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Good afternoon, committee members.
[Translation]
I call this meeting to order.
[English]
Welcome to meeting number 16 of the Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities. Pursuant to the motions adopted on September 18, 2025, the committee is meeting on government mandates and key priorities for the first hour, and the definition of work and the use of section 107 of the Canada Labour Code for the second hour.
Today's meeting is taking place in a hybrid format. People are attending in person in the room and virtually using the Zoom application. Before we begin, I would want to confirm to the committee that those appearing virtually have been sound-tested and have been approved. As well, participants in this meeting have the option to participate in the official language of their choice. Please familiarize yourself in the room with the interpretation service. Ensure you're on the channel for the language you wish to participate in. For those appearing virtually, you can choose this by clicking on the globe icon at the bottom of your Surface. If there is an issue with interpretation, please get my attention. We will suspend while it is being corrected. I would also like to remind members to please mute your devices at this time and refrain from tapping or hitting the boom on the mic to protect our interpreters. As well, please direct all questions through me, the chair, and wait until I recognize you before you begin speaking.
Before we begin, the one housekeeping item that I wish to address is the adoption of the budget for the temporary foreign worker part of this study at $38,650. Do we have agreement? If we don't have the budget, we have no study on the temporary foreign worker program.
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Thank you, Madame Desrochers, for recognizing that.
We will now begin with this hour. I would like to welcome the Honourable John Zerucelli, Secretary of State for Labour.
From the Department of Employment and Social Services, I understand we have a change from the deputy minister to Colette Kaminsky, senior assistant deputy minister, skills and development, and Sandra Hassan, deputy minister of labour and associate deputy minister of employment and social development.
Mr. Secretary, you have five minutes for your opening statement.
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Thank you very much, Mr. Chair. I appreciate that there is a much more interesting committee going on, so I appreciate everyone's attendance here today.
I'd like to thank Deputy Hassan and Colette Kaminsky for being here with me today.
Our new government is on a mission to strengthen Canadian workers and to help our economy succeed, so it's an honour and a privilege for me to be here today to highlight the many actions we're taking to support this mission. This is my first time appearing before this committee. I take the responsibility of my role as Secretary of State for Labour seriously. I'm also proud to represent the riding of Etobicoke North, because there's nothing more important to me than making sure the voices and concerns of Canadian workers are heard.
My job is to listen to Canadians. During my discussions with unions, employers and workers in the past weeks and months, I've heard the same recurring concerns. Job security in the face of tariffs is top of mind. We're listening. We're working hard to reduce the impact. For those who find themselves out of work, we have a strong social safety net. We're helping workers get through job disruptions with employment insurance and the work-sharing program, and working with the provinces and territories to avoid those situations and create the fastest-growing economy in the G7.
One of the ways we're doing that is through the one Canadian economy legislation. It clears the way to eliminate federal barriers to interprovincial trade and labour mobility. We are working collaboratively with provincial and territorial governments to improve the mobility of workers in regulated occupations so that they can move more quickly and fill jobs across Canada. Yesterday I presented to the committee on internal trade with all provinces, updating on the progress of the labour mobility plan. We agreed to change the regulations to a 30-day service standard and to reduce onerous administrative burdens on labour mobility. Certainly there's more work to do, but progress has been made.
Helping Canadian workers through these turbulent times is our top priority. We're meeting this moment with strength and conviction. We're protecting our communities, empowering families and investing in Canada. We're standing up for Canada's future and for the workers who are building it every day. Our plan is to empower a new generation of Canadian workers, and budget 2025 is at the heart of our plan. While we can't control what other nations do, we are focusing on what we can control. We're going to build. We're going to build homes. We're going to build transmission lines that power AI and power the north. We're going to build ports, rails and bridges to move critical minerals. We'll build locally. We'll build nationally.
