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April 10, 2012 - No. 31

All Out for April 21 Day of Action!

No to Cuts! Increase Funding for Social Programs!



Click to enlarge poster.

Saturday, April 21 -- 3:00-5:00 pm
Queen's Park, Toronto
For further information visit the OFL website
See also the page for the Day of Action on Facebook

All Out For April 21 Day of Action!
No to Cuts! Increase Funding for Social Programs! - Janice Murray

Discussion of Ontario Budget 2012
Hamilton Steelworkers Say No! to the Austerity Budget! - Local 1005 USW
A Renegade Budget - Dan Cerri

For an Economy Based on Production Not Parasitism
This Week in the Legislature
Financial Services Industry Is Part of the Problem, Not a Solution - Jim Nugent
Moody's and the Other Credit Rating Scammers - Steve Rutchinski
A New Direction for the Economy, Not a Casino Economy! - David Greig

Invest in Education
Teachers Oppose Government Disinformation About Their Sick Days - Laura Chesnik
Brock Education Workers Win Job Security Protection and a First Contract - Christine Nugent

First Nations and Colonial Injustice
Attawapiskat First Nation Welcomes Departure of Indian Agent - Philip Fernandez


All Out for April 21 Day of Action!

No to Cuts! Increase Funding for Social Programs!

The Ontario Federation of Labour has called for a province-wide Day of Action against the cuts to public services and social programs at Queen's Park April 21. Ontario Political Forum calls on everyone to go all out to make this Day of Action a resounding rejection of the Ontario government's austerity budget. Far from cutting social programs and the jobs of the workers who provide them, funding to these programs must be increased. We affirm as the working people of Ontario that this is our economy and we will have a say in the direction it is to take.

Let us mobilize our collectives, get on the buses and take our demands to Queen's Park. Let us carry the discussion with our peers as to what direction we want for the economy. Let us argue out the alternatives. Workers in every sector know very well what is required to develop their own sectors in a way which will benefit the society. Teachers, health care workers and others in the public sector know what they require to deliver these services in a way that benefits everyone. We do not agree to have this discussion of what is needed by the society cut short by a government which acts in the interests of the monopolies and declares that there is no alternative but to implement an austerity budget and lower the standard of living and conditions of life of the overwhelming majority.

The situation faced by the working people in this province, and in particular the most impoverished sections of the working class, was unacceptable before this budget was tabled and this budget will make things worse. Not only that but workers have learned from their own bitter experience that when the monopolies and their governments manage to impose concessions, it only gives rise to the demand for more concessions. Once they impose this budget, there will be more "austerity budgets" to come, with further dire consequences for the people. Together we can be effective in stemming the reactionary tide and working out the kinds of changes and reforms that favour the interests of the people and society. For a government that stops paying the rich and increases investments in social programs!

All Out to Queen's Park on April 21 Against the Cuts!
Whose Economy? Our Economy!
Public Right Yes! Monopoly Right No!
Stop Paying the Rich! Increase Funding for Social Programs!

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Discussion of Ontario Budget 2012

Hamilton Steelworkers Say No! to the Austerity Budget!

With the release of the Ontario budget on March 27, 2012, it is important to keep a few things in mind: we did not cause the deficit, and austerity measures will make things worse. Why is it that society is being forced to pay for a crisis it did not cause and for deficits run up, not in the public interest, but in the interest of a rich and powerful minority? Neither the federal nor provincial levels of government have a mandate from the people to impose an austerity agenda that will wreck our social infrastructure even further. These budgets are illegitimate.

Besides this, Local 1005 condemns the threats made by Minister Dwight Duncan when he introduced his budget. Referring to contract negotiations in the health and education sectors, he said, "[I]f no agreement can be struck to protect Ontario's progress in education and health care, we are prepared to propose necessary administrative and legislative measures to protect the public from service disruptions."

Duncan is taking a page out of the manual of the Harper government which declared illegal the struggles of first the postal workers and then the Air Canada workers in the name of national security. As time goes by, it is clear that both the Harper and McGuinty governments would like to see all workers disorganized and all workers' struggles in defence of their rights and the rights of all made illegal.

