Honourable senators, in my consideration of Bill C-89, I find there’s one perspective I cannot ignore; it’s the perspective of a group that does not have a union speaking for them: the entrepreneurs who run micro and small businesses across Canada. The vast majority are not entrepreneurs by choice. They’re entrepreneurs by necessity, especially those in our small, rural and remote communities. Employment continues to be a huge challenge for them. These vulnerable communities are places where, if you want a job, you need to create it.

I have enormous admiration for those who, out of a sense of responsibility to themselves, their families and communities, dig deeper and find the courage and tenacity required to create an opportunity and build a business. Clearly, I look at this legislation through that lens. I’ve used the answers to four questions to guide my decision on Bill C-89.

The questions are as follows: First, can we reasonably assess the specific business and employment issues being disputed by the parties? Second, what do we do about the troubling workplace injury claims? Third, is there evidence indicating the current labour actions are causing social and economic damage at a level that justifies the legislation? And fourth, what is our role as senators, particularly in how we respond to the wishes of the elected members of the House of Commons?

Allow me, if you will, to explain how I’ve answered these questions. During testimony at Committee of the Whole stage on Saturday, we heard two conflicting viewpoints on the business and employment issues. I came away with a few key perspectives.

Canada Post, as a business, is experiencing a lot of disruption, from the changing habits of consumers and businesses globally to the increasing competitive pressures in its own market. This is clearly putting a lot of strain on the organization and its employees. Management and workers are experiencing a lot of friction — it seems that’s nothing new — as they try to adjust to rapid changes to the competitive marketplace. They cannot even agree on the underlying market and performance data resulting from the current labour disruption.

The two sides have been working to get a deal done for 10 or 11 months yet remain on completely different pages and show no willingness to compromise.

Despite a complete turnover in governance and leadership at Canada Post, with a new board and interim CEO, there has still been no progress. I’ve come to the conclusion these two parties continue to hope the other side will somehow recognize the error of their ways and capitulate. In my experience that never happens, no matter how right I’ve been. That was a bit of a joke for my wife.

In short, I don’t see any hope for a negotiated solution.

Regarding the concern about on-the-job injuries, some serious claims have been made. Based on provided reports, there are some important problems that need to be explored and better managed. I was very pleased to hear Ms. McDonald state that, “Canada Post needs to bring its injury incidents down dramatically.” I was especially glad to hear her say there were “benchmarking and standards which need to be set up,” so everyone can ensure the improvements are actually occurring.

Regardless of how a deal is reached — through legislation or last-minute agreement, which I understand now is not going to happen with the mediator having left the discussions — I think we can all agree it is crucial this issue be addressed. On the issue of injuries, Ms. McDonald has already provided us with assurances of the accountability mechanisms that Canada Post intends to put in place. I’m hopeful we will see meaningful improvement in short order.

As it relates to the social and economic impacts resulting from the union’s current actions, I was pleased to hear Mr. Palecek speak about how CUPW is working with Canada Post to make sure the needs of vulnerable individuals are being met. I applaud those efforts. However, I forcefully disagree with his perspective that the backlog of parcels is not a concern and the implication that delays in package delivery are simply a manageable inconvenience. I do not believe this is the case for Canada Post as a service provider within a highly competitive industry. I do not believe that, in the case of micro and small businesses who rely on Canada Post across this country, there is a reasonable alternative.

To get a sense of how important the parcel business is to the long-term sustainability of Canada Post, I looked at their 2017 annual report. It identified parcel revenue growth is much higher than the global average, up 23 per cent over the previous year. Within that number, the top 25 e-commerce customers grew by more than 42 per cent in the previous 12 months. When I looked at that against global benchmarks, it became clear Canada Post is dramatically outperforming its international peers in attracting and serving e-commerce customers. That’s good for Canada.

As an example of what is happening to the rest of the business, just consider the fact that letter mail volumes have been dropping for 11 straight years. This is a business in a lot of change.

Is the parcel business central to Canada Post’s survival? Absolutely. Without the highly competitive parcel business the federal government would be subsidizing Canada Post at an unsustainable level.

According to the Canadian Internet Registration Authority, 62 per cent of Canadians prefer to make their purchases online. Canada Post carries two thirds of that total e-commerce volume. Micro and small businesses tend to use third-party e-commerce platforms, like eBay. In those cases Canada Post carries more than 80 per cent of the parcel volume, be it for domestic or export markets.

The reality is there is an increasing reliance on online transactions. The vast majority of order fulfillment occurs through Canada Post. In market terms, Canada Post is getting it right. This is good news for Canada and good news for its workers. But do they have the luxury of relaxing as a result of the success of their parcel business? Absolutely not. It’s a highly competitive business. Canadians have quickly become accustomed to high standards when it comes to the delivery of online purchases. A recent UPS study revealed 63 per cent of Canadians expect same-day delivery on orders placed by noon, and 61 per cent expect next-day delivery for orders placed by 5 p.m. While Canada Post and CUPW do not agree on the numbers regarding the current backlog of packages, it’s clear any backlog poses a significant concern for the companies whose packages are not being delivered because of the increasingly stringent delivery standards expected in the marketplace today.