However, we can't create the strongest economy in the G7 without building Canada's skilled trades workforce. That's why we invest nearly $1 billion annually in apprenticeship supports for apprentices to make trades training more accessible. We do this through loans, project funding, tax credits and deductions, and employment insurance benefits. We are also supporting apprenticeship training, including through the union training and innovation program. In budget 2025, we've doubled the funding, with $75 million over three years. This investment will increase the quality of Red Seal apprenticeship training. It will help unlock our economic growth and make sure there are trained Canadian workers at job sites to build Canada's future.
Those job sites need to be safe and respectful for all workers, because we believe labour rights are human rights. Better working conditions go hand in hand with a strong and agile Canadian economy. We're building a future where every worker is respected, protected and empowered, but we need to better understand the challenges faced by workers. We don't pursue this just at home. We're promoting labour rights for workers with our global trading partners, with funding for such credible organizations as the International Labour Organization. We will continue to set the bar on workers' rights around the world, because every worker deserves a workplace that is fair, safe and equitable.
This is a critical time for Canadian workers. We have the programs and policies in place to help them succeed, but these aren't just policies: They're promises. They're promises to all Canadian workers that the federal government has their backs.
Thank you. I'm happy to take your questions.
Through you, welcome, Secretary. Thank you for coming today.
Up until the last election, I was a unionized worker provincially. I was an educator. I know there is a fine line when you're working with unions and within government, so I can respect that.
In your introduction, you talked about budget 2025 in terms of unions, tradespeople and skilled workers. I gave a speech earlier about the budget and the need for the support of our unions and workers who are helping to build these nation-building projects. I wonder if you could explain how the investments in workers, especially the union training and innovation program, are central to Canada's broader economic and infrastructure goals.
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Thank you very much for that question.
I'd like to take the opportunity to highlight that our budget 2025 is about putting workers first. Every part of this budget is about equipping Canadians, especially workers, for the economy we're trying to build. It's fundamentally about building a stronger economy by investing in Canadians. This is important: We are making the largest infrastructure investment in Canadian history and pairing it with generational funding for housing and workforce development. That means more jobs, more apprenticeships and more opportunities for every region.
Don't take my word for it. Let me tell you what Canada’s Building Trades Unions had to say about this budget. It said, “Budget 2025 contains monumental wins for members of Canada’s Building Trades Unions, including $50 billion in investments for local infrastructure, $75 million over the next three years for the Union Training and Innovation Program (UTIP), new Clean Economy Investment Tax Credits...and the introduction of Community Employment Benefits Agreements”.
It continued, “CBTU is grateful to all Parliamentarians who supported the Federal Budget and acted in the best interest of all Canadians. We stand ready to work with the federal government, industry, and labour partners to deliver on the commitments made.”
Mr. Chair, if I may, I have one more important quote I think I should read from LiUNA Western Canada, which said, “We support the Federal Liberal Government's CANADA STRONG Budget 2025. The Budget 2025 addresses major priorities of LIUNA Western Canada, including the new Build Communities Strong Fund which, in conjunction with the Major Projects Office, will result in thousands of great paying Union jobs right across Western Canada, benefiting local communities, Indigenous peoples, and women in the construction industry.”
It continued, “We also applaud the middle class tax cut as well as major new funding for Arctic Infrastructure, critical mineral development, port and rail infrastructure, affordable housing construction, and clean and renewable energy development...And finally, Budget 2025 will ensure more fulsome and effective compliance inspections under the International Mobility Program (IMP) as we continue to call for the ban of the use of the IMP in the construction industry”.
It ended, “We support Budget 2025 and look forward to doing our part to BUILD CANADA STRONG TOGETHER.”
I want to draw the committee's attention, with respect, to the Air Canada probe. I think it's important for the committee to recognize that the Canada Labour Code rests with . I know Minister Hajdu will be presenting before the committee in the coming weeks, so it's important to note that she, ultimately, has decisions on the labour code.
