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December 1, 2010 - No. 206

Post Office

Postal Transformation Implementation
"An Unmitigated Disaster"


Left: "No to harrassment! Get out of our lives!" Quebec City Day of Action, October 13, 2010.
Right: Winnipeg Wild Cat, November 22, 2010. (CUPW)

Post Office
Postal Transformation Implementation "An Unmitigated Disaster" - Denis Lemelin, National President, CUPW

British Columbia
Opportunity to Discuss Taxation

Ontario
More Evidence of Chronic Under-Funding of Community Colleges - Dave Starbuck

Nova Scotia
Spryfield-Sambro Loop Community Health Project -- Privatization by Stealth

Discussion on Nation-Building -- The Necessity to Restrict Monopoly Right
Part Four: Government Claims on Social Product -- Necessity for a Modern System of Taxation - Workers' Centre of CPC(M-L)


Post Office

Postal Transformation Implementation
"An Unmitigated Disaster"

After weeks of problems with deliveries, injuries and forced overtime, Winnipeg letter carriers walked off the job on November 22.

Canada Post has been forcing Winnipeg letter carriers to adopt a new delivery method. Letter carriers are reporting more strains and injuries as well as being forced to stay out for hours past their scheduled end times. Anita Neville (Liberal MP for Winnipeg South Centre) recently raised the concerns of her constituents about the new system. Ms. Neville calls the transformation "an unmitigated disaster."

The New Delivery Method Is Unsafe

The new method of delivering mail requires letter carriers to hold a bundle of machine sequenced mail in their hand. Manually sorted letter and oversize mail is carried resting on the forearm, while unaddressed admail, packets and personal contact items will be carried in a dual satchel.

We believe that the new delivery method is dangerous and will increase injury rates, particularly in harsh weather. Our injury rates are already far too high. There have been numerous occasions where the union has demanded that Canada Post fix its problems in Winnipeg before imposing postal transformation on the rest of the country.

Too Fast, Too Soon

But Canada Post went ahead and implemented the new method before addressing and solving the problems. It appears that Canada Post did not think through their "plan" before implementation. This is another example of the lack of respect and the kind of ruthless thinking that puts machines before people and the financial 'bottom line' ahead of workers' health and safety. While ignoring the problems, Canada Post has indicated that they plan to "forge" ahead into other locations with their piece meal project.

Our Demand Is Clear -- "No Letter Carrier Shall Be Required
to Carry More than One Bundle of Mail"

We must send a message to Canada Post that it is imperative that these issues must be resolved at the bargaining table. We demand that Canada Post respect your health and safety.

In solidarity,

Denis Lemelin
National President
Canadian Union of Postal Workers

(Modern Post/Bulletin, November 22, 2010, www.cupw.ca)


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British Columbia

Opportunity to Discuss Taxation

The BC Liberal Party in power has said a provincial referendum on the HST will take place September 24, 2011. Elections BC released the following question the BC polity is to answer: "Are you in favour of extinguishing the HST (Harmonized Sales Tax) and reinstating the PST (Provincial Sales Tax) in conjunction with the GST (Goods and Services Tax)? Yes/No."

To say the least, this is a loaded question as both "choices" are mainly focussed on individual taxation. To answer yes, rejects the HST but gives political support to the PST and GST. To answer no, supports the HST, which combines the PST and GST into a single tax applied to more commodities and with a broader focus on individuals and less on enterprise to enterprise transactions.

The Workers' Opposition should use the referendum to stimulate discussion on taxation and not become trapped in a yes/no divide. The most vocal forces in the anti-HST campaign are using the anger of the people against ever-increasing individual taxation to unleash hatred against taxation in general. An independent working class voice has mostly been absent from the HST debate. The referendum gives workers and middle strata an opening to elaborate their views on taxation rather than simply respond with a yes or no.

The Workers' Opposition demands increased funding for social programs. Money to fund those investments has to come from the BC socialized economy. The BC and federal governments are responsible for claiming enough social product from the economy to meet their social responsibilities to defend the well-being of Canadians and society. Where should those funds come from that government claims on behalf of the people in BC and their society? How much should the claim be and how should it be spent?

