Labour Under Attack, Again...

Now that George Bush has decided to step forward and include a bailout package for the North American Auto Makers from the TARP funds approved by Congress, the package agreed to by Queen's Park and Ottawa will kick in. I am concerned, (and I am putting it as diplomatically as possible), that although this is designed to provide a rescue package to prevent the failure of one of the cornerstones of our economy, auto manufacturing, the required concessions by the workers are also a thinly veiled attack on organized labour. It is generally conceded that the workers at the big three assembly plants are probably the most efficient to be found anywhere in the industry. It is also undeniable, that the labour costs comprise approximately seven per cent of the price of a new D3 vehicle That is less than the profit margin of the retail dealers. It is also less than the aggregate delivery costs associated with that vehicle.Labour costs are not a large part of the problems plaguing the auto makers. What the governments in both Canada and the U.S. have done is to use the world wide economic crisis in a blatant attack on the workers. Unfortunately, a good many unorganized workers, have foolishly sided with the government and corporations and have become quite vocal in labelling the auto workers as lazy, greedy, fat cats needing to be put in their place. During my career in union leadership, I encountered this sort of mindset quite often in the past. Human nature being what it is, envy leads some people to believe that if some one has a better wage and benefits package, they should have that package reduced rather than working to raise their own level of remuneration. This is a slippery slope. Reducing the organized worker's wages and benefits will not stop there. Once the battle against stronger, organized group of workers has been waged successfully, the unorganized workers will be next on the agenda.

It is often forgotten or overlooked by many that Unions have always worked to raise the wages, and conditions of all workers. Unorganized workers will be defenceless in the face of an economic crisis and government policy that have made high unemployment and low wages the norm. It is also worth remembering, that former economist for the CAW, Sam Gindin, often commented, “The only thing that concessions lead to, is more concessions.”

This is just the latest attack in a long term plan on the part of the right wing. In the 90's the Harris government in Ontario struck down the provisions in Provincial legislation that prevented the use of replacement workers during a legal strike. Not long after, in 2000, Mine Mill / CAW - Local 598 struck Falconbridge in Sudbury. The company brought in replacement workers and the strike continued for seven months and was one of the most brutal and damaging labour actions in memory. The fallout from this is still evident in that community today. I believe that the auto makers needed a rescue package and such a package is vital for the economic well being of Canada and its citizens. However, the workers cannot be held responsible for the bad decisions that threaten to bring down the corporations. By the same token, anyone who works for wages in this country, must see the actions of Harper and Bush for what they are, a blatant attack on workers. If they are allowed to succeed, all will be threatened. Pensions, benefits, and a living wage should not be sacrificed to disguise the failed right wing policies of deregulation, tax cuts and globalization.

What's Wrong With This Country – Part 1

Although we are in the throws of the worst economic meltdown in close to a century, the federal government, has failed to provide any assistance for those workers who have lost, or are about to lose, their jobs. Since the mid-nineties, the federal government, mainly under the Liberals, has racked up one “surprise” budgetary surplus after another. The former Liberal government, in effect, converted the EI program into a hidden payroll tax, and used the excess funds to pay down the deficit. Although the Supreme Court agreed that this was the case, in its recent ruling, it stated that the federal government would not be required to return the money to the taxpayers. This was a fortunate result for the current Conservative government led by Stephen Harper, who since taking office, has given away $190 billion in tax cuts, mainly to the wealthy, and spent another 14 billion dollars in debt reduction. This has essentially left the government without resources to deal with the current economice downturn and subsequent job losses.

There has, as a result, been a very significant cost to Canadians, especially to those who are being forced to depend on the Employment Insurance scheme. In 1996, Canadians were sold on the idea that the program was a waste of taxpayer dollars and discouraged claimants from seeking work. This led to a “reform” of the EI system. The problem is that now, when it is really needed, only 40% of unemployed workers will qualifiy for benefits. The current maximum payout is $435 per week for a maximum of 45 weeks. Unfortunately few of the unemployed qualify for the maximum, and the average payout is only about half of the maximum. Further, in real terms, adjusted for inflation, there has been an almost 30% reduction in benefits since 1996. The situation is worse for working women who make up the bulk of part time workers in this country and seldom qualify for any benefits at all.

Employment Insurance is not now, nor was it ever intended as a welfare scheme. It was meant as a contingency fund for employees who found themselves without a job during the course of their careers. It was paid for by the employees and the companies that they worked for. The money collected ought never have been used as a part of the governments general revenue. Had the system been properly, and honestly managed the program would have had a surplus in the order of $54 billion. A surplus that Canadians facing the loss of their jobs, would have had available to draw on. Instead of dealing with this issue, the current federal government continues to pocket this surplus. The Conservatives have however, suggested the implementation of a new crown corporation that would set up a new financing structure and set the future rates for the Employment Insurance program. This will be cold comfort to those who are being forced onto the unemployment lines.