With respect to the issue with Air Canada, no work should go unpaid. ordered a probe into that matter. I'm not going to prejudge the results of that study. They will come by the end of the year. That's the piece I wanted to conclude there.
Budget 2025 is an investment in workers and our economy. We see positive momentum in our economy with 60,000 jobs created in September and 67,000 jobs created in October. Wages are up 3.5%. Inflation is now within the Bank of Canada's target range. It includes the largest infrastructure investment in Canadian history; a well-deserved raise for our military and major investments into defence spending; tools that will make our economy more competitive; the productivity superdeduction, which will allow our businesses to make needed investments in equipment; a tax cut that will benefit 22 million Canadians; a national school food program; a tax credit for personal support workers, a much-needed investment in our people who take care of our elderly; 1,000 RCMP personnel; and 1,000 border guards.
These are all matters that the Conservatives voted against.
I'd like to thank the secretary of state for being with us today to answer our questions.
I already have a request for the secretary of state: I would like to receive a document describing his mandate. He's here today to talk to us about his mandate, but we know very well that broke with tradition by not giving separate mandate letters to each of the secretaries of state and ministers. Rather, it is a single mandate letter that applies to everyone. So I would like him to provide us, if possible, with a document describing his mandate for this Parliament.
That said, I really liked hearing the secretary of state say earlier that his government should support workers. I hope so. I would like to think that governments are there to support workers. I do have some concerns, and I would like the secretary of state to address each of the following points.
On the one hand, the most recent budget provides for the elimination of 40,000 public service positions. On the other hand, since last week, people have been bragging about how jobs will be created.
So I would like to ask the secretary of state the very question that CUPE, the Canadian Union of Public Employees, is asking: how can jobs be created when jobs are being cut?
Furthermore, I dare not even imagine what services to the public will be eliminated, in addition to the elimination of good union jobs in various places in Canada, including the regions.
I also have a question about Canada Post. I would like to talk not only about the job cuts that may be considered there, given the mandate given by Mr. Carney, but also about Purolator. The Liberal government also boasted about passing anti-scab legislation. However, the situation at Canada Post in connection with Purolator could be akin to a situation in which scabs would be used to do the work, which would be in violation of this act. That's how I see it, but I'd like to hear the secretary of state's opinion on the matter.
I have three quick questions.
You mentioned employment insurance, but in fact, there is absolutely nothing in this budget to indicate that the federal government will reform employment insurance. It's as if we were telling workers in my region, the North Shore, as well as those in all the other forestry regions, that they should train in a new field and that, while waiting to find a new job, they should take advantage of EI, since that's what it's there for. In other words, they're being told that they'll lose their jobs, but that, in the worst-case scenario, they'll be able to retrain for a while and then go to work in another sector. However, that doesn't necessarily work for everyone.
So I'd like you to tell us about the support you provide to the forestry sector. If you don't have time to discuss this it during the committee meeting, I invite you to send us your response in writing.
We've talked about section 107 of the Canada Labour Code at length, but I'd like you to explain what you intend to do about it. Not only are there a lot of occurrences, but using it has become commonplace. Indeed, as we said at the last committee meeting, the Liberal government is using section 107 increasingly often. It's no longer a rare practice.
I'd like to know your opinion on the use of section 107. Personally, I get the impression that a kind of tradition is taking hold. I know that is also part of the equation, obviously, but I'd like to hear your thoughts on that.
Finally, I would like to raise the issue of pensions. Not only is the Correctional Service of Canada's budget being cut by 15%, but you have also decided to cut pensions. I'm surprised to see that a Secretary of State for Labour, who says he wants to support workers, would decide to reduce what constitutes a negotiated wage. Retirement income is a negotiated salary. In this case, by deciding to reduce a negotiated salary, we are violating a salary provision that was freely negotiated.
As you can see, I submitted a request and several questions. Let me summarize them.
Initially, with regard to the mandate letter, I asked you to send us your mandate objectives in writing. We're more than six months after your appointment as Secretary of State for Labour, so I'd like to get some clarification on your mandate.