The working class and middle strata should discuss these matters and not allow themselves to be manipulated into adopting views that are contrary to their basic interests.

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Ontario

More Evidence of Chronic Under-Funding
of Community Colleges

A report entitled "Environmental Scan 2010: College Resources" prepared by Colleges Ontario further documents the chronic under-funding of Ontario's community college system. Colleges Ontario is the advocacy organization for the province's 24 colleges of applied arts and technology.

According to the report, college system revenues totaled $2.98 billion in 2008-09. Provincial government funding in the form of grants accounted for only 52 per cent of college system revenues. Tuition and other student fees in various forms now account for 36 per cent of college revenues. College system expenses amounted to $2.93 billion. College system expenses include items such as flow-through expenditures, contract services, scholarships and the tuition set-aside. Proceeding from the outlook of capital-centred accounting, the report lists compensation costs (salaries and benefits) as the largest expense item for the colleges. According to the report, wages, salaries and employee benefits account for 61 per cent of college expenditures.

The report notes that despite the "impact of the Reaching Higher Plan [the post-secondary education plan of current Ontario premier Dalton McGuinty and the Ontario Liberal government -- TML Ed. Note] on operating grants for colleges, in 2009-10 real operating funding per [full-time equivalent] student was about seven per cent lower than it was in 1994-95."

Coupled with the significant increase in tuition fees over the past decade and a half, real per student revenue was about two per cent higher than in 1994-95. The report shows that "when college operating grants and tuition fees are considered together, in 2008-09 per student revenue in Ontario [$8,332] was the lowest among the provinces. Per student revenue [operating grants plus tuition fees] in Ontario was about 48 per cent lower than that in Saskatchewan, the province with the highest level of per student revenue [$15,950]."

Funding per student for Ontario colleges also continues to significantly lag behind that of secondary schools and universities. While secondary schools received a grant of approximately $10,500 per student in 2008-09 and universities received approximately $8,500 per student, colleges received only $6,000 per student.

Funding for apprenticeship training has also declined. The report states that: "In current dollars, the apprenticeship per diem has changed little since 1994-95. After inflation is taken into account, the per diem has decreased by 26 per cent. The student in-school fee [paid by the student -- TML Ed. Note] has offset some of this reduction."

"Environmental Scan 2020: College Resources" also provides information on college human resources and student financial aid. In 2008-09, Ontario colleges employed almost 37,000 people of whom more than half, 21,000, are part-time. There are 7,051 full-time faculty, 6,751 full-time support staff and 2,069 full-time administrative staff. Between 1994-95 and 2008-09, the overall number of full-time staff employed at colleges decreased slightly. However, the number of administrative staff increased approximately 13 per cent and support staff increased by 8 per cent while the number of full-time faculty declined by approximately 13 per cent. In comparison, college enrolments were almost 26 per cent higher than they were in 1994-95.

In 2008-09, about 72,000 college students were Ontario Student Assistance Program (OSAP) recipients, or 44 per cent of total full-time college students. While this is an increase from the low of 35 per cent in 2002-03, it is well below the 1995-96 level of 54 per cent. The OSAP default rate for the college system was 10.6 per cent in 2008, slightly lower than in 2007. This compares to the default rate of 18.0 per cent for private career colleges.

* Dave Starbuck is a member of OPSEU Local 655, Cambrian College in Sudbury.

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Nova Scotia

Spryfield-Sambro Loop Community Health Project -- Privatization by Stealth

Canadians are dead set against the privatization of the health care system but are faced with governments that serve private not public interests. As a result, they use the social wealth to pay the rich while claiming there is a scarcity of funds for health care and other social programs. After creating a crisis in health care by depriving it of the required funds, a "solution" is then presented in the form of public-private-partnerships or P3s, promoted as a creative way to solve the "health care crisis." Canadians have seen that they are simply another way to put public money at the disposal of private interests. One such example in Nova Scotia is particularly insidious because it is not even referred to as a P3.

