Law:Civil Air Navigation Services Commercialization Act

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S.c. 1996, c. 20

Assented to 1996-06-20

An Act respecting the commercialization of civil air navigation services

Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:


Contents

Short Title

Short title

1. This Act may be cited as the Civil Air Navigation Services Commercialization Act.


Interpretation

Definitions

2. (1) The definitions in this subsection apply in this Act.

“aeronautical communication services”

« services de communication aéronautique »

“aeronautical communication services” means aeronautical broadcasting services, aeronautical fixed services and aeronautical mobile services as referred to in Annex 10 to the Chicago Convention.

“aeronautical information services”

« services d’information aéronautique »

“aeronautical information services” means services necessary to meet those requirements of Annexes 4 and 15 to the Chicago Convention that relate to aeronautical information.

“aeronautical radio navigation services”

« services de radionavigation aéronautique »

“aeronautical radio navigation services” means aeronautical radio navigation services as referred to in Annex 10 to the Chicago Convention, and includes the provision of electronic radio navigation guidance information enabling aircraft operating under instrument flight rules to navigate during the departure, en route, approach and terminal phases of flight.

“Agency”

« Office »

“Agency” means the Canadian Transportation Agency continued by subsection 7(1) of the Canada Transportation Act.

“air navigation services”

« services de navigation aérienne »

“air navigation services” means

(a) aeronautical communication services,

(b) aeronautical information services,

(c) aeronautical radio navigation services,

(d) air traffic control services,

(e) aviation weather services,

(f) emergency assistance services, and

(g) flight information services,

in respect of Canadian airspace or any other airspace in respect of which Canada has responsibility for the provision of air traffic control services.

“air traffic control services”

« services de contrôle de la circulation aérienne »

“air traffic control services” means services, other than flight information services, provided for the purpose of

(a) preventing collisions between

(i) aircraft,

(ii) aircraft and obstructions, and

(iii) aircraft andehicles on the manoeuvring area; and

(b) expediting and maintaining an orderly flow of air traffic.

“airport air traffic control services”

« services de contrôle de la circulation aérienne en zone aéroportuaire »

“airport air traffic control services” means air traffic control services, other than en route air traffic control services, provided to aircraft on the manoeuvring area and in the airspace in the vicinity of an aerodrome, and includes the issuance of air traffic control clearances for aircraft to taxi, take off or land.

“apron”

« aire de trafic »

“apron” means the part of an aerodrome that is intended to accommodate the loading and unloading of passengers and cargo, the refuelling, servicing, maintenance and parking of aircraft and any movement of aircraft, vehicles and pedestrians necessary for those purposes.

“aviation weather services”

« services de météorologie aéronautique »

“aviation weather services” means the specification of the location and frequency of weather observations and forecasts for aviation purposes in accordance with the Aeronautics Act and regulations made under that Act, the procurement of those observations and forecasts and the dissemination of weather information for aviation purposes, including the dissemination by weather briefings.

“Chicago Convention”

« Convention de Chicago »

“Chicago Convention” means the Convention on International Civil Aviation signed at Chicago on December 7, 1944, as amended from time to time.

“civil air navigation services”

« services de navigation aérienne civile »

“civil air navigation services” means air navigation services other than when provided pursuant to the Minister of National Defence’s authority under the National Defence Act or the Aeronautics Act.

“Corporation”

« société »

“Corporation” means NAV CANADA, a corporation incorporated on May 26, 1995 under Part II of the Canada Corporations Act.

“designated civil air navigation services asset”

« biens désignés »

“designated civil air navigation services asset” means an asset designated pursuant to subsection (3).

class="MarginalNoteDefinedTerm"“designated employee”

« employé désigné »

“designated employee” means a person whose name appears on a list established pursuant to subsection (4).

“designated northern or remote services”

« services aux régions nordiques ou éloignées »

“designated northern or remote services” means

(a) civil air navigation services designated pursuant to subsection (5); and

(b) the services that result from a termination or reduction of designated northern or remote services in accordance with sections 18 to 22, including any civil air navigation services introduced in connection with the termination or reduction.

“emergency assistance services”

« services d’urgence »

“emergency assistance services” means services provided for the purpose of

(a) assisting aircraft in a state of emergency, including aircraft in the uncertainty, alert and distress phases;

(b) assisting aircraft involved in a hijacking; or

(c) alerting rescue co-ordination agencies of missing or overdue aircraft.

“en route air traffic control services”

« services de contrôle de la circulation des aéronefs en vol »

“en route air traffic control services” means air traffic control services provided to aircraft operating between aerodromes, including aircraft flying through Canadian airspace or any other airspace in respect of which Canada has responsibility for the provision of air traffic control services without landing or taking off in Canada, and includes the issuance of air traffic control clearances for aircraft to proceed during the departure, en route and approach phases of flight.

“Executive Employment Transition Policy”

« Politique de transition dans la carrière pour les cadres de direction »

“Executive Employment Transition Policy” means the Executive Employment Transition Policy approved by the Treasury Board on August 24, 1992, as amended from time to time.

“flight information services”

« services d’information de vol »

“flight information services” means

(a) the dissemination of aviation weather information and aeronautical information for departure, destination and alternate aerodromes along a proposed route of flight;

(b) the dissemination of aviation weather information and aeronautical information to aircraft in flight;

(c) the acceptance, processing and activation of flight plans, amendments to flight plans and cancellations of flight plans;

(d) the aceptance and processing of flight notifications;

(e) the exchange of flight plan information with domestic or foreign governments or agencies or foreign air traffic services units; and

(f) the provision of known information concerning ground and air traffic.

“flight notification”

« avis de vol »

“flight notification” means a flight notification within the meaning of regulations made under the Aeronautics Act.

“flight plan”

« plan de vol »

“flight plan” means a flight plan within the meaning of regulations made under the Aeronautics Act.

“manoeuvring area”

« aire de manoeuvre »

“manoeuvring area” means the part of an aerodrome that is intended to be used for the taking off and landing of aircraft and for the movement of aircraft associated with take-off and landing, but does not include aprons.

“Minister”

« ministre »

“Minister” means the Minister of Transport.

“public service”

« fonction publique »

“public service” has the same meaning as in subsection 2(1) of the Public Service Labour Relations Act.

“state aircraft”

« aéronef d’État »

“state aircraft” means an aircraft, other than an aircraft operated for commercial purposes, that is owned and operated by the government of a country or the government of a colony, dependency, province, state, territory or municipality of a country.

“transfer date”

« date de cession »

“transfer date” means the date provided for as the transfer date in an agreement between Her Majesty in right of Canada and the Corporation.

“user”

« usager »

“user” means an aircraft operator.

“Work Force Adjustment Directive”

« Directive sur le réaménagement des effectifs »

“Work Force Adjustment Directive” means the Work Force Adjustmentirective issued on the recommendation of the National Joint Council of the Public Service and with the approval of the Treasury Board, that came into force on December 15, 1991, as amended from time to time.

Same meaning as Aeronautics Act

(2) Unless a contrary intention appears, words and expressions used in this Act have the same meaning as in subsection 3(1) of the Aeronautics Act.

Designation of assets

(3) The Minister may designate any asset that is under the management and control of the Minister and used in connection with the provision of civil air navigation services as a civil air navigation services asset.

List of designated employees

(4) The Minister may establish a list setting out the name of every person employed in the public service whom the Minister designates for the purposes of this Act.

Designation of northern or remote services

(5) The Minister may, before the transfer date, designate as designated northern or remote services any civil air navigation services that are provided at or in respect of such northern or remote locations as are specified by the Minister.

Civil air navigation services

(6) For the purposes of this Act, the introduction, increase, termination or reduction of civil air navigation services means the introduction, increase, termination or reduction of those services, or of any particular service included in the definition “air navigation services” in subsection (1), in respect of a particular location or airspace.

Designated northern or remote services

(7) For the purposes of this Act, the termination or reduction of designated northern or remote services means the termination or reduction of those services, or of any particular civil air navigation services making up those services, in respect of a particular location or airspace.

Minister of National Defence

(8) For the purposes of this Act, a person acting under the authority of the Minister of National Defence includes a person who is doing anything for a defence purpose pursuant to a contract or other arrangement with the Department of National Defence or the Canadian Forces.