Local 1005 is very concerned that there is no opposition to the austerity budget in the Legislature despite the fact that it contains serious attacks against the public interest. This underscores the need for the workers to be directly political themselves which means they must speak out against the nation-wrecking going on. They must lead by arguing out the need to set a new direction for the economy which upholds public right, not monopoly right.

Local 1005 not only demands the restitution of the Canadian steel and other industries, but will do everything it can to defend Ontario teachers and all those who deliver health care and require health care services on par with their needs. We call on all those who administer and deliver education and social services to tell us what it takes and what they require. As one doctor recently put it, paying staff to clean a hospital properly will go a lot further to eliminating C. difficile, than pouring a ton of money into the coffers of the pharmaceutical industry under the hoax that this will find a cure.

Say No! to this austerity budget! Oppose the McGuinty government's attacks on the rights of the workers. This is how we will find a solution to the crisis which favours the working people, not the filthy rich.

(Information Update #13, April 5, 2012)

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A Renegade Budget

The Oxford English Dictionary defines "renegade" as a person who deserts and betrays an organization, country or set of principles. It goes on to describe the origins of the word from the Spanish renegado as re- (expressing intensive force) + Latin negare "deny." Although usually reserved to describe the actions of an individual, the word renegade can be used to describe the Ontario Budget delivered on March 27 because it betrays the government's duty to the workers and people of Ontario to establish an economy that defends public right. The budget indeed denies people's rights in a very intensive and forceful way.

The government's budget demands concessions from teachers and other public sector workers that Finance Minister Dwight Duncan said would be achieved even if it required passing legislation. It will also lead to net losses in social programs like education and health care that people expect their governments to protect. It goes as far as attacking the most vulnerable in society by freezing Ontario Works and Ontario Disability Support Program benefit rates. The budget has nothing to do with building the economy so that it serves the majority of people who work and live in the province.

The budget serves only the narrow interests of the monopolies and financial oligarchy. The monopolies have already benefitted from government spending on bailouts and other pay-the-rich schemes and now the onus for paying back these debts will fall on the backs of the workers and people of Ontario through wage freezes, increased taxation, user fees and cuts to social programs. Meanwhile, the financial oligarchy will make billions on their interest loans to pay down the debt. The Canadian Bankers Association (CBA) could not hold back their contentment with a budget that, according to them, "acknowledges the key role of the banking sector in the long term economic growth of the province." Instead of dealing with the problems of the economy in a human-centred way, the budget once again politicizes private interests.

Workers and people in Ontario are seeking new ways to establish a plan to organize their lives. They are finding that the current arrangements and mechanisms are not working and are not even in their interests. Those who try to organize for something new are sometimes deemed "renegades." But it is becoming clear that it is the current economic and political systems that are renegade, including government budgets that only serve the narrow interests of the rich.

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For an Economy Based on Production Not Parasitism

This Week in the Legislature

In the Legislature this past week, debate continued on the budget delivered by the Liberal government on March 27. Similar to last week, the government defended the budget based on its support by the financial oligarchy.

Here's what Mary Webb, the senior economist at Scotiabank, said: "The challenge for this government in this budget was to provide a credible repair plan, and so it has. It has provided a broad-based plan -- detailed, strategic -- that they hope will keep them on the deficit reduction track even with more moderate growth."

Janet Ecker is currently President of the Toronto Financial Services Alliance (TFSA), a public-private partnership between the City of Toronto and the financial sector and former cabinet minister in the Harris and Eves governments. Ecker said of the budget on behalf of the TFSA that "[T]he government is making ... tough [and] necessary choices." She added that:

"We strongly support their efforts to eliminate the deficit. It is an important step for Ontario's future economic growth and will help support continued growth of financial service jobs in the province. We understand the government's fiscal and political challenges in achieving a balanced budget and that it requires a concerted effort by all sectors. And while we respect their choices, we are disappointed the planned corporate and education tax reductions are being delayed. The TFSA supports the government's efforts at further pension reform in the public sector, noting that Ontario can offer the expertise of some of the strongest pension funds in the world."

