Mr. Speaker, I rise today to speak to the necessity of the bill that the Minister of Labour has given notice on, an act to provide for the continuation and resumption of air service operations.
Keeping Air Canada flying now is essential to the economy and travellers. Over one million hard-working Canadians and Canadian families have scheduled travel with Air Canada over the March break period. Those people are depending on the government and we think that the travelling public overwhelmingly expects the government to act. As much as we wish that these disputes could have been settled among the three parties themselves, government action is essential to keep the airline flying and Canadians travelling. We will not sit by and let the airline shut itself down. We need to act to provide for the continuation of air service operations at Air Canada.
We are not doing this to take sides. We are not doing this to punish any of the parties. We also are not doing this because it is an easy solution to a difficult problem. We are doing this because it is the right thing to do. We need to do this because it is necessary to protect the Canadian public and Canada's economy recovery that we are all counting on for growth and prosperity in the years to come. Time is of the essence. We must act now.
We need to ensure that Air Canada's operations continue at regular peak period capacity before serious damage is inflicted on our economy. We need to act before Canadian businesses suffer and go elsewhere, and before travelling Canadians have their vacation plans ruined. Under these circumstances at the present time, this is not what the economy needs and it is certainly not what the travelling public needs.
Would our government have preferred that the parties come to an agreement on their own? Absolutely. My hon. colleague, the Minister of Labour, is on the record saying repeatedly that the best solution to a labour dispute is when the parties can resolve their differences together without a work stoppage. In fact, 94% of labour negotiations in Canada are settled without a work stoppage. That statistic is not lost on either employers or unions in Canada. There is a better way to solve these disputes and the better way is the path chosen by the parties in an overwhelming majority of cases. In spite of what we wish and, of course, what we find works in the majority of cases, these points do not change the fact that the two disputes are still before us today.
We need to consider the following. On February 10, 2012, IAMAW and Air Canada reached a tentative agreement. However, on February 22, 2012, the union informed the employer that its membership had rejected the agreement. On March 17, 2011, ACPA and Air Canada reached a tentative agreement. On May 19, 2011, the union informed the employer that its membership voted to reject the tentative agreement. That is two tentative agreements that Air Canada reached with two separate bargaining units, two tentative agreements that the respective union memberships voted to reject.
The threat of labour action can be a tool in labour negotiations. It can bring pressure to bear on an employer, which is a legitimate prerogative, but the effect of this pressure does not end at Air Canada. Everyone who depends on air transport feels it and is potentially affected by it. That includes those who are travelling for business, school, new opportunities, vacations or to visit their loved ones.
As everyone knows, Air Canada has an excellent safety record. Air Canada follows rigorous safety rules and procedures. The International Association of Machinists and Aerospace Workers represents Air Canada employees who are responsible for the technical, maintenance and operations services, including cabin grooming, aircraft cleaning, the handling of baggage and the purchases and distribution of parts and supplies. In effect, they are a fundamental component of making Air Canada transportation operations move smoothly, safely and efficiently. They are skilled workers who cannot be easily replaced.
In addition, Air Canada's pilots are responsible for the operation of the aircraft, the safety of passengers and crew members and all flight decisions once in the air. The pilots are obviously a fundamental and key component in the safety of Air Canada's operations. Again, these are highly -trained and skilled workers who are not easily replaceable. Therefore, work stoppages by either of these groups of valuable workers would have a far-reaching economic impact. A work stoppage could threaten the very future of Air Canada. The direct impact on Air Canada could be severe at a time when it is facing financial constraints.
We need to consider the impact on the travelling public and businesses that use Air Canada. To properly understand the scale of that impact, it helps if we look at the size of Air Canada's operations. Air Canada is Canada's largest domestic U.S. transborder and international airline and the largest provider of scheduled passenger services in the Canadian market, the Canada-U.S. transborder market and in the international market to and from Canada. Air Canada serves over 32 million customers annually and provides direct passenger service to 170 destinations on five different continents.
A disruption at Air Canada could cost the Canadian economy as much as $22.4 million a week for every week that it is allowed to continue. However, financial figures are only one of the ways that we can measure the cost of a labour dispute. There is also the cost of jobs lost. There is the cost of lost time and of missed opportunities for every business that relies on Air Canada. There is the cost of someone being stranded, or someone whose business is grounded.
We must also consider the impact on other Air Canada employees. There are approximately 25,000 staff directly employed by Air Canada and there are another 250,000 staff members indirectly related to Air Canada who would be affected. Many of these employees have families. If the airline were to be grounded, all of these direct and indirect employees, as well as their families, would be affected.
As we see, every action has consequences. There would be a ripple effect as the losses are compounded affecting stakeholders in the process. The reduced operations at Air Canada would adversely affect Canada's airports and Air Canada's third party suppliers. What about the passengers? Alternative carriers are not always readily available. Even if passengers switched to other modes of transportation, as suggested by the member opposite, they would suffer inconvenience as well as extra costs. Those who could not switch may be left in a difficult spot and could find themselves stranded at an airport or elsewhere.