1996, c. 20, ss. 2, 108; 2003, c. 22, ss. 150(E), 225(E).

Previous Version

Her Majesty

Binding on Her Majesty

3. This Act is binding on Her Majesty in right of Canada or a province.


Application

Aircraft

4. This Act applies in respect of every aircraft in Canadian airspace or any other airspace in respect of which Canada has responsibility for the provision of air traffic control services.

Aeronautics Act

5. Nothing in this Act affects the application of the Aeronautics Act.

Authority of Minister of National Defence

6. Nothing in this Act derogates from the authority conferred on the Minister of National Defence by the National Defence Act.


Part I. Commercialization Of Civil Air Navigation Services

Authority to Transfer

Authority to transfer

7. The Minister may sell, lease or otherwise transfer the right, title and interest of Her Majesty in right of Canada in designated civil air navigation services assets to the Corporation.


Not Agent of Her Majesty

Not agent of Her Majesty

8. For all purposes the Corporation is not an agent of Her Majesty in right of Canada and, when providing civil air navigation services, is not doing so on behalf of Her Majesty in right of Canada.


Part Ii. Provision Of Civil Air Navigation Services

Provision of Services

Obligation to provide services

9. Subject to this Act, the Corporation shall, on and after the transfer date, provide all users with the civil air navigation services that the Department of Transport provided immediately before the transfer date and shall do so to the same extent as the services were provided by the Department of Transport.

Prohibition

10. (1) Subject to subsections (2) to (4), no person, other than the Corporation, shall, on or after the transfer date, provide

(a) aeronautical information services,

(b) air traffic control services, or

(c) specified flight information services,

in respect of Canadian airspace or any other airspace in respect of which Canada has responsibility for the provision of air traffic control services.

Exceptions

(2) A person may do anything mentioned in subsection (1) if

(a) the person is acting under the authority of the Minister of National Defence; or

(b) the person is doing so with the written consent of the Corporation.

Exception — airport air traffic control services

(3) Where a person was providing airport air traffic control services at an aerodrome immediately before March 14, 1996, the person may provide airport air traffic control services at that aerodrome on and after the transfer date until the person is no longer providing the services at the aerodrome.

Exception — aeronautical information services

(4) A person may provide aeronautical information services if the person is disseminating aeronautical information

(a) that was initially disseminated by the Corporation; or

(b) that is urgently required for reasons of aviation safety or the safety of the public.

Meaning of “specified flight information services”

(5) For the purposes of this section, “specified flight information services” means

(a) the acceptance, processing and activation of flight plans, amendments to flight plans and cancellations of flight plans;

(b) the exchange of flight plan information with domestic or foreign governments or agencies or foreign air traffic services units; and

(c) the provision of known information concerning ground and air traffic in respect of an aerodrome, where the Corporation is providing that information in respect of that aerodrome.


Designation as Authority for Chicago Convention

Designation of Corporation

11. The Corporation is hereby designated as the authority in Canada responsible for providing

(a) aeronautical information services for the purposes of Annexes 4 and 15 to the Chicago Convention; and

(b) air traffic control services for the purposes of Annex 11 to the Chicago Convention.


Aeronautical Radio Navigation Services

Technical and operational standards

12. (1) In order to ensure that aeronautical radio navigation services are provided in accordance with technical and operational standards that are consistent and that persons who provide those services have adequate liability insurance in respect of those services, the Corporation may propose technical and operational standards, or the minimum amount of that insurance, to the Minister for inclusion in regulations made under the Aeronautics Act.

Recommendation of Minister

(2) If, after receiving a proposal under subsection (1), the Minister is satisfied that the standards, or the minimum amount of liability insurance, as the case may be,

(a) are adequate with respect to aviation safety and the safety of the public,

(b) do not impose an undue obligation on providers of aeronautical radio navigation services, and

(c) are reasonable, taking into account practices in other countries,

the Minister shall, after having consulted with interested persons, recommend to the Governor in Council that the standards, or the minimum amount of liability insurance, as the case may be, be incorporated by reference, or specified as the minimum amount of liability insurance, as the case may be, in regulations made under the Aeronautics Act.

Publication of standards

(3) The Corporation shall publish all of its technical and operational standards that are incorporated by reference in regulations made under the Aeronautics Act.


Planning and Management of Airspace

Corporation may plan and manage airspace

13. Subject to the Governor in Council’s right under the Aeronautics Act to make regulations respecting the classification and use of airspace and the control and use of aerial routes, the Corporation has the right to plan and manage Canadian airspace and any other airspace in respect of which Canada has responsibility for the provision of air traffic control services, other than airspace under the control of a person acting under the authority of the Minister of National Defence.


Changing Services and Closing Facilities

Corporation may make changes

14. The Corporation may, in accordance with this Act but subject to the provisions of the Aeronautics Act and of any regulations made under that Act that relate to aviation safety or the safety of the public,

(a) introduce or increase civil air navigation services;

(b) terminate or reduce civil air navigation services; and

(c) close or relocate facilities used by it in connection with civil air navigation services.

Notice of changes

15. (1) Where the Corporation proposes to do anything mentioned in section 14 and, in the opinion of the Board of Directors of the Corporation acting reasonably and in good faith, the proposal is likely to affect a significant group of users in a material way, the Corporation shall give notice of the proposal in accordance with this section.

Contents of notice

(2) The notice must

(a) set out the particulars of the proposal; and

(b) specify that persons interested in making representations in writing to the Corporation about the proposal may do so by writing to the address set out in the notice.

How notice is to be given

(3) The Corporation shall send, by mail or by electronic means, a copy of the notice to

(a) representative organizations of users whose members will, in the opinion of the Corporation, be affected by the proposal, and

(b) every user and other person who has, at least 10 days before, notified the Corporation of their desire to receive notices or announcements under this Act,

and, after having done so, the Corporation shall post an electronic version of the notice in a location that is generally accessible to persons who have access to what is commonly referred to as the Internet.

When proposal can be implemented

16. Where a notice is required to be given under section 15 in respect of anything mentioned in section 14, the Corporation may only do that thing after 60 days have expired since the day the notice was posted in accordance with subsection 15(3).

Order under s. 4.91(1) of the Aeronautics Act

17. Sections 15 and 16 do not apply if the Corporation is increasing civil air navigation services in order to comply with an order made under subsection 4.91(1) of the Aeronautics Act.


Designated Northern or Remote Services

Notice of termination or reduction

18. (1) Where the Corporation proposes to terminate or reduce designated northern or remote services and, in the opinion of the Board of Directors of the Corporation acting reasonably and in good faith, the proposal is likely to affect a significant group of users or residents in a material way, the Corporation shall give notice of the proposal in accordance with this section.

Contents of notice

(2) The notice must

(a) set out the particulars of the proposal, including whether civil air navigation services are going to be introduced as a result of the termination or reduction; and

(b) specify that persons interested in making representations in writing to the Corporation about the proposal may do so by writing to the address set out in the notice.

How notice is to be given

(3) The Corporation shall

(a) send, by mail or by electronic means, a copy of the notice to

(i) representative organizations of users whose members will, in the opinion of the Corporation, be affected by the termination or reduction of services, and

(ii) every user and other person who has, at least 10 days before, notified the Corporation of their desire to receive notices or announcements under this Act, and

(b) post an electronic version of the notice in a location that is generally accessible to persons who have access to what is commonly referred to as the Internet,

and, after having done so, the Corporation shall send, by mail or by electronic means, a copy of the notice to the government of every province affected by the termination or reduction.

Rejection of proposal

19. (1) Subject to sections 20 to 22, where a notice is required to be given under section 18 in respect of a proposal to terminate or reduce designated northern or remote services, the Corporation may only implement the proposal if, within 45 days after sending the notice to the government of the provinces affected by the proposal, the Corporation is not notified in writing that the government of any province affected by the proposal, or users, have rejected it.

Rejection by users

(2) For the purposes of this section and section 20, users are deemed to have rejected a proposal if users accounting for at least one third of the revenues received by the Corporation in respect of civil air navigation services at the nearest aerodrome in the 12 months immediately before the day the notice required under section 18 was sent to the government of the provinces affected by the termination or reduction, indicate their disapproval of the proposal in writing.

