Business Unionism Offers No Solution To Capitalist Crisis

You know that the labour movement is no threat to Canadian Capitalism when it can agree with the bosses on a band aid to the current economic crisis.;

'Job killing' EI premiums hurt workers, employers as manufacturing sector lags

Critics say the current EI program fails jobless workers, many of who don't qualify for EI benefits because they have not worked the required number of hours, as well as employers, who worry about having to pay what Liberal MP John McCallum, an economist, calls 'job killing' EI premiums.
On the employee side of the debate, the push is for more generous benefits.

Not surprisingly, one of the few things employer and employee representatives agree is the need to refrain from increasing the 2009 EI premiums for employees or employers. The chief actuary of the EI commission has already recommended a freeze for 2009, and the commission is expected to take the advice when it announces the 2009 rates this week.
Corinne Pohlmann, vice-president of national affairs for the Canadian Federation of Independent Business, said the commission should go further and cut employer premiums. Continuing surpluses in the EI fund, estimated at $600 million for the last year, should be used to reduce the rate from the current of $2.42 per $100 of insurable earnings, she said in an interview.
The federation also wants the formula rewritten so employers and employees share the cost of the EI plan 50/50, or so that the government picks up a share of the cost. Employer premiums are currently 1.4 times higher than the $1.73 paid by employees.
The business federation and the CLC have both advocated - unsuccessfully so far - to give employers a 'premium holiday' for a period of time if they use the money to train employees.
The Conservative government's plan to move to a new system for setting EI premiums, starting in 2010, is causing jitters in some circles too. A newly-created EI financing board will set the premium rate each year "to generate just enough premium revenue during that year to cover expected payments" and to ensure a $2-billion reserve is maintained, according to government documents. Legislation establishing the new system became law last June.
Diane Finley, named last week to her former post as human resources minister, declined requests to discuss the EI system on grounds she is still getting briefed on the portfolio.
But Georgetti and McCallum said the system means that if the country's jobless rate worsens, as is expected, the board will either have to raise premiums the following year or cut benefits to meet its mandate.
"It has to be one or the other," said Georgetti. "That's the only way I have ever learned to balance the books. And neither one, in this environment, is the way to go."



Once upon a time the labour movement opposed child labour now they decry unemployment of the youth sector of the economy. These are kids working at Wal-Mart, MacDonalds etc., all of course in the non unionized sector.

Canadian Labour Congress: Public Works!
Now That the Election is Over, it's Time to Invest in Jobs That Last

Young workers, many of whom work in accommodation and food services, took a big hit in October. In total, 34,400 workers aged 15 to 24 lost their jobs. At the same time 27,000 people who earned their livelihoods in the accommodation and food services sector were out of a job last month.



And in their recently released paper on the global meltdown they sound more like economic apologists for capitalism than the voice of the working class. There is no discussion of using public and workers pension funds to finance the creation of worker controlled take overs of manufacturing in Canada. Showing that Canada's labour movement has lost the vision of building a new world within the shell of the old. Instead true to its nature as business unions the CLC calls for the state to bail out its bosses.



The Meltdown, Seen from Below
What union leaders, labour experts and anti-poverty activists say needs to be done.

