Mr. Speaker, I was at the point of saying that the last thing we would like to see is this situation deteriorate any further and see businesses fail, unemployment increase and our economy go into a tailspin. Canada Post, a crown corporation, has more than 70,000 full and part-time employees. It is one of the largest employers in Canada. Every business day, it delivers service to 14 million addresses. Canada Post spends about $3 billion a year on goods and services and it contributes $6.6 billion to the country's GDP.
The Canada Post direct marketing sector accounts for $1.4 billion of its revenue. During the recent economic recession, this sector suffered financial losses. So many businesses still rely on Canada Post to get their business done and connect with their clients and customers across the country and internationally. While many aspects of business can often be accomplished online, not everything can be done in the absence of the mail. Mail service is still essential to the functioning of many small and medium-sized businesses and even large corporations.
Canada Post provides a crucial connection for Canadians in rural and remote areas.
Seniors are finding this work stoppage very difficult to deal with. Many of my colleagues have heard from seniors in their constituencies who would like to see an end to this work stoppage. A prolonged work stoppage at Canada Post may well affect some of the most vulnerable sectors of our economy.
How would Canada Post be affected as a viable business? Over the past decade, with the growth of the Internet, email, electronic billing and electronic funds transfers, there has been a corresponding decline in personal mail. However, small and medium-sized businesses still rely on the postal service for direct marketing, billing and filling orders. It is this sector of the business that could be jeopardized with a long-term work stoppage. Right now there is co-dependence. Now is not the time to put them at risk.
What is at stake is our economic recovery. All the job losses incurred during the global economic recession have been recovered. Our government has a responsibility to act on behalf of all Canadians to ensure the momentum continues. We have a process in place to deal with labour conflicts in the federal domain. It is called the Canada Labour Code and it has been followed each step of the way in this conflict.
The collective agreement covering CUPW and Canada Post expired on January 2011. Both parties have been bargaining since October 2010.
When those talks stayed at an impasse, a reconciliation officer was appointed. Throughout the month of May, a mediator from the labour program's Federal Mediation and Conciliation Service met frequently with the parties. The Minister of Labour even met with both party leaders. Despite all these efforts at mediation and conciliation, CUPW announced, on May 30, its intent to strike. On June 3, the Canadian Union of Postal Workers walked off the job. On June 15, 2011, the employer declared a lockout.
The postal workers have now been without a contract since January 2011, despite many rounds of bargaining. Of course, there are always cases when collective bargaining hits an impasse and the parties involved reach a stalemate. When this happens, the parties can request the Minister of Labour to appoint an arbitrator.
It is certainly not the preference of the government to intervene in labour disputes. Our government respects the right of free collective bargaining, which includes the right to strike or a lockout. However, when employers and unions choose a course of action that has harmful effects on the economy and the country as a whole, then it is incumbent on Parliament to stand up for the country and to protect our economic recovery.
That is why our government has introduced Bill C-6. We are taking decisive action on behalf of all Canadians.
What would the act do? It would impose a four-year contract and new pay rate increases. That would 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 means, for final offer selection, a binding mechanism for all outstanding matters. In making the selection of a final offer, the arbitrator is to be guided by the need for terms and conditions of employment that are consistent with those in comparable postal industries. It will also strive to ensure the short and long-term economic viability and competitiveness of Canada Post Corporation, maintain the health and safety of its workers and the sustainability of the pension plan.
The terms and conditions of employment must also take into account: (a) that the solvency ratio for the pension plan must not decline as a direct result of the new collective agreement; and (b) that the Canada Post Corporation must, without recourse or undue increases in postal rates, operate efficiently, improve productivity and meet acceptable standards of service.
As we recover from the economic downturn, it is more important than ever that we encourage co-operative and productive workplaces.
Let us recognize that this has not been an easy situation for the postal workers and for Canada Post. Our hope is that both parties can now turn this around and make the most of this agreement. I would urge them to focus on making Canada Post relevant to Canada for the 21st century.
I also ask my hon. colleagues to join us in supporting the bill.