The Dominion Bond Rating Service (DBRS) credit rating agency said, "Overall, DBRS views the continuation of the fiscal recovery plan and the increasing emphasis on cost containment as an encouraging step in the right direction." However, the DBRS, along with other rating agencies like Moody's, threatened to downgrade Ontario's credit rating again if it did not take the steps deemed necessary to pay down the debt. Such rating agencies urged the government to pass a public sector wage freeze and implement spending caps. This anti-social agenda was taken up with vigour by the Progressive Conservatives this past week in the Legislature. Thus, the credit rating agencies could influence the interest rate that Ontario pays to borrow funds in a very self-serving way.

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Financial Services Industry Is Part of the Problem,
Not a Solution

In early April, the Royal Canadian Bank (RBC) was charged by U.S. securities regulators with manipulation of financial derivative markets through hundreds of millions of dollars in illegal trading in stock options. According to the U.S. Commodity Futures Trading Commission (CFTC), RBC engaged in a " trading scheme of massive proportions ... designed and orchestrated as part of RBC's strategy to realize certain Canadian tax benefits..."[1]

RBC, with headquarters in Toronto, is Canada's largest bank and by some counts is Canada's largest corporation. Globally it is one of the 100 largest publicly traded companies with 72,000 employees, a net revenue of over $5 billion a year and total assets of $726 billion. RBC is an aggressive player in the international financial oligarchy and has frequently faced charges similar to the current accusations by the CFTC, including charges over the 2008 financial crisis.

While one of its member banks was being charged by U.S. regulators, the Canadian Bankers Association (CBA) was endorsing the McGuinty government's 2012 budget for recognizing that the banking and financial services industry plays "a key role in the long-term economic growth of the province." For the working class and people of Ontario, where 45 per cent of Canada's banking and financial services are based, this raises the question of whose interests are being served by the big role of financial services in the Ontario economy. What kind of security for people's livelihoods can be ensured by an economic strategy of allowing a section of the financial oligarchy to use Ontario as a base in the global scramble among international financiers for swindles and big scores?

Throughout the last 20 years, through boom and bust, the number of people employed in the financial services sector has been steadily growing. This is also true of the closely related sectors of professional services (accountants and lawyers) and business services (e.g., call centres and credit bureaus). These sectors have increased from 794,900 employees in 1991 to 1,347,000 in 2011, an increase from 15.8 per cent of the workforce to 20 per cent.

During the same period, governments have allowed the number of jobs in the goods producing sector to stagnate and decline. From 1991-2011, there has been an net job growth of only 1,700 jobs in the entire sector made up of agriculture, forestry, mining, utilities, construction and manufacturing. During this period, the employed workforce grew by 1,714,000. The only goods producing sub-sector showing growth over this period was construction with 155,000 more construction workers employed in 2011 than in 1991. If the number of temporary construction jobs is set aside, there is a net loss of 153,000 goods producing jobs in Ontario during this 20-year period, led by a net decline of 109,000 manufacturing jobs.

In the last ten years, this trend has been accelerating with a net job loss of 271,000 jobs in goods production (a 293,000 net loss if construction is excluded), including the loss of 305,000 manufacturing jobs. This long-term trend of loss of goods producing jobs was ratcheted down even further by the 2008-09 recession. While there has been important expansion in mining and utilities recently, these sub-sectors together make up only one per cent of the goods producing sector and this hasn't had significant impact on the net loss of goods-producing jobs in Ontario.

The same trend can be seen in the growth of the portion of the GDP controlled by the financial services sector. In the 1991-2011 period, the relative positions of goods production GDP and financial services GDP have been reversed. Goods production's share of GDP has gone down from 31 per cent in 1991 to 25 per cent in 2011, while financial services and related sectors went up from 27 per cent to 32 per cent.

