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Monday, December 22, 2025

TRUMPENOMICS TOO

Iconic American Bourbon Brand is Shuttering its Trademark Distillery in 2026


Men's Journal · Photo by Adam Bouse on Unsplash

Alex Reimer
Sun, December 21, 2025 
Men's Journal 

Jim Beam is putting its trademark distillery on ice.

The iconic American bourbon brand announced it will stop producing whiskey at its facility in Clermont, Kentucky on January 1. The pause will last for the entirety of 2026.

“We are always assessing production levels to best meet consumer demand and recently met with our team to discuss our volumes for 2026," the company said in a statement, per the Lexington Herald Leader. “We’ve shared with our teams that while we will continue to distill at our (Freddie Booker Noe) craft distillery in Clermont and at our larger Booker Noe distillery in Boston, we plan to pause distillation at our main distillery on the James B. Beam campus for 2026 while we take the opportunity to invest in site enhancements."

The visitor center for those who pass through on the famed Kentucky Bourbon Trail.

Why is Jim Beam Stopping Production?


It's been a rough year for Kentucky's $9 billion whiskey industry. Tariffs and boycotts are hitting business hard: Canada hasn't bought any American-manufactured spirits since March in response to President Donald Trump's ongoing tariff regime. Overall, U.S. whiskey sales to Canada are down 60%.

As a result, the bourbon industry has halted production by more than 55 million proof-gallons, representing a 28% downshift.

Though the Jim Beam's main distillery is shuttering operations for next year, layoffs haven't been announced--at least not yet. Jim Beam employs nearly 1,500 people in Kentucky.

Other whiskey companies, such as Jack Daniel's, have laid off employees as they pause production, too.

What's the Reaction?


Whiskey enthusiasts and concerned consumers are placing blame on Trump's tariffs. Canada is a major export market for American spirits, serving as the second-largest behind the European Union.

"Trump’s tariffs hurt Kentucky. There is no doubt about it," posted Kentucky Democratic Senate candidate Amy McGrath.

Though there is an apparent link between the bourbon industry slump and tariffs, it's worth noting that Kentucky bourbon sales started to slow down in 2024. Alcohol consumption across the U.S. is on the down swing: the percentage of U.S. adults who say they consume alcohol has dropped to 54%, the lowest percentage in Gallup's 90-year history.


Why Jack Daniel's parent Brown-Forman is reporting lower sales, profit



Olivia Evans and Matthew Glowicki, Louisville Courier Journal
December 4, 2025 3 min read


Brown-Forman, the maker of iconic whiskey products such as Jack Daniel's Tennessee Whiskey and Woodford Reserve, continues to see decreased sales and profits largely attributed to the trade environment and lower used barrel sales.

The first half of fiscal 2026 which ended Oct. 31, saw Brown-Forman report a 4% decrease in net sales and a 4% decrease in gross profit, the company shared in its earnings report Dec. 4.


"We believe cyclical pressures related to ongoing macro, economic and geopolitical uncertainties continued to negatively impact consumer confidence and reduce discretionary spending in the U.S. and in many developed international markets," Brown-Forman President and CEO Lawson Whiting said Dec. 4. "On the other hand, we continue to see resilient consumers in a number of our emerging international markets, where trends are generally much stronger."

The spirits maker, which closed its Louisville cooperage in April and laid off 12% of its global staff in 2025, saw a decline in its 2025 fiscal year sales, has repeatedly spoken about the impact of tariffs and trade on its products. It noted that while its net sales have shown a decline in the first half of fiscal year 2026, it remains optimistic about growth in emerging international markets and its ability to innovate new products like its recent launch of Jack Daniel’s Tennessee Blackberry.


"We continue to navigate a spirit sector facing headwinds and still expect that the behavior of the consumer and the level of trade inventories will not change meaningfully during the 2026 fiscal year," said Leanne Cunningham, executive vice president and chief financial officer at Brown‑Forman.

The company reported its entire whiskey portfolio was neutral ― seeing no growth or loss for the earnings period. Brown-Forman also reported its ready-to-drink products saw 5% growth in the first half of FY26, tequila was down 3% and the rest of the company's portfolio fell 35% in net sales.

Whiting said that while the company experienced notable declines, it's important to note the performance "in developed international markets and the U.S. sequentially improved" when compared to the first quarter.


While Brown-Forman continues to feel drastic effects of many provinces in Canada removing all U.S.-made products from shelves in response to President Donald Trump's tariffs and Europe becoming a more challenging operating environment, the alcohol producer saw strong growth in countries like Mexico, Turkey and Brazil.

Whiting said the company has taken a 60% hit in Canada organic net sales.


"The continued unavailability of American spirits products in Canada resulted in a significant impact to our top line performance," Cunningham said. "While we are hopeful for the return of American products to Canadian store shelves, we continue to assume this headwind will persist for our full fiscal year."


In addition to Canada driving sales down, the other main headwind at play for Brown-Forman is used barrel sales.

"Used barrel sales have returned to levels that reflect the challenging and uncertain operating environment for the spirits industry," Cunningham said. "We continue to expect used barrel sales to be lower by more than half of fiscal 2025 level."

Contact business reporter Olivia Evans at oevans@courier-journal.com or on X, the platform formerly known as Twitter at @oliviamevans_. Reach growth and development reporter Matthew Glowicki at mglowicki@courier-journal.com or 502-582-4000.

This article originally appeared on Louisville Courier Journal: Jack Daniel's parent Brown-

Jack Daniel’s owner sees Canada sales plunge 62% amid boycott of US booze

A view of the atmosphere is seen during Masego headlines Jack Daniel's "Carols By The Barrels" concert event in Los Angeles at The Brig on December 10, 2024 in Venice, California. (Photo by Charley Gallay/Getty Images for Jack Daniel's) · Food Dive · Charley Gallay/Getty Images for Jack Daniel's via Getty Images


Laurel Deppen

December 10, 2025 


This story was originally published on Food Dive. To receive daily news and insights, subscribe to our free daily Food Dive newsletter.

