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