Minister may approve proposal

20. (1) Where

(a) the government of a province affected by a proposal to terminate or reduce designated northern or remote services has rejected the proposal, or

(b) users have rejected the proposal,

the Corporation may implement the proposal if the Minister approves it in writing and the Corporation complies with sections 21 and 22.

No compensation

(2) The Corporation is not entitled to financial compensation for any financial loss that results or may result from the Minister’s not approving a proposal.

Announcement of termination or reduction

21. (1) Before implementing a proposal to terminate or reduce designated northern or remote services in respect of which a notice is required to be given under section 18, the Corporation shall make an announcement in accordance with this section.

Contents of announcement

(2) The announcement must

(a) set out the particulars of the termination or reduction, including whether civil air navigation services are going to be introduced as a result of the termination or reduction; and

(b) specify when the termination or reduction will become effective.

How announcement is to be made

(3) The Corporation shall

(a) send, by mail or by electronic means, a copy of the announcement to

(i) representative organizations of users whose members will, in the opinion of the Corporation, be affected by the termination or reduction, and

(ii) every user and other person who has, at least 10 days before, notified the Corporation of their desire to receive notices or announcements under this Act, and

(b) post an electronic version of the announcement in a location that is generally accessible to persons who have access to what is commonly referred to as the Internet,

and, after having done so, the Corporation shall send, by mail or by electronic means, a copy of the announcement to the government of every province affected by the termination or reduction.

Time for making announcement

(4) The announcement may only be made after 60 days have expired since the day the notice required under section 18 was sent to the government of the provinces affected by the termination or reduction.

When proposal can be implemented

22. The Corporation may only implement a proposal to terminate or reduce designated northern or remote services after 10 days have expired since the day the announcement required under section 21 was sent to the government of the provinces affected by the termination or reduction.


Level of Service Policies

Policies to be established

23. (1) The Corporation shall, within one year after the transfer date, establish policies consistent with this Act concerning the levels of civil air navigation services it provides.

Application of policy

(2) Subject to this Act, the Corporation shall apply its level of service policies in a consistent manner.

Revising policies

(3) The Corporation may revise its level of service policies from time to time.

Publication

(4) The Corporation shall publish the level of service policies established or revised under this section.

Provision of services in excess of policy levels

(5) Where civil air navigation services are requested in excess of the levels provided for in the level of service policies, the Corporation is not required to provide those additional services unless the person requesting them establishes through written evidence that a majority of the users who will be affected in a material way by the provision of the additional services agree to the provision of the additional services.

Affected users

(6) For the purpose of subsection (5), a user shall be considered to be affected by the provision of additional services only if, in the opinion of the Board of Directors of the Corporation acting reasonably and in good faith, the user is likely to use the additional services, pay more for the service that is to be increased or experience a change in service as a result of the provision of the additional services.

Prior notice

(7) Before establishing level of service policies or revising those policies, the Corporation shall give notice of its proposal to establish or revise the policies, as the case may be, in accordance with subsections 15(2) and (3).


Directions

Directions — northern or remote locations

24. (1) The Governor in Council, on the recommendation of the Minister, may give directions in writing to the Corporation to provide civil air navigation services at or in respect of northern or remote locations designated in the directions.

Directions — international agreements

(2) Where Canada must, pursuant to an international agreement, provide civil air navigation services in a certain manner or to a certain extent, the Governor in Council, on the recommendation of the Minister, may give directions in writing to the Corporation requiring it to provide the civil air navigation services in that manner or to that extent.

Directions — national security

(3) The Governor in Council, on the recommendation of the Minister of National Defence, may give directions in writing to the Corporation to provide civil air navigation services if the Governor in Council is of the opinion that it is in the interest of national security to do so.

Sections 15 to 22 do not apply

25. Sections 15 to 22 do not apply if the Corporation is doing anything mentioned in section 14 in order to comply with a direction.

Exemption

26. A direction is exempt from examination, registration and publication under the Statutory Instruments Act.

Prior consultations

27. Before a direction is given, the appropriate Minister shall consult with the Corporation as to its content and timing.

Obligation to implement

28. The Corporation shall ensure that every direction it receives is implemented as soon as is practicable.

Implementation in best interests of Corporation

29. Compliance by the Corporation with a direction is deemed to be in the best interests of the Corporation.

Notification of implementation

30. Immediately after implementing a direction, the Corporation shall notify the appropriate Minister to that effect.

Compensation

31. (1) The appropriate Minister shall compensate the Corporation for any financial loss determined in accordance with subsection (2) that it has sustained or will sustain in complying with a direction under subsection 24(1) or (3) and for that purpose, the appropriate Minister may require an audit of the books and records of the Corporation to determine the amount of that financial loss.

Financial loss

(2) The financial loss for which compensation is payable under this section is the amount by which the incremental costs to the Corporation resulting from complying with the direction exceed the incremental revenues generated by the provision of the services.

Appropriation required

(3) The amount of compensation shall be paid out of money appropriated by Parliament for the purpose.


Part Iii. Charges For Air Navigation Services

Right to Impose Charges

Charges for availability or provision of services

32. (1) The Corporation may impose charges on a user for the availability or provision of air navigation services provided by the Corporation or a person acting under the authority of the Minister of National Defence.

Exception

(2) No charge may be imposed under subsection (1)

(a) on a user who is a person acting under the authority of the Minister of National Defence; or

(b) on a user in respect of a state aircraft of a foreign country, unless the foreign country has been designated under subsection (3).

Designation

(3) The Governor in Council may, by order, designate any country to be a country in respect of which charges may be imposed for the purpose of subsection (2).

Deeming

(4) A charge imposed on a user under subsection (1) is deemed to be in respect of aircraft operated by that user.

Restriction

(5) No charge may be imposed under subsection (1) in respect of air navigation services provided by a person acting under the authority of the Minister of National Defence unless the Corporation provides and charges for similar services in respect of Canadian airspace or any other airspace in respect of which Canada has responsibility for the provision of air traffic control services.

Telecommunications Act

(6) The Telecommunications Act does not apply in respect of any charges imposed by the Corporation pursuant to this Act.


Initial Charges

Initial charges

33. (1) Subject to this Act, the charges imposed by the Corporation on or after the transfer date for air navigation services shall be the charges that were imposed by the Minister immediately before the transfer date.

Charges not new or revised charges

(2) For the purposes of this Act, charges imposed under subsection (1) are not new charges for air navigation services or revised charges.


New and Revised Charges

New and revised charges

34. (1) Subject to this Act, the Corporation may, on or after the transfer date, establish new charges for air navigation services and revise existing charges, including a charge referred to in subsection 33(1).

Where dollar amount changes

(2) The Corporation is deemed to be revising an existing charge each time the dollar amount of the charge changes.


Charging Principles

Charging principles

35. (1) The Corporation shall observe the following principles when establishing a new charge for air navigation services or revising an existing charge:

(a) charges must be in accordance with a methodology established and published by the Corporation that is explicit and that also includes the terms and conditions affecting charges;

(b) charges must not be structured in such a way that a user would be encouraged to engage in practices that diminish safety for the purpose of avoiding a charge;

(c) charges for the same services must not differentiate between domestic and international flights of air carriers;

(d) charges for the same services must not differentiate among Canadian air carriers or among foreign air carriers;

(e) charges must differentiate between the provision of services in relation to the landing and take-off of aircraft and the provision of services in relation to aircraft in flight, and must reflect a reasonable allocation of the costs of providing the services in those circumstances;

(f) charges in respect of recreational and private aircraft must not be unreasonable or undue;

(g) charges for designated northern or remote services and for services directed to be provided under subsection 24(1) must not be higher than charges for similar services utilized to a similar extent elsewhere in Canada;

(h) charges must be consistent with the international obligations of the Government of Canada; and

(i) charges must not be set at a level that, based on reasonable and prudent projections, would generate revenues exceeding the Corporation’s current and future financial requirements in relation to the provision of civil air navigation services.

Value of the services

(2) The charging methodology may recognize that the value of the services differs among users.

Application of principle

(3) Where the Corporation’s charging methodology recognizes the value of the services and aircraft weight is used as a measure of the value of the services, the principle referred to in paragraph (1)(a) is deemed not to have been observed if aircraft weight is taken into account either directly proportionally or greater than directly proportionally.