Spirits giant Brown-Forman said the ongoing Canadian boycott of U.S. alcohol spurred by President Donald Trump's tariff policies continues to drag down earnings, with sales in the country declining 62% in the second quarter.


While Canada only makes up about 1% of Brown-Forman’s total sales, the continued absence of its products from a bulk of the country's stores is impacting its entire top line. Total net sales for the quarter fell 5% year over year to $1 billion.

The drop off also impacted the company’s ready-to-drink Jack Daniel’s portfolio, which fell 4% in the first half of its fiscal year.

As Canadian consumers protest Trump's tariffs, only two provinces continue to sell alcohol from the United States, according to the BBC. A majority have pulled stock from the shelves in a bid to promote Canada-produced goods, though some provinces have moved to sell their remaining U.S. inventory to raise funds for charity.

Growth of Brown-Forman's Diplomático and the Glendronach, which are produced outside of the U.S., wasn’t enough to offset the declines elsewhere, executives said in an earnings call last week.

"The continued unavailability of American spirits products in Canada resulted in a significant impact to our top line performance," CFO Leanne Cunningham said on an earnings call. "While we are hopeful for the return of American products to Canadian store shelves, we continue to assume this headwind will persist."

The company expects its full-year net sales to decline in a low-single digit range.

In March, Brown-Forman CEO Lawson Whiting said Canadian retailers pulling U.S. alcohol from stores was worse than a tariff.

Dan Su, equity analyst for Morningstar Research Services, said that earnings calls at several Canada-based grocery stores seem to indicate that the anti-U.S. sentiment among Canadian consumers has eased significantly, which could pave the way for Brown Forman's return in the country.

“It seems to me the friction between the two countries on the tariff subject has eased off in recent months, and hopefully the retailers [and] smaller liquor stores will put Brown-Forman products back on the shelf,” Su said in an interview. “But it’s probably going to take a couple of quarters, and within this time period, that will continue to be a headwind for the company.”

Canada is figuring out what to do with its stockpiles of US alcohol

Katherine Li,Aditi Bharade

December 12, 2025 


Canadian provinces removed American liquor from store shelves earlier this year.Jennifer Gauthier/REUTERS

Most Canadian provinces pulled US booze off their shelves in March to protest Trump's tariffs.

Now, some are selling their stockpiles to raise money for food banks and charities ahead of the holidays.

Manitoba, Nova Scotia, Prince Edward Island, and Newfoundland are four such provinces.

Canada is coming up with ways to put its stockpiled American liquor to good use.


Several provinces in the country halted imports of US booze and removed it from store shelves in March in response to President Donald Trump's tariffs.

Now, at least four provinces are planning to sell the remaining inventory and donate proceeds to food banks.

Canada's far eastern province, Prince Edward Island, told Business Insider that its government will put its stock of American booze, which it had pulled off the shelves, back in stores starting on December 11.

A representative for the province's finance department said the government anticipates profits of $600,000 Canadian dollars, or about $434,000, from the sale. The proceeds will be distributed to food banks across the island. The province says it does not intend to place any further orders for American alcohol.


The finance office of Newfoundland and Labrador told Business Insider it had made an upfront payment of $500,000 on Tuesday to 60 provincial food banks before the sales of any liquors, a move that will help more than 15,400 people. After the liquor is sold, more donations will go to the food banks for a total sum of up to $1 million.

Manitoba and Nova Scotia have similar plans.

Manitoba said it will sell its inventory through private retailers and restaurants, with the estimated $500,000 in net revenue going to food banks, holiday charities, children's organizations, and an advocacy group for First Nations.

As for Nova Scotia, the province is making a $4 million upfront payment to groups that provide food access, and the money will be recouped when the $14 million worth of liquor is eventually sold.


"We will not be ordering any more from the United States once this inventory is gone," the province's premier, Tim Houston, said in a statement. "But Nova Scotians have already paid for this product."

He added, "We don't want it to go to waste. That's why we're selling it and using the proceeds to help those in need."

In Canada, the sale of alcohol is mainly controlled by provincial governments, each of which establishes a board to oversee the matter. Only Alberta has a completely privatized alcohol retail system, while Saskatchewan has a partially privatized system.


Canada mainly imports whiskey and bourbon, alongside beer and other spirits, from the US.
Other provinces have different plans

The provinces are not taking a one-size-fits-all approach to dealing with their stockpiles of American booze. Some are still undecided about what to do, while others have already sold off their inventory earlier in the year after ceasing imports.

A spokesperson for Ontario's finance ministry told Business Insider that the province had no plans to put the booze on store shelves soon.


"US alcohol will remain off shelves and is being held in storage until further notice," said the spokesperson. "We are currently exploring options for the products."

Ontario did not disclose how much inventory it still has, but the province said the inventory it had pulled off the shelves in March was worth around C$80 million.

A government representative from the Northwest Territories and a spokesperson of the British Columbia Liquor Distribution Branch both told Business Insider that they ceased US liquor imports in March, but will continue selling the stockpiled products until they are depleted.

A Yukon government cabinet representative said Yukon has the same plan.

However, the mountainous province of Alberta continues to import and sell American booze.


"In June this year, Alberta lifted restrictions on the purchase of US alcohol from American companies, signalling a renewed commitment to open and fair trade with our largest partner," a spokesperson of Service Alberta and Red Tape Reduction told Business Insider.
American distillers are hurting

The matter of US booze has been fueling the trade tension between the two neighbors.

The animosity started when Trump imposed a 25% tariff on Canada in March and commented that Canada should become a state of the US.

