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January 17, 2012 - No. 1

All for One and One for All in Alma and
the Entire Saguenay-Lac-Saint-Jean Region


Alma workers and supporters rally, January 12, 2012. Sign reads, "Together, we will overcome." (STAA)

All for One and One for All in Alma and the Entire Saguenay-Lac-Saint-Jean Region
Alma Workers Represent the Future, Not the Past - Normand Chouinard
What Quebec Workers Have to Say About the Rio Tinto Lockout

Forestry
Uncertainty in Forestry Sector - Interview, Bob Daggett, VP, CEP Local 89

El Salvador
Pacific Rim Mining Corportation's Extortion - Claude Brunelle



All for One and One for All in Alma and
the Entire Saguenay-Lac-Saint-Jean Region

Together let us stop Rio Tinto's extortion of aluminum workers and the region!


Signs of Alma workers and their supporters express the opposition to attacks on the union through subcontracting
and the effect this has on the workers, their families, community and the region as a whole. (STAA)

The global monopoly Rio Tinto is trying to break the existing arrangement of a unionized workforce at the Alma aluminum plant and equilibrium on the amount of value each social force claims -- workers, governments and owners of Rio Tinto capital and debt. The monopoly has locked out 780 workers of Local 9490 USW to extort a decrease in the guaranteed minimum number of unionized workers per output of aluminum and no restrictions on the number of lower-paid non-union contract workers.

An increase in the number of contract workers as a proportion of the total workforce would soon eliminate the critical mass of members Local 9490 needs to defend the rights of all within the plant and would threaten its very existence as an effective defence collective. A weakened workers' collective power within the plant becomes an easier prey for an unceasing downward trend of terms of employment for all.

Without a limit on the number of contract workers, even with a company guarantee of 700 members of Local 9490 having employment for the duration of the next contract, union members will be in a weaker position to enforce the contract on a daily basis and in a worse position to negotiate the next one. This can be seen now as contract workers, against their own class and national interests are being used as anti-worker mercenaries (scabs) to allow the Rio Tinto oligarchs to continue a certain production level during the lockout of union members. This is to smash any equilibrium based on the recognition of workers' rights. In doing so, the overall size of the claim of owners of capital on aluminum production will become larger with an upward negative trend for the near future if their monopoly right is not restricted now.

Local 9490 members recognize that they have a social responsibility to themselves, other workers and the region to stop the contracting out of their work. With the average claim of contract workers amounting to only 44 per cent of the average claim of members of Local 9490, it can be easily seen that the amount of value that aluminum workers produce, which is then retained within the regional economy, would be greatly reduced with larger numbers of contract workers. The Rio Tinto oligarchs would then brandish the lower claims of contract workers as a norm that union members must accept in the same manner they talk of workers sinking to the lowest level within the Rio Tinto global empire and aluminum sector.

Such regression even blocks contract workers from achieving the full benefits fought for and agreed to in the existing equilibrium as full members of Local 9490. Contracting out damages the general living standards within the socialized economy in the entire Saguenay-Lac-Saint-Jean region. The downward neoliberal trend if not stopped and reversed, directly affects local businesses from lack of local worker spending.

For these and other reasons the struggle of Local 9490 USW to defeat Rio Tinto's extortion of workers is a responsibility and just cause for all in the region whether unionized, non-unionized, self-employed or in business. For the good and well-being of the people and their economy, the oligarchs of Rio Tinto must be restricted from taking out of the region even more aluminum value than they do now under the present arrangement.

Workers and allies throughout Saguenay-Lac-Saint-Jean, let us unite and fight to keep aluminum value here under a just equilibrium!

All for One and One for All!
Stop Rio Tinto's Extortion of Workers and the Region!
Defeat the Unjust Lockout!

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Alma Workers Represent the Future, Not the Past

The union of the aluminum smelter workers in Alma, Quebec and their president Marc Maltais have been accused of living in the past and of fighting battles which belonged to the 1970s and 1980s. This is because they are fighting for the right of workers to secure employment and the monopolies say this is not a right. Various actors in the political sphere, the business world and the monopoly media in the region and across Quebec maintain that the union is living in an era that no longer corresponds to the changes in the world of today's globalized economy.