Meaning of “weight”

(4) For the purpose of subsection (3), “weight”, in relation to an aircraft, means the maximum permissible take-off weight specified in the aircraft’s certificate of airworthiness or in a document referred to in that certificate.

Financial requirements

(5) For the purpose of paragraph (1)(i), the financial requirements of the Corporation in relation to the provision of civil air navigation services include, without duplication, the Corporation’s

(a) costs incurred before the transfer date,

(b) operations and maintenance costs,

(c) management and administration costs,

(d) debt servicing requirements and financial requirements arising out of contractual agreements relating to the borrowing of money,

(e) depreciation costs on capital assets,

(f) financial requirements necessary for the Corporation to maintain an appropriate credit rating,

g) tax liability,

(h) reasonable reserves for future expenditures and contingencies, and

(i) other costs determined in accordance with accounting principles recommended by the Canadian Institute of Chartered Accountants or its successor,

to the extent that they relate to the provision of those services, less the amount determined in accordance with subsection (6).

Deduction amount

(6) The amount to be deducted for the purpose of subsection (5) is the aggregate of

(a) all grants, contributions and subsidies of a monetary nature received by the Corporation,

(b) all transition period payments pursuant to section 98,

(c) all interest income and investment income earned by the Corporation, and

(d) all profits earned by the Corporation, other than in respect of the provision of civil air navigation services.

Flat-fee

(7) Notwithstanding subsection (3), a category of users may be charged on a flat-fee basis so long as the charge is otherwise consistent with the charging principles set out in subsection (1).

Application of paragraph (1)(c)

(8) Paragraph (1)(c) does not apply in respect of charges for en route air traffic control services for the period during which an air transportation tax is levied under the Excise Tax Act.


Changing Charges

Notice of new or revised charge

36. (1) Where the Corporation proposes to establish a new charge for air navigation services or revise an existing charge, it shall give notice of the proposal in accordance with this section.

Contents of notice

(2) The notice must

(a) set out the particulars of the proposal;

(b) specify that a document containing more details about the proposal, including a justification for the proposal in relation to the charging principles set out in section 35, can be obtained from the Corporation on request; and

(c) specify that persons interested in making representations in writing to the Corporation about the proposal may do so by writing to the address set out in the notice.

How notice is to be given

(3) The Corporation shall

(a) send, by mail or by electronic means, a copy of the notice to

(i) representative organizations of users whose members will, in the opinion of the Corporation, be affected by the new or revised charge, and

(ii) every user and other person who has, at least 10 days before, notified the Corporation of their desire to receive notices or announcements under this Act, and

(b) post an electronic version of the notice in a location that is generally accessible to persons who have access to what is commonly referred to as the Internet,

and, after having done so, the Corporation shall file a copy of the notice with the Agency.

Announcement of new or revised charge

37. (1) Before imposing a new charge for air navigation services or a revised charge, other than a new or revised charge approved by the Minister under section 39, the Corporation shall make an announcement in accordance with this section.

Charge may be different

(2) A new or revised charge set out in an announcement may be different from the charge as proposed in the notice required under section 36 if, based on reasonable and prudent projections, the total annual revenue to be generated by the announced charge is no greater than the total annual revenue to be generated by the charge as proposed in the notice.

Contents of announcement

(3) The announcement must

(a) set out the new or revised charge;

(b) specify when the new or revised charge will become effective;

(c) contain a statement that the charge may be appealed on application to the Agency; and

(d) where subsection (2) applies,

(i) specify that the charge set out in the announcement is different from the charge as proposed in the notice required under section 36,

(ii) specify that the total annual revenue to be generated by the charge set out in the announcement is no greater than the total annual revenue that would have been generated by the charge as proposed in the notice, and

(iii) state that details in relation to the Corporation’s projection of the revenues referred to in subparagraph (ii) can be obtained from the Corporation on request.

How announcement is to be made

(4) The Corporation shall

(a) send, by mail or by electronic means, a copy of the announcement to

(i) representative organizations of users whose members will, in the opinion of the Corporation, be affected by the new or revised charge, and

(ii) every user and other person who has, at least 10 days before, notified the Corporation of their desire to receive notices or announcements under this Act, and

(b) post an electronic version of the announcement in a location that is generally accessible to persons who have access to what is commonly referred to as the Internet,

and, after having done so, the Corporation shall file a copy of the announcement with the Agency.

Time for making announcement

(5) The announcement may only be made after 60 days have expired since the day the notice required under section 36 was filed with the Agency.

When charge can be imposed

38. The Corporation may only impose a new charge for air navigation services or a revised charge, other than a new or revised charge approved by the Minister under section 39, after 10 days have expired since the day the announcement in relation to the new or revised charge was filed with the Agency.


Special Approval of Charges

Submission of charge to Minister

39. (1) At any time during the two years immediately after the transfer date, the Corporation may, after having

(a) filed with the Agency a notice under section 36 of a proposed new charge for air navigation services or a revised charge, and

(b) considered any representations made to it,

submit the proposed new or revised charge to the Minister for the Minister’s approval.

Copies of representations

(2) On submitting a proposed new or revised charge to the Minister, the Corporation shall provide the Minister with a copy of all written representations made to it concerning the proposed new or revised charge.

Determination by Minister

(3) After receiving a submission in respect of a proposed new or revised charge, the Minister shall, within 30 days, determine whether the charge is consistent with the charging principles set out in paragraphs 35(1)(a) to (h), taking into account subsection 35(8).

Where Minister is satisfied

(4) Where the Minister determines that a proposed new or revised charge is consistent with the charging principles set out in paragraphs 35(1)(a) to (h), taking into account subsection 35(8), the Minister shall approve the proposal and immediately notify the Corporation in writing of the approval.

Corporation may modify proposal

(5) Where the Minister determines that a proposed new or revised charge is not consistent with the charging principles set out in paragraphs 35(1)(a) to (h), taking into account subsection 35(8), the Minister shall, immediately, in writing,

(a) inform the Corporation of the Minister’s determination, and

(b) specify the reasons why the proposal is not consistent with those charging principles in sufficient detail to enable the Corporation to modify its proposal so as to make it consistent with those charging principles without affecting projected total annual revenues

and, if the Corporation modifies its proposal to the Minister’s satisfaction, the Minister shall approve the modified proposal and immediately notify the Corporation in writing of the approval.

Announcement of approved charge

40. (1) Before imposing a new or revised charge that the Minister has approved under section 39, the Corporation shall make an announcement in accordance with this section.

Contents of announcement

(2) The announcement must

(a) set out the new or revised charge; and

(b) specify when the new or revised charge will become effective.

How announcement is to be made

(3) The Corporation shall

(a) send, by mail or by electronic means, a copy of the announcement to

(i) representative organizations of users whose members will, in the opinion of the Corporation, be affected by the new or revised charge, and

(ii) every user and other person who has, at least 10 days before, notified the Corporation of their desire to receive notices or announcements under this Act, and

(b) post an electronic version of the announcement in a location that is generally accessible to persons who have access to what is commonly referred to as the Internet,

and, after having done so, the Corporation shall file a copy of the announcement with the Agency.

When approved charge can be imposed

41. The Corporation may only impose a new or revised charge that has been approved by the Minister under section 39 after 10 days have expired since the day the announcement in relation to the new or revised charge was filed with the Agency.


Appeal of Charges

Appeals

42. (1) Subject to this Act, charges by the Corporation for air navigation services may be appealed to the Agency.

No appeal

(2) No appeal may be made in respect of a charge imposed by the Corporation pursuant to section 33 or 41.

Grounds

43. An appeal may only be made on one or more of the following grounds:

(a) that one or more of the charging principles set out in section 35 have not been observed in establishing the charge;

(b) that the notice requirements in section 36 have not been complied with;

(c) that the announcement requirements in section 37 have not been complied with; and

(d) where subsection 37(2) applies, that, based on reasonable and prudent projections, the total annual revenue to be generated by the announced charge is greater than the total annual revenue to be generated by the charge as proposed in the notice.

Who may appeal

44. An appeal may be made by any user, group of users or representative organization of users.

Time for making appeal

45. (1) Subject to subsections (2) and (3), an appeal must be made within 30 days after the day the announcement required by section 37 in respect of the charge that is the subject of the appeal was filed with the Agency.

No notice

(2) Where no notice has been given under section 36 but an announcement has been made under section 37 in respect of a charge, an appeal in respect of the charge must be made within 180 days after the announcement was filed with the Agency.