The simple fact is customers expect businesses to ensure their product is delivered on time. The business and its logistics partner are one and the same. If customers have any concerns about the timely delivery, they simply do not make that purchase. This very point has been made by several of my honourable colleagues who found themselves deciding against making online purchases from a small business because of the delivery risk caused by the current labour disruptions. My worry is the chilling effect that this strike is having on so many online orders is further distorting the so-called backlog numbers. There is a lot of business not occurring because people are deciding not to make the transaction. For most of these businesses, every single day at this time of year is worth the same as 10 days at any other time of the year. The month of December is simply crucial to their survival.

Last week, operators of a small online business in Halifax specializing in handmade scarves, mittens and aprons told CBC in normal years they would be sold out by now. Dale Kearney, who operates Monkeys and More with his wife Sherrie claimed, “the rotating strike is just killing us.”

Those who listen to “The House” on CBC Radio 1 on Saturday morning heard the eBay Canada general manager Andrea Stairs report on the recent activity on eBay’s platform. She remarked that, since the strike began, small sellers have been losing market share to the larger organizations who can afford the correspondingly higher prices that alternative parcel delivery options present. Ms. Stairs expressed concern regarding the real challenges that the CUPW strike action is placing on micro-businesses at their busiest selling season, the lead-up to Christmas.

This was confirmed in the chamber on Saturday by Ms. McDonald. She told us that, “. . . small businesses are still shipping with us because they have nowhere else to go. It is these small businesses and their employees that will be hit the hardest financially by the delivery delays, refunds and cancelled orders.” Yes, some entrepreneurs in urban areas may have the option to switch to more expensive logistics suppliers, which could be argued to be a sustainable burden. In many and most rural and remote locations, no other options exist.

In summary, the continuation of this labour action puts micro and small businesses at significant risk, especially those with less capital and those in smaller rural and remote communities. They are at greater risk of suffering permanent harm. Simply, Canada Post is essential to the survival of their business.

Now to our role as the chamber of sober second thought.

I vividly recall the debate at third reading of Bill C-45. It was my second day in this chamber. A few statements stand out, particularly speeches made by Senator Pratte and Senator Dalphond. Senator Pratte offered the opinion that if we choose to push against the will of the elected government we should do so in relatively rare cases. He identified that it only be considered in the following situations: First, where the issue is of special importance related to our constitutional role; second, where we are prepared to lead a serious fight and see its completion; third, when a significant part of the public opinion is or could be on our side; and fourth, where there’s a realistic prospect of convincing or forcing the government to change its mind. When I consider Senator Pratte’s conditions, I do not believe they are met in this situation. In terms of the question of Charter rights, I will defer to Senator Gold and Senator Dalphond’s approach.

Senator Dalphond offered five different criteria he considered when the other place rejected some of the Senate’s proposed amendments to Bill C-45. These were as follows:

. . . will it result in legislation that clearly or most likely violates the Constitution or the Charter of Rights and Freedoms? If the answer is unclear, shall the task of answering that question not be left to the courts?

It seems the answer to the first question may be unclear. As a layperson and new senator, I believe my honourable colleague’s second question is key. Given that CUPW has stated it will challenge the legislation in court, it seems the process has already begun and will proceed regardless of whether we can determine constitutionality in this chamber.

Second:

. . . is the purpose of the bill an election campaign issue for the government, or is it an extremely controversial issue for which voters did not give the government the mandate?

Not directly. I would argue the government’s focus on the digital economy makes Bill C-89 central to their ability to deliver on promises made both in their campaign and the Speech from the Throne because it affects entrepreneurship, innovation, the digital economy and the middle class.

Third:

. . . does the evidence provided to both houses unequivocally show that the bill is fundamentally flawed and that the response, in part or as a whole, is thus plainly unreasonable?

I certainly heard arguments this was the case for the back-to-work legislation examined by this chamber seven years ago. Bill C-89 appears to have been drafted in a manner that responds to the guidance provided by the courts that time around.

Fourth:

. . . does the response show that the majority is abusing one or more minorities, showing contempt for language rights, demonstrating favoritism for one region at the expense of another?

Absolutely not. In fact, I would argue that not implementing this legislation abuses the rights of micro and small business owners in struggling rural, remote and vulnerable communities.

Finally, Senator Dalphond offered that:

. . . if we choose to agree with the will of House of Commons, will those actions cause unforeseeable and irreparable harm to the national interest?

To the contrary, our economy is changing in dramatic ways and Canada Post and its workers are having to rapidly adjust in order to effectively and cost efficiently serve those market-driven needs. Canada Post’s role is simply too important and they need to keep finding ways to adapt to the market demands “come hell or high water,” to borrow a phrase from a former finance minister.

We are being asked whether the current circumstances justify our voting to stop these strikes, to stop the harm being done to micro and small businesses across the country. A vote in favour will replace those strikes with a mediated or arbitrated solution that will be forced on both parties, not just the union or corporation.

I believe that the parties have been given enough time to address their differences but have demonstrated that if left to their own devices, their positions remain so disparate as to offer little hope that an amicable resolution will be found.

Micro and small businesses are the most vulnerable to suffering permanent harm as a consequence of this dispute, and their voices are not being heard at the table. We need to speak up for this important group of Canadians whose livelihoods are being risked. To this end, I intend to vote in favour of Bill C-89.

Thank you, colleagues.