Lisa Raitt

[Restoring Rail Service Act, May 29th, 2012]

Madam Chair, in an ideal world parties in a dispute would settle their differences quickly and amicably. They would work hard to understand the other's point of view. Moreover, they would appreciate that their disagreement could have far-reaching consequences for people not directly involved. Armed with this knowledge and insight, they would compromise for the mutual benefit of all concerned.

Unfortunately, our world is far from ideal. Despite months of negotiations between the parties, we are now in the midst of a work stoppage at CP Rail. This strike is resonating far beyond the confines of the rail industry as well.

Given its impact on our economy, the government is acting today in the national interest. However, our actions have generated a predictable course of objections. We have been accused of misusing our powers and undermining the right to collective bargain. We have been told that we are moving too quickly. Finally, it has been suggested that the problem is not serious enough to warrant back-to-work legislation. None of the objections hold water.

Since 1950, the Government of Canada has consistently intervened with back-to-work legislation in the railway industry where there is a work stoppage. Our actions today follow the time honoured footsteps of many previous governments, governments that were equally concerned about the impact of shutting down all or part of our rail industry.

I have been asked if I think the government is undermining the collective bargaining process many times by people in the opposition. Quite frankly, the answer is clearly no. I would like to make it perfectly clear that this government remains firmly convinced that collective bargaining is a far better way to resolve disputes than emergency legislation. It is significant that there is nothing in the legislation to prevent the parties from modifying any provision in the collective agreements, either new or changed.

It has been almost five months since the expiration of the collective agreements covering rail traffic controllers and the running trades employees. Like all concerned, the government hoped that CP Rail and the two units could reach agreements and settle their differences, but that has not been the case.

On February 17, I received notices of dispute for CP Rail for both units. Subsequently, on March 2, the labour program appointed the same two federal conciliation officers for both units to ensure consistency for the process. In other words, far from undermining the collective bargaining process, the government has taken steps set out in the Canada Labour Code to help the parties try to resolve the differences. Despite these efforts, the parties remain at an impasse. Therefore, on March 1, they were released from conciliation.

I met with the parties twice in May to offer them extended mediation to help them reach agreements or at least move forward on some of the remaining issues from the bargaining table. At the bargaining table, there were serious issues such as pensions, wages, benefits and working conditions. Regrettably, the assistance was not accepted and on May 23 the strike began.

Unfortunately, the parties did not manage to reach an agreement. As a result, they have caused serious economic problems in our country by initiating work stoppages. As the government, we took the necessary steps and acted for Canadians and our economy.

This government respects the rights of unions to strike and the right of employers to lock out their workers as is set forth in the Canada Labour Code. We would most assuredly prefer not to interfere with affairs of CP Rail, but we are not prepared to stand idly by as a work stoppage cripples vast sectors of our economy.

To the question from the opposition on moving too quickly with the legislation, I think not. I realize that the parties have tried to settle their various disputes, but this government is faced with a situation that requires immediate and decisive intervention.

The parties have had ample time to reach an agreement and they have received help from experts in mediation. At this point, we cannot expect that they will see eye to eye any time soon. We cannot wait any longer, not when our economy hangs in the balance.

The Leader of the Opposition said today that he believed it was not even a question of acting too soon. He would prefer not to act at all but that we encourage both sides to continue negotiating, even during a work stoppage with their talks halted.

Why is that? I submit that is because he does not understand that this work stoppage is a real threat to others outside the rail industry. I hope he does not believe that in our globalized economy, where markets can turn on a single tweet, that freight rail has become a relic because we completely disagree with that.

CP Rail has grown into a vast network of some 22,000 kilometres operating in 13 American states as well as six of our own provinces. For many farmers and miners, freight rail is the mode of choice to get their products to market and CP Rail is the company to which they most frequently turn. In 2010, according to Transport Canada, CP Rail transported 74% of our potash, 57% of our wheat and 53% of our coal. All totalled, the value of freight moved by CP Rail in Canada is nearly $50 billion, each and every year.