No announcement

(3) Where no announcement has been made under section 37 in respect of a charge, an appeal in respect of the charge may be made at any time.

Effect of appeal

46. An appeal does not prevent the charge that is the subject of the appeal from becoming effective or prevent the Corporation from imposing the charge pending the outcome of the appeal, and the Agency may not make an order that prevents the charge from becoming effective or the Corporation from imposing the charge.

Form of appeal

47. An appeal must be made in the form and manner specified by the Agency.

Time for deciding appeal

48. The Agency shall decide an appeal as expeditiously as possible, but no later than 60 days after it is made, unless the Agency is of the opinion that there are special circumstances involved in the determination of the appeal, in which case the Agency has a further 30 days to decide the appeal.

Notification of decision

49. At the conclusion of an appeal, the Agency shall provide the parties to the appeal with written reasons for its decision.

Preponderance of evidence

50. The Agency shall only decide to allow an appeal based on the failure of the Corporation to observe a charging principle if it is satisfied on a preponderance of the evidence that the Corporation failed to observe that charging principle.

Order — charging principles not observed or no notice or announcement

51. (1) Where the Agency’s decision is that one or more of the charging principles set out in section 35 have not been observed in establishing a new charge or revising an existing charge or that no notice under section 36 was given or no announcement under section 37 was made in respect of a new or revised charge, the Agency shall, as the case may be,

(a) order the Corporation to cancel the new charge that is the subject of the appeal and refund the amount of the cancelled charge to each user who paid it; or

(b) order the Corporation to cancel the revised charge that is the subject of the appeal, re-establish the previous charge and refund to each user who paid the cancelled charge the amount, if any, collected in excess of the re-established charge.

Order — notice or announcement requirements not met

(2) Where the Agency’s decision is that the requirements in section 36 or 37 have not been fully complied with in respect of a new or revised charge, the Agency may make such order, including an order requiring refunds, as it considers appropriate in the circumstances, having regard to the seriousness of the non-compliance.

Order — charge different

(3) Where the Agency’s decision is that, based on reasonable and prudent projections, the total annual revenue to be generated by a charge set out in an announcement required under section 37 is greater than the total annual revenue to be generated by the charge as proposed in the notice required under section 36, the Agency shall, as the case may be,

(a) order the Corporation to cancel the new charge that is the subject of the appeal and refund the amount of the cancelled charge to each user who paid it; or

(b) order the Corporation to cancel the revised charge that is the subject of the appeal, re-establish the previous charge and refund to each user who paid the cancelled charge the amount, if any, collected in excess of the re-established charge.

Manner of refund

(4) Where the Corporation is ordered to refund amounts, it may do so by way of credit or payment.

Crediting amounts

52. (1) Each time a user who is entitled to a refund under an order of the Agency is charged by the Corporation for air navigation services, the Corporation shall credit the user an amount not less than 10% of the charge, until the entire amount owing to the user is refunded.

Two year maximum

(2) The Corporation shall refund the entire amount owing to each user within two years after the date of the order of the Agency.

Decision final

53. A decision of the Agency pursuant to an appeal is final and binding and, notwithstanding any other Act of Parliament, no appeal lies from the decision.

Canada Transportation Act

54. Sections 4, 24, 25.1, 26, 27, 28, 29, 32, 34, 37, 40, 41 and 43 of the Canada Transportation Act do not apply in respect of this Act.

1996, c. 20, ss. 54, 108.


Liability for Payment

Joint and several liability

55. (1) The owner and operator of an aircraft are jointly and severally liable for the payment of any charge for air navigation services imposed by the Corporation in respect of the aircraft.

Meaning of “owner”

(2) In subsection (1), “owner”, in respect of an aircraft, includes

(a) the person in whose name the aircraft is registered;

(b) a person in possession of an aircraft as purchaser under a conditional sale or hire-purchase agreement that reserves to the vendor the title to the aircraft until payment of the purchase price or the performance of certain conditions;

(c) a person in possession of the aircraft as chattel mortgagor under a chattel mortgage; and

(d) a person in possession of the aircraft under a bona fide lease or agreement of hire.


Seizure and Detention of Aircraft

Seizure and detention of aircraft

56. (1) In addition to any other remedy available for the collection of an unpaid and overdue charge imposed by the Corporation for air navigation services, and whether or not a judgment for the collection of the charge has been obtained, the Corporation may apply to the superior court of the province in which any aircraft owned or operated by the person liable to pay the charge is situated for an order, issued on such terms as the court considers appropriate, authorizing the Corporation to seize and detain any such aircraft until the charge is paid or a bond or other security for the unpaid and overdue amount in a form satisfactory to the Corporation is deposited with the Corporation.

Application may be ex parte

(2) An application for an order referred to in subsection (1) may be made ex parte if the Corporation has reason to believe that the person liable to pay the charge is about to leave Canada or take from Canada any aircraft owned or operated by the person.

Release

(3) The Corporation shall release from detention an aircraft seized under this section if

(a) the amount in respect of which the seizure was made is paid;

(b) a bond or other security in a form satisfactory to the Corporation for the amount in respect of which the seizure was made is deposited with the Corporation; or

(c) an order of a court directs the Corporation to do so.

Exempt aircraft

57. (1) An order under section 56 does not apply if the aircraft is exempt from seizure under the laws of the province in which the court that issued the order is situated.

State aircraft are exempt

(2) State aircraft are exempt from seizure and detention under an order issued under section 56.


Part Iv. Human Resources And Labour Relations

Designated Employees

Designated employees who have accepted offer of employment

58. Every designated employee who has accepted an offer of employment from the Corporation before the transfer date ceases to be employed in the Public Service on the expiration of the day immediately before the transfer date.

Designated employees who have not accepted offer of employment

59. (1) Subject to section 60, every designated employee who was an indeterminate employee immediately before the transfer date and who did not accept an offer of employment from the Corporation before that date ceases to be employed in the Public Service six months after the designated employee was so designated or earlier if the designated employee so requests.

Appointments

(2) A designated employee referred to in subsection (1) is entitled to be appointed, without competition,

(a) for a period of one year beginning on the day the designated employee ceases to be employed in the Public Service, and

(b) in such order as if the designated employee had been laid off in accordance with section 29 of the Public Service Employment Act,

to a position in the Public Service for which, in the opinion of the Public Service Commission, the designated employee is qualified.

Competitions

(3) A designated employee referred to in subsection (1) is entitled to enter, for a period of one year beginning on the day the designated employee ceases to be employed in the Public Service, any competition for which the designated employee would have been eligible had the designated employee not ceased to be employed in the Public Service.

Term employees

(4) Every designated employee who was not an indeterminate employee immediately before the transfer date and who did not accept an offer of employment from the Corporation before that date ceases to be employed in the Public Service on the expiration of the day immediately before the transfer date.

Excuse for not accepting

60. Every designated employee who did not accept an offer of employment from the Corporation before the transfer date and who establishes to the satisfaction of the Minister that the designated employee was unaware of the offer or incapable of indicating an acceptance of the offer is deemed to have accepted the offer before the transfer date and is deemed to be a designated employee referred to in section 58.

Programs that do not apply

61. The following do not apply to designated employees:

(a) the Work Force Adjustment Directive;

(b) the Early Departure Incentive Program Order;

(c) the Retirement Compensation Arrangements Regulations, No. 2; and

(d) the Executive Employment Transition Policy.


Collective Agreements and Arbitral Awards

Collective agreements and arbitral awards continued

62. (1) Every collective agreement or arbitral award that applies to a designated employee referred to in section 58 and that is in force immediately before the transfer date continues in force until its term expires.

Extended collective agreements continued

(2) Every collective agreement referred to in subsection (1) that is in force beyond the term of the agreement by virtue of an extension provided for in the collective agreement continues in force until the extension expires.

Binding effect of continued collective agreements and arbitral awards

(3) A collective agreement or arbitral award continued under this section is binding on

(a) the Corporation, as if it were the employer referred to in the collective agreement or arbitral award;

(b) the bargaining agent that is a party to the collective agreement or arbitral award; and

(c) the employees of the Corporation in the bargaining unit in respect of which that bargaining agent has been certified.