Then I got to asking you questions on five different topics. I know that's a lot to cover at the same time, but I was really looking forward to talking to you. I'm very happy that you can answer my questions, Mr. Secretary of State, so I will stop talking and give you the rest of my time to answer them.
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Indeed, there are a lot of elements in your questions. I'm sorry, my French is poor, so I'm going to answer you in English, so it's clearer.
[English]
I've noted your request to provide some of these answers in writing. We will do that for you, because there's a lot to cover, and I probably have less than a minute left to get back to you.
Let me be clear about the mandate. We're focused on building a stronger Canada with skilled workers using Canadian steel, lumber and aluminum. My mandate is to support in promoting safe, fair and inclusive workplaces while strengthening labour relations across federally regulated sectors.
My work focuses on three areas: improving labour mobility to build one Canadian economy, expanding training and apprenticeship pathways, and lowering costs, improving quality of life and supporting a more resilient economy by ensuring workers can succeed in the jobs of today and tomorrow.
I might just turn in a minute—
Thank you, Mr. Secretary of State, for coming here today.
One of the 's priorities in the spring in his mandate letter was this: “Building one Canadian economy by removing barriers to interprovincial trade and identifying and expediting nation-building projects that will connect and transform our country.”
In June the government passed Bill , the Free Trade and Labour Mobility in Canada Act and Building Canada Act. One of the keys to labour mobility and to building Canada is the harmonization of construction safety standards. As the sitting vice-president of IBEW Local 2085 in Manitoba, I have many friends who take jobs in other provinces, such as Ontario, and it's difficult because the safety courses aren't recognized interprovincially. For example, working at heights or aerial work platform certificates are regional. It's crazy, because all the equipment is the same. Harnesses are the same. Lifts are the same. That's just one example.
What has been done so far to harmonize construction safety certifications interprovincially?
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I'd like to thank the member for that intervention. I think that's a very good question.
Labour mobility is essential to building our economy, especially as we deliver housing and major projects.
On a personal note, your previous union is contributing a lot to Canada and to the economy, so thank you for the work you do, and thank you for serving here today.
Labour mobility is critical to our economic growth. Skilled workers still face barriers when moving between provinces, as you note. I spoke at the committee for internal trade yesterday as we presented our plan on working with labour ministers across the country.
I may turn, just for a moment, to Deputy Hassan, who can speak a bit more about the technicalities of the harmonization of the safety regulations. It's certainly something that I believe in, and I would welcome your work together to move those forward, because I think it's critical to building a Canadian economy, one that will be better for workers.
Deputy Hassan.
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Thank you very much, Mr. Chair.
Mr. Secretary of State, thank you for being with us this afternoon. I also want to thank you for all the work you do.
Thank you in particular for your efforts to ensure that budget 2025 contains real measures, concrete measures, to help Canada's labour force. I'm thinking in particular of the skilled trades that we'll really need in the coming months and years to successfully implement our plan.
Given my role as Parliamentary Secretary to the , I'm very well aware of the current needs in construction and the labour shortage needed to carry out government projects.
Could you explain how expanding internship and training programs will support our goal of doubling housing construction to build a strong Canada?
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Thank you very much for the question.
Apprenticeships are essential to Canada's growth, especially as we build housing and major projects, as you mentioned. The federal government plays a key role as a funder and supporter. Every year, we invest $1 billion through grants, loans, tax credits and supports like the labour mobility deduction. We are seeing strong growth, including of women, in the Red Seal trades, with 593,000 job openings expected in the next 10 years. We are working with provinces, employers and unions to strengthen our apprenticeship pathways and ensure apprentices can start, continue and complete their training.
I will call on Colette to speak about some of the supports that are available for apprenticeships.
I'll turn it over to you, Colette.
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Thank you for the question.