Bankrupt politicians have enabled ever greater amounts of the productive capacity of the working class and people to be put at the service of parasitic financial speculators, at the expense of the even development of the economy to meet the needs of the people for livelihoods and for goods and services. This trend has continued regardless of which bankrupt political party was in power, without the working class and people of Ontario ever approving this or even being consulted.

Note

1. From papers filed with U.S. District Court for the Southern District of New York by the Commodity Futures Trading Commission.

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Moody's and the Other Credit Rating Scammers

Moody's and the other major bond rating agencies that made possible the swindles of the century such as the Enron fraud and the Wall Street sub-prime mortgage collapse that triggered the "worst financial crisis since the great depression"[1] are at it again -- only this time it is the workers and people of Ontario who are the target of their scams.

Following the release of the 2012 Ontario Budget, Reuters proclaimed Moody's, Standard and Poor's and other bond rating agencies to be the arbiters of Ontario's creditworthiness. The litmus test would be whether the McGuinty Liberals could carry through with imposing the austerity measures upon society.

Moody's already declared in December that the outlook on Ontario debt ratings is "negative." Following the budget release, Jennifer Wong, Moody's lead "analyst" for Ontario said that a downgrade of Ontario's credit rating is "still a possibility." Standard and Poor's made similar declarations.

These bond rating agencies are scammers who time and again have been implicated in scandals and frauds, yet the monopoly media play their role in service of the financial oligarchy and report the disinformation of these agencies as the gospel truth. Finance Minister Dwight Duncan joined the chorus as well following Moody's declaration and urged Opposition parties in the Legislature not to destabilize Ontario's financial rating by opposing the budget and risking an election.

Banks Are Not Shy About Lending to Ontario

First let's be clear -- Canadian banks have no reservations whatsoever about Ontario's creditworthiness. They are coming out of the 2008-2009 financial crisis with record profits as a result of federal and provincial stimulus spending, for which we are now being forced to pay. They have bundles of surplus cash and a shortage of secure investment avenues given the "flat" recovery. They are lining up at the government trough to reap huge, secure profits by re-financing Government of Ontario debt.

On April 2 for instance, Gadi Mayman, the CEO of the Ontario Financing Authority (OFA) that manages Ontario's debt servicing, reported the OFA had raised $34.9 billion to cover renewal of long-term debt in 2011-12. "Robust demand in Canadian dollars" he said "allowed us to complete 81 per cent, or $28.3 billion, of our long-term issuance in our home market, well above the 60 per cent target set out in last year's Budget." It means the demand from Canadian banks and financial institutions for Ontario issued bonds to cover debt was very strong.

In the coming fiscal year, 2012-2013 the OFA forecast for long-term borrowing is to raise $36.5 billion, with at least 70 per cent coming from domestic lenders, from the Canadian dollar market.

How is it Moody's, Standard and Poor's and others haven't noticed the "robust" confidence of the domestic and international financial oligarchy that they can make a killing by lending to the Ontario government? It is fraud. Moody's, Standard and Poor's and the other bond rating agencies are scammers and adjust their creditworthiness ratings according to who is paying for their "analysis."

Moody's Is Neck Deep in Fraud

It is amazing how Moody's and other credit rating agencies have lost all credibility within the financial investment community, yet the financial oligarchy, governments in their service and the monopoly media make them out to be paragons of virtue and objective financial evaluators in order to blackmail the workers, people and society. Moody's pronouncements that society must accept austerity measures or have its credit rating downgraded are a form of extortion.

Moody's Investors Service, Standard and Poor's and Fitch, the three major U.S. agencies rating corporate debt, were responsible for covering up the Enron fraud, fleecing investors, including pension funds, of billions of dollars, until the whole fraud unravelled in 2001. Enron executives were able to run up $13 billion in outstanding debt and another $10 billion more in loans because Moody's, Standard & Poor's and Fitch knowingly misrepresented Enron's credit worthiness as AAA.[2]

Moody's pretended it was "unaware" that Enron was perpetrating a scam, however in the 2008 sub-prime financial melt-down it became very clear Moody's and other bond rating agencies were "hip deep in a conspiracy to hide the size and vulnerability of the risks the big banks were taking in the Bush era."[3]

Moody's involvement in a conspiracy has been revealed in detail. McClatchy Newspapers, for example, published an article on October 18, 2009, entitled "How Moody's Sold Its Ratings -- And Sold Out Its Investors." It contains detailed information of how Moody's suppressed anyone in its corporate ranks from speaking the truth about the fraud the big banks were perpetrating.