Application of Acts

(4) The Public Service Staff Relations Act and the Public Service Employment Act continue to apply on and after the transfer date in all respects to all matters arising before the transfer date in relation to the interpretation and application of any collective agreement or arbitral award continued under this section, whether or not the collective agreement or arbitral award has expired.

Grievances — proceedings continued

(5) Proceedings under Part IV of the Public Service Staff Relations Act that were commenced before the transfer date in respect of a collective agreement or arbitral award continued under this section shall be continued as though the Corporation were the employer referred to in the collective agreement or arbitral award.

Grievances — proceedings may be commenced

(6) Where events giving rise to a right to commence proceedings under Part IV of the Public Service Staff Relations Act in respect of a collective agreement or arbitral award continued under this section occurred before the transfer date but the proceedings had not commenced before that date, the proceedings may be commenced on or after the transfer date in accordance with the collective agreement or arbitral award and proceeded with as though the Corporation were the employer referred to in the collective agreement or arbitral award.

Deeming

(7) For the purposes of subsections (5) and (6), anything done, or not done, by Her Majesty in right of Canada as represented by the Treasury Board is deemed to have been done, or to have not been done, as the case may be, by the Corporation.

Settlement of differences

(8) Subsections 57(2) to (6), sections 58 to 66 and subsection 67(5) of the Canada Labour Code apply in respect of differences concerning the interpretation, application, administration or alleged violation of any collective agreement or arbitral award continued by this section that arise on or after the transfer date between

(a) the Corporation and the bargaining agnt that is a party to the collective agreement or arbitral award; or

(b) the Corporation and employees of the Corporation bound by the collective agreement or arbitral award.

Deeming

(9) A collective agreement or arbitral award continued by this section is deemed to be a collective agreement within the meaning of section 49 of the Canada Labour Code, and Part I of that Act, other than section 80, applies in respect of the renewal or revision of the collective agreement or the entering into of a new collective agreement.

Expired collective agreements or arbitral awards

63. (1) Where a collective agreement or arbitral award that applied to a designated employee referred to in section 58 has expired and has not been renewed, revised or replaced before the transfer date,

(a) the Public Service Staff Relations Act and the Public Service Employment Act continue to apply in all respects to all matters arising before the transfer date in relation to the interpretation and application of the collective agreement or arbitral award or any of the terms and conditions of employment applicable pursuant to section 52 of the Public Service Staff Relations Act to the employees of the Corporation represented by the bargaining agent bound by the collective agreement or arbitral award;

(b) subsections 57(2) to (6), sections 58 to 66 and subsection 67(5) of the Canada Labour Code apply in all respects to all matters arising on or after the transfer date in relation to the interpretation and application of any term, condition, right or privilege continued under paragraph 50(b) of that Act; and

(c) subject to this section, the provisions of Part I of the Canada Labour Code, other than section 80, apply with respect to the renewal or revision of the collective agreement or the entering into of a new collective agreement.

Grievances

(2) Proceedings under Part IV of the Public Service Staff Relations Act that were commenced before the transfer date in respect of a collective agreement, arbitral award or terms and conditions of employment mentioned in subsection (1) shall be continued as though the Corporation were the employer referred to in the collective agreement or arbitral award or bound by the terms and conditions of employment.

Grievances — proceedings may be commenced

(3) Where events giving rise to a right to commence proceedings under Part IV of the Public Service Staff Relations Act in respect of a collective agreement, arbitral award or terms and conditions of employment mentioned in subsection (1) occurred before the transfer date but the proceedings had not commenced before that date, the proceedings may be commenced on or after the transfer date and be proceeded with as though the Corporation were the employer referred to in the collective agreement or arbitral award or bound by the terms and conditions of employment.

Deeming

(4) For the purposes of subsections (2) and (3), anything done, or not done, by Her Majesty in right of Canada as represented by the Treasury Board is deemed to have been done, or to have not been done, as the case may be, by the Corporation.

Corporation deemed employer for arbitration purposes

(5) The Corporation is deemed to be the employer referred to in any collective agreement or arbitral award mentioned in subsection (1) for the purposes of the conduct of any proceedings under Part I of the Canada Labour Code in relation to the matters referred to in paragraph (1)(b).

Notice to bargain

(6) Subject to subsection (7), for the purposes of paragraph (1)(c), a notice to bargain collectively is deemed to hav been given under Part I of the Canada Labour Code on the transfer date.

Notice to bargain

(7) For the purposes of paragraph (1)(c), a notice to bargain collectively given under section 50 of the Public Service Staff Relations Act in respect of a collective agreement or arbitral award is deemed to have been given under Part I of the Canada Labour Code on the day it was given.

Where arbitration in progress

(8) Where arbitration has been requested under section 64 of the Public Service Staff Relations Act before the transfer date in respect of a dispute arising in connection with the conclusion, renewal or revision of a collective agreement that applies to a designated employee referred to in section 58 and no arbitral award has been made, the arbitration shall be continued in accordance with that Act.

Collective agreement or arbitral award resulting from arbitration

(9) A collective agreement or arbitral award referred to in subsection 66(2) of the Public Service Staff Relations Act made in consequence of arbitration continued under subsection (8) is binding on

(a) the Corporation, as if it were the employer referred to in the collective agreement or arbitral award,

(b) the bargaining agent that is a party to the collective agreement or arbitral award, and

(c) the employees of the Corporation in the bargaining unit in respect of which that bargaining agent has been certified,

and subsections 62(8) and (9) apply, with such modifications as the circumstances require, in respect of the collective agreement or arbitral award as if it were a collective agreement or arbitral award referred to in those subsections.

Where conciliation in progress

(10) Where a conciliation board has been established under section 77 of the Public Service Staff Relations Act before the transfer date in respect of a dispute arising in connection with the conclusion, renewal or revision of a collective agreement that applies to a designated employee referred to in section 58 and the conciliation board has not made a report to the Chairperson of the Public Service Staff Relations Board,

(a) the conciliation shall be continued in accordance with that Act; and

(b) on the expiration of seven days after the receipt by the Chairperson of the report of the conciliation board, the requirements of subsection 89(1) of the Canada Labour Code are deemed to have been met in respect of the employees of the Corporation in the bargaining unit represented by the bargaining agent that is a party to the dispute.

Where conciliation completed

(11) Where a conciliation board has been established under section 77 of the Public Service Staff Relations Act before the transfer date in respect of a dispute arising in connection with the conclusion, renewal or revision of a collective agreement that applies to a designated employee referred to in section 58 and the conciliation board has made a report to the Chairperson of the Public Service Staff Relations Board, but seven days have not elapsed since the Chairperson received the report, the requirements of subsection 89(1) of the paCanada Labour Code are deemed to have been met on the expiration of those seven days in respect of the employees of the Corporation in the bargaining unit represented by the bargaining agent that is a party to the dispute.

Where conciliation board refused

(12) Where the Chairperson of the Public Service Staff Relations Board has, in respect of a dispute arising in connection with the conclusion, renewal or revision of a collective agreement that applies to a designated employee referred to in section 58, notified the parties to the dispute pursuant to section 77 of the Public Service Staff Relations Act before the transfer date of the Chairperson’s intention not to establish a conciliation board and the agreement has not been renewed, revised or replaced, the notification is deemed to have been given under paragraph 72(1)(d) of the Canada Labour Code on the day it was given.

Right to strike preserved

(13) Where designated employees referred to in section 58 are members of a bargaining unit represented by a bargaining agent that immediately before the transfer date had the right to declare or authorize a strike in respect of that bargaining unit, the requirements of subsection 89(1) of the Canada Labour Code are deemed to have been met in respect of the bargaining unit.

Expiration date of collective agreements and arbitral awards

64. The expiration date of a collective agreement or arbitral award continued under section 62 is the date that would have been the expiration date of the collective agreement or arbitral award under the Public Sector Compensation Act had this Act not been enacted.

Work Force Adjustment Directive does not apply

65. Notwithstanding any indication to the contrary that may be contained in a collective agreement or arbitral award continued under section 62 or mentioned in section 63, the Work Force Adjustment Directive does not apply to employees of the Corporation.

National Joint Council agreements

66. (1) Where agreements of the National Joint Council of the Public Service are incorporated by reference in a collective agreement or arbitral award continued under section 62 or mentioned in section 63, the incorporation by reference applies only in respect of those agreements as they read immediately before the transfer date.