There are a number of programs available to help the trade and apprenticeship system in Canada, including direct programming that works with unions, which was recently doubled in the latest budget. Previously, the union training and innovation program helped nearly 30,000 individuals receive training and upskilling in 2023-24. That funding has now been doubled. We will be working to quickly implement that new program.
There are other supports that we work on with the provinces. The labour market development agreements program, for example, will help hundreds of thousands of individuals move from displaced occupations into new occupations. The latest funding we implemented as part of the tariff response plan is $570 million over three years to help workers displaced and impacted by tariffs. A major priority through that funding will be to support the skilled trades.
Those are just a few examples of the programs that help in this space.
Once again, I thank the secretary of state for being with us.
I mentioned the mandate letter. You talked about building a strong Canada through the budget. More specifically, I would like to know what your five objectives are. Mr. Carney has given you a fair amount of freedom, which may be why you don't have a very specific mandate letter. In any event, you've been in your position for six months, so I imagine you know very well what your five main objectives are. I would be grateful if you would share that with me.
What would you like to have accomplished at the end of your four-year mandate, if it goes that far, of course? I understand that you want to build a strong Canada, but that remains abstract to me. In concrete terms, what are your objectives? You can only have three, too. If they represent a huge amount of work, that may be enough.
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I am sorry to interrupt you, Ms. Kaminsky.
Mr. Secretary, you have not answered my question. I wanted to know what your own objectives were, but you are using the word “our” and you are talking about a specific program, which we have already discussed.
Instead, I am going to talk to you about the forestry workers issue.
What do you want to do going forward? We know there is an emergency in our communities. said people may have to retrain for other jobs.
What do you think about that idea or this assertion? What do you think needs to be done?
If you do not have enough time to respond to the question immediately, you can provide your response in writing.
Thank you, Mr. Secretary.
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I will ask the witnesses to take their seats, please, as we begin the second hour of today's study.
The second hour is on the definition of work and the use of section 107 of the Canada Labour Code.
We have witnesses appearing, but before we do that, I would just remind everyone again that you can participate in the official language of your choice. If there's an interruption in interpretation, please get my attention. We'll suspend while it's corrected.
Please direct all questions through the chair and wait until I recognize you before you proceed. As well, please refrain from tapping the boom on the mic for the protection of the interpreters. If you brought devices with you, please put them on silent mode so they do not go off during the meeting.
Today, for this hour, we have three groups. From the Air Line Pilots Association, International, we have Captain Tim Perry, president, ALPA Canada. From the Canadian Federation of Independent Business, we have Jasmin Guénette, vice-president, national affairs, and Christina Santini, director, national affairs. From the Halifax Longshoremen's Association, we have Kevin Piper, president and business agent.
Each group will have five minutes. When you get to five minutes, I'll say thank you, and I would like you to wrap up shortly thereafter.
We'll begin with Captain Perry.
You have the floor.
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Good afternoon. Thank you for the opportunity to appear before the committee.
My name is Captain Tim Perry. I have been a professional pilot for over 22 years. I am presently a current and qualified Boeing 737 captain at WestJet Airlines and proudly serve as the ALPA Canada president. Our association represents over 13,500 professional pilots at 22 of Canada's airlines. This is equivalent to 95% of commercial pilots in Canada.
Today, I will address the government's recent routine use of section 107 and will offer two recommendations to help create a system where differences are resolved at the negotiating table.
Before I start, I must emphasize that the right to strike has been recognized as a constitutional right for over a decade. Government intervention to end labour disputes in the federal sector has now become commonplace. As a result, employers now expect the government to intervene and are no longer interested in bargaining in good faith.
More specifically, airline management has written letters to the minister, pleading for section 107 to be used, and have admitted publicly to section 107 intervention being part of their bargaining strategy, all of which occurs at the latter stages of bargaining and all of which is very negatively impactful to labour relations. ALPA Canada strongly believes that parties must be incentivized to bargain in good faith and not to seek government assistance to resolve labour disputes.