Despite later walking back some of his broader tariffs and upholding a previous agreement that ensured most goods remain tariff-free, Trump's moves have drawn the ire of Canadians, who have canceled travel plans and boycotted American goods in stores.


According to the Distilled Spirits Council, US spirits exports to Canada plummeted 85% in the second quarter of 2025, falling below $10 million in export value.

"We hope both the US and Canada can address their respective concerns," said Chris Swonger, the CEO of the council. "And that our products can return to Canadian retail shelves as soon as possible."

In March, Kentucky's bourbon makers said Canada's ban on American alcohol would hurt them.

Eric Gregory, the president of the Kentucky Distillers' Association, said in March that retaliatory tariffs would have "far-reaching consequences across Kentucky, home to 95% of the world's bourbon."


Beloved beer brand and brewery shuts down, no bankruptcy




Kirk O’Neil
Updated Tue, December 16, 2025 


The craft beer industry has suffered a devastating year in 2025, as over 250 breweries in the U.S. closed down permanently in the first six months of the year.

Most craft breweries blamed rising costs, slowing taproom traffic, and fierce retail competition as the reasons for their demise, American Craft Beer reported.


The number of craft breweries operating in the U.S. declined from 9,747 in 2023 to 9,269 in June 2025, the Brewers Association reported, and the number continues to decline.
Craft breweries file for bankruptcy and liquidate


Several craft brewers have liquidated and closed in Chapter 7 this year, including St. Petersburg, Fla.-based brewery Dissent Craft Brewing, which filed for liquidation in August; Exton, Pa.-based Iron Hill Brewery LLC and San Jose, Calif.-based Strike Brewing Company, which both filed petitions in October; and Oregon-based Rogue Ales & Spirits, which filed Chapter 7 in November.

One of the most prominent craft brewery closings was Albuquerque, N.M.-based Bosque Brewing Company, which filed for Chapter 11 protection in October 2025 and closed two of its 11 New Mexico establishments in December.

Entropy Brewing Co. closes down its business after almost a year and a half of operating.Shutterstock

Entropy Brewing Company closes permanently


And now, popular Ohio beer brand and brewery Entropy Brewing Company posted on social media that it will not make it to New Year's Eve as it closes down its business permanently on Dec. 27, 2025.

The Miamisburg, Ohio, craft brewery, restaurant, and bar revealed in a Dec. 12 Facebook post that it will shut down operations on Dec. 27, but did not state a reason for closing.


"We have an important update to share: Entropy Brewing Co. will be closing on December 27, 2025. We are deeply grateful for the incredible support this community has shown us. Thank you for the memories, the laughter, and the many good times shared here," the brewery said in the Facebook post.

"Many of us have developed great friendships with many of you. Please visit and say goodbye. Cheers!" the message concluded.
Entropy Brewing opened in July 2025 in a historic building

Entropy Brewing Co. opened for business on July 3, 2024, in a historic 125-year-old downtown Miamisburg building that was built in 1900 to house Suttman's Men's and Boy's Wear, which itself shut down in 2013, according to the Dayton Daily News.

The fledgling craft brewery, which described itself as "a multi-generational brew pub for the whole family," included an indoor playground for children 2-10 years old in an adjacent building where the brew pub's kitchen is located.

The brewery featured a taproom on the main floor and a speakeasy lounge and cocktail bar in the basement. The second and third floors housed one- and two-bedroom apartments.

More closings:

Casual Mexican restaurant chain closes more locations


79-year-old national trucking company closes down, no bankruptcy


65-year-old Home Depot rival shutters business permanently

Entropy Brewery's beers on tap include Bleacher Talk blonde ale, Dark Matter oatmeal stout, 635nm red ale, Vin & Aether aged saison, Viking Project hazy IPA, Phase Change mild coffee ale, Peach Nebula session black dark lager, Chocolate Coal session dark lager, The Black Hole Hallertauer blanc forward black lager, and Pumpkin Project hazy IPA.

Entropy Brewery's beers:

Bleacher Talk blonde ale


Dark Matter oatmeal stout


635nm red ale


Vin & Aether aged saison


Viking Project hazy IPA


Phase Change mild coffee ale


Peach Nebula session black dark lager


Chocolate Coal session dark lager


The Black Hole Hallertauer blanc forward black lager


Pumpkin Project hazy IPA.

The brew pub's dining menu includes a variety of steak burgers, sandwiches, tacos, mac and cheese, salads, starters, dips, and a kids' menu.

The brewery also rented out spaces for parties and special events, including the Stuttman Room, Lower the Bar, Main Dining Area, Outdoor Patio, and the whole Entropy Building with 200 seating capacity.

Related: Bankrupt beer and pizza restaurant chain closes locations

This story was originally published by TheStreet on Dec 14, 2025, where it first appeared in the Restaurants section. A

AB InBev to shut two US breweries, sell another

https://www.shutterstock.com/image-photo/hephzibah-ga-usa-06-15-23-2318947385 Budweiser and Bud Light on sale in Hephzibah · Just Drinks


Dean Best

December 12, 2025 

Anheuser-Busch InBev is to close two breweries in the US and offload another.

The Budweiser brewer said the changes mean it can “invest even more in our remaining operations”.

AB InBev is shutting facilities in Fairfield in California and in Merrimack in New Hampshire.

Meanwhile, the world’s largest beer maker is selling a brewery in Newark in New Jersey to property business Goodman Group.



Around 475 staff are affected. A spokesperson for the Michelob Ultra owner said it would offer all the employees “a full-time role elsewhere in our US operations”.

The spokesperson said AB InBev would move “production from these three facilities to our other US facilities” and added: “These changes will enable us to invest even more in our remaining operations and in our portfolio of growing, industry-leading brands.”


