Summary of stakeholder engagement – Toronto, Ontario

Pilotage Act Review Roundtable – Toronto, Ontario

November 30, 2017 – 9:00am – 4:15pm

• Summary of Discussion
• Governance
• Safety
• Labour
• Tariffs and Economic Concerns
• Enforcement

Summary of Discussion

The participants presented their concerns and views on the Pilotage Act and potential areas for reform. We have grouped the comments under the following themes:

Governance

• The Pilotage Act should have a clear set of principles and purpose.
• Transparency and accountability are important, especially for a legislated monopoly.
  • There are concerns that the system lacks checks and balances. It is important to define transparency and the documentation to disclose. For example, should Canada require pilot corporations to undergo public audits and release financial statements and service contracts?
• Participants discussed the current governance model:
  • The current model for the Board of Directors composition works and needed expertise is built into existing Boards.
  • There is interest in amalgamation, though it is unclear what it would look like. It is important to consider lessons learned from other amalgamations, such as those used by municipal governments.
  • A National Pilotage Authority with two regional centres could increase objectivity, accountability, standardization, efficiency, and consistent data collection and reporting.
• Some stakeholders support the idea of Transport Canada building a strong regulatory system:
  • Some supported separating regulation making from service delivery.
  • Some highlighted the need to make regulatory changes promptly.
  • Participants discussed the need to clearly define ‘efficiency’ and how to measure it. For example, through specific and consistent performance indicators.
• Other discussion topics included how to amend the Act to reflect a more commercial focus and the use of new technologies.

Safety

• The participants agreed that safety is of greatest importance and any changes should maintain the system’s current safety record.
• The Great Lakes Pilotage Authority (GLPA) certification program works well and domestic certificates show a high record of safety:
  • GLPA’s 2016 audit of 90 domestic certificate-holders showed only one deficiency, and there were zero deficiencies in 100 vessels in 2017.
• Participants shared different ideas for a certification process:
  • Pilotage Authorities should have a seat in the final stage of the process.
  • Transport Canada should develop a standardized training program.
  • Laurentian Pilotage Authority (LPA) should consider a certification process, similar to the GLPA.
  • Each Pilotage Authority could have an independent certification program possibly managed by classification societies.
  • Industry should build the certification process, with periodic reviews by Transport Canada.
• Industry has a strong interest in expanding the certification process so a certificate applies across the same class of vessels, or to a company’s entire fleet. Discussion focused on the following ideas:
  • This approach establishes familiarity across the class of vessels or with the fleet.
  • This approach would be detrimental to the certification process and would reduce the incentive for companies to invest in certifying their captains or mariners if certificate holders can be taken from vessel to vessel like a company pilot.
  • This approach will introduce competition into pilotage by creating another group of pilots (parallel pilotage).
• There was some interest in expanding the certification process to foreign-flagged and foreign-crewed vessels, such as cruise ships, that meet the certification requirements.
• The participants discussed the following ideas:
  • How do we achieve safety in the most cost effective way?
  • What are the key performance indicators (KPI) for safety?
  • If the Pilotage Risk Management Methodology (PRMM) is biased, all decisions should be risk-based.
  • How can technology reduce the need for double pilotage?
  • Interest in shore-based pilotage, use of Vessel Traffic Services (VTS).
  • Longer buoy season through seasonal or virtual buoys.
• Some stakeholders believe that the advanced navigation technology that vessels already use can replace the need for a second pilot.
• Concern about how to improve public support for, and confidence in, shipping.

Labour

Some stakeholders concerns include:

• There is a need for more tools to deal with collective bargaining difficulties with employee pilots outside of binding arbitration, noting that the Labour Code is quite vague.
• There are no limitations in Final Offer Selection on what can be included in each party’s final offer. Ideas for amending the dispute resolution mechanism include:
  • Give the arbitrator more direction in the Final Offer Selection process by providing all relevant information for consideration.
  • Should the Canadian Transportation Agency be the arbitrator? Potential conflict may arise if a pay increase is awarded but a tariff increase overturned.
  • Final Offer Selection awards should exist within the regulatory framework and could have ship owners involved in the arbitration process.
• Service contracts between the Pilotage Authority and the pilot corporation bypass the regulations of that Pilotage Authority. The two should be consistent.
• Should Pilotage Authorities be able to adopt binding decisions on all pilots, regardless of employee or contract status? Any changes to how one Pilotage Authority operates could affect others.

Tariffs and Economic Concerns

Stakeholders:

• Expressed concerns about the rising costs to industry; there are alternative ways to move cargo.
• Believe Pilotage Authorities are mostly concerned about their own costs and do not put enough emphasis on providing a cost effective service.
  • Cost is the main driver of competitiveness.
  • Pilot availability is crucial; there are huge cost implications if schedules are disrupted.
• Want more consistent pilotage requirements and predictable costs.
  • For example, when is double pilotage required (service contract vs. regulations) and how do the Pilotage Authorities make shippers aware of these requirements?
  • In terms of cost, double pilotage has the same impact as creating a new pilotage area, but does not have the same risk assessment process.
• Discussed pilot compensation and whether the salaries are comparable to other mariners such as captains.
  • Pilots require a number of years of specialized training to become fully licensed.
• Debated the efficiency of tariff increases and how they increase faster than inflation. Participants also pointed out that the US Coast Guard pilotage costs are higher than Canadian pilotage costs, and it is not clear when a Canadian or US pilot is needed in certain waters.

Enforcement

• Participants discussed that the Pilotage Authorities need a formal mechanism to conduct enforcement actions against non-compliant pilots and vessels.
  • There is no capacity for the Pilotage Authorities to investigate incidents or accidents.
  • Administrative monetary penalties (AMP) or directive powers may provide additional tools.