To be clear, the continued use of section 107 by the government has had a damaging impact on bargaining with our employers. Its continued use, as a routine tool, tips the scale towards employers and erodes the principle of fair and free collective bargaining in Canada. As such, we support the removal of section 107 from the code. Section 107 strips workers of their constitutional right to strike and is done by the minister, unilaterally.
In the Canada Labour Code, section 107 is entitled “Additional powers”, meaning that these powers are residual in nature. It should be noted that the minister also has the authority to appoint mediators, for instance, or to appoint an industrial commission or to order a vote of the union membership on the employer's last offer. Moreover, it is ALPA Canada's view that the continued misuse of section 107 represents a symptom of broader issues within the bargaining process under the code, and we propose the following for the committee's consideration.
First, any analysis of whether section 107 should remain in the code should not be conducted in a vacuum. While changes like replacing the term “expedient” with “necessary” or providing the board with specific authority to review a minister's decision under section 107 are worth considering, the committee should also examine part I of the code, specifically sections 48 through 90, to explore potential improvements to the bargaining process. Ultimately, any proposed changes will require a broader, longer-term tripartite consultation process that meaningfully balances the interests of industry, government and labour.
Second, consideration must be given to providing incentives to bargain collective agreements, without having to resort to the notice of dispute provisions within the code. Isn't that what we all want—fewer disputes?
To provide context, the bargaining period timelines in section 50 of the code currently only require the parties to “meet and commence” bargaining but puts no guardrails around what follows during the open bargaining period. We suggest that an initial bargaining period be established, four to six months, for example, which would then be followed by a 30-day mandatory mediation period with a minister-appointed mediator, prior to the notice of dispute. This would do two things.
First, it would oblige the parties to focus on bargaining during the initial period. Too often, employers show up to the bargaining table poorly prepared and unable to discuss the issues at hand.
Second, mediation would allow for third party involvement prior to the formal notice of dispute. It would help to reduce the number of open issues and would incentivize the parties to resolve issues before the formal notice of dispute stage. At the end of the 30-day period, the parties could either agree to carry on in open bargaining or agree to embark upon a conciliation process. This would reduce the ambiguity of when mediation will happen.
Should there be a notice of dispute, ALPA Canada suggests that the conciliation period be reduced from 60 to 45 days and that more powers be given to conciliators, including a requirement to provide a formal report to the minister and/or arbitrator, and/or consideration given to requiring the parties to withdraw proposals under certain limited circumstances.
Currently, the number of actual days spent bargaining in the conciliation process is limited, and overall, the process in the aviation sector is largely ineffective. Reducing the length of the conciliation period should incentivize the parties to focus on negotiations from the beginning rather than relying upon that time for everything to come together.
To summarize, section 107 should never have been normalized, and its misuse undermines constitutional rights and destabilizes labour relations. We urge the committee to recommend reforms that restore balance and incentivize good-faith bargaining to take place at the negotiating table.
Thank you very much. I look forward to your questions.
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When a strike happens at federally regulated infrastructures or employers, too many SMEs lose sales, lose fresh product inventory, pay contractual penalties, suffer reputational backlash, turn to costly alternative delivery methods or reduce production and their own staff's working hours. We lose sight of these employees.
This study on section 107 is important. It seems that, lately, every time negotiations are difficult between an employer and a union, we end up with a work stoppage. This needs to change. No labour dispute should derail the economy. We saw many work stoppages in recent years at B.C. and Montreal ports impacting small businesses and severely disrupting the supply chain. Work stoppages also recently happened at the St. Lawrence Seaway, CN, CPKC and Canada Post. Again, all of these had major impacts on small businesses and the economy.
The federal government must have the tools it needs to end work stoppages in federally regulated sectors. Back-to-work legislation, let's be clear, is almost impossible to adopt in the context of a minority government. Therefore, using section 107 is probably the only tool available to minority governments to stop damaging work stoppages and help the economy get back on track.