In 2009, a report by the University of Toronto's Rotman School of Management indicated the important role played by four Canadian bulk shipping industries that used freight rail. Oilseed and grain farming, coal mining, wood products manufacturing and pulp and paper and products manufacturing contribute together more than $81 billion to Canada's GDP. Moreover, they keep one million Canadians at work. In other words, freight rail remains indispensable to our economy.

It is not just important to the 15,000 or more people who work at CP Rail. It is also clearly vital to the farmers, miners and forestry workers who depend upon rail to move their products across the continent and beyond and to all those whose jobs are linked directly or indirectly to the rail industry.

If this work stoppage is prolonged, it will translate into further job losses. With no trains running, the implications of this work stoppage are widespread. In addition to affecting farmers, miners and forestry workers, it is also impacting auto workers. Auto parts are the third largest container import good that comes through Port Metro Vancouver. This work stoppage, this strike, is halting the shipment of these parts to manufacturers in Ontario. Without these parts, assembly lines will slow down or stop and that will result in lost production and layoffs.

Do not forget that through partnerships with other modes of transport like shipping or trucking, the silence on train tracks can vibrate far beyond our own waters and our own borders. CP Rail is a vital link in moving freight to and from Canada's west coast ports, which are such an important part of the Asia–Pacific gateway. This work stoppage is preventing our ability to keep products moving, it undermines Canada's reputation as a reliable place to do business and it is a setback from which it could take years to recover lost businesses and lost investments.

We have two class I railways in our country and it is true that Canadian National does have some capacity to move freight. CN estimates were that it could pick up nearly 10% of CP Rail's grain traffic, but probably less for other sectors. However, the fact remains that about 20% of CP traffic simply does not have direct access to CN's rail network.

We cannot count on CN to pick up the slack during this work stoppage and VIA Rail cannot help fill the void because it is designed to transport passengers, not freight. Most important, we cannot rely upon a speedy conclusion to negotiations that have dragged on without success and finally broke down this weekend. We must act.

First, there is 60 years of parliamentary precedent for a government to introduce back-to-work legislation in a rail industry work stoppage.

Second, the bill does not circumvent the collective bargaining process, especially considering all the support we have given to help these two parties reach a solution.

Third, we are not acting too quickly. The stakes are much too high to wait for the parties to have a change of heart.

Finally, the rail industry is not a self-contained sector that we will simply leave to its own devices. It is an integral part of the economy, it is linked to other modes of transportation and the producers who depend on rail to deliver their goods demand our respect. The work stoppage at CP Rail is having serious repercussions and this government is not prepared to let it continue.

There is no question it is best for parties in a labour conflict to resolve their differences, but the parties in the CP Rail dispute have been trying now for some time without success and there is no reason to think they will be successful in the days ahead.

In this time of global economic uncertainty, Canadians have given our government a strong mandate to protect the national interest. When we look closely at the implications of a strike at CP Rail, we see billions of dollars and more than a million jobs hanging in the balance. Therefore, in the best interests of all Canadians, the government is acting. We are asking for support to pass Bill C-39, which will end the work stoppage and also provide the parties with an interest-based binding arbitration process to help them resolve their conflict without a strike.

It is not an ideal world, yet I still urge hon. members to set aside their differences for the benefit of all Canadians and join with us to give this bill a rapid passage.

[Restoring Rail Service Act, May 29th, 2012]

Madam Speaker, I will remind the member not to question our sincerity and genuineness because at least we stick to the same script, whereas his party flip-flops all over the place. In 1995, it introduced back-to-work legislation. In 2007, it supported back-to-work legislation in the rail industry. Today, all of a sudden, it has a different beat on it. What gives?