The article also explains how Moody's and other bond rating agencies are instruments of the financial oligarchy to disinform investors and the public, according to the interests of whoever is paying for Moody's services. McClatchy explains, "... in the 1970s ratings agencies were allowed to switch from having investors pay for ratings to having the issuers of debt pay for them. That led the ratings agencies to compete for business by currying favor with investment banks that would pay handsomely for the ratings they wanted." Regarding the sub-prime mortgage scam, McClatchy quotes Lawrence McDonald, a former vice president of Lehman Brothers investment bank, which played no small roll in creating the global crisis resulting from the sub-prime assets fraud. McDonald says, "In 2001, Moody's had revenues of $800.7 million; in 2005, they were up to $1.73 billion; and in 2006, $2.037 billion. The exploding profits were fees from packaging ... and for granting the top-class AAA ratings, which were supposed to mean they were as safe as U.S. government securities."[4]

Today, when bond rating agencies like Moody's are making pronouncements about Ontario's creditworthiness, another chapter in the episodes of these credit rating scammers is being written by the McGuinty Liberals, the monopoly media and the financial establishment. Everything about it -- except who is paying Moody's for its services -- is counterfeit. It is shocking that the media, far from denouncing the interference of the credit rating agencies to influence decision-making in the Ontario Legislature -- surely a form of blackmail -- actually promote such interference. The government is so bereft of argument to justify its wrecking budget and need for "austerity" that it has to itself promote the self-serving banking interests which the credit rating agencies serve. It is unconscionable. All the scams to make the big score from the hides of the people and their society nowadays are using the buzzword "austerity." They must be rejected.

Notes

1. Mick Arran, "Moody's Hip Deep in Wall Street Conspiracy," Factesque, April 2, 2010.
2. Alex Berenson, "Enron's Collapse: The Rating Agencies," New York Times, November 29, 2001.
3.
Arran, "Moody's Hip Deep in Wall Street Conspiracy."
4. Kevin G. Hall, "How Moody's Sold Its Ratings -- And Sold Out Its Investors," McClatchy Newspapers, October 18, 2009.

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A New Direction for the Economy,
Not a Casino Economy!

One aspect of the McGuinty government's anti-social plans for the economy and its recently tabled budget, involves what it calls modernization of its gambling operations. On March 12, the province's Ontario Lottery and Gaming Corporation (OLG) announced plans for an overhaul that would increase gambling expenditures by the public and generate $1.3 billion in new revenue per year. The OLG cites stagnation and declines in parts of its operations among the reasons for its plans. Visits by U.S. residents to its border casinos have declined by two-thirds since 2002 and on-line gambling beyond OLG control has increased.

The OLG is the largest gambling operation in North America, formed in 2000 from the merger of the province's lottery entity started in 1974 and its Ontario Casino Corporation founded by the Rae government in 1993. Total net income per year from the various lotteries, bingos, slots and casinos in recent years is around $6.0 billion. After expenses, including payments to private profit makers operating part of its facilities and to municipalities and some First Nations where they are located, about $2 billion per year is recouped by the provincial government. This makes the OLG the biggest "non-tax" revenue generating provincial government agency.

The proposed changes aim to increase the public's spending on OLG's gambling alternatives, and thereby its profits to the government and the private business interests operating aspects of the OLG or otherwise dealing with it. Further privatization, including private operation of its lotteries is part of the proposal. Slot facilities at various horse racing tracks are to be closed in 2013. The variety of OLG gambling "options" in stores and other public locations and on-line are to be rationalized and expanded in order to increase people's participation and spending.

