Speaking Notes for The Honourable Oliver Langdon Government
As Response to the Morgan Cooper Report on Labour Relations
Processes on Offshore Oil Production Platforms

Good morning Ladies and Gentlemen.

It gives me great pleasure to speak to you today about the labour relations regime which Government has established to govern oil production platforms operating in the Newfoundland offshore area.

As you may recall, in December 1996, Government engaged the services of Mr. Morgan Cooper, to prepare recommendations that would facilitate a harmonious labour relations climate on offshore oil production platforms. The report was commissioned by Government to formulate a labour relations regime for the offshore oil industry based on consultations with labour and industry that would optimize safety, labour stability and productivity.

The participation of stakeholders in this process, including, but certainly not limited to, the oil companies, the Newfoundland Ocean Industry Association, the Federation of Labour, the Building Trades Council, and Canadian Auto Workers, was extremely positive indeed.

But Government did not stop there in its consultations. Once Mr. Cooper presented his report, Government immediately released it to the public to afford stakeholders an opportunity to respond to Mr. Cooper's specific recommendations.

On balance, the report was very well received. In this regard, the recommendations contained in the Cooper report, and the amendments now being proposed to the Labour Relations Act are a product of all of these stakeholder representations.

I am pleased to announce that Government has accepted, in principle, the vast majority of the recommendations contained in Mr. Cooper's report.

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 of the Act endorsed by Morgan Cooper, and which Government fully supports, 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.

Generally, a limited number of amendments are required to the Act to accommodate Government's decisions on the Cooper report. The changes proposed are deemed necessary to accommodate the uniqueness of the offshore working environment.

Let me outline for you some highlights of the amendments that will be tabled in the House of Assembly to accommodate these specific needs.

• If permanent employees on offshore production platforms choose to be represented collectively by a union, there will be only one bargaining unit. This serves to eliminate any potential jurisdictional disputes or workforce fragmentation.

• The licensed production operator shall be considered the employer for purposes of dealing with a union certification application should one be advanced. In the case of Hibernia, this would be HMDC.

• A first collective agreement between the parties shall be for a minimum periodof 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 representation. In the interests of worker safety, productivity and stability, however, there can be no room for jurisdictional disputes. For this reason, very specific criteria have been legislated to guide decision©making by the Labour Relations Board on such an application.

While the emphasis here today is on the legislative amendments being tabled by Government to implement its decisions on the Morgan Cooper report, I also want to emphasize that this is not where Government intends to stop. There is a lot of work to be done in concert with the Federal Government in terms of further rationalizing labourrelations processes in the Newfoundland offshore area and ensuring the current regulatory and administrative framework related to safety is fully responsive.

Our job as Government, in partnership with labour and industry, is to foster a work environment which is safe, productive and profitable. In developing this framework for labour relations on offshore production platforms, therefore, Government was extremely cognizant of the need to balance these fundamental rights of workers with the new workplace realities in the internationally competitive oil industry. I believe the legislative amendments now before the House of Assembly do just that.

Thank You.

December 15, 1997.