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NLIS 3
May 8, 2001
(Labour)


Government to amend Labour Relations Act

Labour Minister Anna Thistle is pleased to announce that government has reviewed the Morgan Cooper Report, as well as stakeholder responses, and is prepared to move forward with legislative amendments to the province's Labour Relations Act. These amendments are focused on building a strong labour relations framework for the province as it relates to offshore oil and gas fabrication and construction projects.

In October 2000, Morgan Cooper was contracted by the then Department of Environment and Labour to carry out a review of labour relations in this sector. His report was publically released on March 6, 2001.

Government's proposed amendments to the act establish improvements to legislation governing the declaration of "special projects", such as those at Bull Arm, and provide changes that will bring the act up-to-date with other Canadian jurisdictions.

"Mr. Cooper's review and consultation process and the positive support shown by stakeholders has strengthened the value of this legislation," said the minister. "I am optimistic that a stable labour relations environment will result in investor confidence that will globally position this province as a location for more oil and gas construction and fabrication work." 
Media contact: Kathy Dicks-Peyton, Communications, (709) 729-1741.

BACKGROUNDER

Since 1990, two projects at Bull Arm have been declared "special projects" pursuant to the Labour Relations Act: the Hibernia Gravity Base Structure Construction, Topside Assembly and Platform Hook-up in 1990; and, the Terra Nova Project in 1998. Throughout Canada, many jurisdictions use similar legislation to facilitate stable labour relations on major capital projects.

In the interest of maximizing employment opportunities and realizing positive long-term economic effects associated with major offshore oil and gas fabrication and construction developments, it is important to improve labour relations stability and certainty in this sector. Accordingly, in September 2000, government appointed Morgan Cooper, a labour relations specialist, to complete a review of labour relations processes on oil and gas fabrication and construction projects in the province. Included in the scope of this review was the effectiveness of the Special Project Order section of the Labour Relations Act. 

During his review, Mr. Cooper met with industry and labour representatives in various jurisdictions across Canada, as well as the countries of Norway, the United Kingdom and the United States. In addition, he visited a number of facilities, including the Bull Arm, Newfoundland and Labrador; PCL Industrial Constructors Inc.'s fabrication yard in Edmonton, Alberta; the Suncor and Syncrude tar sands projects outside Fort McMurray, Alberta; and, Friede Goldman Halter's fabrication yard in Pascagoula, Mississippi.

In January 2001, Mr. Cooper presented his final report to government. His conclusions are important for the future of provincial labour relations in general, and oil and gas fabrication and construction projects in particular. The majority of Mr. Cooper's recommendations are directed to employers and employees, encouraging them to work together to identify and solve common problems. This is consistent with his overall conclusion that "...the greatest potential for harmonious labour relations and corresponding improvements in stability and productivity rest not with the legislature, but with the parties themselves."

Seven of the 17 recommendations require legislative amendment. Four amendments are designed to strengthen the effectiveness of the Special Project Order provisions of the Labour Relations Act. Three amendments are designed to bring our legislation in line with similar legislation across Canada. 

Government is pleased to report that Mr. Cooper has provided a report that is responsive to the needs of stakeholders. The legislative amendments resulting from his recommendations provide a focus on building a strong labour relations framework for the province with special emphasis on major capital works projects, or "special projects." This is important for the province's ability to capitalize on oil and gas related investment in the future.

THE CONSULTANT'S RECOMMENDATIONS
* The recommendations requiring legislative amendment are:  
#6, #7, #11, #14, #15, #16, and #17.

Recommendation No.1
The Consultant recommends that the Newfoundland and Labrador Building and Construction Trades Council and its constituent unions embrace the flexible work practices which are characteristic of offshore oil and gas fabrication facilities in other jurisdictions and form an organization with effective mechanisms for ensuring compliance with collective agreements that may be negotiated for future offshore oil and gas fabrication or construction projects.

Recommendation No.2 
The Consultant recommends that principal contractors or employers' organizations choosing to engage in collective bargaining with an organization of building trades unions in relation to future offshore oil and gas fabrication or construction projects, recognize the instrumental role of local representatives of building trades unions in the negotiation process, and enter into collective agreements which provide for: (1) wages that are carefully bench-marked relative to local, regional and national building trades rates; (2) a binding and expeditious mechanism for resolving jurisdictional disputes; and (3) provisions which reflect the realities of a remote jobsite where employees must travel significant distances on a daily basis.

Recommendation No.3
The Consultant recommends against the formation of an offshore oil and gas fabrication division in the Labour Relations Act, with sector-specific labour relations processes.

Recommendation No. 4
The Consultant recommends the continued use of special project orders by the Lieutenant-Governor in Council as a mechanism to facilitate stability and productivity on offshore oil and gas fabrication or construction projects at the Bull Arm site.