Spryfield-Sambro Loop Community Health Team

The Spryfield-Sambro Loop Community Health Team is a pilot project funded through a private-public initiative including Capital Health Queen Elizabeth II Foundation (an organization which facilitates private sector access to health care) and three U.S.-based pharmaceutical monopolies: AstraZeneca, GlaxoSmithKline and Pfizer. AstraZeneca is also involved in several telemedicine projects in the Maritime provinces.

Instead of openly informing Nova Scotians of their plans, the P3 Spryfield-Sambro Loop Community Health Team is misrepresenting the actual arrangements for privatization that are being put into motion. It released a four-page glossy colour pamphlet outlining the purported delivery of community health services to this region that is part of Greater Halifax. Entitled "Spryfield-Sambro Loop Community Health Team Community Health Conversations," the cover states "Basic programs and services of the Community Health Team will be free." This conceals the fact that this team will provide no tangible primary health care services to the people in the Spryfield-Sambro Loop. Rather what is termed "education" and pharma-solutions are on the menu of free services.

The booklet claims there was a broad community consultation process and involvement to identify the problems in the community and how best to address them. Yet when people living in Spryfield were asked by this TML correspondent, few knew about the "team" or about the consultation process. In fact one worker at the Captain William Spry Community Centre, noted that, "Yes there was a public meeting about one and a half years ago here at the Centre. We all spoke about the problems faced here such as mental illness, poor nutrition and youth problems. We were all given a Sobey's card at the end of it." Other people queried were adults who use the Spry Centre regularly and/or who live in Spryfield and none of the 55 people asked had even heard about the initiative with the exception of one worker.

There are several aspects of this project that smack of forcing privatization of health care without consultation; of using public funds that should go to primary health care and putting it toward more administration, telemedicine and pharma-solutions; toward an informal and concealed P3.

The location of the Capital Health Community Health Team will be in the Spryfield Mall, near a new pharmacy owned by Sobey's corporation.

The slogan on the cover of the booklet is "Building Communities Together: Capital Health Primary Health Care in Collaboration with IWK Health Centre and community partners." The so-called community partners are none other than Sobey's, AstraZeneca, GlaxoWelcome and Pfizer. This is a P3 by any other name, a fact that is not openly disclosed to the "community" who will be the guinea pigs in this pilot project.

The "Services"

The project claims to be promoting health through "wellness programs" focusing on "nutrition education"; "emotional wellness education and supports"; "education sessions" (parenting); "sexual health" (youth); "physical activity"; "assessments" (personal and family wellness profile); "personal wellness education" (risk factor management); "peer support to manage your own health." What all this amounts to is leaving people to fend for themselves in regard to the real cause of health problems such as lack of work, food and housing. It further entrenches privatization of health care in Nova Scotia. What is the good of "nutrition education" to someone on a limited budget or who must rely on processed foods provided by food banks? Does "peer support to manage your own health" mean that people in Spryfield can truly be left to manage their chronic health problems alone and with no additional primary health care supports? If Capital Health was serious about improving nutrition they would offer a free nutritious lunch program in each and every school in Nova Scotia, for example. Instead of any services, people in Spryfield are offered a condescending mixture of moralized terminology and the option of telemedicine and pharma-solutions.

The team also purports to keep personal and family "wellness profiles" of members of the "community." Who collects and is privy to this information? These wellness profiles would provide the private aspect of the P3 with a great opportunity to use people's chronic health problems and other personal information as a pool of data for marketing and other research. In this way, the three pharmaceutical companies could relieve themselves of the financial burden of telemarketing and market surveys, at public expense.

All of this underscores the lack of any consultation and decision-making power of the people. The administrators employed in the Community Health Team are not members of the Spryfield community and have no idea of what the people are really facing. The information pamphlets are offensive in their paternalistic tone and in the way that they shove pre-ordained arrangements down the throats of the people of Spryfield. The pamphlets make clear that the Community Health Team will not be addressing the real issues of the poor sectors of Spryfield, such as lack of access to jobs, decent housing and nutritious food. This project serves to further the privatization of health care, and even worse, further entrenches people in the overuse of pharmaceuticals.