[Restoring Rail Service Act, May 29th, 2012]

Madam Speaker, indeed they are, and they are an incredibly important part of the economy, and CP Rail is as well, but the point is that these parties had the ability for the last eight to nine months to negotiate their own deals. They also had the ability in the past eight to nine months to recognize, if they were asking for difficult concessions at the table and they were not going to receive them, that they should find their own way to an arbitration process, to a mediation process. We in Labour Canada have offered both an extended mediation process and a conciliation process, and all these things have been rejected by CP Rail and by the workers.

The effect of the strike is ongoing, and the effect of the strike is on the national economy. It is the obligation of the government at this point to take a look at the greater good for the economy and the greater good for the national interest and to act appropriately. In this case, acting appropriately is introducing this legislation and having quick passage.

[Restoring Rail Service Act, May 29th, 2012]

Madam Speaker, indeed, we are on day seven of a work stoppage, of a strike, and it is incredibly important to make sure we get the CP Rail trains moving as quickly as possible for the national economy.

The ministers of industry, natural resources, agriculture and transport have all heard from their stakeholders, and we've heard from our stakeholders here in the country that it is getting very tight concerning the ability to move cargo and to receive cargo in the country, and that is going to have an effect on their business operations and on their employees.

We are on day seven. Traditionally, in the past, we have seen severe economic circumstances develop after seven to nine days, and indeed, I hope we will be able to deal with this matter expeditiously so we do not face that situation.

[Restoring Rail Service Act, May 29th, 2012]

Madam Speaker, first of all, I'd like to correct the alleged facts that were brought forward by the member for Cape Breton—Canso. Indeed, what he said with respect to officials providing advice is incorrect. In fact, the advice I am provided by officials is very professional advice based upon the facts on the table, and I act on the advice of the officials in the best capacity I can.

That being said, this is different legislation. It is interest-based arbitration and it is tailored to fit the needs of the parties in this current dispute specifically. It is on the advice of officials, it is from within the discussion of the cabinet and it is very much appropriate for the situation we have right now.

[Restoring Rail Service Act, May 29th, 2012]

Madam Speaker, I will start from the beginning. Should the government be involved in this matter? The answer is absolutely. We are acting in the best interests of the national economy and the Canadian public. To facetiously say that it is something we did by mistake is completely incorrect and quite insulting, frankly.

We are here on a mandate from the Canadian people to protect the economy. We take it very seriously, and sometimes we have to make tough choices and tough decisions. We have to balance the interests of the whole versus the individual. That is exactly what we are doing in this case.

In terms of changing the Canada Labour Code, there is no desire, no underhanded device in order to do it. We are very clear on 60 years of parliamentary precedence in railway strikes. We are intervening on behalf of the Canadian public and on behalf of the national economy.

[Restoring Rail Service Act, May 29th, 2012]

Mr. Speaker, Canadians may not even realize just how great the railways impact on the economy. I want members to consider these facts. Canada has the third largest rail network in the world and it handles the fourth largest volume of goods in the world. Two-thirds of Canada's rail traffic moves transborder and overseas trade. In fact, 40% of Canada's exports rely on rail transportation. With no trains running, the implications of this strike are widespread.

Let us take a look at Canadian Pacific Railways book of business.

Transport Canada reported that in 2010 CP Rail handled 74% of all potash, 57% of all wheat, 53% of all coal and 39% of all containers within Canada. In terms of revenue on an annual basis, this represents $5 billion worth of potash, $11.1 billion worth of grain and $5.25 billion worth of coal.

In addition to moving the potash, the wheat and the coal, the bulk commodities, this work stoppage is also impacting the manufacturing sector, the auto industry specifically. Auto parts are the third largest container import good that enters Canada through the west coast ports. This work stoppage is preventing these parts from being shipped to manufacturers here in Ontario.

Along with some members of our caucus, last evening I met with representatives of car manufacturers who told me that without the parts they need, assembly lines will slow down or stop, resulting in lost production and, depending on the duration of the work stoppage, possible layoffs affecting all auto manufacturers.

