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December 15, 1997
(Environment and Labour)
Government unveils
labour relations regime for offshore oil production platforms
Charles Furey, Minister of Mines
and Energy, on behalf of Premier Brian Tobin, and Environment and
Labour Minister Oliver Langdon today jointly announced a labour
relations regime to govern oil production platforms in the
Newfoundland offshore industry. The necessary legislative
amendments to the Labour Relations Act to implement the new
regime will be tabled in the House of Assembly today.
Minister Furey stated that
government has provided a framework that provides for a safe,
stable and productive work environment. "I believe that
government has taken the necessary steps to ensure harmonious
labour relations in the offshore oil industry. The measures we
are introducing today will greatly contribute to the province's
ability to be globally competitive in the offshore oil industry.
Certainly, this will enhance our position as a serious player in
the international marketplace."
Morgan Cooper, a lawyer and
labour relations specialist, was commissioned by government to
recommend a labour relations framework for the offshore that
would optimize safety, labour stability and productivity. The
process involved extensive consultation with labour and industry.
"The response from
stakeholders to this consultation process was extremely
rewarding," said Minister Langdon. "The level of
interest and forward thinking shown during these consultations
indicates to me that the future of labour relations for this
industry in this province is extremely positive."
The consultant's report, in large
measure, confirms that the labour relations processes in the
Labour Relations Act are appropriate for dealing with the
offshore sector. In this context, one of the fundamental
principles identified by Morgan Cooper, and fully endorsed by
government, is the importance placed on the rights of workers on
offshore production platforms to decide for themselves what type
of representation, if any, they wish to have. Amendments to the
act will be made only where necessary to accommodate the
uniqueness of the offshore working environment.
Minister Langdon outlined some of
the key amendments to be considered by the House of Assembly
which include:
- If there is a union on the
platform, the unit appropriate for collective bargaining
shall comprise all permanent employees on the platform.
- The licensed production
operator may represent all employers operating on the
platform for purposes of dealing with a certification
application should one be advanced (HMDC for the Hibernia
project), with an employers' organization to be
established immediately upon application approval.
- A first collective agreement
between the parties shall be for a minimum period of
three years, with an arbitration process to be invoked to
address impasses in the collective bargaining process
related to the first agreement, if necessary. Strikes and
lockouts will not be permitted during this period.
- Agreement must be reached
between the parties on mechanisms for the safe shutdown
and maintenance of the platform prior to strike or
lockout action being taken after the period of the first
collective agreement has expired.
A Council of Trade Unions will be
permitted to apply for certification before the Labour Relations
Board if employees so choose this type of representation.
"However," stated Mr. Langdon, "in the interests
of worker safety, and project productivity and stability, there
can be no room for jurisdictional disputes. For this reason,
government is proposing very specific criteria be set down in
legislation to guide decision-making by the Labour Relations
Board on such an application."
Minister Furey stated that
"throughout the consultative process leading up to the
legislative proposal now before the House of Assembly, I have
seen both labour and industry acknowledge the efforts and
initiatives which are essential to ensure that Newfoundland and
Labrador's offshore industry continues to grow. Such cooperation
is key for this industry to maximize its potential and, if recent
developments are any indication, that potential is
enormous."
The amendments to the Labour
Relations Act, once passed in the House of Assembly, will come
into effect immediately.
In concluding, both Minister
Furey and Minister Langdon personally commended Mr. Cooper on a
very thorough job and thanked him for his dedication to this very
important and challenging task.
Contact:
Sean Kelly, Director of
Communications, Environment and Labour,(709) 729-2575, or
Tara Laing, Director of
Communications, Mines and Energy, (709) 729-4890.
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BACKGROUNDER
On December 16, 1996, the former
Minister of Environment and Labour, Kevin Aylward, appointed
Morgan Cooper to provide recommendations on an employee/employer
framework for offshore oil production platforms operating off
this province.
Mr. Cooper combines practical
experience as an arbitrator in the province, with a strong
academic background having a Master of Industrial Relations and
Bachelor of Laws degree.
Under the Terms of Reference, the
consultant was to make recommendations to facilitate a harmonious
labour relations climate on offshore oil production platforms
that will optimize safety, stability, and productivity.
As part of his work, Mr. Cooper
was to consult widely with all stakeholders to explore with
interested stakeholders all possible options for an appropriate
employee/employer process to govern offshore production platforms
under provincial jurisdiction. The consultant invited labour,
management, and other interested groups or individuals to make
written submissions. Written submissions were received from 28
organizations from within the province and elsewhere.
