Banks Profit From Job Cuts

From yesterdays Globe and Mail is this update on the BMO job cuts. Just doing what the other fellas do...And as usual the job cuts are the direct result of the falling rate of profit. The greedy want more and more....

Taking actions similar to those of new CEOs when they arrived at CIBC, Toronto-Dominion Bank and Royal Bank of Canada, BMO announced it will chop 3 per cent of its 35,000-strong work force through cuts "across all support functions."

BMO's stock market performance has lagged rivals in the past year, as revenue stalled and costs rose. In contrast, CIBC stock soared in part because of newly-named CEO Gerry McCaughey's took layers of management out of the organization, trimming 950 jobs and cutting expenses by more than $250-million a year.

RBC, another stock market leader, took a $192-million charge in 2004 when CEO Gordon Nixon reworked the way the bank was run and shed 1,600 head office jobs.

Analysts also said the cuts show that in the future, the Canadian banks face increasing challenges as they try to sustain double-digit profit growth. BMO's earnings grew 11-per-cent last year, to a record $2.7-billion.

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Lumber Consolidation

Keta K has an interesting article on the consolidation of Abitibi and Bowater, two competitors in the lumber industry in Canada.

Once again confimring what Herr Dr. Marx had to say about the nature of centralization of competing capitals.

That production rests on the supreme rule of capital. The centralization of capital is essential to the existence of capital as an independent power. The destructive influence of that centralization upon the markets of the world does but reveal, in the most gigantic dimensions, the inherent organic laws of political economy now at work in every civilized town. Marx

And the merger of Abitibi and Bowater is only the begining of consolidation in the lumber industry in order to compete globally. Having been hewers of wood for America, the lumber industry in Canada failed to develop secondary and tertiary industries and markets that could meet global demand. It was easier to just sit back and sell to the Americans.

Watch for Canfor to be the next tree to fall in the M&A forest.

Newsprint maker Abitibi-Consolidated's merger with Bowater, announced Monday, may seem like the union of two dying elephants in a dying industry. A less cynical view would be that it continues a healthy trend. Domtar's big cross-border deal with Weyerhaeuser, set to close this month or next, will double the Montreal firm's sales. In B.C., West Fraser Timber forked out $325-million (U.S.), one-quarter of its market capitalization at the time, for 13 mills in the southern United States. There's more deal making to come because all of these companies are still too small, and for investors, one question lingers: Where's Canfor?

So why isn't Canfor larger already? For that matter, why doesn't any domestic forest company rank in the top 20 on PwC's global ranking? The Finns are there, as are the Japanese, the Aussies and the Singaporeans. Sweden's Svenska Cellulosa has a market cap of about $15-billion (Canadian) -- that's more than Canada's largest nine forestry companies put together.



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Afghanistan Government Approves Of War Crimes

Canadian troops fighting and dying for a corrupt regime in Afghanistan, which even now continues to oppress women and girls, just as their Taliban counterparts do. Kettle, pot, black.

Afghanistan: Draft Law Grants Immunity to Warlords If approved by the Meshrano Jirga, or Afghan Senate, the bill would exempt the warlords from any kind of reprimand for their previous acts, like violations of human rights and other war crimes.

Outspoken female MP, Malalai Joya, was among the handful of Members of the Afghan Wolesi Jirga or Lower House, who voiced concern over the passage of a controversial bill supporting immunity for former warlords, mujahideen commanders and communist-era leaders. The 249-member Lower House introduced the bill on Wednesday in the wake of rising criticism from human rights groups, such as Human Rights Watch (HRW), demanding punishment for those complicit in war crimes after the expulsion of Soviet forces from this landlocked country, beginning in 1988. The bill, introduced and forcefully supported by pro-jihadi MPs, asks the Afghan government not to accept any internal or foreign pressure for trials of those involved in the civil strife. If approved by the Meshrano Jirga, or Afghan Senate, the bill would exempt the warlords, most of whom are now part of the Afghan government or sitting in either House of Parliament, from any kind of reprimand for their previous acts, like violations of human rights and other war crimes. Malalai Joya, the outspoken female MP from Afghanistan's western Farah province, however, ruffled the House as she launched into a tirade against the former warlords and communist-era leaders. The 28-year-old Joya was the first to speak out against these same warlords during the Constitutional Loya Jirga held in London in late 2003 as a constituent assembly for a future government in this insurgency-wracked country. Joya said the proposed law would excuse the warlords of the crimes they had committed, which, she said, would be an injustice against the Afghan people, who are the ultimate sufferers and victims of the previous conflict and the existing insurgency and unrest. She failed to be recognized, however, by House Speaker Yunus Qanuni, who himself is one of those appearing in the "war crimes" list of the HRW. Along with a few others, she staged a walk-out from the male-dominated Lower House.