In the first nine months of 2025, AB InBev’s revenue in the US declined 1.2%. Sales to retailers fell 3.1% while sales to wholesalers slid 3%. EBITDA inched up 1.1%.

In 2024, the Bud Light brewer reported a 2% fall in US revenues, with sales to retailers decreasing 5% and sales to wholesalers falling 3.9%.


The spokesperson pointed to AB InBev’s recent investment at other breweries in the US. This year, the company has announced projects including at sites in Georgia and New York.

Last week, AB InBev announced a deal to acquire a majority stake in BeatBox, the US-based hard-punch maker.

AB InBev will pay up to around $490m for an 85% shareholding in BeatBox.

Texas-based BeatBox sells its products across the US. Its portfolio spans 20 SKUs, including Blue Razzberry, Orange Blast, Mystic Grape, Lemon Squeeze and Sweet Heat Cinnamon.

The brand entered the UK in October through a distribution agreement with Red Star Brands, securing listings in 700 Morrisons stores.

"AB InBev to shut two US breweries, sell another" was originally created and published by Just Drinks, a GlobalData owned brand.


Anheuser-Busch to shutter its Merrimack facility in early 2026

Jonathan Phelps, 
The New Hampshire Union Leader, Manchester
December 11, 2025


Anheuser-Busch will shutter its brewery operations in Merrimack early next year along with facilities in California and New Jersey.

The company known for its Budweiser products confirmed the closing Thursday morning, but has not filed any paperwork under the federal WARN Act, according to the U.S. Department of Labor.


Merrimack officials were told about 125 workers at the plant will be given options to relocate or take a severance package.

The shutdown puts an end to more than 50 years of “The King of Beers” being brewed at the more than 400,000-square-foot processing facility at 221 Daniel Webster Highway. The property also includes warehouses, office buildings, and its well-known biergarten.

Merrimack Town Manager Paul Micali received a call from an Anheuser-Busch representative Thursday morning who told him about the plant closing.

“It is a surprise that they are closing so quickly,” he said. “I knew there were talks about the facility, but I didn’t think they were going to close within four months, three months.”

In addition to the Merrimack plant, the company will also close a facility in Fairfield, California, and sell another in Newark, New Jersey, to the Goodman Group. Approximately 475 full-time employees across all three plants will be impacted, according to a company spokesperson.


All full-time employees will be offered roles in other facilities within the company’s U.S. operations with relocation stipends and new location skills training. Employees who choose not to relocate will be provided with severance packages and other resources, the company said.

The company has been making changes over the past five years to “update and modernize” its U.S. manufacturing operation, including investing $2 billion in more than 100 facilities across the country.

“We will be shifting production from these three facilities to our other U.S. facilities and these changes will enable us to invest even more in our remaining operations and in our portfolio of growing, industry-leading brands,” a company spokesperson said.

Anheuser-Busch earlier this year announced it would stop the production of craft beer in Portsmouth. The production space at Pease International Tradeport opened as Redhook Brewery in 1996.


Michael Skelton, Business and Industry Association president and CEO, called the news disappointing as he said Anheuser-Busch was a great employer and community partner over the years.

“I’m sure this is part of a long-range continual assessment of the best deployment of resources,” he said. “Unfortunately, we’re not immune to those decisions despite the state, I think, offering a very competitive environment for companies like this in terms of our regulatory environment and quality of our workforce.”


Senate President Sharon Carson, R-Londonderry, called Anheuser-Busch a “cornerstone” for the state’s manufacturing sector.

“During this time, it has played a vital role in our local economy, not only through job creation and tax revenue but also through its contributions to community outreach and charitable efforts. I want to thank them for making New Hampshire their home,” she said in a statement.


Department of Business and Economic Affairs Office Interim Director James Key-Wallace said his department will reach out to Anheuser-Busch to see how the state can offer assistance to the impacted workers.

“We are here to support Granite Staters impacted by Anheuser-Busch’s closure of its facility in Merrimack,” he said.

The Merrimack plant opened in 1970 and celebrated its 50th anniversary in 2020.

Tours were also popular at the plant, with reports of up to 100,000 visitors a year in its heyday.

But much of the allure diminished when the company announced in 2018 it would relocate its Budweiser Clydesdales training facility to Missouri. Clydesdales were supposed to remain at the Clydesdale Hamlet in Merrimack when they weren’t on tour, but that did not end up being the case.


The same year, the company completed an $11 million project to increase the facility’s cross-brewing capabilities.

Some of the well-known events every year include Oktoberfest, Ribfest and concerts. The organizers of the NH PoutineFest said they’ve been receiving a lot of messages since the closure was announced.

“Very sad news to us,” the group wrote on Facebook. “The staff at AB has become part of our family in many ways. At this time we are going to focus on supporting our friends.”

Skelton said once the initial shock wears off conversations can begin on how the property will be redeveloped.

Micali, the Merrimack town manager, said the town’s wastewater system was built around the facility, which is at little less than half the system’s flow, which amounts to between $1 million or $1.5 million in sewer revenues.

Property taxes from the site typically come in around $800,000 a year.

He called the plant an institution.

“Everybody knows someone who’s worked there, or their grandfather worked there, or somebody worked there in the past,” he said.

Anheuser Busch is owned by Anheuser Busch InBev, a Belgian multinational beverage and brewing company.


Economic Stress Has Americans Shifting from High-End Booze to Cheaper Bottles

Sarina Trangle
December 14, 2025
 Investopedia


Kevin Carter / Getty ImagesDon Julio and other high-end tequila sales have softened, Diageo PLC said.


Key Takeaways

Sales of spirits that cost $100 or more have plunged, and consumers are shifting from "super premium" to "premium" tequila, liquor-company executives said.


The business leaders said people "trading down" shows that Americans still want to buy and drink alcohol.


Fewer booze buyers are reaching for the top shelf.


