02)PQ, LIBERALS, CAQ BREAK QUEBEC CONSTRUCTION STRIKE

By Robert Luxley, Montréal

            A general strike of Quebec's 175,000 construction workers began on June 17, the first such walkout since 1986. The intransigence of the employers forced the workers to strike, after months of negotiations. In terms of working days lost, the dispute was one of the largest in recent Canadian history.

            The construction industry bosses, represented by the Construction Association of Quebec (ACQ) categorically rejected union demands for real wage increases, instead seeking to impose a 1% increase, well below the rate of inflation. The unions bargained for a 3% increase in the first year, and 2.75 % in each of the following two years, or 8.5% over a three year contract.

            Collective bargaining in the Quebec construction industry takes place within a particular legal framework. The law divides the industry into four sectors (industrial, institutional and commercial, residential, highways and civil engineering), each with its own collective agreement. Some clauses are common to each agreement, such as union recognition, grievance and arbitration procedures, pensions, insurance, etc. Negotiations are carried out at the provincial level, and settlement terms apply to the industry throughout Quebec.

            In addition to holding wages below inflation, the employers also wanted to impose significant rollbacks in working conditions, targeting the industrial and institutional/commercial sectors. In these two cases, the employers hoped to reduce overtime rates, to establish a much longer working day (13.5 hours per day, from 5:30 am to 7 pm), to impose Saturday as a day to recover time lost due to weather at the regular pay rate, and to increase labour mobility across the province.

            The mood of the employers was shown as negotiations began in January 2013, when they demanded a "special law" to impose a settlement. At the beginning of June, the president of the ACQ alarmingly told a news conference that pay increases would have grave economic consequences.

            According to him, construction workers should not aim to raise their incomes through a pay increase, but by working longer hours. The union demands, he claimed, would lead to a decrease in investments.

            The response to this attack was unity in action. Despite their differences and criticisms, the trade unions - FTQ‑Construction, le Conseil provincial (International), le Syndicat québécois de la construction (SQC), and la CSD Construction et la CSN‑Construction - formed a common front, the Union Alliance.

            A strike involving this many workers has a major economic impact. The media clamoured that the industry affects 14% of Quebec's GDP, with considerable spin‑off effects. The Bank of Canada compared the impact of the strike to the recent Calgary flood, predicting that it could curb growth rates by 0.6%. The president of the Employers Council wrote to Premier Marois: " We believe that in the interests of the economy and people of Quebec, elected representatives must meet now to discuss the adoption of a special law."

            The PQ government at first refused to bow to the demands of the opposition Liberals and the Coalition Avenir Québec (CAQ), which called for the immediate adoption of a special law to end the strike and impose a legislated contract. But while claiming to support the negotiating process, the government clearly did not intend to let the strike continue for long.

            After the first week of the strike, an agreement in principle was reached on June 24, covering 41,000 workers in the highways and civil engineering sector. The agreement included an immediate pay increase of 2.0%, plus 2.1 % on 2014, 2.2 % in 2015, and 2.3 % en 2016, for a total of 8.6% over four years. It also provided for increases in transportation costs and various bonuses. The issue of labour force mobility was also covered. The workers returned to work the next day, before ratifying the agreement.

            At the same time, the Premier announced the appointment of a mediator, with a mandate of one week to reach a settlement. The opposition parties denounced the government for delaying the adoption of a special law, and the.employers joined in, demanding such a law to protect business owners.

            On June 25, another deal was reached in the residential sector, but this time the terms were not made public before the workers could ratify the terms. Another 57,000 workers ended their strike, leaving 77,000 still out in the industrial and institutional/commercial sectors, where negotiations were at a standstill. The bosses simply stuck to their positions. As they hoped, the special law was adopted on June 30.

            The legislation proposed by the PQ minority government included an 8.6% pay increase over four years, as negotiated in the highways and industrial engineering sectors, and would have extended the collective agreement of the 77,000 workers still on strike, also for four years. But the Liberals and CAQ considered these terms too favourable to the unions. They wanted to cancel the 8.6% pay increase, replacing it with an increase indexed to the rate of inflation.

            After lengthy and difficult debates, the opposition parties voted with the government to impose a 2% increase and to renew the status quo of working conditions, for one year only. The special law ordered an immediate return to work, under threat of heavy fines. Only the two Québec Solidaire deputies voted against the legislation.

            The Liberals and CAQ refused to maintain the status quo of working conditions for a period as long as four years, supposedly to "urge the unions to negotiate," declared Liberal leader Philippe Couillard. In reality, these parties hope to give the employers another chance to impose contract rollbacks. The battle will resume next year.

            Meanwhile, the unions expressed their disappointment. "Our fundamental rights are being violated by the special law passed last night by the National Assembly, "declared Yves Ouellet, spokesperson for the Union Alliance. "While we will respect the legislation, we will continue to denounce it." On their part, the Employers' Council expressed satisfaction at the outcome.

(The above article is from the August 1-31, 2013, issue of People's Voice, Canada's leading communist newspaper. Articles can be reprinted free if the source is credited. Subscription rates in Canada: $30/year, or $15 low income rate; for U.S. readers - $45 US per year; other overseas readers - $45 US or $50 CDN per year. Send to People's Voice, c/o PV Business Manager, 706 Clark Drive, Vancouver, BC, V5L 3J1.)