The CLC has just issued a paper on its response to the current crisis titled "Global Capitalism: On the edge of the abyss." The paper says the global economy is now "almost certainly headed for a deep and prolonged recession," and notes that global markets have already fallen as far as they did in the Great Crash of 1929.
The labour group blames deregulated global finance for the crisis, pointing to what it calls "the unregulated shadow banking system of investment banks, hedge funds and private equity funds," and decrying the creation of "fiendishly complex and sometimes outright fraudulent products." The face value of these highly abstract and uncertain financial instruments, the paper notes, was recently estimated at over $50 trillion.
The CLC paper quotes Nouriel Roubini, professor of economics and international business at the Stern School of Business at New York University: "The crisis was caused by the largest leveraged asset bubble and credit bubble in the history of humanity.... a housing bubble, a mortgage bubble, an equity bubble, a bond bubble, a credit bubble, a commodity bubble, a private equity bubble, a hedge funds bubble are all now bursting at once in he biggest real sector and financial sector deleveraging since the Great Depression."
The CLC paper calls on Canada to play a role in creating a co-ordinated international response to the crisis that features re-regulation of both local and cross-border transactions and the imposition of a small transaction tax on all securities trading, including commodity futures. This Tobin Tax, named for the Nobel Prize winner who first suggested it, is designed to discourage short term speculation and to raise the government revenues that will be necessary to fund appropriate investments in social services and infrastructure repair.
Bail out tied to regulation
While many critics of the official response so far are asking why so much money is going into the banks and finance houses that created the crisis, the CLC endorses some bail-out activity as necessary to avert a systemic collapse. The bail out money must come, it cautions, tied to effective regulatory rules.
The CLC wants Canada Mortgage and Housing to re-finance distressed Canadian home mortgages at lower rates, dismissing the view that Canada is not experiencing a housing bubble as a myth. The $10 billion a year in new infrastructure investment the CLC calls for, says the paper, would create 200,000 new Canadian jobs rebuilding roads and bridges, mass transit projects, water works and the like as well as replenishing the country's diminished stock of social housing. A public letter recently signed by 80 prominent Canadian economists has echoed this call for an active and interventionist response by government to the economic crisis.
Further corporate tax cuts should be cancelled, the paper argues, in favor of direct government support for new investments in machinery and equipment, research, development and training.
Even if all these reforms are put into place, says the CLC paper, Canada may well experience serious increases in unemployment, which will expose weaknesses of the Employment Insurance program. Far fewer workers are eligible for EI as it now exists than was true in years past, and maximum rates and time allowed for coverage are both inadequate, according to the paper, which calls for broadened eligibility, higher maximum payouts and longer terms of coverage for the unemployed. The EI system currently has a surplus of over $50 billion.
Call for new pension protection
The CLC paper predicts the current financial crisis will create a severe pensions crisis, and a follow-up paper issued on Oct. 29 calls for the creation of a new pension benefit insurance scheme (financed by the proposed tax on financial transactions) to insure annual pension and RRSP benefits for individual Canadians up to $60,000 a year.
Pensions are a concern for Bill Saunders, too. Saunders, the president of the Vancouver and District Labour Council, says that Canadian workers and their pensions are more exposed to risk during market trouble because of the successful campaign over the past decades to move from defined benefit pensions, which guarantee a certain monthly amount when you retire, to defined contribution plans, promoted by market enthusiasts.
Contribution plans shovel a defined amount every month into mutual funds and other stocks, creating pension payouts that can vary widely depending upon the health of the market, as many Canadians are discovering this year as their RRSP holdings have shrunk dramatically.
"Twenty years ago," said Saunders, "60 per cent of Canadian private pension plans were defined benefit. Now that share has been cut in half. Defined contribution plans just don't deliver the goods for workers the way defined benefit plans do, and the current crisis illustrates that."

The final irony is that despite calls by the CLC to meet with Harper government it appears that labours agenda was accepted by the Premiers and the PM at their first ministers te'te' today.

Harper, premiers agree on infrastructure, pensions

Once again proving Herr Doctor Professor Marx correct:



Trades Unions work well as centers of resistance against the encroachments of capital. They fail partially from an injudicious use of their power. They fail generally from limiting themselves to a guerilla war against the effects of the existing system, instead of simultaneously trying to change it, instead of using their organized forces as a lever for the final emancipation of the working class that is to say the ultimate abolition of the wages system.Karl Marx, Value, Price and Profit, Addressed to Working Men, The First International Working Men's Association, 1865.



SEE:

Concessions Don't Work

And Then There Was One

October Surprise Was The Market Crash

No Austrians In Foxholes

Pension Rip Off



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CLC
Labour

Alberta Reds

And it ain't just our necks. Take that conservative revisionists, you know who you are. Southern Alberta was the origin of union organizing in Alberta and Western Canada at the beginning of last century laying the foundation for Western Canadian Industrial Unionism.

Alberta Labour History Institute Visits Southern Alberta Foundation of the Union Movement in Western Canada

Edmonton: A provincial labour history group, the Alberta Labour History Institute (ALHI) will be in Medicine Hat for three days this week to promote labour history as key aspect of the industrial development of the Medicine Hat area.