Americans aren't thirsting for for the high-end tequila that once flowed freely, spirits companies said, as demand for $100 spirits has dropped off. Consumers appear to be trading down—or selecting less expensive versions of their preferred beverage—said Lawson Whiting, CEO of Brown-Forman (BF.A, BF.B), on Thursday, as sales of more affordable bottles fell less.

“We are seeing some weakening, for the first time, in terms of trade down,” Whiting said on a conference call, according to a transcript made available by AlphaSense. "When you look at $100 and above or $50-to-$100 [segments], those price points have weakened considerably."

Industrywide, the number of $100-plus bottles sold has fallen 18% in the past three months, according to the market research firm NielsenIQ.

Why This News Matters to Investors

Consumers are trying to cut back on booze amid concerns about the job market and inflation. Many are likely to step back first from discretionary items, such as fancy liquor or meals out.

Diageo, which makes Johnnie Walker and Crown Royal, said sales of its "super premium" tequila brands have weakened, including Don Julio, which can cost as much as $470 for a 750-ml bottle of Ultima Reserva, as well as Casamigos, which retails for $40 to $62, according to Total Wine & More quotes for New York.

Some customers are shifting to Astral, a "premium" alternative that Total Wine sells for $32, Diageo's interim CFO Deirdre Mahlan said, explaining that the tequila category has also grown competitive as the spirit exploded in recent years.

The spirits companies offer a sign that consumers are cutting back on alcohol because of the economy, rather than in response to health concerns and changing norms, which are also reconfiguring consumption and spending in the sector.

Research shows younger Americans drink less than prior generations. Several factors may be at play: health and wellness is a bigger priority; some socializing has moved online; and disposable income is tight. Legal cannabis may also rival its appeal, and many are now buying non-alcoholic spirits and beers. But some companies believe money is at the root of the change.

"It's largely economic," Mahlan said last month, according to a transcript. "Look at the changes that we're seeing in terms of trade down both in formats and price points."

This article has been updated since it was first published to clarify the industry data from NielsenIQ.


Wednesday, September 24, 2025

TWO GOOD LOCAL HISTORY SITES FOR LEFT WING ALBERTA


Dec 20, 2022 — The Hunger March of 1932 is inextricably linked to the material and socio-economic conditions of Alberta during the Great Depression.

by Poundmaker staff member, Eugene (Devil inside) Plawiuk.13 In contrast to ... founding meeting of Canada's first national socialist party, the CCF, was held.
368 pages' 




 

Monday, May 02, 2016

THE ALBERTA NDP THE PARTY OF OIL WORKERS

THE COINCIDENTAL BIRTH OF THE NEW DEMOCRATS AND THE OIL INDUSTRY IN ALBERTA

Rachel Notley warned New Democrats that adopting the LEAP manifesto which demands the end of oil extraction from the Tar Sands as well as conventional and shale gas plays, and NO pipelines, would put the Eastern arm of the party in direct conflict with a party that is proudly Albertan and directly involved in the oil industry history in the province even more so than the long ruling party the PC’s.

It was the development of oil and energy in Alberta that created new wealth and a new industrial province after WWII. The discovery of oil not only brought the oil industry but also the oil and energy workers union, a small American union that had an arm in Alberta, the Oil Chemical and Atomic Workers OCAW. In Alberta it was beginning its organizing of workers in the field and in the new gas and chemical plants being built between Edmonton and Fort Saskatchewan.

This was the post war boom, the party in power was Social Credit, and while  there was no NDP there was an active labour political movement housed in the AFL and Edmonton Trades and Labour Council, members belonged to the Communist Party, the CCF and some still belonged to the OBU and IWW.

Edmonton had a history of electing labour council members as Mayor, Aldermen (women), school board trustees and Hospital Board members. Elmer Roper  longtime labour activist, CCF activist and candidate, owner of ABC Printing and publisher of Alberta Labour News would be elected Mayor of Edmonton after the creation of the NDP by the merger of the CCF with the newly created post war Canadian Labour Congress.

The sixties saw the growth of the labour movement in Canada and in Alberta, including the creation of an active movement of organizing public sector workers, provincially, municipally and federally. The Federal Workers Union originating in Calgary would merge with the Ontario based National Workers Union to create what we know as the Canadian Union of Public  Employees, the Civil Service Union of Alberta would become a union known as the Alberta Union of Provincial Employees.

But throughout the oil boom of the fifties and sixties the union most associated with the provincial NDP was the Oil Chemical and Atomic Energy Workers Union under the leadership of Neil Reimer and his assistant Reg Baskin

That’s right the party was brought to life in Alberta by Oil Workers in the provinces new Energy market. Its first party leader was Neil Reimer, who would meet a charismatic young politician a contemporary of Peter Lougheed and Joe Clark at the University of Alberta, Grant Notley who would go on to become party Leader and its first elected MLA.

Notley himself did not represent Edmonton but his home region, the oil rich north of Alberta, the Grand Prairie, and Peace River riding.

As it had since 1936 the Social Credit party of Alberta held power in the province as a one party state, under the permanent leadership of Premier Ernest Manning, Preston’s daddy.  The New Democratic Party of Alberta focused its energy not only on consolidating union power in the party as well as the voices of the left and progressives but in challenging that Social Credit domination of Alberta Politics.

This was also the time of the Cold War and the Anti Communist Witch Hunts, a time being anti war, anti nuclear war, pro labour, was considered suspect. Where union members who were left wing were exposed to police spying, where padlock laws in Quebec had been used to raid imprison and steal property belonging to those accused of opposing the Duplesis regime or who were suspect of being Reds.

Duplessis ‘s party in Quebec aligned with that provinces Federal Social Credit Party which was aligned with Alberta’s Party as well. In both provinces the left faced one party dictatorship which reminded many despite their democratic trappings of the forces they had been fighting against in WWII.