The consultant met with
representatives of 19 of these 28 organizations. The consultant
also met with selected representatives from government, industry
and labour in the provinces of Alberta and Nova Scotia as well as
the countries of Norway and the United Kingdom. Meetings were
also held with representatives from the Canada-Newfoundland
Offshore Petroleum Board and the Canada-Nova Scotia Offshore
Petroleum Board.
Mr. Cooper presented his report
in May 1997. The report contained 12 recommendations.
Government immediately released
the report to the public to afford stakeholders an opportunity to
respond to Mr. Cooper's specific recommendations and government
has since met with many stakeholders to discuss their response to
the recommendations.
Highlights of Mr. Cooper's terms
of reference include:
- Review the effectiveness and
efficiency of the existing legislative provisions in
addressing the interests of stakeholders on offshore
production platforms.
- Review provincial, national,
and international labour relations practices and
strategies for ensuring harmonious labour relations in
the offshore.
- Provide a description of
strategies and their implications in the event of worker
representation on offshore production platforms,
including, but not necessarily restricted to:
a. representation by a
single bargaining unit, multiple bargaining units and/or
a council of unions
b. the pros and cons of
collective bargaining provisions including binding
arbitration, final offer selection, imposed collective
agreements
- Give consideration to the
benefits for maintaining harmonious labour and management
relations if employer representation is by a council of
employers, individual employers or multiple councils of
employers.
- Based on the consultations
and the research conducted, develop a labour relations
strategy with consideration given to the implications on
offshore production platforms of the following:
a. strikes and/lockouts;
b. reaction of stakeholders to the recommendations
including all management, labour, workers, etc.; and
c. the potential for developing and maintaining positive
employee/employer relations.
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RECOMMENDATIONS
CONTAINED IN THE MORGAN COOPER REPORT
- Review of the
interdependence between the various activities which
constitute the offshore petroleum industry, it is
recommended that the provincial Minister of Environment
and Labour initiate discussions with the Federal Minister
of Labour to explore the potential for further
rationalization of labour relations processes in the
Newfoundland and Labrador offshore area.
- It is recommended that the
employees who constitute the workforce on offshore oil
production platforms ought to be the ultimate judge of
their interests on the issue of union representation as
well as the choice of bargaining agent.
- The consultant recommends
that the Labour Relations Act be amended in a limited
number of areas to accommodate specific needs arising
from the special nature of work relations in the
Newfoundland and Labrador offshore area.
- It is recommended that the
province reject requests for the imposition of a freeze
on certification applications in respect of employees on
offshore production platforms.
- It is recommended that the
legislation be amended directing the Labour Relations
Board to determine that the unit appropriate for
collective bargaining is the unit comprised of all
employees on an offshore oil production platform with the
exception of construction and start-up personnel.
- In support of efforts to
facilitate long-term industrial stability, it is
recommended that the Labour Relations Board be vested
with the power to reconsider bargaining unit
configurations for licensed production operators with
multiple platforms and to make whatever consequential
orders are necessary to re-establish effective procedures
for collective bargaining and contract administration.
- Accordingly, it is
recommended that the discretion vested in the Labour
Relations Board to grant access to remote sites be
strengthened by a provision requiring it to provide
"reasonable" and "economical" access
to offshore oil production platforms.
- It is recommended that the
Labour Relations Board be vested with discretion to
determine the appropriateness of a council of trade
unions as a bargaining agent for employees on offshore
oil production platforms.
- It is recommended that the
licensed production operator be directed, on receipt by
the Labour Relations Board of an application for
certification in relation to a platform-wide bargaining
unit, to constitute an organization of all employers of
employees in the bargaining unit vested with the
appropriate authority to act as the exclusive bargaining
agent for all employers of employees in the unit.
- It is recommended that
conventional interest arbitration be mandated as the
dispute resolution mechanism for first agreement disputes
in respect of offshore oil production platforms and the
term of the first collective agreement be for three years
or such longer period as the parties may agree.
- It is recommended that the
parties to a collective agreement in relation to offshore
oil production platforms be required to enter into an
agreement setting out workforce requirements and
procedures necessary to ensure the orderly and safe
shutdown and maintenance of a platform in the event of a
work stoppage.
- Having regard to the
division of powers between the federal and provincial
governments in relation to issues of health and safety on
offshore oil production platforms, it is recommended that
the provincial Minister of Environment and Labour
initiate discussions between the provincial and federal
governments on the efficacy and responsiveness of the
current regulatory and administrative framework for
safety in the offshore petroleum industry.
NOTE TO EDITORS: Copies of
the speaking notes by Minister Langdon and Minister Furey are available by contacting the
Communications and Consultation Branch at (709) 729-3610, or
on the Internet at www.gov.nl.ca
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