Mr. Ed Holder (London West, CPC): Mr. Speaker, let me begin by saying the closing of the Electro-Motive Diesel plant in London is a devastating blow to London and in particular to all the employees whose lives have been impacted by the decision.

Ironically, this tragic news came on the same day and within hours of London finding out that its unemployment rate had taken a dramatic drop.

The reality of the situation is quickly setting in for the community and especially for the families and workers involved.

These workers are some of the best in the world and I believe their talents and skills will help them find future employment.  Like them, I hope this is in our city of London.  I truly ache for those who now struggling to pay their bills, trying to take care of their kids, and lay awake at night wondering where to go next.  I will continue to do what I can, to help where I can.

Some will assert that the federal Government did not do as much as it could have to save these jobs, but I can stand honestly before you today saying that is not the case.  The efforts of many parties were not enough in the end.   

Mr. Speaker, what has been most notable about this labour dispute in London is the amount of misinformation that was circulated.  It was further complicated by many in the media who continually repeated information without checking the facts.

Like the overall situation at Electro-Motive, it was the workers in particular, and the community at large, that suffered from the consistent circulation of misinformation.

I think it is important that Londoners and Canadians understand the situation more accurately before making judgment of those involved.  Let me share with the House some of the myths that were circulating in the past month. 

The first MYTH was that Electro-Motive was a Canadian company that was sold to the American company, Caterpillar.

The TRUTH: Electro-Motive has been owned by several American companies since 1930.  In effect, Electro-Motive has been a Canadian subsidiary of different American companies for over eight decades. 

It was originally two Canadian companies (Winton Engine Company and Electro-Motive Corporation) that were purchased and merged by America’s General Motors beginning in 1930.  In 2005, an American Equity firm bought the company and re-sold it to the American firm Caterpillar’s Progress Rail division in 2010. 

Another MYTH:  The federal Government gave money to Electro-Motive.

The TRUTH:  No federal Government (Conservative or Liberal) has given money to Electro-Motive.

Another MYTH:  The Prime Minister visited the EMD plant a few years ago to announce a tax break for Electro-Motive.

The TRUTH:  The Prime Minister visited the EMD plant to announce a tax change that would make it more affordable for Canadian rail companies to purchase newer, better and more environmentally-friendly locomotives.  This was a tax write-down for the customers of companies like EMD, not for EMD.

To be clear, no monies were given to Electro-Motive, nor were their taxes reduced as a result.

In fact, customers like VIA Rail, CN Rail and CP Rail would benefit as they all run a mix of both Electro-Motive and General Electric locomotives. 

Another MYTH:  London’s Conservative MPs did not meet with the Canadian Auto Workers representatives or the workers.

The TRUTH:  London’s Conservative MPs did meet with members of the CAW Local 27 in meetings in their MP offices.  These meetings were intended to be productive and constructive conversations rather than photo-opportunities.  There is no shortage of people willing to go to the picket line for a photo-op, but, as was too often the case, there was a shortage of thoughtful dialogue taking place.

I met with workers privately and also spoke to them at a demonstration in downtown London.  Anyone with access to YouTube can see this for themselves.

Another MYTH:  The federal Government has been silent about the Electro-Motive situation.

The TRUTH:  Our federal Labour Minister had private discussions directly with Electro-Motive, the Canadian Auto Workers and London Mayor Joe Fontana in an attempt to encourage both sides back to the bargaining table.  These discussions took place in mid-January.  As the federal Government had no legal jurisdiction over this labour dispute (although the Province of Ontario did), the federal Labour  Minister appealed to the senses of both sides, but could not order that talks take place.  She used her best moral suasion, but neither side was willing to blink.

I have not been silent either.  I have now conducted more media interviews on this situation than any other issue since being elected.  While my comments are not always carried by the press, my message has been the same all along.  Both sides should have returned to the bargaining table in good faith to bring an end to the uncertainty that lingered for the workers, their families and the community at large for more than a month.  Nothing could be resolved until talks began.

