Thank you, Mr. Speaker. Mr. Speaker, the Supreme Court of the Northwest Territories dismissed the bad faith bargaining allegation made by the UNW and granted the government's application for the appointment of a mediator. Mr. Speaker, collective bargaining has since been scheduled to resume from November 10 to 12, 1998, with the assistance of a mediator.

Mr. Speaker, we believe that we are now in a good position to conclude a collective agreement for ratification by employees. We now have clear direction that we must negotiate a gender-neutral job evaluation system and gender-neutral rates of pay at collective bargaining. However, we do not believe, in view of the position taken by the UNW, that we can conclude an agreement on retroactive payments for the settlement of the equal pay complaint at collective bargaining.

Mr. Speaker, before I set out the government's overall approach to the mediation talks and to resolving the pay equity complaint, I will list the principles that continue to guide the government in these negotiations:

- The government pays its employees a fair and equitable wage and benefit package designed to attract and retain a northern workforce.

- The government is totally supportive of the requirement for no discrimination in the workplace and for equal pay for work of equal value.

- The government is totally supportive of the Collective Bargaining process and believes that agreements freely entered into in good faith are preferred over settlements that are imposed on the parties.

- The government believes that a negotiated settlement of the equal pay complaint is preferred over the cumbersome, time-consuming and expensive federal Commission, Tribunal and Court processes.

- The government believes that it is in the interests of all the people of the NWT, including past and current employees, to settle the pay equity equal pay complaint and conclude a collective agreement before the division of the NWT on April 1, 1999.

- The government believes that employees should have the right to decide for themselves whether to accept the equal pay settlement offer for the past and a new collective agreement for the future.

Mr. Speaker, the Supreme Court made it very clear that the parties must negotiate a gender-neutral job evaluation system and gender-neutral rates of pay at collective bargaining. The Supreme Court agreed with the government that the obligation to negotiate a gender-neutral job evaluation system is the result of the union's allegation that past collective agreements do not contain a gender-neutral job evaluation system and gender-neutral rates of pay.

Mr. Speaker, a considerable commitment of time and resources went into the selection of the Hay Job Evaluation System and the evaluation of all jobs against that system. We must implement this system. We do not have the time or resources to start over with another system. Mr. Speaker, we are fully satisfied that the Hay Job Evaluation System, as implemented for our non-unionized employees, is gender-neutral and that the results are gender-neutral. The challenge we face is how best to demonstrate this fact to the satisfaction of the UNW so that we can agree on the implementation of the system for our unionized employees.

At mediation, we will table a revised offer that we believe will address all possible concerns that the UNW may have regarding the Hay Job Evaluation System. If we can address these concerns, we should be in a position to conclude a collective agreement that the UNW can recommend to its members for ratification. Hopefully, this can be done in time to get the increases that we are offering into the hands of employees as quickly as possible. Thank you, Mr. Speaker.