As in Alberta it would be the post war labour movement in Quebec under Louis Lebarge that would mobilize politically as well as economically against the Old Regime, his right hand was a young activist lawyer named Pierre Eliot Trudeau. And like Alberta they were building a provincial and national party; the Liberals.

This then is the historical basis for the differences between the left in Quebec and the rest of Canada and why it took so long to breech these two solitudes, as was done in 2012 under Jack Layton and the federal NDP.

Premier Rachel Notley, the daughter of Grant Notley, the first NDP MLA ever elected to the Legislature, the first opposition member elected against the Social Credit party of Ernest Manning  had this rich history as her prologue at this week’s national NDP Convention in Edmonton where the party adopted the LEAP manifesto which challenges the very energy economy that makes Alberta a modern industrial state.

This province created the NDP under the leadership of  Neil Reimer, an oil worker and oil union organizer.  Neil was the first leader of the Party, and Reg Baskin was his right hand in their union and the party.

Neil also created the modern Canadian Energy Workers union,  Neil and Reg first represented oil workers in the new industry in the province with the OCAW  oil chemical and atomic workers of Canada, which had one other base of expansion; Louisiana.  He and Reg made it the Canadian Energy Workers Union, which became CEP merging with the Canadian Paper workers unions in BC, and now has consolidated with CAW to create UNIFOR.

Neil’s daughter was Jan Reimer two term Mayor of Edmonton during the 1990’s and while party labels are not used in Edmonton municipal elections everyone knew that we had an NDP mayor.

Meatpackers, a union that disappeared in the eighties with amalgamation of the meat packing industry into a smaller and smaller oligopoly, was a militant base of union workers and activists including communists and socialists, that was a large base for the party, as was Plumbers and Pipefitters Local 488.

These were the post war unions that were the party’s base in Edmonton and across the province. Federally the postal workers were a strong backbone for the Federal Party, though there were two separate unions at that time, letter carriers and inside workers, the latter being more left wing and militant with OBU IWW communist, socialist and Trotskyist activist workers.

It was the discovery of tar sands oil that led to the growth of the province, the union and the NDP. It was also this discovery and its needed development during the Arab Oil Crisis of 1971 that led to the end of the Social Credit government, its movement, but not its essence. In its place came the newest members of the Alberta Legislature elected in 1967 for the first time, the Lougheed Progressive Conservatives. They would be joined by Grant Notley and the NDP in opposition in 1968, when Grant won a by-election in Spirit River.

The “Progressive” element in the Lougheed PC’s represented the post war Liberal base among the non Anglo ethnic communities in Edmonton and Calgary, such as the recent post war immigration of Ukrainians, Italians, Portuguese, Greek, European, Asian, and Displaced Peoples. The Liberals had no political existence in Alberta since they were wiped out by the United Farmers/ Labour Party coalition in 1921.

Even Lougheed’s conservatism was not the neo conservative Austrian school embraced by the republican lite Preston Manning cons of today, it was classical liberal capitalism, that progressive aspect of capitalism that sought to ameliorate through regulation what short comings capitalism itself may suffer from despite its idealism of being the ‘ideal’ system.

The history of the Alberta NDP is the history of the Oil Workers and the Oil Industry in Alberta, even more than it is for the current batch of Conservatives provincial or federal.  The NDP in Alberta grew up with the oil industry with its workers and their union. For the Alberta NDP to reject both the LEAP manifesto and those call for the end of pipelines is natural and should have been expected by those who know the party history in the province.

For those who fail to understand this historic base of the party in Alberta fail to understand the social democratic politics of the oil industry, the NDP has long supported a form of nationalization under public ownership and increased workers control through unionization.

This occurred in the case of Suncor which was the earliest of the oil sands operators, before the Syncrude conglomerate was created.  In the early seventies after the Lougheed government promoted the oil sands, Suncor began mining operations.  Neil Reimer’s new Canadian Energy and Paperworkers union, CEP, got its birth in a long and bitter historic strike at the Suncor operations.

CEP went on to organize refineries in Edmonton, Sherwood Park and Fort Saskatchewan.
It tried but failed to organize Syncrude due to its conglomerate ownership and its concerted anti union efforts over the decade of the seventies into the eighties. Today unionized Suncor has bought out Syncrude so this situation opens it up to unionization decades later.

The seventies and eighties saw massive growth in the province including growth in both private and public union membership.

This also saw the success of the NDP and the left in Edmonton. While Grant Notley was a lone NDP member in Alberta Legislature, Edmonton saw a left wing U of A Prof David Leadbeater elected alderman.  Notley was joined in the house by Ray Martin, from Edmonton.
The NDP elected Ross Harvey its first federal MP from Alberta in the eighties from the old packing plant and union district of Edmonton Beverly. This was at the height of the Arab Oil Crisis of early eighties, which the Conservatives in Calgary blamed on the NDP Liberal National Energy Plan, NEP, which included the creation of the Canadian Publicly Owned Oil and Gas Company PetroCanada.

PetroCanada was a success and saved Calgary and the Lougheed Government during this oil crisis, it was able to buy up, nationalize, American oil companies like Gulf Mobile, Texaco, Chevron,  as well as smaller Canadian and American oil companies that were going broke or bailing out of Calgary heading back to Dallas and Huston.

And CEP was there to unionize it. Today PetroCanada is no more the Liberals privatized during the Austerity crisis of the Nineties, and Paul Martins Liberal Government sold off the last of our shares prior to the 2006 election.

Ironically it is Suncor that bought them and then bought up PetroCan and absorbed it., just as it has done with its competitor Syncrude.

