Why Can’t Steel Get a Deal with the Stinkos’ at Vale INCO? Part II - The Global Employer

More than 3,000 Steelworkers in Greater Sudbury and Port Colborne have been on strike since July 13, 2009 in a dispute over pensions, the nickel price bonus and transfer rights. More than 200 Steelworkers in Voisey's Bay, N.L., have been on strike since August 1, 2009 over similar issues. Why has this strike gone one so long? What is at the heart of this historic labour dispute? In my view there are a number of contributing factors why this strike is continuing with no end in the foreseeable future. For instance, we have a new breed of predatory global employer who places profits ahead of community and social responsibility. We also are seeing the failure of the provincial and federal governments to protect our natural resources and collective bargaining rights of Canadian workers. These factors along with many others are responsible for one of the most acrimonious labour disputes in the past in the past 50 year. It merits our examination.

Part II – The Global Employer

If you were born and raised in Northeastern Ontario as I was, you will be very familiar with the corporate giants in our region, especially in the mining and steel sector. Three companies, Inco, Falconbridge and Algoma Steel where clearly the economic engine along the Highway17 corridor from the Quebec border to Wawa and beyond. They were responsible for thousands of jobs in the region through both direct and indirect employment. Most of these jobs were union jobs, good union jobs.
For the most part these companies were Canadian owned or controlled. However in the middle of the last decade the ownership of these three companies shifted into foreign hands. Given the given pro-business shift in the Canadian political landscape resulting from consecutive governments lust for economic globalization, this takeover of Northeast Ontario’s big three should come as no surprise. It was just a matter of time before the new global market place would create the conditions where these multi-national giant could swoop in and claim these companies for less than market value. But more importantly they gained control of the natural resources that went with them for perpetuity. So what we are left with is foreign ownership and control of our natural resources which essentially means that the foundation for our economic existence in our region for decades is no longer in Canadian control. We are victims of a corporate invasion of unparalleled proportion and we literally surrendered our part of the country and our resources without a shot being fired. Sadly not only did our government let it happen, they actively enabled it.

So just who are these corporate invaders? Although they come from very different origins, they are very similar in structure, approach and results. All three have diverse international holdings that include shipping, electricity production, logistics, mobile networks, mining, steel production, paper and many other ventures. Each employs between 52,000 and 62,000 people around the world. Their combined revenue is nearly $70 billion U.S. These three conglomerates, Xstrata, Essar and Vale are corporate juggernauts on the world stage that have landed in Canada and now they are playing for keeps.

The first to arrive was Xstrata in August 2005. They Xstrata purchased a 19.9% stake in Falconbridge Limited that included holdings in Sudbury and Timmins, Following a contested take-over battle with Inco Limited, Xstrata successfully acquired the remaining 80.1% of Falconbridge in August 2006. With its headquarters are in Zug in Switzerland, Xstrata Copper is currently the world’s fourth largest producer of copper. Although their approach to collective bargaining in Canada is yet to be seen, there is little doubt that they are watching the situation at Vale Inco with great interest. If Vale succeeds in achieving its desired outcome in the current round of negotiations, you can be sure that Xstrata will follow their established pattern.

Xstrata is no innocent though. They announced January 11, 2010 that they would permanently cease operation of its copper and zinc metallurgical plants at the Kidd Metallurgical Site in Timmins on May 1, 2010 putting 670 people out of work. They plan to send the work currently done in Timmins to Rouyn-Noranda, Quebec. Some reports indicate that they have not honoured the current collective agreement by ignoring seniority provisions. This closure is viewed by many in organized labour as a direct attack on the union. This company also in hot water in Australia where they want to divert a river that is a revered fishery to create a new open pit mine.
In 2007, Essar Steel acquired Algoma Steel in Canada with a staffing compliment of about 5000 employees. The Essar Group is a multinational conglomerate corporation headquartered at Mumbai, India. In the same year they purchased Algoma, they increased their presence in North America with the purchase of Minnesota Steel in the United States. In August 2007, Essar successfully negotiated their first collective agreement with United Steelworkers, for their Algoma Operation, which is said to include general improvements to salaries and benefits. However, if Vale Inco is successful in breaking Steelworkers in Sudbury, it is reasonable to believe Essar will be much more aggressive in the next round of bargaining.