ALHI will be in the Medicine Hat area from Wednesday to Friday, October 10-12 to conduct Oral History interviews with labour leaders and community activists. In addition, they will participate in activities organized by the Medicine Hat Clay Industries Historical Society, including a noon luncheon for former clay industry employees at the Museum on Thursday, and a presentation to students at the Eagle Butte School in Dunmore on Friday.

The visit to South-Eastern Alberta is the first stage in a series of community visits across the province as part of a five-year project leading up to the centennial of the Alberta Federation of Labour in 2012.

Entitled ‘Project 2012’, the mission will gather stories about work and working people to ensure that labour and its long history in each area of the Province is preserved for students, academic researchers, historians and others. Videotaped interviews will be conducted with local workers, and pictures, materials, and other artifacts will be collected to add to the story.

This material will be posted on the ALHI website at www.labourhistory.ca which was constructed two years ago as part of Alberta’s Centenary. An education project with Aspen Foundation is being developed for integration into the Alberta Social Studies curriculum for Grades 1 to 12.

ALHI President Dave Werlin says these trips are dedicated to highlighting the profile of workers and their organizations throughout Alberta.

“This is why this volunteer labour history institute was started about 10 years ago by trade unionists, community activists, librarians, archivists and historians,” said Werlin, “We realized that someone had to take the initiative to preserve and publicize the story of Alberta’s working people, otherwise it would be lost forever - a critical but untold part of Alberta’s history.”

“People in Alberta may remember some of the strikes that took place in the Medicine Hat area years ago. What many don’t know, however, is that 100 years ago, this whole area was the hotbed of union organization in Western Canada. Really, this is where it all started.”

“Medicine Hat must be of particular interest to anyone engaged in labour history because it was one of the first fully industrialized centres in this Province. Manufacturers and government policy makers seized upon the natural resources and other advantages this area had to offer for industrial development, and it was no surprise that workers’ organizations quickly followed.”

It was in Lethbridge, another Southern Alberta city, that the Alberta Federation of Labour was formed, when about 25 railway workers, meatpackers, construction tradesmen, public workers, coal miners and farmers met in 1912 to form an organization through which they could work for political and social reform. This is why ALHI decided to start its community visits in this part of the province.

-30-

SEE:

Alberta Labour History Institute Web Launch

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CBC's Anti-Alberta Bias

Once again Don Newman interviews Ezra Levant on his Politics Show when it comes to Alberta Politics. And once again Ezra asserts that Albertans are 'genetically' disposed against Liberals, which is the flip side of his assertion, and those of other right wing historical revisionists in this One Party State, that Albertans are genetically disposed to vote Tory.

Levant also deliberately refuses to make any reference to the NDP in this province which happens to have four sitting MLA's , and has been a force in provincial and federal politics since the founding of the CCF in Calgary.

I am getting a little tired of the Don and Ezra show, which is an attempt to belittle Albertans as right wing red neck's when this province has a history being red, and it ain't just our necks.

I am asking fellow progressive bloggers from Alberta to email the CBC and protest about Don Newman only using Ezra has his 'voice of Alberta'. There are a wealth of other commentators available who are not so partisan and biased. And if we have to have comments from the right, then how about some fair and balanced perspective with someone from the left.

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Where's The NDP?

This opinion poll about today's Alberta By-elections, is posted on the rightwhingnut website Free Dominion. I only have to ask where is the NDP? They have four seats in the house compared to the Alliance's one. Oh yeah it's a rightwhinghut poll.

Who will win the by-elections?

Tory sweep 12% [ 2 ] Alliance sweep 12% [ 2 ] Liberal sweep 12% [ 2 ] Tory - Alliance split 12% [ 2 ] Tory - Liberal split 31% [ 5 ] Alliance - Liberal split 18% [ 3 ]

Total Votes : 16

Historical revisionists that they are, like their pal Link Byfield, they forget that this province is home to the One Big Union, the CCF and twenty years of the United Farmers of Alberta.

For them history begins with the Socreds. Forgetting that radicals of the left supported the original 1935 Social Credit movement as a natural extension of the farmer labour populist UFA. And that the party had a left and a right wing until Ernest Manning consolidated power in the party, and turfed the radicals in favour of his evangelical rural base.

The decline of the Socreds was their reliance on their rural base. A base that Ed Stelmach now has, and that is rapidly urbanizing. Challenging the sorry old Tory establishment. Rural Alberta has become the suburbs even in the staid reactionary southland's.