Expiration date of agreements

(2) Notwithstanding any indication to the contrary that may be contained in a collective agreement or arbitral award continued under section 62 or mentioned in section 63, the expiration date of any agreements of the National Joint Council of the Public Service that are incorporated by reference is the expiration date of the collective agreement or arbitral award.

Employment deemed to be continuous

67. (1) For the purposes of the Canada Labour Code and any collective agreement or arbitral award continued under section 62 or mentioned in section 63, the employment of a designated employee referred to in section 58 by Her Majesty in right of Canada as represented by the Treasury Board and the Corporation is deemed to be continuous.

Vacation leave

(2) For greater certainty and without restricting the generality of subsection (1), a designated employee referred to in section 58 is not entitled to claim payment from Her Majesty in right of Canada as represented by the Treasury Board in respect of earned but unused vacation leave on ceasing to be employed in the Public Service, notwithstanding

(a) any collective agreement or arbitral award that is binding on the designated employee immediately before the transfer date; or

(b) any terms and conditions of employment applicable to the designated employee immediately before the transfer date.

Her Majesty no longer responsible

68. Subject to any agreement entered into between Her Majesty in right of Canada and the Corporation before the transfer date, Her Majesty in right of Canada ceases on the transfer date to be responsible for any obligation of Her Majesty in right of Canada as represented by the Treasury Board arising out of or under any collective agreement or arbitral award continued under section 62 or mentioned in section 63 or any terms and conditions of employment applicable to a designated employee immediately before the transfer date.


Bargaining Agents

Bargaining agents

69. (1) Each employee organization that immediately before the transfer date was certified under the Public Service Staff Relations Act as the bargaining agent for a bargaining unit consisting of or including designated employees referred to in section 58 is deemed to have been certified as the bargaining agent for the employees of the Corporation in that bargaining unit under Part I of the Canada Labour Code on the transfer date.

Certification

(2) Notwithstanding any provision of Part I of the Canada Labour Code,

(a) no application for certification as the bargaining agent for any employees of the Corporation represented by a bargaining agent deemed to have been certified under subsection (1) may be made by a trade union, and

(b) no bargaining unit or part of a bargaining unit consisting of employees of the Corporation represented by a bargaining agent deemed to have been certified under subsection (1) may be reviewed, rescinded, amended, altered or varied, otherwise than

(i) to include in the unit any employees who are not represented by a bargaining agent, or

(ii) to merge bargaining units that are represented by the same bargaining agent,

before the beginning of the last three months of the first collective agreement entered into after the transfer date that applies to those employees and that has resulted from a notice to bargain collectively given by or to the Corporation after that date.

First collective agreement

(3) For greater certainty, no collective agreement resulting from a notice to bargain collectively deemed under subsection 63(6) to have been given and no collective agreement or arbitral award referred to in subsection 63(9) is a first collective agreement within the meaning and for the purposes of subsection (2).


Severance Pay

Severance pay

70. Notwithstanding section 67, a designated employee referred to in section 58 is entitled to severance pay in accordance with

(a) any collective agreement or arbitral award that is binding on the designated employee immediately before the transfer date, or

(b) any terms and conditions of employment applicable to the designated employee immediately before the transfer date,

on the day the designated employee ceases to be employed in the Public Service pursuant to this Act.

Recognition of service

71. Notwithstanding section 67, when a designated employee is entitled to severance pay from the Corporation pursuant to a collective agreement, an arbitral award or terms and conditions of employment, the period for which the designated employee is entitled to severance pay is deemed not to include any period of employment for which the designated employee is entitled to severance pay under section 70.

Deemed lay-off

72. Designated employees are deemed to be laid off from the Public Service on the day they cease to be employed in the Public Service pursuant to this Act for the sole purpose of entitlement to severance pay from Her Majesty in right of Canada as represented by the Treasury Board.


Part V. Services To Humanitarian Or Emergency Flights

Definitions

73. (1) The definitions in this subsection apply in this section and sections 74 to 84 and 90 to 92.

“collective agreement”

« convention collective »

“collective agreement” means a collective agreement between the Corporation and a trade union, and includes a collective agreement or arbitral award continued under section 62 or mentioned in section 63.

“emergency flight support employee”

« employé affecté aux vols d’urgence »

“emergency flight support employee” means an employee identified in accordance with the terms of an emergency support agreement.

“emergency support agreement”

« accord sur les services d’urgence »

“emergency support agreement” means an agreement between the Corporation and a trade union in respect of a bargaining unit represented by the trade union that

(a) identifies, in respect of the bargaining unit, the positions and the number of employees and their level of certification that are necessary to enable the Corporation to provide civil air navigation services in respect of humanitarian or emergency flights during a work stoppage;

(b) specifies the manner in which employees in the bargaining unit shall be identified as emergency flight support employees and how they are to be informed of that designation; and

(c) requires emergency flight support employees who are members of that bargaining unit to perform duties in support of the provision of civil air navigation services in respect of humanitarian or emergency flights during a work stoppage.

“humanitarian or emergency flight”

« vols d’urgence ou à vocation humanitaire »

“humanitarian or emergency flight” means

(a) an air ambulance flight;

(b) an aerial fire-fighting flight;

(c) a search and rescue flight;

(d) a flight in support of police or military activities;

(e) a flight to or from a location in Canada requiring designated northern or remote services;

(f) a flight incidental to any declared international, national, provincial or local emergency; or

(g) any other flight, or class of flights, declared by the Minister to be a humanitarian or emergency flight.

“trade union”

« syndicat »

“trade union” means a bargaining agent for a bargaining unit of employees of the Corporation.

“work stoppage”

class="Ma« arrêt de travail »

“work stoppage” means a strike or lockout.

Words and expressions

(2) Unless a contrary intention appears, words and expressions in this Part have the same meaning as in the Canada Labour Code.

Obligation to provide services

74. In the event of a work stoppage the Corporation shall continue to provide civil air navigation services necessary for humanitarian or emergency flights.

Parties to enter into agreement

75. The Corporation and every trade union shall, in respect of each bargaining unit represented by the trade union, enter into an emergency support agreement and, immediately on its execution, the Corporation shall file a copy of the agreement with the Minister of Labour.

Selection of mediator-arbitrator by parties

76. (1) Where no emergency support agreement with respect to a bargaining unit is in force 90 days before the expiration of the collective agreement applicable to that unit, the Corporation and the trade union shall select a mediator-arbitrator within 15 days.

Selection of mediator-arbitrator by Minister

(2) Where the Corporation and a trade union are unable to agree to the selection of a mediator-arbitrator in the 15-day period, they shall so notify the Minister of Labour in writing, who shall, after such inquiry as that Minister considers necessary, appoint a mediator-arbitrator and inform them of the appointment.

Duties of mediator-arbitrator

77. (1) Within 60 days after the mediator-arbitrator’s selection or appointment, the mediator-arbitrator shall

(a) for the purpose of concluding an emergency support agreement between the Corporation and the trade union,

(i) endeavour to mediate the matters in dispute and to bring about an emergency support agreement, and

(ii) if unable to bring about an emergency support agreement, hear the Corporation and the trade union on the matters in dispute, arbitrate the matters and render a decision in the form of an emergency support agreement; and

(b) file a copy of any decision under subparagraph (a)(ii) with the Minister of Labour.

Late decision not invalid

(2) The failure of a mediator-arbitrator to make a decision within the 60-day period does not affect the jurisdiction of the mediator-arbitrator to continue with and complete the arbitration proceedings, and any decision made by the mediator-arbitrator after the expiration of those 60 days is not for that reason invalid.

Powers of mediator-arbitrator

78. A mediator-arbitrator has, with such modifications as the circumstances require,

(a) for the purposes of the mediation referred to in subparagraph 77(1)(a)(i), all the powers of a conciliation commissioner under section 84 of the Canada Labour Code; and

(b) for the purposes of the arbitration referred to in subparagraph 77(1)(a)(ii), all the powers and duties of an arbitrator under sections 60 and 61 of that Act.

Fees and expenses of mediator-arbitrator

79. The fees and expenses of a mediator-arbitrator shall be paid equally by the Corporation and the trade union.

Deemed agreement

80. As of the day a mediator-arbitrator makes a decision under subparagraph 77(1)(a)(ii), the emergency support agreement that results from that decision is deemed to have been entered into by the Corporation and the trade union in respect of the bargaining unit to which the agreement applies, and that agreement is binding on the Corporation, on the trade union and on the employees in the bargaining unit.

