Madam Chair, after so many hours of listening intently to the debates from the other side of the House, I thought it would more than appropriate that members would take the next 10 minutes to understand.
The important part here is that Canada Post is vital to the economy. It is indeed one of Canada's largest corporations. It is a $7.5 billion company, employing some 70,000 people right across Canada. A vast majority of them have union representation. Canadians rely on the services of Canada Post for many reasons.
Canada Post sorts and delivers 11 billion pieces of mail every single year. It remains a vital part of how we stay connected to one another as a country, but it is also important as a business in Canada. It helps companies grow. It plays a key role in how bills gets delivered and paid on time and ensures that parcels reach their destinations.
Canada Post is an integral part of what keeps Canada in business and puts money in the pockets of many citizens. From the small business owners who invoice and get paid via mail to the companies that rely on the mail to issue bills, process orders, and receive payments, this is a service that matters a lot. Similarly, for taxpayers waiting for a tax or HST rebate to arrive or for citizens in rural and northern communities who rely fundamentally on the mail for many of their essential services and communications, Canada Post is a vital service.
For months, Canada has been dealing with uncertainty surrounding postal services. The collective agreement covering the union, the largest bargaining unit at Canada Post, CUPW, expired earlier this year and parties began their talks back in October of 2010.
In spite of there being both conciliation and mediation assistance, an agreement has remained elusive, and as of May 25 the parties acquired the legal right to strike or lock out. That presents a risk not just to mail delivery service but also to the good health of Canada's economy on the whole. That is a risk that Canadians simply do not want, nor is it one that they should have to endure.
The work stoppage at Canada Post is expected to have an immeasurable impact on our economy, resulting in losses of about $9 million to $31 million per week. Every day that means more jobs at risk, more productivity lost, more challenges for businesses, and more uncertainty for consumers.
My third point is that every other avenue has been tried to bring a full and lasting resolution to this dispute. Quite frankly, the time has come for Parliament to do the right thing and intervene. Consider how much has been done over the last eight months by the Canadian Government in order to resolve this dispute.
On October 4, 2010, notice was served by the union on the employer to commence collective bargaining, and they held negotiations from October to November. In January of 2011, the union filed a notice of dispute and asked Labour Canada for help in conciliation, and a conciliation officer was appointed at the end of January.
Through February and March, the conciliation officers met with the parties. On April 1, the conciliation period was extended further to May 3 in order to allow the parties to continue. During that time, the conciliation officer met with the parties.
On May 3 they were released from conciliation and on May 5 a mediator was appointed. Throughout the month of May and into June a mediator from the labour program's Federal Mediation and Conciliation Service met very frequently with the parties. Unfortunately, despite all of these efforts, the parties were unable to come to an agreement. Even as recently as eight o'clock this morning attempts were made to help the parties reach a deal and they bore no fruit. Something needs to be done and that is why we are now acting with this extraordinary measure.
The act itself provides for the resumption and continuation of the mail service by Canada Post. It brings an end to this growing uncertainty that has characterized much of the dispute itself for many months. The act also imposes a four-year contract and new pay rate increases. That will mean a 1.75% increase as of February 1, 2011; 1.5% as of February 2012; 2% as of February 2013; and 2% as of February 2014. It also provides for final offer selection, which is a binding mechanism on all outstanding matters.
Furthermore, and most important, in making the selection of a final offer, the arbitrator is to be guided for specific principles, the need for terms and conditions of employment that are consistent with those in comparable postal industries that will provide the necessary degree of flexibility for both short-term and long-term viability, and competitiveness of the corporation itself. They will maintain the health and safety of its workers and to ensure the sustainability of the pension plan.
The terms and conditions of the employment must also taken into account a solvency ratio in the pension plan that does not decline as a direct result of a new collective agreement and that Canada Post Corporation must, without recourse to undue increases in postal rates, operate efficiently, improve productivity and meet acceptable standards of service.
In other words, it is a decisive approach and it is aimed at resolving this labour dispute.
Some may argue that collective bargaining is a process that has to be left to run its course, no matter how long it takes. However, the facts tell us that the parties in this dispute have tried again and again, month after month and no agreement has been reached and, indeed, there is no agreement in sight.
So what is a reasonable amount of time to wait for a solution before we act? Well, we cannot wait until our economy is damaged, until jobs are lost, until businesses and families are actually hurt. Not only is that unreasonable, it is actually unfair to Canadians. They did not ask for the labour dispute and they should not have to pay the price for this and for having it dragged on as long as it has.
Canadians are counting on their government to provide mediation, conciliation assistance, and we did that when the parties were unable to reach a solution. Now it is up to the Government of Canada to act in the best interests of all Canadians and of our country's economy.
As I said before, this is not the Government of Canada's first choice in how we would like to see this labour dispute resolved, but this choice is the necessary one. All members of the House should join me in giving the proposed legislation the support that it deserves.