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Union M&A

I raised this issue last week and Barrie McKenna in todays Globe and Mail questions Mergers and Acquisitions in the labour movement. The alternative to the labour movements version of corporatism is One Big Union. Instead of organizing the unorganized, like Starbucks workers, these old industrial based business unions are organizing for their retirement.

On this May Day - also know as International Workers' Day - it's worth asking the question, why merge at all?

The venture may prove to be a lot less ambitious than advertised. The three unions said they would engage in co-ordinated campaigning on issues such as human and labour rights in Colombia, China and elsewhere, as well as common approaches to contract negotiations with multinational companies.

The barriers to more fundamental transatlantic co-operation are substantial, including different labour laws, political systems and employers.

Nor is it clear how the merger would help overcome the greatest challenge facing organized labour - dwindling membership. The vast majority of workers in all three countries aren't union members. In Canada, just a quarter of the civilian labour force belonged to a union last year, down from nearly 30 per cent at the beginning of the 1990s. The comparable numbers for the United States and Britain are 12 per cent and 28.4 per cent, respectively, and the shares continue to fall every year.

The Steelworkers have bucked the trend, but mainly by swallowing other unions, rather than internal growth. And like many unions, nearly a third of its members are retirees, whose ranks are unlikely to be replenished with new union members.

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CN Wildcat

Canadian workers did not wait for permission from their Yankee Union Bosses to go on strike. And of course it began in Montreal, since Quebec workers have a long history of labour militancy.

- Canadian National Railway Co. said on Saturday that 2,800 of its conductors and yard-service workers at its operations in Canada began a strike, a work stoppage that could affect the country's key shipments of grain, timber and other commodities.

CN, Canada's largest railway, said it was putting management personnel on trains and in switching yards to continue freight operations across Canada because of the strike by members of the United Transportation Union (UTU).

CN said the strike is restricted to Canada and its other unionized employees remain at work.

CN said it was ready to negotiate with the UTU at any time, but the company was seeking to have the strike declared illegal because CN said it had been informed that the certified bargaining agent of the UTU members employed at the rail company had not authorized the walkout.

CN says that the proper union representatives did not authorize the strike action and will file a complaint with the Canada Industrial Relations Board.

The union admits that while its international president has not provided authorization, it does not affect the legality of the strike.

Rex Beatty, a representative for the UTU said in a statement that the union was “disappointed that it could not reach a negotiated settlement.”

The union submitted an offer to CN that included 3 percent wage increases, paid every Jan. 1 between 2007 and 2009 and also sought a $1,000 bonus paid to employees March 1.

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Independent Unions

This is Class War

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Union Drive USA

This law will be the New Deal of the 21st century if it is passed.

Employee Free Choice Act Hearings Begin in Congress

But the right wing is mobilizing to oppose it.

"Under current law, an employer can already agree to collective bargaining with the union on behalf of his workers when a majority of them have signed union authorization cards. But if the employer wants to make sure that his workers weren't pressured into signing the cards, or if he wants to try to convince them that they will have more flexibility without a union or even that the union may end up destroying jobs, he can insist on an open campaign period followed by a secret ballot election.

The new bill, on the other hand, would force the employer to recognize the union solely on the basis of cards collected by union organizers, collected before the employer even has a chance to make his case to the employees".

Linda Chavez is president of Stop Union Political Abuse.

Linda Chavez is a former Bush appointed Secretary of Labor. What a friend the bosses have in Linda. And like a reformed smoker there is nothing worse than a former union porkchopper and labor fakir, that is someone who has been appointed a union bureaucrat and not elected by the members. Such was Chavez's role in the American Federation of Teachers. Now she attacks unions from her position of privilege. Once a labor fakir always a fake unionist.

If employers want to make their case to their workers they would have insured they had good wages, benefits and working conditions, a grievance procedure, profit sharing, etc. etc. But they won't until forced to.

The right wing pro boss lobby in the U.S. is ramped up attacking this new bill as anti democratic. Really. What about the Right To Work laws that the U.S. government passed that even after workers vote to join a union, those opposed don't have to they get to be free riders.