Proceedings prohibited

81. No order shall be made, no process shall be entered into and no proceeding shall be taken in any court

(a) to question the appointment of a mediator-arbitrator; or

(b) to review, prohibit or restrain any proceeding or decision of a mediator-arbitrator.

Revision of emergency support agreement

82. The Corporation and a trade union may, at any time, revise any provision of an emergency support agreement, but neither party may terminate the agreement during the period beginning 180 days before the expiration of the collective agreement that applies to the bargaining unit to which the emergency support agreement relates and ending on the day on which a new collective agreement that applies to that bargaining unit comes into force.

Notice of termination

83. Where a party to an emergency support agreement terminates the agreement, the party shall immediately give written notice to the other party and to the Minister of Labour.

Terms of employment

84. Unless the parties to an emergency support agreement agree otherwise,

(a) the terms and conditions of employment, and

(b) the rights, duties and privileges of the Corporation, of the employees in the bargaining unit to which the agreement applies and of the trade union representing those employees,

that were in effect immediately before the right to strike or lockout was acquired continue to apply with respect to emergency flight support employees who work during a work stoppage.


Part Vi. Control And Enforcement

Sending Notices

Sending notices

85. (1) The failure to send a notice or an announcement to any representative organization of users or to one or more users or persons that have notified the Corporation of their desire to receive notices or announcements under this Act does not constitute a failure to send the notice or announcement if the failure was unintentional.

Posting notices

(2) The failure to post an electronic version of a notice or announcement in a location that is generally accessible to persons who have access to what is commonly referred to as the Internet does not constitute a failure to post the notice or announcement if the failure was due to technical difficulties.


Amendment of Letters Patent and By-laws

Amendment of letters patent

86. (1) The letters patent of the Corporation may not be amended without the prior written approval of the Minister, and any such amendment without that approval is invalid.

Amendment or repeal of by-laws

(2) A by-law of the Corporation that requires the Minister’s approval to be amended or repealed may not be amended or repealed without the prior written approval of the Minister, and any such amendment or repeal without that approval is invalid.


Enforcement

Compliance or restraining order — letters patent and by-laws

87. (1) If the Corporation or any of its directors or officers fails to comply with the letters patent or the by-laws of the Corporation, any present or former member, director or officer of the Corporation or any other person who, in the discretion of the court, is a proper person to make an application under this section, may apply to the superior court of any province for an order directing the Corporation or any of its directors or officers to comply with, or restraining the Corporation or any of its directors or officers from acting in breach of, the letters patent or the by-laws, and on such application the court may so order and make any further order it thinks fit.

Compliance or restraining order — contravention by Corporation

(2) If the Corporation contravenes section 9 or 16, subsection 19(1), section 22 or subsection 23(1), (2), (4) or (5), any person may apply to the superior court of any province for an order directing the Corporation to comply with, or restraining the Corporation from acting in breach of, that provision, and on such application the court may so order and make any further order it thinks fit.

Summary application to court

(3) An application may be made in a summary manner by petition, originating notice of motion or otherwise as the rules of the court provide and is subject to any order respecting notice to interested parties or costs, or any other order the court thinks fit.

Appeal

(4) An order under subsection (1) may be appealed to the court to which appeals from the court making the order normally lie.

Contravention of s. 10(1)

88. Every person who contravenes subsection 10(1) is guilty of an offence punishable on summary conviction and liable

(a) in the case of an individual, to a fine of not more than $5,000, and

(b) in the case of a corporation, to a fine of not more than $25,000

for each day or part of a day the offence continues.

Failure to comply with a direction

89. Where the Corporation fails to comply with a direction made under section 24, it is guilty of an offence punishable on summary conviction and liable to a fine of not more than $25,000 for each day or part of a day the offence continues.

Failure to provide services to humanitarian or emergency flight

90. (1) Where the Corporation contravenes section 74, it is guilty of an offence punishable on summary conviction and liable to a fine of not more than $100,000 for each day or part of a day the offence continues.

Defence

(2) In a prosecution for a contravention of section 74, it is a defence for the Corporation to establish that, in attempting to comply with that section, it was obstructed or hindered from doing so by its employees or a trade union representing its employees.

Refusal to work

91. Any emergency flight support employee who, during a work stoppage, refuses to perform any duties required to be performed by that employee under an emergency support agreement is guilty of an offence punishable on summary conviction and liable to a fine of not more than $5,000 for each day or part of a day the employee refuses to perform those duties.

Hindering Corporation

92. (1) Any officer or representative of the Corporation, any employee of the Corporation, any trade union that represents employees of the Corporation and any officer, representative or employee of such a trade union who obstructs or hinders the provision of civil air navigation services to a humanitarian or emergency flight by the Corporation, is guilty of an offence punishable on summary conviction and liable to a fine in accordance with subsection (3) for each day or part of a day the offence continues.

Hindering Minister of National Defence

(2) Where the Corporation or any officer or representative of the Corporation, any employee of the Corporation, any trade union that represents employees of the Corporation or any officer, representative or employee of such a trade union obstructs or hinders a person acting under the authority of the Minister of National Defence from having access to facilities of the Corporation to which the person normally has access for the purposes of the person’s normal duties, the Corporation or that person is guilty of an offence punishable on summary conviction and liable to a fine in accordance with subsection (3) for each day or part of a day the offence continues.

Fine

(3) For the purposes of subsections (1) and (2), the fine for each day or part of a day the offence continues is

(a) $100,000, in the case of the Corporation or a trade union;

(b) $50,000, in the case of a person acting in the capacity of an officer or representative of the Corporation or of a trade union when the offence was committed; or

(c) $5,000, in any other case.

Trade unions

(4) For the purposes of this section, a trade union is deemed to be a person.

No imprisonment

93. Notwithstanding subsection 787(2) of the Criminal Code, a term of imprisonment may not be imposed in default of payment of a fine that is imposed under this Act.

Recovery of fines

94. Where a person is convicted of an offence under this Act and the fine that is imposed is not paid when required, the prosecutor may, by filing the conviction, enter as a judgment the amount of the fine and costs, if any, in a superior court of the province in which the trial was held, and the judgment is enforceable against the person in the same manner as if it were a judgment rendered against the person in that court in civil proceedings.

Certificate as evidence

95. If in any proceedings under this Act a question arises as to

(a) whether an asset is a designated civil air navigation services asset,

(b) whether civil air navigation services were provided by the Department of Transport before the transfer date, or

(c) the amount of any charge that was imposed immediately before the transfer date for the provision of civil air navigation services by the Minister,

a certificate purporting to have been issued by or under the authority of the Minister stating any fact relevant to the question shall be received and is admissible in evidence in those proceedings without proof of the signature or authority of the person appearing to have signed it and, in the absence of evidence to the contrary, is proof of the fact so stated.


Part Vii. General

Official Languages

Official Languages Act applies

96. The Official Languages Act applies to the Corporation as if it were a federal institution.


Authority to Provide Services

Authority to provide services

97. Where a department in, or other portion of, the federal public administration specified in Schedule I, IV or V to the Financial Administration Act is authorized to provide services to any other department in, or other portion of, the federal public administration specified in one of those Schedules, it may enter into an agreement to provide those services to the Corporation if it considers it appropriate to do so.

1996, c. 20, s. 97; 2003, c. 22, s. 151.

Previous Version

Part Viii. Financial Arrangements

Transition period payments

98. (1) The Minister may enter into an agreement with the Corporation regarding transition period payments by Her Majesty in right of Canada to the Corporation collateral to the transfer, by sale, lease or otherwise, authorized by section 7.

Appropriation

(2) There is hereby appropriated the sum of $1,440,000,000 to be paid out of the Consolidated Revenue Fund from time to time as required for the purposes of subsection (1).

Lapsing

(3) The appropriation referred to in subsection (2) lapses two years after the transfer date.


Part Ix. Related, Consequential And Conditional Amendments And Coming Into Force

Related and Consequential Amendments

99. to 106. (Amendments)


Conditional Amendments

107. and 108. (Amendments)


Coming into Force

Coming into force


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