It would be during the late eighties and early nineties that under Ray Martin the NDP would gain a record number of seats, going from 2 to 23 and status of official opposition. But by the time of the middle of nineties and the Austerity panic of debt and deficit hysteria and the birth of the neo conservative movement that two city Mayors, Ralph Klein of Calgary and Lawrence Decore of Edmonton would battle it out for Premier of the Province, Klein for the PC’s and Decore for the Liberals. Both ran on Austerity budgets, one promised massive cuts the other brutal cuts. It was a close election the losers were the NDP who were wiped out as a third party.

In Edmonton we had a new NDP mayor to replace Decore, Neil’s daughter Jan Reimer, joined by another leftist alderman the bus driver Brian Mason. The NDP centred itself in Edmonton at this time and got elected the enormously popular  team of Pam Barrett and Raj Pannu.
The CEP was critical in supporting the NDP at this time, including having its past president Reg Basking become leader of the Party.

After the shocking early death of party leader Pam Barrett, former alderman Brian Mason ran in her riding, Highlands, which also covers the Federal riding of Beverly that Ross Harvey once represented and won her seat in the house. Raj Pannu became the first Indo Canadian leader of an NDP party in Canada.  After he stepped down Brian Mason became the leader of the party.
The party went from four seats to two to four until Brian stepped down and the party elected Grant Notley’s daughter, Rachel Notley, who had sat in the house with Brian through all those ups and downs in electoral success.

The party base is the labour movement and left across the province and no less important unions such as CEP, IBEW, Carpenters and UA488 all involved in the oil sands and the petrochemical industry in Alberta.

So why are the various wags and pundits surprised when the Alberta NDP does not LEAP off the edge of a cliff named STOP PIPELINES, STOP DIRTY OIL.

In the finest of social democratic traditions, the Alberta NDP will do no such thing nor should it be expected to. It will ameliorate the worst of the environmental damages that the fossil fuel industry has and can be expected to cause. They will create a green plan, and expand the carbon fuel tax the PC’s brought in.

 It will do what the conservatives would not do, and that is eliminating Alberta’s Socred PC dirty energy economic backbone: coal. And that is the real dirty energy in Alberta, coal fired utility plants. These plants are evenly divided between private ownership, with state support from the ruling Socreds and PC’s, TransAlta Utilities, and publicly owned municipal utilities EPCOR and ENMAX. TransAlta is the original P3 funded by taxpayers under the Socred and spun off to become a private company where government cabinet members retire to the board of.

Even Lougheed was tied to the coal industry representing his old employer Mannix Inc, as a board member of Luscar Coal, which during the nineties created a major controversy with its efforts to mine outside of Jasper National Park.

Contrary to Greenpeace and other environmentalists who claim oil sands are the dirtiest energy the real dirty energy on the Palliser Plains of Alberta and Saskatchewan is coal.

Coal is the dirtiest fossil fuel that needs to be kept in the ground. There is no such thing as clean coal!

There is however clean petrochemical fuels, that is the nature of refining, creating finer and finer grades of hydrocarbons; ethenes, benzenes, oil and gas for plastic production, diesel etc.
That is the reason for both the Joffre and Scotford massive refining projects and the plan for the heartland refining project, which would allow the province to crack and refine bitumen into secondary and tertiary hydrocarbons.

That is what the future of the energy is in Alberta, stopping the use of coal, refining hydrocarbons and shipping them south, east, and west.

Why would the NDP limit the provinces ability to ship what it processes.

As I have pointed out the pipeline west will probably go through the Peace River Athabasca highway route to Prince Rupert, which coincides with BC Site C dam development and its LNG  pipeline development, giving pipeline companies an alternative to going to Kitimat via the BC Sacred Bear Rainforest.

Energy East will be built and the NDP will promote as it did in the eighties, the idea that Alberta energy for a fair price should go east. What occurred instead was it was shipped to refineris in Ontario and Quebec at discounted prices where it was refined and sold to the US while oil was imported from the Middle East.

This was the original idea of the NEP that the NDP and Liberals promoted to Lougheed, and he agreed to! And like the NDP this was his vision for Alberta oil before he died.
While the LEAP manifesto is suitably left wing green etc, even shudder, anti capitalist ( read anti corporations) it is not something either the labour movement or NDP in Alberta will agree to do much more about than debate. Debate will be welcome, dictat not so much.

LEAP like most environmentalism today fails to take into consideration that even if workers had control of publicly owned energy companies, we would still be producing hydrocarbons, and will be even after the glorious Socialist Revolution.

The dirtiest energy causing climate change is not oil sands in Alberta or Venezuela it is coal and wood burning worldwide.  That is the challenge we face to shut down coal, and wood burning, not to accept the myth of Clean Coal, and to make sure we ameliorate environmental damage caused through hydrocarbon production.

You want to keep something in the ground its coal, and the biggest fight back in Alberta today is the utility lobbies who oppose the Alberta NDP Government ending of coal fired utilities.

In Alberta the NDP is the party of oil and oil workers. Never forget it. The old Social Credit of Preston Manning’s daddy’s day and the PC’s of Lougheed Klein were both parties of coal.


Not Your Usual Left Wing Rant

No Taxes for the working class. That should be the watchword of the Left.

Left blogger a Class Act bemoans the state of the Canadian left on his blog. He says; "
When is the left going to quit trying to be like its opponents,and begin to define itself by it's own actions and ideology?Give the people a real choice,a choice that stands for something,but above all principaled."

Exactomundo. When the Reform party was created it based itself not on the neo-conservatism of the Reaganites but on Western Canadian populism, a populism based on the Left. Recall, referendum, the attack on taxation, were all antebellum left wing causes at the begining of the 20th Century.

Socialism as Class Act calls it. It included the ideology of the producer republic, Georgism in the United States, the Cooperative Commonweal in Canada and the UK. It included syndicalism for the working class, and producer cooperatives for farmers and small producers. It was anti-monopoly and anti-rentier, pro land ownership. See 
Rothbard’s Reds Redux


Socialism at the begining of last century was not yet tainted with Bolshevism. And I use that term deliberately to distinguish it from communism. For within the anarchist and statist socialist movements were movements of communism, which went farther and further in their critique of capitalism than the anti-state socialists did.