As we have said before, over one million passengers are scheduled to travel with Air Canada over the March break period. That is a huge number of Canadians. That means hundreds of thousands of Canadian families' travel plans would be affected or even cancelled due to a work stoppage. What is clear is that these two labour disputes involve more than just Air Canada and its machinists and aerospace workers, more than just Air Canada and its pilots. It involves all Canadians who are stakeholders, whether they want to be or not. Clearly the public interest is at stake and that is why we must act for the continuation and resumption of air service operations at Air Canada.
Some might ask what today's actions say about the status of collective bargaining in Canada. Let me address that point. The Canada Labour Code strikes a balance between rights and interests of employers and workers. The code reinforces a long-standing tradition of co-operative labour management relationships. It recognizes the principles of freedom of association and free collective bargaining. It promotes the negotiation of terms and conditions of employment and the constructive settlement of disputes.
The Canada Labour Code does not promote government intervention. Rather it is designed to help labour and management settle their differences on their own. The code provides a framework for constructive dispute settlement in federally regulated workspaces and this process is usually all that is required. As I mentioned earlier, the vast majority of collective agreements are negotiated successfully, with compromises made on both sides. If the parties are unable to resolve their differences on their own, the Canada Labour Code provides a process of conciliation and mediation.
The first step in this process is one where the parties file a notice of dispute with the Minister of Labour. The minister can then appoint one or more conciliator officers. If the conciliators are not successful, mediators can be called in. These mediators work intensively with the parties to avert a work stoppage and if these efforts fail, the Canada Labour Code also allows the employer and the union to offer binding arbitration if they both agree. Twenty-one days after the conciliation process ends, the union acquires the right to strike and the employer acquires the right to lock out their employees. At that point, the union must give the employer and the Minister of Labour 72 hours notice in advance of a strike. The employer must do the same if it plans a lockout.
Let me give the House a little background on these two disputes to show how the Government of Canada has worked to try to help each one of these parties every step of the way. The collective agreement covering a unit of approximately 8,200 employees engaged in technical, maintenance and operating support functions expired on March 31, 2011. The workers represented by IAMAW have been working without a renewed contract since that time. On December 21, 2011, a conciliator commissioner was appointed to assist the parties in their negotiations. Even though both parties reached a tentative agreement on February 10, with the assistance of a conciliator commissioner, it was defeated in a ratification vote by the union membership on February 22. The parties acquired the legal right to strike or lockout on March 12.
In the case of the Air Canada Pilots Association, its collective agreement, which covers 3,000 pilots, expired on March 31, 2011. On March 17, 2011, the parties reached a tentative agreement. However, on May 19, 2011 the deal was rejected by a vote of the ACPA membership. Again, another tentative agreement reached by Air Canada and one of its bargaining agents was rejected by the union membership. A conciliation officer was then appointed to assist the parties on November 10, 2011. Further to that, two co-mediators were appointed on February 16 of this year to work with the parties through a six month mediation period.
Despite all of this assistance, including meetings with the Minister of Labour, the parties have been unable to reach a deal.
The minister spoke very clearly on this issue, saying:
Our Government is concerned that a strike at Air Canada would have a significantly negative impact on families and our national economy....We encourage both parties to avoid a work stoppage and restore confidence for the traveling public and Canadian job creators that rely on commercial air services.
This government believes in the principle of free collective bargaining. We have made the resources of the Federal Mediation and Conciliation Service fully available to both parties in an effort to help them reach a negotiated arrangements. However, despite these efforts, work stoppages are still being considered.
These disputes have gone on long enough. We will not wait to see how much damage a work stoppage could do to our fragile economy. History teaches us a sober lesson about what happens when we stand by and do nothing.
Thirty-five work stoppages have occurred in the air transport industry since 1984. Six of these stoppages, about a fifth of them, have involved Air Canada. The most significant of these was in 1998, when 2,100 airline pilots went on strike for 13 days. Financial industry analysts tell us that Air Canada lost about $300 million because of the cancelled flights. That was 13 years ago, in a booming economy, both domestically and internationally. The severity of the damage this time around would be unimaginable.
Markets do not like uncertainty. Businesses do not like it either. There would be a price paid for every day that we let uncertainty overtake our air transportation system.
Air Canada is already struggling. Just a few weeks ago, Air Canada reported a higher than expected $80 million fourth-quarter loss. Now it has to contend with the cost of a strike by its machinists and aerospace workers.
All other avenues have been explored to resolve this dispute. Government action right now is necessary to solve this problem. It would end the uncertainty of this important sector of our economy. The business of Canada depends upon this, not just our industry but also our citizens. Canadians are counting on the Government of Canada to do the right thing. They expect us to act to protect our economy, to protect jobs, growth and prosperity. Ensuring the continuation and resumption of air service operations at Air Canada would help restore that certainty.
We need to keep the planes in the air. We need to keep our economy moving and working and not lose the momentum that we have worked so hard to create over the last number of months. Therefore, I urge my fellow parliamentarians to support the government in keeping Air Canada flying. Let us work together to do the right thing for all Canadians.