See:

Schools In Afghanistan

Sir Robert Bond Idiot

Afghan Woman Speaks Out

The War For Women's Rights

Democracy In Afghanistan

Where Are The Women?

Afghanistan

Women





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Nail In The Coffin

This is the final nail in the coffin of so called 'socialism' in China. Which of course was not socialism but state capitalism. A form of capitalism that allows the state to act as the capitalist in an underdeveloped society. Now China will be free to have lots of capitalists, and capital, and to further challenge American Hegemony politically, militarily and economically.

China to Pass Landmark Property Law

China's parliament is set to discuss a landmark property law when it meets in March. Beijing is thus one step closer to approving the newest draft version of the legislation, which has been reworked seven times because of its apparent capitalistic penchant which conflicts with China's socialist orientation.

The law to protect private property has been a political hot potato in China where state ownership still dominates key parts of the economy.
Zhang Weiying, dean of Guanghua School of Management at Peking University, said he believes the bill would pass the parliament.

"The parliament will pass the law. That will be a very important signal," he said in a recent interview.

Zhang said passing the bill will "give more confidence" to China's rising entrepreneurs, who are "crucial" for China's economic development.

"When people have security, they will know what they will get. They will be more motivated to work, make more money and invest," he said.

Zhang said a well-adopted property law can be a tool for a value creation and wealth redistribution.

See

Outsourcing IT

Business As Usual

Sweatshop Secrets of Success

Japanese State Capitalism

New Asian Dragon

China Needs Free Unions

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Blogger Screws Up

Blogger is screwed this morning. You cannot read anyones articles only their front pages. So until this is fixed sorry all you will get to read is whats on this front page. #@@!$#%!!!

Hobbit Controversy

The scientific controversy around Our Lady of Flores, (Lady of Flowers), aka the hobbit, continues...

The hobbit is definitely a new species of human, related to but separate from Homo sapiens, concludes a study by a Florida State University team published yesterday in the Proceedings of the National Academy of Sciences. Neuro-paleontologist Dean Falk, the head researcher, says she is "absolutely convinced" the brain of LB1, as the hobbit is officially known, is not abnormal.

The discovery of Homo floresiensis makes it much more likely that stories of other mythical, human-like creatures are founded on grains of truth.

Homo floresiensis (Liang Bua Cave, Indonesia) and a modern human skull

Peter Brown

File under cryptozoology; Dwarves, fairies, picts, brownies, gnomes, little people.

For more cryptozoology news check out this blog; Cryptomundo.




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Pagans Party

The discovery of an ancient village at Stonehenge proves what neo-pagans have known all along, we know how to party!

After 4,600 years, we still gather for festivals.

The discovery reconfigures the geometry of Stonehenge, indicating that it is not an isolated monument but part of a larger religious complex that may have encompassed the area. It also casts the people who built the monument in an unexpected light, indicating that they were not only the somber worshipers of Stonehenge but also a raucous, hard-partying group who gathered for regular festivals.

An earlier discovery found that the village at Stonehenge may have been a gathering place of pagans from across Europe.

This is demonstrated by the 'Amesbury Archer', recently found in a 4,000-year-old grave, one of Europe's richest, near Stonehenge.

He was surrounded by about 100 items, including golden hair ornaments - some of the earliest gold objects found in Britain.

But his teeth provided the real surprise. Tests on their enamel, formed in early childhood and which contains telltale chemical signatures from local soil and rocks, showed the archer came from the Alps while the ornaments found in his grave were traced to Spain and France.

This discovery suggests that metalworkers from the Continent had already begun to trade and work in tin, copper and other metals in Britain 4,000 years ago and may have played key roles in building Stonehenge. The monument appears to have been the centre of major activity by travellers roaming across Britain, Ireland and the Continent.

See

The Monument Builders

Here Comes The Sun

Pyramid in Ukraine

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Bio Fuels = Eco Disaster

The production of biofuels, long a cornerstone of the quest for greener energy, may sometimes create more harmful emissions than fossil fuels, scientific studies are finding.

Says the NYTimes in an article on Palm Oil. Once a Dream Fuel, Palm Oil May Be an Eco-Nightmare

As I have blogged here, Palm Oil production is creating an eco disaster in Indonesia and Malaysia with wildfires and threats to the endangered Organutan population.