One of the plans is to establish a new casino in the Toronto region. Mayor Rob Ford has declared his support since, he says, "It creates good jobs, well-paying jobs." Discussion about a location and a possible referendum is underway. A 1997 Toronto vote solidly rejected establishing casinos and opposition is again emerging and pointing out the negative consequences for society.

As recently as the 1960s governments in Canada greatly restricted gambling mainly to horse racing and charity bingos. The harmful social and economic consequences of gambling still had official recognition. The fact that the government approach to this issue had completely reversed by the end of the 20th century was another clear indication of the increasingly parasitic nature of the monopoly-capitalist dominated economy. The official excuses abound: prohibition doesn't work, people want to gamble, it creates jobs and economic activity, it provides funds for social amenities and services, promotes tourism, other jurisdictions promote it, so must we, etc., ad nauseum. According to OLG annual reports, gambling even provides the few million dollars in much needed funds to help treat "problem gambling."

Excuses do not negate the truth. Gambling, like its speculation twin that characterizes so much of the workings of monopoly capitalism, creates no wealth. Rather, it involves the transfer of wealth, created as always by human labour, from many hands to a few. More specifically, thousands of working people, middle strata and the poor, living in this fend-for-yourself culturally deprived society that isolates people, crushes hope and blocks real solutions to their problems, are legally cheated of their modest or even meagre resources by this state profiteering operation and the associated private profiteers. A very, very few "players" become very rich at the expense of all the others, a result harmful to society and often even to the winners.

With respect to government finance, the OLG and its "non-tax" contribution is part of the restructuring of revenue collection that has transformed "unfair taxation" that benefits the rich into much more unfair taxation benefiting the rich even more: reduction of corporate taxes, lowering of marginal tax rates on high incomes, reliance on sales taxes, growth of user fees, etc. Government gambling and lotteries represent a tax in all but name, probably the most unfair and regressive of all.

As for jobs, the OLG operation engages some 18,000 employees in activities that create no wealth for society. Society, with government as its authority, is duty-bound to guarantee a livelihood and well-being to these workers as it is to all its members. Likewise, it has the responsibility to engage the people in the productive labour that sustains society and its members, above all in manufacturing and provision of services. Government promotion of gambling and lack of attention to manufacturing and other productive activities indicate the violation of its responsibility.

As for the health care and other services and amenities to which the OLG funds are allocated, these are responsibilities the government is also duty-bound to fulfill for society. Rather than appropriating the necessary wealth from what instead augments the claims of the rich and their monopolies, here it is being raised by fleecing millions of ordinary people, often of limited means. This again indicates the urgent need for a new direction to the economy that stops paying the rich, and provides real solutions instead of parasitism and gambling.

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Invest in Education

Teachers Oppose Government Disinformation
About Their Sick Days

In his YouTube video posted March 2, Ontario Premier Dalton McGuinty asked teachers for their "unwavering commitment" to eliminate the deficit. He stated: "To make that happen, we're asking teachers for a real two-year wage freeze. We're asking for an end to a generous sick leave plan that allows some teachers to get paid, upon retirement, for 200 unused sick days."

McGuinty's disinformation about teachers' sick days is aimed at pitting the people of Ontario against teachers' negotiated working conditions. The issue is the ability of teachers to carry forward unused sick days over the course of their careers. Accumulated sick days can then be paid to the teacher when they retire as a "retirement gratuity" -- if they meet certain criteria as outlined in their contracts with their local boards. Criteria varies from board to board; however, it includes a minimum number of years teaching in the public system and/or for a certain board, and a maximum number of sick days that can be used.

At a recent meeting of elementary teachers in Windsor, participants opposed the government's disinformation. They pointed out that the 20 sick days allotted to teachers each year is based on two sick days per month. These sick days were negotiated in past contracts because there was a recognition that teachers work with children who frequently get sick and as a result, teachers get sick more often. (In pre-negotiation discussions, the Ontario government has demanded teachers reduce this number to six sick days per year that cannot be carried forward).