Vale Inco (formerly CVRD Inco) is a wholly owned subsidiary of a Brazilian mining company. Vale S.A. formerly Companhia Vale do Rio Doce (CVRD), it is a diversified mining multinational corporation and one of the largest logistics operators in Brazil. It is the second-largest mining company in the world and according to their President and CEO Tito Martins; their ambition is to quickly become number. Of course being number one is determined by revenue and profitability. Obviously increasing profitability of current properties, like their operations in Sudbury, moves them closer to their goal of being on top. It makes sense that this is part of an overall strategy to achieve that number one status. Strangely, with the price of nickel at record levels the Sudbury operation is profitable; just not profitable enough for this corporation and its investors.

With its worldwide holdings, diverse investments and revenue streams along with a huge critical mass of assets, Vale Inco is a corporate beast the likes of which trade unions have never faced in our country. They have deep pockets, unfettered ambition and a killer instinct that is void of any social responsibility or moral compass. It is a corporation that was born in a part of the world where union activists are viewed as insurgents who are a threat to capitalism. They view workers as easily replaceable commodities that should be should be purchased for the lowest possible price. Sustainability and community are seemingly absent from their vocabulary. Viability and profitability are essential to their existence.

Sadly, the current business climate in Canada is not only inviting to predatory employers like Vale, but conditions, especially in Northern Ontario, are like the perfect storm for economic exploitation and capitalist dominance. We have a region that historically faced economic struggles that come with the boom and bust cycle of a resource based economy. The global financial crisis, with its “take no prisoners” impact, only magnifies our vulnerability. While corporate executives and CEOs enjoy unprecedented wealth regardless of what is indicated on the balance sheet, middle class workers see their personal fortune erode beneath them. This new world economy can drive down earnings so that it now feels like a race to the bottom. The socialist ideal of shared wealth, prosperity and global economic equality has not only been impeded by these neo capitalist, they are turning the tables to the point, that if not stopped, the working middle class could be headed for annihilation.

So to summarize, we have a resources based economy that is struggling and in need of investment capital to compete in the world market place. So in walks a multinational conglomerate with to rescue us with empty promises of a second chance to prosper in this new world economy by way of corporate takeovers. All this is made easier because we have had successive governments that have battered our national interest through deregulation and removal of trade barriers to the point where our sovereignty is at risk. The repeal pro labour laws like anti-scab legislation have tilted the bargaining table solidly in favour of the employer who have little or no accountability. Furthermore when this employer has seemingly unlimited financial resources from diverse international portfolios and no stake or interest in your community other than unrestricted access to profits, what you are left with is a recipe for a battle of epic proportions between a working class fighting for way of life that has taken over a century to build and multinational corporate monster whose values are driven by greed and profits regardless of the human cost.

Don't Get Caught in a Bad Hotel

Go get em sisters... Flash mob protest supporting hotel workers in San Francisco.

May 10, 2010 — A flashmob infiltrates the Westin St. Francis hotel in San Francisco and performs an adaptation of Lady Gaga's song "Bad Romance." The event was organized to draw attention to a boycott called by the workers of the hotel who are fighting to win a fair contract and affordable healthcare. Lesbian Gay Bisexual Transgender Queer activists put the song and dance together as a creative way to tell the hundreds of thousands of LGBTQ people from all over the country coming to San Francsico in June for Pride to stay out of the boycotted hotels.

To learn more about how to honor the boycott and support the workers visit:
http://www.sleepwiththerightpeople.org
http://www.hotelworkersrising.org/Hot...

ISE

The enemy is at home

The enemy is at home

A true American hero speaks about war and who the enemy really is. Follow the link and please watch the video. ISE

Bicycle Rush Hour Utrecht (Netherlands) I

Morning rush hour in the 4th largest city in the Netherlands. Streets look like this when 33% of ALL trips are made by bicycle!

This is an ordinary Wednesday morning in April 2010 at around 8.30 am. Original time was 8 minutes that were compressed into 2 minutes, so everything is 4 times faster than in reality. The sound is original.

This is one of the busiest junctions in Utrecht a city with a population of 300,000. No less than 18,000 bicycles and 2,500 buses pass here every day. And yet Google Street View missed it. Because private motorized traffic is restricted here.

These cyclists cross a one way bus lane (also used by taxis and municipal vehicles), two light rail tracks and then a one way street that can be used by private vehicles.