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Good afternoon, Mr. Chair and committee members. My name is Kevin Piper. I'm the president and business agent of the Halifax Longshoremen's Association and a representative of the International Longshoremen's Association.
I'd like to take this opportunity to thank you for the invitation to appear before the committee on section 107 and the definition of work in the Canada Labour Code. The longshoring industry in Halifax and the longshoring industry as a whole are concerned about the unprecedented use of section 107.
Section 107 allows ministerial direction without parliamentary process. We see this as bypassing democratic oversight. One of our main concerns is that overreliance could erode bargaining power for unions, as employers may assume that the government will step in as disputes escalate. Section 107 has been used eight times in the last year and a half. Because of this, employers don't need to bargain in good faith, knowing that section 107 will be used to force our members back to work.
What we see as problematic in our industry is that the decision-makers are not at the table with the employers' associations. The shipping lines aren't at the table and the terminal operators aren't at the table. In Halifax that's not the issue, but for my colleagues on the west coast and my colleagues in Montreal, that is the issue. In Halifax we've been very lucky. We haven't had a labour dispute since 1970. We're an anomaly, I guess, but this is not the case for other longshoring industries in Canada.
Good collective bargaining is the cornerstone of labour relations in Canada. Having the decision-makers at the table is essential to good collective bargaining.
Thank you.
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Thank you very much, Mr. Chair.
Thank you to all the witnesses for coming all the way here today.
Kevin, I know you came all the way from Halifax.
Just quickly, Tim, when we talk about work disruptions, there were 845 work disruptions in Canada in 2024. To me, this seems to be an increasing problem, with eight uses of section 107 in the past 15 months. I don't know if you heard or were watching, but I asked the if he thought the use of section 107 was deteriorating labour relations between the employer and the union. He didn't really answer the question. I think I'm being kind by saying that.
What do you think the effect of this use is on employers and unions?
Thank you to the witnesses for joining us in person for this conversation.
I'd like to start by reiterating that the federal government is neutral in those labour disputes. The Canada Industrial Relations Board operates at arm's-length, and its independence is essential. It's there to manage disputes and to ensure procedural fairness. I also want to say that this government is pro-labour, pro-union, and we have proven that time and again. Actually, if you look into budget 2025, there are a number of measures to help unionized and non-unionized workers.
I come from a riding where there is a port, and I really appreciate the essential work that port workers do to keep our economy moving, as well as, of course, the airline industry, to keep our economy and our people moving—mobility and all of that.
The government has a role in balancing public interest and the rights of workers, particularly in critical, essential...like rail, ports and telecommunication. Those are essential to maintain. Of course, we heard from our colleagues about the impact of some of these work stoppages on small businesses. I really hope that, in today's conversation, such as my colleague mentioned, we could get to some constructive recommendations as to how we can balance the workers' rights with really strong impacts on the economy.
Maybe I'll start with a question for Monsieur Guénette or Madame Santini. Can you share a bit about the impact of some of these work stoppages, with concrete numbers, on the economy and on jobs? We're talking about Canadians losing jobs because, all of a sudden, there's a part of the system that is frozen. I'm not saying one is more important than the other. They need to work together. Can you give us a little bit of data?
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We did ask our members, back in January, how much all the work stoppages from the preceding year had cost them, and the median response was $10,000. It's not a small cost for a small business, where that $10,000 actually might be their margin for that month.
The reality is that some businesses lost a lot more, and not only did they lose in terms of perishable products, lost customers and things like that, it hindered their reputation when they were trying to grow. The reality too is that many had to face some decisions, particularly when you're talking about the port strikes that lasted over 13 days and the backlog that was associated. It meant they had real concerns about meeting the supply that they had, but also being able to keep production going and the hours they offered to their employees.