In regard to container traffic, $200 million of cargo is traded through the port of Vancouver alone every day. That cargo is destined for Canada's economic trading partners and the homes of hard-working Canadian families.

The economic impact stretches even further as Canada's rail companies paid $787 million in fuel last year, property taxes, sales and other forms of taxes in 2010, and over $2.5 billion annually in wages and benefits. That is the money that circulates through the entire Canadian economy. I think members can understand why our government is so concerned about the work stoppage at CP Rail and the fact that activity has been ground to a halt.

I want to be clear. Resorting to a work stoppage is not the norm for labour relations here in Canada. In fact, it is just the opposite. When the labour program is engaged through mediation and conciliation officers, 94% of negotiations and disputes are actually resolved without a work stoppage. We do see this, undoubtedly, as the better option.

When parties choose to resolve their differences, both the employers and the unions carefully consider the importance of maintaining the strength, the viability and the competitiveness of their operations. When parties choose to resolve their differences, they are recognizing that work stoppages and labour instability leads to long-term and generally detrimental impacts on the future of their company, on job prospects for new employees, on the customers they serve and on the national economy. However, that has not happened in this case and we are on day seven of a work stoppage.

There is no denying that negotiated agreements work. As we have always said, the best and the longest lasting solution to any labour dispute is when the parties come to an agreement at the table. However, there are instances when the parties are just too far apart to reach a compromise.

Let us look at the current dispute. In the case before us between CP Rail and the Teamsters Canada Rail Conference, there have been repeated efforts to break the impasse and the parties have tried to reach contracts for all the people who are involved. The TCRC, the teamsters, and the CP Rail representatives actually started negotiating in October and November 2011. The main issues in this round of bargaining for both units are important. They are pensions, health care benefits and working conditions.

However, by mid-February of this year I received notices of dispute from the employer for both units indicating that they needed some labour intervention. We provided the parties with the services of two conciliation officers for both unions' bargaining units. It made sense to have the same conciliation officers for both units so that we could have some consistency in the process.

Unfortunately, reconciliation was not achieved and, quite frankly, things have not progressed toward negotiated agreements. As such, the parties were released from conciliation on May 1.

On May 16, I met with the representatives in Calgary where I proposed a five point plan that would have provided extended mediation services for 120 days to the parties, as well as have a third party expert in pensions at the table, which would have delayed the possibility of a work stoppage. This was in recognition of the difficulties the parties had in terms of negotiations. Unfortunately, the union rejected this offer and the work stoppage began on May 23.

Even after the strike commenced, we provided assistance to the parties every single day.

However, on Sunday, May 27, the mediators tabled draft terms for voluntary arbitration that represented, in their view, a compromise solution to help address the impasse and avoid back-to-work legislation. In very short order, in under an hour, both parties rejected this compromise voluntary arbitration.

As a result, the officials from Labour Canada withdrew their services because, in their opinion, they determined that the positions of both parties were so entrenched that no forward motion was possible.

In situations where no resolution is in sight, where a strike is ongoing and the lives of Canadians and the health of the economy are being affected, the government has no option but to act. Indeed, the government has an obligation to act, which is why our government is introducing Bill C-39. It would end the work stoppage but it would also provide the parties with an interest-based arbitration process to help them resolve their conflict with the help of an arbitrator.

I can assure my hon. colleagues that this was not our first choice. Members on this side of the House do believe in the right to collective bargaining and would much prefer to see labour disputes resolved by the parties involved, as it is done a vast majority of the time. Our government only intervenes in situations where the public interest is seriously threatened, which is the case today.

History will show that, in 1995, the Liberal government at the time was faced with the same economic situation as a result of a rail labour dispute. It was during the debate on the back-to-work legislation in 1995 that the Liberal labour minister, Lucienne Robillard, stated in the House of Commons:

We would be lacking in our duty to the people of Canada if we allowed a work stoppage in the railway sector to threaten the stability of our economy and the jobs of the thousands of workers affected by this dispute.

