Mr. Speaker, I am going to share my time with the hon. member for Cumberland—Colchester—Musquodoboit Valley.
Since March 6, Canadians have been on their toes, concerned about suffering the consequences of the dispute between Air Canada and its technical, maintenance and operational support employees and pilots.
Almost 8,200 employees work in the technical, maintenance and operational support unit represented by the International Association of Machinists and Aerospace Workers. Those employees play a vital role, a role that requires very specific skills. They are the ones who ensure the smooth operation of the aircraft fleet and the safety of passengers and crew members. Without them, planes would obviously not take off.
Almost 3,000 pilots are represented by the Air Canada Pilots Association. The pilots are responsible for operating aircraft, for passenger and crew safety, and for all the decisions after takeoff.
Across Canada, the possibility of a work stoppage at Air Canada is causing serious concern. This is proving to be a very difficult situation for the passengers directly affected. It is very serious for Air Canada, which could suffer significant commercial and financial losses. It is dangerous for our economy on the whole.
Let us first talk about the serious consequences this dispute could have for passengers. Clearly, a work stoppage would leave thousands of travellers stranded. Together, Air Canada and Air Canada Express serve over 32 million customers annually and provide direct passenger service to over 170 destinations on five continents.
Let us consider Canadian entrepreneurs, many of whom do business across Canada and around the world. A cancellation, delay or even a postponement could make them miss an opportunity to conclude a contract, carry out an important transaction or sell their products.
Let us also think about Canadians who made vacation plans. They may have no other choice but to cancel their plans and their reservations if they cannot find another way to get to their destination. During the break week, over 1 million passengers will fly on Air Canada's regular flights.
Let us also think about those who take flights to visit their loved ones, attend an important conference or go to work somewhere else in their region.
For some destinations there are other airlines that can offer the same service, provided, of course, that there are still seats available on the flights. But how much will that cost?
It is also important to note that the domestic airlines have limited capacity. There is nothing to say that these competitors would be able to offer the same service within a reasonable time frame.
For Canadian destinations, things become even more complicated, and in some remote regions there simply is no additional capacity and therefore no alternative.
For the company itself, the losses could be devastating in the event of a work stoppage and a prolonged dispute.
I think it is important to remember here that the airline industry as a whole has been under significant pressure since the events of September 11, 2001, pressure that the global economic crisis has exacerbated.
Factors such as fluctuating demand, enhanced security measures and rising fuel prices have jeopardized the profitability of airlines around the world. Air Canada, the largest full-service airline in Canada, is no exception.
Let us not forget that in 2003, Air Canada had to start operating under the Companies' Creditors Arrangement Act.
Thanks to major investments from the private sector and the Government of Canada, the company was able to restructure and get out from under bankruptcy protection in September 2004.
Let us also not forget that barely four years ago, the future of the company was again uncertain because of its financial difficulties.
The recession and Air Canada's contractual obligations have brought additional challenges. In 2008, in order to avoid bankruptcy, Air Canada had to secure additional loans so that it could survive in the short term. The company was also able to extend its collective agreements without work stoppages. On a number of occasions in recent years, the company has had to restructure and make cuts to its human and financial resources in order to maintain its viability.
Air Canada would be economically unstable if a work stoppage became a reality. Air Canada is already operating close to a basic level of viability. The largest full-service air carrier in Canada, serving more than 32 million clients annually, could be driven into bankruptcy. Then, 26,000 direct jobs would be in peril. Let me repeat, 26,000. Another 250,000 workers are indirectly linked to Air Canada and would be affected by a work stoppage. Many of those workers have families who count on the livelihood they provide. It is not just the company's viability that is at stake, it is its very existence. A prolonged work stoppage would be a damaging blow to the carrier—a blow that could be fatal—and, ultimately, to the economy as a whole.
A working document prepared in 2009 by the International Labour Organization shows that, for every job lost in an air carrier, from four to 10 other jobs will also be lost. Each week a strike lasts will cost the Canadian economy millions of dollars. The losses could reach $22.4 million for each week a strike lasts. Those estimates are based on the value of the trips or the shipments that would be cancelled, postponed or taken over by another carrier.
We cannot run the risk of jeopardizing the largest air cargo carrier in Canada, or the future of its workers and our economy.
In this period of global market uncertainty, nothing can be taken for granted. We must not take any chances. It would be completely irresponsible on our part to shrug our shoulders, let the dispute drag on and watch our economy slip backwards.
We have the proof that it is possible for the parties to come to an understanding. Just last June, the approximately 3,800 sales and customer service employees represented by the Canadian Auto Workers went on strike. After three days, the parties reached an agreement.
It is a fact that workforce stability is a key element in the smooth operation of the Canadian economy and in our continuing economic recovery.