Nova Scotians refuse to be the guinea pigs of the pharmaceutical monopolies and other private interests. They demand public health care that is a provided as a right by virtue of being human.

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Discussion on Nation-Building

The Necessity to Restrict Monopoly Right
to Control and Manipulate Prices
Proposal for a Modern Formula to Determine Prices of Production

TML is posting below Part Four of "Discussion on Nation Building -- The Necessity to Restrict Monopoly Right." Part One was published in TML Daily, November 23, 2010 - No. 200. Part Two was published in TML Daily, November 24, 2010 - No. 201. Part Three was published in TML Daily, November 30, 2010 - No. 205.

Part Four
Government Claims on Social Product --
Necessity for a Modern System of Taxation

Renewal of the taxation system plays a big role in combating economic crises and restricting the right of monopolies to reverse the tendency of a falling rate of profit. Government should focus its claim for social product (taxation) on the revenue of enterprises producing and distributing goods and providing services. The obsolete practice of taxing individuals including user fees for public services should be abolished. Canadians live in an interconnected socialized economy, and governments and enterprises should recognize that truth in practice. They should also stop saying the economy and its problems are unknowable and nothing can be done except demand concessions from workers and push austerity on the country.

People should view the socialized economy and claims on social product from a broad perspective. This requires looking at the aggregate social product annually produced as an integral whole and examining how that product is divided up. The working class and owners of capital plus governments claim almost the entire social product produced by the working class. The three main categories of claimants of social product are:

1) claims of workers according to their work and work-time on what they produce and make available through distribution and the provision of services;

2) government claims on social product to finance social programs and meet its needs and the general interests of society;

3) claims of owners of capital to profit according to their private ownership and control of parts of the socialized economy; this claim is subdivided into profit of enterprise (including an accumulation fund or retained earnings), interest-profit, rent- profit and claims on profit by executive managers.

A broad perspective keeps these categories distinct and objective and constantly aware of their change, development and motion, with the working class and government in ascendency and owners of capital in decline.

A modern definition of taxation upholds the view that government claims within a socialized economy, such as Canada's, must be social and not individual, just as production, distribution and services are social, industrial and mass, and not petty and individual. Taxation must be focused on the revenue of enterprises and not individuals. The government should abolish individual taxation such as income taxes, sales taxes, individual property taxes and user fees for public services.

Individual Taxation Is Obsolete

Government claims through individual taxation instead of revenue from enterprises deviates from a modern definition of taxation. Individual taxation strengthens monopoly power and control over the economy, which is regressive. It weakens the struggle of individual workers and their collectives for a say and control over the socialized economy, the sector in which they work and their particular enterprises. The obsolete practice of individual taxation introduces confusion into the origin of social product, how it should be claimed and distributed, and what constitutes a cost of production. Individual taxation confuses the issue of a society needing social production to sustain itself and develop. Workers and members of the middle strata can even develop contempt for taxation in general and join anti-tax reactionary forces that do not want to develop the social responsibilities of society to guarantee the rights of its members.

Individual workers through their work-time make available all social product to be claimed by themselves as individuals and by the state and owners of capital. Social product in the form of taxation comes from workers' work-time and should be claimed as such from the revenue of enterprises and not later or indirectly through individuals. It should not come from workers as "taxpayers" but from them as the actual producers of all social product.

The origin of social product is found in the work-time of the working class at enterprises within the socialized economy. Value added through work-time flows throughout the socialized economy as revenue. Revenue is equal to the gross income of enterprises minus their costs of production. Costs of production are mainly commodities purchased by enterprises from within the socialized economy or abroad that are necessary for production of commodities and their distribution or for the provision of services.