It is also worth noting that I sent a very lengthy letter explaining this situation and my position to several thousand of my constituents.  I have been providing weekly updates by email to almost 15,000 Londoners. 

Another MYTH:  The federal Government can legislate an end to this labour dispute. 

The TRUTH:  If only it were that easy.  The federal Government did not have the power to end this labour dispute through legislation.  It was a labour dispute between a private company and their labour representatives. The Federal government did not have jurisdiction over this labour dispute. 

The Government of Canada holds jurisdiction over federally-regulated workplaces, Crown Corporations, and the federal Public Service.  Some pointed to the example of recent federal labour disputes at Canada Post and Air Canada (one a Crown Corporation, the other a federally-regulated workplace) as examples of federal intervention.  Electro-Motive is a private company and is not a federally-regulated workplace. 

I was genuinely surprised that the Union in this case basically let the Province of Ontario off the hook.  Instead, much energy was wasted trying to blame those with far less control over the situation for political reasons.  Our Mayor, a former Liberal Minister of Labour, jumped on the same bandwagon.

Another MYTH:  The federal Government can order Caterpillar to continue Electro-Motive operations in London.

The TRUTH:  Caterpillar is an American company that can legally decide where it wishes to operate in the world.  The Canadian Government cannot order any foreign company to do its business in Canada.   This goes the same for Canadian companies.

Another MYTH:  The federal Government could have reviewed the sale of Electro-Motive to Caterpillar and placed conditions and/or protections for the workers in the agreement.

The TRUTH:  The sale of Electro-Motive did not trigger a Foreign Investment Review by Industry Canada because the sale of the company was below the monetary threshold required for such a formal review. 

Everyday, businesses are bought and sold by Canadians and foreign companies and most do not trigger a formal review.  This extraordinary intervention by the federal Government is reserved for extremely large and sensitive transactions. They are triggered by the conditions in the legislation and are not initiated at the whim of politicians. 

When the Canadian Auto Workers Union was asked about the purchase by Progress Rail in 2010, the CAW Local 27 President Tim Carrie was quoted in the London Free Press as saying, “This is an employer who has an interest in locomotives and rail. We’re looking at it in a positive light.”

Had a review even been triggered at the time, it is likely, based in part on these comments, that the Union would have been fully supportive of the sale.  There was no indication that trouble lay ahead.

Mr. Speaker, I again emphasize that the workers and the community were largely misled on many of the key issues.  This did nothing to help bridge the gap between both sides and I hope lessons have been learned from this.  The tragedy and fall-out from this is that several hundred unionized and non-unionized workers from EMD and even more from firms doing work for EMD are left to wonder what lies ahead for them. 

Some have since suggested that the Canadian Government ban Caterpillar products from being sold in Canada.  While this would likely violate a number of trade agreements, Canadians can take action as they choose.

Canadians can exercise their buying power how they wish.  No Government needs to legislate this power to citizens.  If you don’t want to buy from Caterpillar, then don’t.  If you can convince your friends and neighbours to do the same, you can.  The power already rests with Canadians to make these decisions.

Good companies should be rewarded with your dollars and those that fail to meet expectations should expect to find that it will affect their bottom line. 

Has Caterpillar acted honourably in this labour dispute?  If their intention was always to leave, then I ask the question, “Why didn’t they just make that announcement on January 1^st, coinciding with the 7-month contract extension that ended on December 31^st?”  The misery and fear it placed on all EMD workers was brutal.

If Caterpillar truly intended to stay, was their in-your-face wage and benefit reduction due to local profitability concerns or because they had other options in Indiana?  Now, we will never know.

Clearly the CAW was not prepared to preside over the single largest cut in pay and benefits in its history.  Neither side moved enough from their positions and these workers and London are the losers for it.

Mr. Speaker, I look forward to the rest of this debate and hope that these factual clarifications will help my colleagues debate honestly and factually about the issue at hand. 

I only wish to remind my honourable colleagues of the cautionary words provided to me by my Cape Breton mother:

“Ed, no matter how many times they tell a lie, it doesn’t make it the truth.”