It is this duty to Canadians and to our economy that I am asking for this House to support Bill C-39, an act to provide for the continuation and resumption of rail service operations. It is because there is so much at stake for individual rail workers, the company, businesses and their employees who depend upon CP's services and, quite frankly, ultimately, the economic recovery itself.

I would ask hon. members to ask their constituents, particularly the businesses in a constituency. I know what they will hear. They will hear that we cannot afford an extended work stoppage in one of Canada's most important transportation systems. The risks to jobs, to corporate profits and Canada's global competitiveness, frankly, are too great. Like other industrialized economies around the world, Canada is coming out of a difficult economic period.

While our government is proud of our record of sheltering Canadians from the worst effects of the downturn and laying the foundation for recovery, we all read the papers every day.

We all know our country is not immune, however, to currents in the world economy, events beyond our borders over which we have no control. We have uncertainty in Europe at the moment, and there very well could be more turbulence in the days and months ahead. Therefore now is not the time to risk our economy, especially considering that we are making steady progress in creating jobs and restoring consumer and investor confidence.

I do want to remind my hon. colleagues that as of April 2012 our unemployment rate has dropped to 7.3%. That is a definite improvement over last year. That is no wonder, because we added 58,000 new full-time jobs last month alone. However, to maintain this progress and to promote economic growth we need to be vigilant. We cannot afford to allow labour disruptions to continue in a major industry so crucial to domestic trade and our international exports. A labour stoppage in this key sector of our economy would be a serious impediment to our recovery and growth, because quite frankly, the domino effect throughout the economy of a prolonged work stoppage at CP Rail could mean major losses at home or abroad.

What needs to be understood is this. There is much more at stake here than issues on a bargaining table. The employees represented by the Teamsters want to be treated fairly and they want our respect for their rights under the Canada Labour Code. Our government clearly understands this. However, Canadians have rights too and Canadians gave us a strong mandate to protect the economy. This strike affects more than CP Rail and its workers. It affects Canadian businesses, Canadian exporters, Canadian farmers, Canadian miners and Canadian ports, and it affects Canadian families. A prolonged strike puts other people's livelihoods at risk. It is those people's interests that we are acting for in proposing this legislation.

In opposing the bill, the opposition is putting its pro-union ideals squarely ahead of two things, common sense and the national economy. Its vision is narrow and it only stands up for special interests. I urge all hon. members to pass this bill as quickly as possible.

[Restoring Rail Service Act, May 29th, 2012]

Mr. Speaker, it was just north of here, in Bonfield Township, where the first spike was driven into our national rail system back in 1880. In the 132 years since, this transcontinental link has become a defining feature of our nation. Indeed, our country's history is linked to our railway system. From the shores of the St. Lawrence River, across the endless expanse of the Canadian Shield and the Prairies, through the majestic Rockies and over the rugged terrain of British Columbia, it has been the ribbon of steel that binds our country together.

Our government understands the historic connection that so many Canadians have to our rail service, but it is not just part of Canadian heritage. Much more than historical significance, Canada's rail system continues to be an integral part of our country's economic, trade and transportation needs.

[Restoring Rail Service Act, May 29th, 2012]

moved that Bill C-39, An Act to provide for the continuation and resumption of rail service operations, be read the second time and referred to a committee of the whole.

Mr. Speaker--

[Continuation and Resumption of Rail Service Operations Legislation, May 29th, 2012]

Madam Speaker, as I mentioned earlier, the issue of pensions was a very divisive issue at the bargaining table. I guess the best way to put it is that they could not find their way forward as a result of it, which is why we have the strike that we have today.

We believe that the process proposed in the back-to-work legislation is fair, neutral and allows both of the parties to put their issues on the table before an arbitrator. The arbitrator does not have to choose one over the other. He or she can put both of them together or come up with a collective agreement based upon what the parties submitted. It is the best way to approach this matter, especially when we are dealing with issues that are as important as people's pensions.