Recommendation No. 5
The Consultant recommends that the Newfoundland and Labrador Building and Construction Trades Council establish an organization with strong internal mechanisms for ensuring accountability of its constituent unions and their members, including provisions requiring ratification of collective agreements by a majority vote of the members of constituent unions; making constituent unions and their members liable for damages arising from their participation in unlawful work stoppages; and authorizing the organization's executive board to expel constituent unions encouraging or participating in unlawful work stoppages.

Recommendation No.6 *
The Consultant recommends that the Labour Relations Act be amended to authorize the Labour Relations Board to issue declarations of unlawful strikes or lockouts as well as directives to cease and desist from such unlawful acts, including unlawful strikes or lockouts at the site of a Special Project.

Recommendation No.7 *
The Consultant recommends that the Labour Relations Act be amended to strengthen penalties for employers, employers' organizations, trade unions and employees who encourage or participate in unlawful strikes or lockout.

Recommendation No.8
The Consultant recommends that principal contractors and trade unions strive toward the creation of a cooperative and productive working environment, with strong commitment and support for: (1) liaison committees as a mechanism for facilitating sharing of information and open communications; and (2) composite crews as a mechanism for facilitating flexible and productive work practices.

Recommendation No.9
The Consultant recommends that government encourage and facilitate dialogue between industry and labour stakeholders regarding current and future projects and the challenges facing the industry.

Recommendation No.10
The Consultant recommends that government, industry and labour collaborate to identify present and projected areas of skill shortages for offshore oil and gas fabrication and construction projects in this Province, and to develop an aggressive strategy to address workforce requirements, including measures to foster an environment that attracts and retains skilled workers, and creates and maintains a skilled and flexible workforce.

Recommendation No.11 *
The Consultant recommends that the Labour Relations Act be amended to prohibit an employer or trade union, from including in an agreement in relation to an undertaking declared by the Lieutenant-Governor in Council under Section 70(1)(c) of the Act to be a special project, a provision authorizing an employee to refuse to perform work for his employer for the reason that other work was or will be performed or was not performed by any person or class of persons who were not or are not members of a trade union or a particular trade union. Moreover, the amendment shall provide that any agreement containing such a provision shall be to such extent unenforceable and void.

Recommendation No.12
The Consultant recommends against an amendment to the Labour Relations Act removing the Lieutenant-Governor in Council's authority to declare an undertaking for the "fabrication" of works at the Bull Arm site to be a special project.

Recommendation No.13
The Consultant recommends against an amendment to the Labour Relations Act authorizing the Lieutenant-Governor in Council to prescribe the parties who may be engaged in collective bargaining on a special project notwithstanding any other sections in the Act. 

Recommendation No.14 *
The Consultant recommends amendments to the Labour Relations Act to clarify that statutory requirements for employees to be in the bargaining unit at the time of negotiation or execution of a collective agreement, are not applicable to undertakings "declared" to be a special project by the Lieutenant-Governor in Council.

Recommendation No.15 *
The Consultant recommends that the Labour Relations Act be amended to include mandatory criteria for employers' organizations that may be involved in collective bargaining in relation to special projects. The criteria include: (1) provisions vesting the organization with the authority to negotiate, enter into and administer collective agreements; (2) provisions for the election or appointment of officers; (3) a formula for reaching decisions that assures a deadlock cannot occur; and (4) a formula for ratification of collective agreements by participating employers and a time limit within which ratification must take place.

Recommendation No.16 *
The Consultant recommends that the Labour Relations Act be amended to include mandatory criteria for a council of trade unions that may be involved in collective bargaining in relation to special projects. The criteria include: (1) provisions vesting the council with the exclusive authority to negotiate, enter into and administer collective agreements; (2) provisions for the election of officers; (3) a formula for reaching decisions that assures a deadlock cannot occur; (4) provisions for final, binding and expeditious resolution of jurisdictional disputes without a stoppage of work; (5) provisions requiring bargaining unit employees to be members in good standing of the council and not only the trade unions comprising the council; and (6) a formula for ratification of collective agreements by a majority of the members of trade unions comprising the council, and a time limit within which ratification must take place.

Recommendation No.17 *
The Consultant recommends amendments to the Labour Relations Act authorizing the Labour Relations Board, at the request of the Lieutenant-Governor in Council, to determine matters relating to an undertaking that may be declared a special project under section 70 of the Act, including a question as to whether an organization or association is an employers' organization, a trade union or a council of trades unions, or a question as to whether an employers' organization or a council of trade unions is in compliance with the mandatory criteria set out in the preceding recommendations.

2001 05 08                                               12:20 p.m.


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