And with both the Bush and Harper regimes promoting biofuels in grains and corn the result is increasing prices for these commodities which adversely affect other farm commodities like pork.

The Chair of Manitoba Pork Council says swine producers on the two sides of the Canada U.S. border share a common concern over rapidly rising feed prices resulting from expanded ethanol production.

And this is why the Harpocrites want to open the market up to the big Agribusiness giants like ADM and Cargill who also produce soya, palm oil, etc. But to do that they must eliminate the Wheat Board.

Biofuels are not ecologically sound alternatives to petroleum, they are just another capitalist band-aid, like Kyoto with its carbon exchange marketing.

Capitalism can only offer 'profit based' ways of adjusting to the current ecological and environmental crisis we face. That is because this crisis is about capitalism, which is not sustainable.

That is the real problem of Green Capitalism and all the so called Green alternatives, they are not alternatives at all, merely attempts to ameliorate the worst excesses of capitalism.

Without the development of democratic self managed (worker community control) socialism, capitalism Green or otherwise will continue to lead to planetary entropy.


See

GMO News Roundup

Lost and Found

Boreno is Burning

Bio-Fuels


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SDA a year late

Kate at SDA discovers Nazanin Afshin-Jam campaign to free an Iranian girl from a death sentence, a year late and a dollar shy. Canada's Most Relevant Womens Rights Activist

I reported on this last June when the MSM missed the press confernce Nazanin held on Parliament Hill with women MP's from all parties raising the issue of her namesake in Iran being sentenced to death for defending herself and her cousin from rapists.

And shock of shocks Kate also says something nice about Belinda Stronach.

Of course thats a cheeky headline, denying that there are other relevant womens rights activists in Canada but what do you expect from a rightwhingnutbar. Most of the Blogging Tories have ignored this important campaign.

And while she praises Nazanin Afshin-Jam and Belinda I wonder how much Kate donated for Nazanin Fateh's release. Since this is the first time she even bothered to blog about this important Canadian initiated campaign. Put money where mouth is.

Islamic Court Frees Iranian Teen From Death Sentence
CNW Telbec (Communiqués de presse), Canada - 5 hours ago
31 /CNW/ -- After two grueling years in prison, Iranian teen Nazanin Fatehi was released today and spared from her original death sentence following an ...
Former Miss Canada helps free jailed Iranian teen CBC British Columbia
Canadian-led campaign wins Iran teen's freedom Toronto Star
Islamic Court in Iran Spares Teenage Girl From Death Penalty

What is important to remember about this campaign is not just that it was about sexism of Sharia law in Iran but also about racism in Iran. Nazanin Fatehi is Kurdish.


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BMO More ATM's Less People

The Bank of Montreal (BMO) is laying off 1000 workers while making record profits.

At Bank of Montreal, the company earned a profit of nearly $2.67 billion for the fiscal year ended last Oct. 31, compared with $2.4 billion in 2005.

The reason given for these cuts; said with complete ablomp and full of the heartfelt concern;

"It's not staff who really deal with customers face to face," said Ralph Marranca.


Right you don't have staff who deal with customers, you cut them years ago and replaced them with ATM's.

ATM's are the Daleks of the Banking business.

You are forced to use them, contrary to certain bloggers assertions otherwise, because the banks have replaced staff with them.

And BMO has replaced branch expansion with online banking. Which the staff being cut are the IT backbone of.

A spokesman for the bank said the employees affected will include support staff including back office, administrative and technical support workers.

And the guy making the cuts is the outgoing President of the BMO; Tony Gomper who earned this year a cool $9,981,608

Salary: $1,000,000 Bonus: $1,700,000 Subtotal: $2,700,000 -10% chg Other: $560,454 Share Units: $2,700,000 Option Gains: $4,021,164 TOTAL: $9,981,608 New option grant: 158,200 ($2,700,000)

And who once said this about why you don't layoff staff;

Investment in people, like investment in education, is the single best investment that a Canadian company can make. I think it is very short-sighted to go into massive lay-offs as a strategy, because you’d be throwing away a stockpile of goodwill and future value for the shareholders. I believe that massive lay-offs of that sort point to a failure of management to anticipate the kind of economic environment in which we are going to be operating.

Repeat that out loud, Tony. You and your management are a failure. But you are laughing all the way out of the bank while leaving your staff with the crying towel.


A tip o' the blog to Far and Wide

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