Unfortunately the socialist dream, or vision, was lost in the coming forth of the social democratic movement and its statist ideal of the welfare state. Far from dying at the end of WWI in Canada the CCF called for social revolution, as did many of the socialists of the day. They still had only had a small taste of government, in this case the Socialist Party of Canada had been crucial to maintaince of power for the provincial Liberals in B.C, in the last days of fin de sicle 19th century.

The Socialist movement in Canada coalesced around the CCF, the Communist party and the OBU. With the destruction of the later and the success of the former in gaining political power provincially and representation federally came the end of the extra parlimentary left in Canada.

By the 1960's the CCF and the labour movement had purged the radicals and were now liberal social democratics just like their German predecesors of the century before.

The extra-parliamentary left was centred around the anti-Nuclear Bomb movement, Our Generation magazine, and what could be loosely called an anarchist left. One that was sceptical that state power could change anything.

Today the NDP and its social democratic ilk are really liberals in a hurry. And thus the plight that Class Act finds us in. We go back to the orginal debate between State Socialists and Anti-State Socialists. Is socialism a set of principles and and ideal to strive towards or is it the pragmatic logic of gaining state power.
It is of course the former since the latter has been a historic failure.

Since I of course do not believe it is the latter, I hardly consider the NDP or even the Trade Unions on the left. That is they cannot concieve of a program of workers and community control that is a radical challenge to the corporate/financial and state monopoly. They in effect are , as the left communists call them, the left hand of capitalism. They merely wish to ameliorate the worst excesses of capitalism while maintaining the status quo.

Expect no real answers from them on how to change or challenge the system.

But thank goodness the long march to Ottawa by the neo-conservative right in Canada has finally ended in a minority government. Because they too called for a revolution in politics as usual. And they too have ended up being no such thing, just business as usual.

Where the left failed during the past two decades was to see that what Reform had harnassed was a real grass roots disgruntlement of the working class towards politics as usual. Not always reactionary, it was based on feeling powerless and wanting to feel in power over our own lives.

The Left never got it. Whenever the NDP called for taxing the rich, the guys in the Alberta Gas Plants, unionized, and paid overtime saw it as an attack on their wages. It didn't matter that the NDP meant the Rich, as in the 1% of Canadians that own all the wealth, or the corporations, their message was lost on the working class. And for good reason.

We hate taxes. We love services. And we will pay for services, but we hate taxes. And why shouldn't we, over the past fifty years the federal and provincial tax base has moved from the corporations to picking the pockets of you and me.

The NDP finally realised this simple fact during the 2004 election and during the last sitting of the house. They called for more tax breaks for the working class. But because this runs counter to their state socialism, they were faint hearted in their calls, faint hearted in their attack on the Liberals and Conservatives as parties of the rich and entrenched power. The so called special interests.

The fact is that the Conservative government in Ottawa is about to launch a massive assault on the working class through taxation.

They will fund their 1% GST cut by eliminating tax breaks the Liberals brought in. They will give out a baby bonus that will be taxed. They will fail to transfer funds to day care programs clawing them back.


The Left should be calling for no taxation for anyone who earns $100,000 a year or less. Period. That is the mass of the working class in this country.

No party currently will call for this and for the elimination of user fees and the GST. For these are the little taxes that hurt, the death by a thousand cuts that so irritate each and every wage slave in Canada.

Tax the Corporations NOT the People, should be the watchword of the Left. Want Daycare and Medicare, the corporations should pay, out of pre tax profits. It is social capital that they directly benefit from in their bottom line, its what makes them competitive against the American capitalist model.

Eliminate all corporate tax loopholes. Eliminate offshore investment havens for the Rich. And in the process this will eliminate the Tax Department.

The Left should attack the failure of the Reformers, who are still out there as the recent Fireweed Forum on Democracy showed, and the parliamentary reformers,
to address the real issue of political reform in Canada.

The need for real democracy, directly elected revocable delgates to constiuent assemblies. To the right to referndum, to a renewal of Canada as constitutional confederation of the people not a con job. See my
 Abolish The Senate

On economic renewal we should be calling for the creation of peoples banks, the deregulation of banking from the hands of the State into the hands of the people as pools of capital for usage with institutional pension funds and workers investments to build small and medium sized worker/producer cooperatives.
See 
Michael Alberts Economic Participatory Democracy project; Parecon.

This deregulation would also eliminate large banks as holders of capital in the national interest. That role should be continued by the Bank of Canada, which delegated it to the national banks twenty years ago under the Mulroney Conservatives.

We don't need a state in Canada we need a confederation of peoples and communities in a federal system not of Trudeau's making or Harpers but in the Proudhonist model of self government.


And this cannot be done through electoral means, it takes a social revolution. The Reform party tried to do this from the Right and the NPI and other attempts to reform the NDP did it on the left and the result is Jack Layton and Stephen Harper. Nothing changed.

So Class Act I agree with you that the Left needs renewal. And the Left needs first to divorce itself from the existing liberal social democratic parliamentary mileu.
Then and only then will it become an authentic voice for Canadians who are frustrated and pissed off with the system as it is. We have been told to embrace change for twenty years by the neo-cons as they privatized public services. That change for change sake ideology is deeply embedded in all of capitalism corporate and managerial structures now. It gives us a window to challenge the very system of capitalism with a real Left agenda of People Power.


Also see:

Unite the Left
A Peoples Program for Alberta

Left, Right and Liberty

State-less Socialism

Social Credit And Western Canadian Radicalism

Rebel Yell

Plutocrats Rule

WRITTEN IN 2006

 
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