The Federal Mediationand Conciliation Service

Labour Program

October 23-25, 2008

Human Resources andSocial Development Canada

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Constitutional Jurisdictions

Canada hasten provinces andthree territories

The Canadian Constitutionassigns jurisdiction over certain industries exclusively to the federal government and others tothe provincial governments.

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State of Dispute Resolution

Federal Public Service

Federal Private Sector

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The Federal Jurisdiction(Public Sector)

250,000 Public Servants

Collective Bargaining• Conciliation/Strike

or• Arbitration

Grievances• Mediation• Adjudication

Training

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The Federal Jurisdiction, under the Canada Labour Code, covers the following industries:

• Inter-provincial and international transport (rail, road, air and maritime)

• Airports and airlines• Telecommunications• Broadcasting• Banks• Government corporations (i.e. Canada Post, Museums…)• Industries declared by Parliament to be for the general

advantage of Canada or of two or more provinces (e.g. uranium mining, nuclear power, grain handling)

• Businesses and undertakings in Northern territories and in aboriginal communities

The Federal Jurisdiction(Regulated Private Sector)

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The Federal Jurisdiction (cont’d)

About 1.3 million employees are subject to federal labour legislation (about 10% of all workers)

Approximately 40% of them are unionized

Nearly 1,500 collective agreements have been negotiated under the Canada Labour Code – between 500 and 600 are renegotiated each year

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Anticipated Turnover: Federal and Provincial Mediators Anticipated Turnover of Federal and Provincial Mediators

over the next 5 years (January 2006 - December 2010))

Current Number of Mediators \ Anticipated turnover in staff

Federal 17 \ 13 81%British Columbia 3 \ 0 0%Alberta 9 \ 4 45%Saskatchewan 3 \ 1 33%Manitoba 6 \ 4 67%Ontario 31 \ 17 55% Québec 26 \ 9 35%New Brunswick 4 \ 1 25%Prince Edward Island 3 \ 2 67%Nova Scotia 4 \ 2 50% Newfoundland 5 \ 3 60%

Total 111\56 50,4%

Source: 2006 Survey of CAALL members

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Trends

Pension plans: defined benefit v. defined contribution

Magna – CAW Framework of Fairness:

union foregoes right to strike to gain representation rights at non-union, major auto parts manufacturer.

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Trends: (continued)

No Mandatory Retirement

Nunavut No mandatory retirement age. Northwest Terr. No mandatory retirement age. Yukon No mandatory retirement age. BC Law to eliminate mandatory retirement took effect Jan. 1\08. Alberta No mandatory retirement age. Saskatchewan Law to eliminate mandatory retirement took effect Nov. 2007. Manitoba No mandatory retirement age. Ontario Law to eliminate mandatory retirement took effect Dec. 12\06. Quebec No mandatory retirement age. New Brunswick No mandatory retirement, but companies allowed to enforce it

under "the terms or conditions of any … retirement or pension plan.“

Nova Scotia There is mandatory retirement at age 65 if required by the employer. However, law to eliminate it to takes effect July 1\09.

PEI No mandatory retirement age. Newfoundland Law to eliminate mandatory retirement took effect May 26\07.

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Trends: (continued)

Union density

Declining from 34.2% in 1987 to 29.7% in 2008 Far lower among younger employees: 13.3% among

workers aged 15 to 24 Decline prevalent in manufacturing sector Proliferation of temporary and contract employees to

replace retiring workforce

Conference Board of Canada Outlook

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Trends: (continued)

Supreme Court of Canada decision in British Columbia Health Services

1. Constitutional protection is extended to the right to free collective bargaining

2. Right includes duty to bargain in good faith

3. Canadian adherence to international agreements (ILO Conventions) further supports that right

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Global Economic Downswing

Air Canada: Group Termination

June 17, 2008: Air Canada announces layoff of 7% of workforce (2000 positions) and closing of Winnipeg and Halifax bases

500 flight attendants declared redundant August 19, 2008: At JPC’s request, Minister

of Labour appoints interest arbitrator Arbitral award issued on September 14, 2008.

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Global Economic Downswing

Price of Fuel

Impact on Trucking Industry and others

Impact on demands during Collective Bargaining Process

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Impact of the Changing Nature of Work

Technological changes in various Industries

New generation of employees

Work life balance