Mr. Speaker, I will split my time with my close friend, the member for Richmond—Arthabaska.
It is with great pleasure that I speak to the motion put forward by my colleague, the member for Chambly—Borduas, who has done a tremendous job, as did his predecessors, with regard to employment insurance. I especially remember when the Bloc Québécois, in partnership with Quebec labour organizations, worked to prevent the Axworthy reform.
After reading the motion, I will remind hon. members of when the POWA was canceled in the 1990s and why it should be reinstated. But first, I will read the motion again:
That, in the opinion of the House, due to the increasing number of factory closures associated with globalization, the government should establish a strategy to help older workers who lose their jobs, a strategy that should include income support measures.
That is the motion before us. Let me remind one thing to the hon. member who spoke of the currents of globalization and expansion of markets. Yes, maybe it is a current. As former Premier of Quebec Jacques Parizeau used to say, “globalization is like the tide; you cannot stop it, but you can contain it”.
It is statements such as those I have just heard that have led to extremes concerning free trade in recent decades. Perhaps it is time to swing the pendulum in the other direction and to understand that, if we really want globalization to serve all the people—and not simply one class of people or big international corporations—it will require measures such as the program for older worker adjustment.
Thus, if we want globalization to serve the interests of all the people, we must have measures such as POWA and many other measures as well. Let us start with this one.
I remind you that globalization does not guarantee that disparities will be reduced. Currently, while I am speaking in this debate, 1.4 billion workers across the planet earn a salary of less than $2 a day. This is 50% of all the manpower in the world. Not only are these people being exploited, but this situation allows businesses to practise social dumping on North American and European markets.
We have the right to protect ourselves against that, first by securing the jobs and income of Canadian workers, and also by signing the major conventions of the International Labour Organization. Unfortunately, Canada has not really signed these conventions—only about three out of seven. Thus, it is not in a good position to teach a lesson to China, India, Bangladesh or even the United States, where forced labour is used in contravention of the International Labour Organization conventions.
So, globalization without a regulatory framework will not guarantee that inequalities will be reduced. There is a danger of social dumping. Consequently, we need social protection measures.
Contrary to what the government has been saying since 1993, and to what the Conservatives were saying before it—because we must remember that it is the Conservatives who initiated the employment insurance reform—an opening of markets, an open economy, is not the same as an economy without social measures. This is a myth, a bias promoted by the Liberal Party of Canada, by certain Canadian right wingers and by a few business circles.
On the contrary. According to OECD data, the most open economies have the highest ratio of social spending to GDP. We are talking here about the Netherlands, Norway, Luxembourg, Austria and Denmark. Those countries recognize, unlike what has happened in Canada in the last 15 or 20 years, that when one chooses to open up globally, everyone must bear the risks, not just a few individuals.
In the clothing and textile industries, for example, the clothing and textile workers must not be the only ones to suffer the effects of the 1995 decision to lift quotas in 2005. Canadians and Quebecers must all bear the consequences. We must first give these workers the means to face this new competition coming mainly from businesses employing low wage earners. I mentioned earlier that half of the workforce globally is not even earning $2 a day. We must therefore give our workers the means to face this competition.
Second, we have to provide to those who will be unfortunate enough to lose their job—especially older workers—some form of economic security. This is not incompatible.
Unfortunately, the government has always considered that workers' economic security was not compatible with productivity and the opening of markets.
This allows me to give a little history on the disappearance of the Program for Older Worker Adjustment.
During my time at the CSN, my colleague for Chambly--Borduas and I had to deal with massive layoffs in the early 1980s, in the iron and steel and mining sectors. On more than one occasion, we used the program which existed at the time, POWA, for occupational training and retraining, for those who could retrain for other jobs, or for income support measures until retirement, for those who, for all sorts of reasons, could not.
I remember, for example, Marine Industries, which laid off many workers and then switched production. We used POWA, at the time, to ensure that the conversion was socially responsible. We did the same thing in the asbestos sector. When the asbestos mines started to close down, we turned to POWA. It was a program which helped us face a recession or the opening of a sector subjected to greater competition. This tool was extremely useful to us.
However, in the early nineties, the Conservatives first, and then the Liberals, thought, based on the logic that I explained earlier, that the economic security of workers was incompatible with productivity and the opening of markets. So, they began sabotaging the employment insurance program. Some financial considerations also came into play. The current Prime Minister and then the Minister of Finance wanted to get his hands on some of that money to reduce the debt without having to hold a public debate.
Be that as it may, the government used some of the ideas of the Canadian and Quebec left wing, including unions, which did not want the government to provide only employment insurance, but also active measures for the labour force.
I remember, for example, a book written by Lise Poulin Simon and Diane Bellemare, entitled "Une politique de plein emploi: pourquoi et comment? . That book had been widely discussed in Quebec. At the time, the Conservatives had appropriated this title and contended that it was necessary to reduce employment insurance benefits, because these benefits did not provide jobs to people. Rather, they wanted to invest in training. They did invest in training, but that was not good enough. The fact is that when people lose their jobs, they still need to eat. They need to eat to be able to get job training.
So, the Conservatives started this movement. Later, when the Liberals took office, they continued that reform. Among others, the so-called Axworthy reform resulted in reduced accessibility to employment insurance. They also got rid of POWA while announcing new pilot projects. We have kept coming back to it for a number of years already.
Again, they present this totally false vision that, in order to be competitive, the labour force must be flexible, and in order to be flexible, it must be on its knees and forced to agree to any working conditions. It is in this context that the employment insurance reform was done. The unions fought against it. So did the Bloc Québécois. At the time, I was with the CSN union.
Now, it is very clear that the problems with unemployment are not related to a strong social protection, but to macroeconomic conditions. During the eighties and nineties, the one thing that really affected employment in Quebec and in Canada was the Bank of Canada's monetary policy, whereby interest rates were raised to unprecedented levels, simply to fight inflation. However, this had the effect of triggering recessions.
I would like to draw the members' attention to the following. It is important for people in the government to read these things and maybe clear their heads of these ancient prejudices and myths. In the first 2005 edition of Policy Analysis , in other words the most recent, there is an article by Jim Stanford. He is a well known labour market economist. He summarizes the 1980-90 period as follows:
—the relatively poorer performance of the labour market in Canada during this period was clearly a result of purely negative macroeconomic conditions and not of more interventionist, egalitarian labour market structures and policies. In the same way, the reduction in the disparity between the unemployment rates since 1996 is due to a recovery in macroeconomic conditions in Canada.
I add that because there may be some Liberals who think that the reduction in the unemployment rate is due to the cuts to employment insurance. It is not because they cut employment insurance but because of macroeconomic conditions, including reduced interest rates, that prosperity has finally returned to Canada and Quebec. We are very happy about that.
That being said, there are still some industrial sectors and regions that are weak. Tools are needed to ensure that these regions get through the difficult times and convert to other niches. The motion introduced by the Bloc Québécois and the hon. member for Chambly—Borduas should be the start of a new era in which Canadians will finally understand—I hope people already know this in Quebec—that better working conditions and social protections are the best guarantees that globalization will continue and everyone will benefit. I hope that this is the dawn of a new age, as a popular song from my youth said.