Participants explained that the unique circumstance in educational workdays means that if they have a medical appointment that cannot be booked outside of school hours, they must use a half or full sick day. They don't have the option to leave school early, come to school late or to miss one class or period. They must take off at least a half day. Furthermore, teachers pointed out that being forced to give up sick days may open the door to allow for other needed days to be taken away. As many teachers are also parents, they need appropriate days to be able to take care of their children when they are sick.

In discussions amongst teachers after the meeting, it was pointed out they do not receive post-retirement medical benefits and the "retirement gratuity" exists in lieu of providing such benefits; this despite the fact that not all teachers qualify. Another teacher pointed out that the "retirement gratuity" was a compromise made to teachers as a result of the 10-year wage freeze, equivalent to a big loss considering inflation, under the Harris government.

McGuinty's demand that teachers forfeit the majority of their sick days and their "retirement gratuities" does not mean this money will be transferred to the classroom to improve the public system. Instead, it will leave the public education system altogether and the communities where the teachers who would receive it live, bound for whatever pay-the-rich schemes the Ontario government has for it.

Teachers and the public want real solutions to the problems in public education and are willing to discuss any measures that will solve these problems. However, they will not accept disinformation geared at "choosing" to degrade their working conditions and their students' learning conditions so that more money can be stolen from public education.

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Brock Education Workers Win Job Security
Protection and a First Contract

A group of educational workers at Brock University in St. Catharines have won a significant victory after a short strike during first contract negotiations. Success in these negotiations was a result of a determined stand by the workers involved and practical solidarity from the faculty, other workers and the students in support of the workers in the small bargaining unit. The contract arrived at includes significant job security provisions which were the main objective of the workers.

The bargaining unit is made up of 38 English as a Second Language (ESL) Instructors in ESL Services at Brock University. They are represented by the Canadian Union of Public Employees (CUPE) Local 4702 Unit 3. The ESL instructors were forced to go on strike on March 26 when the Board of Trustees refused to approve the tentative agreement that had been reached between CUPE Local 4702 and the Brock University administration negotiating team and ratified by the members of the local. This was the first strike ever at Brock University.

The Board of Trustees wanted job security protection for the new bargaining unit reduced below the job security provisions in the contracts of other educational workers at Brock, leaving the work of the ESL instructors open to contracting out. The Brock administration negotiating team came back to the union claiming that there had been a "mistake" in their contract offer that included the standard job protection.

The union bargaining team refused to change contract wording agreed to by the negotiating committees, namely Article 23:01: there shall be no contracting out of any work performed by members of the bargaining unit and Article 23:02: no member of the bargaining unit shall be laid off, or have their hours of work or salary reduced, due to the use of volunteers or students in Bargaining Unit positions. The Board of Trustees chose to undermine the bargaining process and risk students not completing their school year in order to retain conditions to contract out workers' jobs.

Other educational workers at Brock saw the position of the administration and the trustees on job security for the ESL instructors as an attack on the job security of all workers at the university. When the ESL instructors began their strike, many in the other units of CUPE Local 4207 and the Brock University Faculty Association (BUFA) refused to cross the picket lines. Over 100 classes were cancelled.

The BUFA issued a statement denouncing the abuse of the bargaining process by the Board of Trustees and the attack on job security. It expressed the point of view that an attack on one group of workers was an attack on all workers: "BUFA supports the strike action by CUPE initiated today. The issue of whether the board and administration can ignore their responsibility to vote yes or no on ratification of a signed agreement is of significant interest to us in our own future bargaining. The implied issue of contracting out ESL instructors also has implications for our future negotiations."

Other support for the striking workers came from the transit workers of Niagara Transit Services who refused to drive buses over the picket line. Educational workers from the University of Toronto's CUPE Local 3902 came out to support the strikers and international students walked the picket line with their ESL instructors.