Claims on revenue are not costs of production. The present taxation system reinforces the viewpoint of the owners of capital that claims on revenue, other than profit of enterprise, constitute costs of production for an enterprise. From this capital-centred viewpoint, claims of workers, corporate taxes, interest-profit, rent-profit and claims of executive managers all constitute costs of production. This erroneous viewpoint distorts the reality of an interconnected socialized economy where the modern working class produces all social product. Workers and their allies must fight for a modern definition of taxation where governments make their claims directly from the revenue of enterprises.

With the present obsolete system of individual taxation, workers make their claim on what they produce but then are forced to hand over half or more of their claim to governments in various taxes and fees for public services. This turns many workers against taxation in general, which in turn weakens the movement for increased spending on social programs. Rather than turning against taxation in general, workers and their allies should force government to abolish individual taxation and make its claims objectively and directly from the revenue of enterprises at the point of production and distribution of goods and provision of services.

The three main categories of claimants (workers, governments and owners of capital) should make their claims directly on the revenue of enterprises. These claims should be objective, transparent, distinct and readily knowable by the Canadian people for open discussion and debate.

A modern definition of taxation is important as well in solving in a progressive way the issue of workers themselves having a say and control over their claims for wages, benefits and pensions. Workers and their peers should be the judge of what their claims should be. For this process to be socially responsible and effective, workers and their peers must have before them the facts of their socialized economy, both its aggregate social product as revenue and the particulars of every sector and enterprise. They should also be fully conscious of how much governments need to claim to increase investments in social programs and meet the general interests of society. How governments spend the revenue they collect is a related front of struggle that must be taken up by the Workers' Opposition.

The claims of owners of capital for the various forms of profit should come from a pool of revenue at each enterprise that is determined objectively and consciously according to a modern formula for prices of production based on a general rate of profit. From an understanding and knowledge of what society needs in the form of government claims, how much social product is produced and available nationally and in particular sectors and each enterprise, workers and their peers can argue out and determine the level of their claims according to their work. This understanding does not appear magically but from conscious participation in acts of finding out.

The Transient Nature of Capitalism

Under the present capitalist system of commodity production for exchange, the claims of the three main categories (workers, government and owners of capital) are made on social product as exchange-value, usually in the form of money. This means effectively that actual and potential social product that cannot be realized as exchange-value but is needed by the people and its socialized economy is left unclaimed or not produced. This is a fundamental defect of the capitalist system and brands it as transient. Capitalism came into being to bridge the gap between the various systems of petty production, from which it emerged, and a modern socialized economic system and relations of production that can fully utilize the benefits of industrial mass production.

Within this transient system, it is particularly important that government not claim taxes from individuals but rather from the revenue of enterprises producing and distributing goods and providing services. Individual taxation tends to mask the problems of the transitory system and strengthen the retrogressive forces nestled within the most powerful enterprises that do not want to resolve problems fundamentally but divert people into grasping at empty policy objectives rather than taking decisive action to move society forward through modern definitions.

If a formula is enforced restricting enterprises to a general rate of profit through prices of production set scientifically, and a wholesale market controlled by public corporations in all basic sectors, every enterprise would pay an equal amount of taxes from revenue according to size whether it pays directly or through an equalization formula of a general rate of profit determining prices of production. The government would claim enough to meet its needs and the general interests of society and would force companies to adhere to the general rate of profit through public control of prices of production and the wholesale sector. The modern definition of governments claiming taxes directly from the revenue of enterprises opens a door to progress whereby those claims could be increasingly made and rendered in the form of products or services and not have their use-value negated as exchange-value and forced to face an uncertain future in the marketplace before being claimed by government as money.

Changes to Open a Door to New Relations of Production

A detailed public accounting of all industries, sectors and enterprises is necessary to enforce both proper taxation of the revenue of enterprises and adherence to prices of production that reflect a general rate of profit. A modern formula for prices of production is introduced in Part Five of this series.

An important issue is to recognize that the socialized economy is in essence public and should be considered public in all its aspects. Monopoly right over the socialized economy must be restricted in favour of public right. Enterprises that hide accounts and transactions should be considered in serious violation of the law and the people's right to a full public accounting of their socialized economy.

(Part Five: Introduction to a Modern Formula for Prices of Production)

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