Behind the camera is a railway (you can hear the squeaking sounds of the trains passing) and the main railway station is very close too. A number of rental bikes from the station pass and many of the cyclists will have come by train for the first part of their commute.

For those who frown upon the total absence of bike helmets in this video, consider these findings from a US study:

"Cycling in the Netherlands is much safer than in the USA. The Netherlands has the lowest non-fatal injury rate as well as the lowest fatality rate, while the USA has the highest non-fatal injury rate as well as the highest fatality rate. Indeed, the non-fatal injury rate for the USA is about 30 times higher than for the Netherlands.

Injury rate per million km cycled: USA 37.5; NL 1.4
Fatality rate per 100 million km cycled: USA 5.8; NL 1.1"

From: Pucher, John and Buehler, Ralph (2008) 'Making Cycling Irresistible: Lessons from The Netherlands, Denmark and Germany'.

Mouseland

The classic story of Mouseland as told by the Greatest Canadian ever, Tommy Douglas. It is more relevent than ever. Please have a look...ISE

Vale-Inco strike heats up

Real News piece on the Sudbury Strike. Balanced piece and worth a look even though it was done last August.

ISE

You Say Pro Life, I Say Religious Freedom

I just read about the pro-life rally in Ottawa today in the Toronto Star. Said to be one of the biggest pro-life rallies ever in Canada. The whole abortion debate is getting tired and redundant in this country. Only the religious right cling to the notion that women should not have total control of their bodies. But before I go any further it is important for me to put some of my beliefs on the record. I was raised Catholic although no longer practicing. I believe in a women’s right to choose whether she wants to terminate a pregnancy or not. I believe in religious freedom. On second thought I “strongly” believe in religious freedom. To me this is the crux of the abortion debate.

In Canada, I like to believe we practice religious tolerance. This is critical in this day and age because our country is becoming more and more religiously diverse each passing day. Moreover, the number of people moving to a secular lifestyle is on the rise. So why is it that a minority made up of some Roman Catholics and the Christian right can dictate what our position “must be” when it comes to a women’s right to chose?

The precepts of religious freedom are that you go to your church and I will go to mine. I will not force my religious values on you and I appreciate that you do not force your religious values on me. Most importantly, I respect your right to worship a different god and please respect my right to worship mine. It’s simple; in my Canada when comes to religion there is no good and no bad and there is no right or no wrong. There are just different beliefs.

So if your faith dictates you must be pro-life, I not only support your belief but I support that abortion should not be imposed upon you. Similarly, if my faith allows the right to chose, I thank you to not impose your position on me or others like me. That is how it has to be in a socially progressive and tolerant country.

Finally, the parliament of Canada must speak for all Canadians, regardless of who they are and/or what they believe. There must be a separation of church and state if we truly believe in religious freedom as stated in our Charter of Right and Freedoms. Consequently there is only one position Canada’s parliament can take when it comes to the abortion question and that is to give every individual the right to chose.

ISE

Why Can’t Steel Get a Deal with the Stinkos’ at Vale INCO?

This is the first in a series of blogs examining some of the underlying factors contributing to the stalemate in bargaining between United Steelworkers and multi-national giant Vale Inco.

More than 3,000 Steelworkers in Greater Sudbury and Port Colborne have been on strike since July 13, 2009 in a dispute over pensions, the nickel price bonus and transfer rights. More than 200 Steelworkers in Voisey's Bay, N.L., have been on strike since August 1, 2009 over similar issues. Why has this strike gone one so long?

What is at the heart of this historic labour dispute? In my view there are a number of contributing factors why this strike is continuing with no end in the foreseeable future. For instance, we have a new breed of predatory global employer who places profits ahead of community and social responsibility. We also are seeing the failure of the provincial and federal governments to protect our natural resources and collective bargaining rights of Canadian workers. These factors along with many others are responsible for one of the most acrimonious labour disputes in the past in the past 50 year. It merits our examination.

Part 1 - Political History

How did we get to the point where a foreign company could walk into our country and bully unionized workers and hold entire communities hostage while the politicians who are supposed to protect our interest sit on their hands. This tale actually starts many decades ago, but let’s begin with the election of Ronald Reagan in 1980.