It was the right wing who brought in the Taft-Hartley Act which limited workers democratic rights and favored the bosses. Since then so called democratic votes have been rigged in favour of the boss. This is the act that Chavez and her ilk defend and claim is the very essence of American free choice and democracy.

That's not choice that's union busting.

Currently, workers do not have “free choice” when going through the NLRB petition and election process, Sweeney said. Instead, he said, the petition “triggers a bitter, divisive and often lengthy anti-union campaign designed to chill or destroy union support.”

He continued, “The NLRB process may be called an ‘election,’ but it is nothing like any democratic election held in any other part of our society.”

And the argument Chavez and her ilk make that workers are not joining unions because they have no interest in doing so, of course denies the reality that the bosses are anti-union period. They will use any means possible to stop unionization of their companies. And the laws in the U.S. favour the boss not the workers. Thus the so called democratic vote of all workers is rigged in favour of the boss not the unions. It allows the bosses time to organize an anti-union drive.

The idea behind EFCA is simple. Most any American can join a group -- a church group, the PTA at their child's school, or the National Rifle Association -- by signing a card and paying dues. With EFCA, if a majority at a workplace wants to build a union, they sign cards and the employer recognizes their wishes. Negotiations for a labor contract begin soon after.

Hey don't forget the NRA.

And let's look at how the bosses convince workers NOT to vote union.

The University of Illinois at Chicago's Center for Urban Economic Development released a study in December 2005 that found outrageous instances of employer resistance when workers decide to form a union: 30 percent of employers fire pro-union workers; 49 percent of employers threaten to close a worksite when workers try to unionize; 82 percent of employers hire union- busting consultants to fight organizing drives; and 91 percent of employers force employees to attend anti-union meetings one-on-one with supervisors.

But right now tens of millions of workers can't join unions even when they want to. The Bush administration, which is anti-union to its dying breath, controls federal agencies like the National Labor Relations Board, which oversees labor disputes between workers and their bosses.

This means that Bush-appointees don't settle disputes fairly, but automatically favor companies and typically refuse to protect workers' rights.

But even when Bush appointees aren't tipping the scale to hurt workers, the system of arbitration and labor relations always favors the companies. Even when a majority of workers at a shop or business sign union membership saying they want their union to represent them in collective bargaining, companies have the power to refer the dispute to an NLRB election. This referral gives them something like 6 weeks to change the workers' minds.

And they really go to town on the workers. Threats and harassment are all too common. Bosses will even stage mandatory meetings of workers where they feed the workers a lot of anti-union propaganda like claims that unions will either strike or force the shop to close.

Surveys indicate that more than half of all bosses threaten – illegally – to shut down the workplace and move out of the area or country if the workers decide to join a union. As many as 25 percent of workers who are trying to start a union at their workplace are either fired or threatened with being fired – illegally.

In Canada several provinces have this labour legislation in place, including binding mediation on a first contract. The result has been less first contract strikes and union busting.

In Alberta, the only 'Republican' lite province in Canada, we do not have this legislation we are far closer to the American style labour laws. The result has been long drawn out strikes not only for union recognition but for a first contract. If this law passes in the U.S. it will leave Alberta one of last bastions of right wing anti-labour laws in North America.



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IWW


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American Union Bosses

Here is an perfect example of why we need autonomous democratic Canadian unions.

Conductors at Canadian National Railway Co., the country's largest railroad, won't strike immediately after a midnight deadline even if labor talks today don't produce an agreement, a union official said. The United Transportation Union chapter, which represents Canadian National's 2,800 conductors and yard workers, needs to apply for strike authority from its Cleveland-based headquarters, Frank Wilner, a union spokesman, said in an interview today.

It's not the workers who decide to strike but the 'union bosses' ,as the Sun newspapers call 'em , in the U.S. This is the real meaning of International Unions operating in Canada, they are American business unions run by union bosses rather than by the members.

CN workers are represented by three different unions, which just goes to show that they need One Big Union of all the workers, run by the workers.

And here is another reason for Federal Anti-Scab legislation.

The company has said it will continue its freight operations across Canada during a strike, with management personnel performing the UTU-represented conductor and yard-service jobs.

This is just another CN disaster in the making, refusing to negotiate while raking in record profits and subjecting its workers to speed ups and accidents.

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Independent Unions

This is Class War

Unions




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