When we think of the economy and work stoppage, we often think of the employee and the employer who are at the negotiating table, and we forget that there are many other employers in the economy who are also concerned about whether or not they can maintain a cash flow to keep their employees receiving and being able to take home a pay. We need to make sure that's taken into consideration.
You referenced the role of balancing public interest. Absolutely, that is the role of government in these instances. It's to think, at some point we need to intervene because this is going to affect other people's livelihoods, and it's going to affect the well-being of the economy and of Canadians. Section 107 is one of those tools. There are many other recommendations that have been brought forward. I think ultimately we need to bring forward recommendations that help build the tool kit.
You spoke about impacts. There's one example that I'd like to reference. It's a concrete example from Vancouver Island, where during the port strike they had issues getting the grains they needed, and they supplied 70% of the market on Vancouver Island. This is animal feed that is needed to ensure the well-being of the cattle or the different animals within the farms on that island. It was quite concerning that they couldn't get the shipments they needed. Even trucking it in cost a lot more, and they could only get one-eighth of what they needed. The reality was that they had key concerns about maintaining and meeting the demand of their customers on the island. In terms of revenues, it was an 80% revenue loss.
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I only heard part of that, but it was about democratic control, so if I may....
The issue we find is with our ability to have faith in the employers' associations we're dealing with and the decision-makers who are at the table, and that the employers' associations aren't just going through the motions to wait for the federal government to implement a section 107 on us.
In Halifax, at the table, we have representatives from the shipping lines and from the terminal operators, and to reiterate, it's been 50 years since we've had a labour issue. That's not the case in other ports in Canada. I've been told by my colleagues that the employers' associations in those ports have to leave the table to make decisions. They come to a tentative agreement or an agreement in principle. Then they come back the next day and that agreement is gone, and they have to start over again.
I hope that answered your question.
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Thank you for the question.
Of course, we would be more than happy to provide any recommendations in writing to the committee.
I'll back up by saying that what we want.... I think we should all agree that disputes are not the point of bargaining. The point of bargaining is to reach collective agreements that work for everybody. If you shortchange the process, then they don't work for everybody in the long run. The reason we're talking about section 107 and the reason it's so important to us is that it undermines the good process from which a good outcome can ultimately be reached.
To answer your question, which I appreciate very much, focusing on section 107...we believe it should be removed from the Canada Labour Code, but our attention should then be directed to the process that precedes it. We want meaningful bargaining to happen right from when a notice to bargain is issued—right from the very beginning. We're finding this is not happening. We're finding that employers are disinterested in having the meaningful, difficult conversations and are leaving so much of it to the end.
When we end up in arbitration, it's quite often the case that it's just a very small number of issues that get addressed. To my colleague's point, many issues go unaddressed, simply by the way things get narrowed through the process of arbitration. There are all sorts of things other than money or pay tables that need serious consideration, and when they go unaddressed, it leads to destabilization of labour relations.
We're talking about a number of things, and I'm just going to try to characterize them, because it really is to provide focused negotiations early in the process that will lead to better outcomes.
Thank you very much, witnesses, for coming here today. I really appreciate your attending in person.
I know that this government has been saying a lot about supporting workers and that they favour workers, but I think we can all agree that actions speak louder than words. The government's actions are very contradictory to what they have been saying regarding the rights of workers.
My first question is for Mr. Piper.
The very foundation of the relationship between an employer and its unionized workforce is based on the ability to collectively bargain in good faith. Do you think that the government's repeated use of section 107 is undermining those relationships?
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Thank you very much, Chair.
I'd like to thank each of the witnesses for taking the time to be here.
It's talked about a lot in the House and also in this committee that we're in a housing crisis in this country, and many Canadians can't find a suitable place to live. We also have two million Canadians a month who are visiting food banks. Life has become so unaffordable for so many hard-working Canadians who just want to be able to get ahead in life.
I'll start with you, Mr. Perry, quickly, because I don't have a lot of time.
To what extent is the affordability crisis driving the recent increase in labour disruptions in Canada?