The election of Reagan as the 40th President of the United States signalled the beginning for a new era of world politics where “free trade” and “deregulation” were the political buzz words. The time was right for the neo-con right wing agenda to take hold and flourish. Oil and gas shortages, double digit interest rates and world events like the US hostage taking in Iran left the western world looking for a messiah. Unfortunately this messiah came in the form of a former Hollywood actor who embraced right wing ideology and less government.

Reagan quickly took charge and used American muscle to reshape the political landscape in the US and abroad. He bulldozed through anyone standing in his way. When striking US Air Traffic Controllers refused to heed his order to return to work early in his administration, he simply fired all 11,000 of them and busted the union. On the world stage, he would not be compromised and it was his way or no way. A world thirsty for change, was quickly enthralled with his style, strength and obsession with putting more money in the hands of the rich through tax cuts.

He soon had political allies in Britain’s Prime Minister Margaret Thatcher and Canada’s Brian Mulroney, both of whom were staunch conservatives. Thus the stage was set for the pro-business deregulation and unfettered trade which was intended to create a “business friendly environment”. In the wake of this political shift to the right; public services, social programs and public spending was cut to make way for huge corporate tax cuts which were an essential part of right’s trickle down economic scheme. The momentum generated by this era would allow this political shift to continue for the better part of two decades and in Canada it left us with the North American Free Trade Agreement (NAFTA) and the GST, a regressive consumption tax that provided the government with required revenue to implement further cuts corporate taxes.
So where was the political left while Reagan and friends were taking down this road to unregulated disaster? In Canada we had a socialist presence in the form of the New Democratic Party (NDP) and an effective labour movement so the swing to the right was slowed but not stopped. Unfortunately similar resistance was not as prevalent in the United State where industrial heartland there was being marginalized and the union activist base was quickly declining as industrial jobs in steel making and manufacturing evaporated as result of globalization.

Two events occurred at the start of the new millennium are examples of that demonstrate the polarized political struggle between the right and left wing. The first was the Protest activity surrounding the WTO Ministerial Conference November 1999, that was to be the launch of a new millennial round of trade negotiations when the World Trade Organization (WTO) convened at the Washington State Convention and Trade Center in Seattle, Washington. The negotiations were quickly overshadowed by massive and controversial street protests outside the hotels and the Washington State Convention and Trade Center, in what became the second phase of the anti-globalization movement in the United States. The scale of the demonstrations—even the lowest estimates put the crowd at over 40,000—dwarfed any previous demonstration in the United States against a world meeting of any of the organizations generally associated with economic globalization. The Battle in Seattle was one of the first significant clashes between right and left wing ideologies on the issue of globalization. It was also the first clear warning from the political left on the evils and disastrous potential of economic globalization or unfettered free trade.

A similar experience was had in Canada with the 3rd Summit of the Americas that was held in Quebec City on the weekend of April 20, 2001. This international meeting was a round of negotiations regarding a proposed Free Trade Area of the Americas. The talks are perhaps better known for the security preparations and demonstrations (known as the Quebec City protest) that surrounded them than for the progress of the negotiations. Once again the resistance from the left signalled the danger of perpetuating globalization. Unfortunately, the move to economic globalization was on slowed and not stopped. Consequently the Canadian landscape became ripe for the likes of predatory global corporations like Vale Inco.

In the thirty years since Reagan became the American President, successive US and Canadian governments continued to down the same path of removing trade barriers and deregulation that allows the ongoing erosion of safeguards intended to protect our social fabric and national interest. Additionally, the federal and provincial governments in Canada have slowly adopted pro-business and/or anti-labour policies. The most obvious example is the abolition of anti-scab legislation by Ontario’s Harris Government in the 1990s. Another is the ongoing threat to privatize our public health care system to bring us in line with other industrialized nations. All of this has left us with a playing field that is seriously tilting toward business.

To be a player in the “new world” economy, our nation signed away our ability to regulate foreign investment, protect ourselves from foreign control of our natural resources and national industrial icons like INCO. So now once a multinational corporation gains entry into Canada, we are powerless to impose our will without feeling the wrath of G20 partners and world trade organization. Because of free trade agreements, our country is now loathe to respond to international corporate bullies who set up shop in Canada. So no matter what happens in the current Steelworkers strike, don’t expect any action or help from any government currently sitting in Canada as they are willing accomplices in creating this anti-labour climate. That’s because a strong labour movement is all that stands between them and bigger profits.