Faced with the pressure of the fighting unity of all the education workers at the University, the administration was forced to meet with the union and the mediator on April 2. The ESL instructors, in fighting for their first contract and job security, have gone from a situation in which there were no permanent employees to one where there are 32 permanent positions. Job protection language in the new contract includes:

- Conversion of 12 limited term part-time positions (one year contracts) into permanent part-time positions. These positions include pro-rated benefits (80 per cent of coverage enjoyed by full-time employees). This includes a tuition waiver for all members in these positions (something to which the employer had not previously agreed).

- No member of the Bargaining Unit shall be laid off, or have their hours of work or salary reduced, due to contracting out.

- The employer will issue a letter indicating that there is no intention to contract out any work of the bargaining unit for the life of the collective agreement.

- Confirmation that part-time instructors will not have their work contracted out during the weeks between terms when they do not hold a contract.

The provincial government is underfunding universities, colleges, high schools and elementary schools. The recent budget of the McGuinty government is putting the administrators of these institutions in the position of either standing up to the government and opposing this budget squeeze and defending education as a right of all or of taking the road of the Brock University Board of Trustees. To say you are part of building a modern educational system means in deeds to oppose the activities of such administrators and the McGuinty government budget.

(Photos: Doug Draper)

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First Nations and Colonial Injustice

Attawapiskat First Nation Welcomes Departure
of Indian Agent

On April 5, the Harper government sent the Attawapiskat First Nation a letter that it was withdrawing third-party manager Jacques Marion from the community by April 19. According to the CBC, Aboriginal Affairs Minister John Duncan issued a statement on that day saying that "in recognition of the accomplishments that have been achieved in substantially addressing the urgent health and safety needs of affected Attawapiskat residents through the third-party manager, we have notified the Attawapiskat First Nation of the department's intent to move the First Nation out of third-party funding agreement management and back to co-management." From the perspective of the community, expressed in a press release a day later, nothing could be further from the truth.

Marion, who Chief Theresa Spence and her Council had previously called a "modern day Indian Agent," was imposed on the community colonial-style, without consultation or notice on November 30, 2011 under the fraud that the First Nation had mismanaged its finances and had, therefore, caused the housing and other social crises in the community. This was done to cover up the criminal negligence of the Harper government and previous federal governments, which systematically violated their obligations under Treaty 9 by severely underfunding social programs to this Cree nation on the James Bay for over two decades.

In response to the withdrawal of the third-party manager, Chief Spence on April 6 noted: "My Council is very pleased that it will once again be able to ensure that what funding is provided by Canada is administered in a way that benefits the First Nation and its members. We have instructed our administrators and co-managers to work to ensure an orderly and timely transition."

The press release outlined how Marion had been totally negligent in his duties to the community. He did not release funding to students living outside the community in a timely manner causing them hardship and disrupting their studies, especially during the critical exam period. When attempts were made by these students and their parents to contact Marion, they were informed that he was on holidays in Hawaii with no back-up plan.

In addition, vendors' and suppliers' invoices had not been paid, including the vendor for the Attawapiskat elementary school's breakfast program.

The press release pointed out that Marion refused to authorize the making of loan payments to the Bank of Montreal, putting the community at risk of defaulting.

While being totally irresponsible to the community and its needs, Marion continues to incur fees of $1,300 per day, charged to the First Nation, against its will, the press release points out, noting further: "Chief Spence has written to the Department of Aboriginal Affairs and Northern Development seeking confirmation that immediate steps will be taken, before April 19th, to ensure that no further damage is done to the First Nation and its members during the transition period."

In the meantime, "Attawapiskat's court proceedings remain in progress. The proceedings seek a declaration that the decision to impose the Third-Party Manager was unlawful, and seek to refute the suggestion by the Prime Minister of Canada that 'management problems' caused the housing crisis suffered by the First Nation." The case will be heard on April 24 at the Federal Court in Toronto.

It is the courageous stand of Chief Theresa Spence, the Band Council and people of Attawapiskat, and their determined and just struggle to uphold their hereditary and treaty rights against the Harper dictatorship and its racist colonial justice that has won this victory and the support of Canadians across the land.

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