take action in the interest of the healthy functioning of Canada's economy.

[Railway Operations Legislation, April 17th, 2007]

Mr. Speaker, I emphasize again the scale of the impact on the Canadian economy, on our farmers, forestry operators, automobile manufacturers, and the whole of the chemical and petroleum industry. Some remote communities were not even receiving food and fuel that were essential for their continuing operation.

In such a situation, our government is obliged to act. It has a duty to act from the moment that the parties have refused to reach an agreement and there is no indication of a settlement of the dispute or good will between the parties. It is in this context that I ask the opposition parties, the Bloc Québécois, the Liberal Party and the New Democratic Party, and the independent members to support the government.

It is perfectly obvious that we can not allow this situation to continue. It is in everyone’s interest. Moreover, the parties will have time to discuss the issues and to negotiate an agreement during the coming months.

[Railway Operations Legislation, April 17th, 2007]

Mr. Speaker, I would again like to remind the House of the serious economic consequences that the whole country felt as a result of the 14-day strike.

There were serious consequences for the Canadian Wheat Board, for chemical producers, for the Port of Vancouver, for automobile manufacturers, for farm producers and for operators in the forestry sector. All these stakeholders in our economy were greatly affected by the recent strike in February.

I would also point out that the NDP member thinks that Canadian National is a tough negotiator. Perhaps. Others feel that the union is asking for too much. Maybe so. At some point a decision must be made. We can not allow the parties to jeopardize the Canadian economy because of this dispute.

Our preference is that the parties should reach an agreement. Our legislation will force them to sit down together and discuss the issues. They will have three months to reach an agreement. If they are not able to do so, the arbitrator will ask each of the parties to provide a final offer and the arbitrator will decide. That is what is known as final offer selection. The arbitrator will choose either the offer of party A or of party B. The decision can not be in between the offers; it must be either offer A or offer B. Written into the bill, this puts a certain amount of pressure on the parties to reach an agreement. We believe this legislation is in the best interest of the employees, the Canadian economy and the carrier, Canadian National.

Again, I repeat that we would have preferred that the parties agree between themselves. However, since that does not appear to be possible, the government has a duty and responsibility to act.

[Railway Operations Legislation, April 17th, 2007]

Mr. Speaker, what does the New Democratic Party want? When it becomes clear that two groups cannot reach an agreement, at least not in the foreseeable future, and that Canada's economy is suffering a little more damage every day because of rotating strikes, it is our responsibility to act.

I would like to point out that in February, the strike lasted 14 days. Why? What happened then? There was a conflict between the American and Canadian branches of the United Transportation Union. When the strike began, Canadian National went to the Canadian Industrial Relations Board, saying that the president of the Canadian union did not have the right to call a strike—only the American union could.

When the matter came before the Canadian Industrial Relations Board, the Americans refused to recognize the lawyer who was negotiating. They wanted their own lawyer. Five days passed while the lawyer representing the American union prepared the case. For those five days, Canada's economy was paralyzed as everyone waited to find out whether the strike was legal. In the end, those 14 days of strike action reduced our exports by about $1 billion. That is what it cost Canada's economy. That is why, as soon as it becomes clear that the parties cannot find a solution, we cannot let things go on.

As for these rotating strikes, are we supposed to wait 32 days, 64 days, or 100 days? We must act now. We know—we can see that the situation is deteriorating. It is our responsibility to act, and we are doing so in the best interest of all parties, in the interest of the employees and in the interest of our country's economy.