Next we'll look at "The Employer"

ISE

Catch 22 Harper Conservatives

A friend and Union Brother recently introduced me to this website that is an effort to mobilize a grassroots movement that will lead to the demise of the Harper Tories in the next federal election. Have a look, this is an interesting and strategic approach to getting Harper and his gang out of Ottawa. See "Lefty Links" on the left of this page to re-direct to this page.

http://catch22campaign.ca/

Your Collective Agreement and You

Have you ever stopped to think how important your collective agreement (CA) is in your life and that of your family? Have you ever wondered if belonging to a union that negotiates your collective agreement has any real benefit to you and your loved ones? Just take a minute to stop and think about everything your collective agreement provides and how that impacts you personally. Better yet, speak with people in your workplace about how various provisions of their collective agreement make their life better.

Regardless of where you work, if you have a collective agreement, your overall economic well being is likely better that someone who does not have the benefit of collective bargaining. Here are a few examples of how people have benefited from having a collective agreement.

Meet Betty and Sandra

Betty is a clerk at a Mental Health facility. She recently had her first child and was able to take advantage of the parental leave provisions of her collective agreement. Because of her CA, she had her Employment Insurance Benefit topped up to 87% of her regular salary. She was also able to continue her health benefits while on leave for a small monthly payment. This is important to Betty because her husband Jim is a construction labourer and has no health benefits. Maintaining benefits proved to be important as her baby had some complications at birth the required expensive medication.

Betty’s friend Sandra is also a clerk except she works in a law office. When she was on parental leave she did not get any top up of her salary. Because Sandra’s employer does not provided health benefits, she didn’t even have a choice about maintaining them. Because of financial implications she had to return to work from her parental leave sooner than planned.

Meet Jim and Bob

Jim is a plumber in a large Correctional Facility. Eighteen months ago he was diagnosed with prostate cancer because he had a PSA test that was covered under his employee health insurance, which forms part of his CA. Jim had to have surgery immediately to remove his prostate. This is difficult surgery that requires months of convalescence. Fortunately, Jim had good short and long-term sick leave provision in his CA that provided sufficient wage replacement that his family could get by financially until he returned to work last month. During his time away from work, Jim did not lose any seniority, his health benefits continued and the employer continued to make pension contributions on his behalf.

Jim has a neighbour Bob who is also a plumber but is self-employed. Bob has been very successful working on his own. He often kids Jim about making more money than him and as a result his wife is a stay at home mom. Bob has worked hard at ensuring his business is success. However, around that same time Jim became ill, Bob had a mild heart attack and that prognosis was not good. Consequently he had to undergo triple bypass surgery which meant he could not work for at least a year. Because Bob was self-employed he did not have any wage replacement available to him. In order to get through a year without work, Bob had to dip into his retirement savings and his wife had to get a job. Because Bob had no supplementary health insurance he had to pay for expensive post operative medication out of his pocket which put the family under more financial stress. When he did return to work, Bob realized any retirement plans had to be postponed until he could recover his losses from his year off work.

You can see unionized workers can enjoy many advantages because of their collective agreement and their ability to bargain collectively. As a union member you can influence the outcome of bargaining through your input in demand setting and promoting solidarity with your Bargaining Team. The workplace issues that can be addressed in collective bargaining are only limited your imagination and collective will. Collective Agreements can address things like conflict resolution ( Grievance Procedure), job security, termination entitlements, seniority, protection from bullying and harassment, hours of work and scheduling, health and safety, working conditions to name a few. Leave provisions from parental to educational leave, from family leave to time-off for jury duty and of course vacation and sick leave. All of these items can be negotiated. Without a union or CA you would only be entitled to the minimum standard provided in the Employment Standards Act.

Of course the area critical importance in your collective agreement is its financial impact. Your salary, Overtime pay, income protection and benefits are also form part of your collective agreement.

So you see your collective agreement is arguably the most importance economic document in your life. It provides you clarity, predictability and security in critical areas of your life. It plays a key role in determining what kind of house you can afford or car you can buy. It also can ensure that most medical needs for you and your family are met. Your collective agreement is the economic blueprint for your life.

Your right to collective bargaining is something you should embrace and be very proud. Any right is only good if you exercise it. So what are you waiting for, get involved in collective bargaining for your next contract today!