It's been just over two weeks since December 31, when just before the lockout, the night shift workers were kicked out of the workplace by mercenaries in the service of the monopoly, without even being permitted the required decontamination. The aim of the lockout is to get the workers to stop defending their rights won through hard battles decades ago and especially their opposition to unfettered management rights to contract out until literally no unionized workers will be left at the smelter. The self-serving logic is that these rights have to be sacrificed to adapt to new conditions. The company claims these new conditions include, amongst others, that subcontracting is essential for developing regional business; that levels of full time jobs commensurate with the work at the plant are impossible to maintain in an increasingly competitive market; that workers' salaries are too high which impedes new investments and that workers rights are a block to the company's growth.

Rio Tinto maintains that its business plan corresponds to what our economy needs right now and that it is the most capable of responding to the competition on the world market. It says that the union and its members, who want to prevent the rapid erosion of standards of living and working conditions, are reactionaries stuck in a world that no longer exists.

The reality of the modern working class which bases its resistance on the conviction that its security lies in fighting for the rights of all demonstrates the opposite. The facts show that the monopolies and governments in their service are pushing society back decades and it is the resistance of the modern working class and its independent action in defence of the rights of all that represents the interests of Quebec.

(Translated from original French by TML)

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What Quebec Workers Have to Say About
the Rio Tinto Lockout

With the aim of engaging workers in discussion on the important issues facing the workers' movement, TML is posting below the comments of transport workers from the Montreal region on what they think of the Alma workers' fight.

Truck Driver, CN Rail

I heard about the labour dispute before the holidays. A radio host was citing a spokesman for Rio Tinto saying that subcontracting is an essential means to ensure the flexibility and competitiveness of the company. I remember because I'm at the heart of a major subcontractor for CN, and hearing that made me laugh.

I'm an intermodal truck driver, which means I transport containers destined for export to the port and rail terminals and directly to the factories and warehouses. The CN terminal is right over there. They own the most hectares of land on the island of Montreal; it's a huge lot. The CN terminal is very modern with all that goes with it -- electronic kiosks, permanent customer service, well maintained asphalt, adequate night lighting, security regulations and precise signs for the different areas. Their equipment is modern and well maintained. All this, and the folks at CN will tell you, was won in heated battles over decades by the workers themselves. It wasn't always like this. CN didn't just give it to the workers.

For the last few years, CN management has been using subcontracting more and more as a method to break the organized expression of what the CN workers demand as concerns modern working conditions. Since the Americans took over control of CN, they're constantly trying to reduce the quality of maintenance on the network. They demand more and more concessions, but the workers won't let it pass. So they started to develop empty container depots like here, which are subcontractors and which were operated by CN workers in the past. This CN subcontractor, where we are right now, is trying to expand into the CN grounds. One only has to look around to see the difference. Over there, in the CN terminal is a modern Quebec, while here it's a third-world Quebec. We're up to our neck in mud, the grounds aren't maintained, there are huge, very dangerous holes, the employees are poorly paid and don't get adequate training to operate the container doors, they have to work at a horrendous pace, there's no night lighting even though its open 24 hours a day. At night you can't see a thing unless it is lit by our own headlights. In the summer, the clay soil dries which causes sandstorms in windy conditions. Employees who work outside have only a thin paper mask for protection. This is no joke, it's the third world here. Management makes no effort to extend the dust flap, not to mention what they think of the drivers. We can't even complain for fear of being fired.

CN upper management is very aware of what goes on here but takes no responsibility to change the situation. They could care less, let me tell you.

My point is that if the CN workers hadn't fought for decades, their conditions could still resemble what the workers here are living. Like us, they need unions to fight for their rights or else they will continue to be treated like the mud we have up to our knees over here. It's not pretty but it's the harsh reality. No one is just going to give us this. The nice words of the Rio Tinto spokesman about flexibility and productivity mean nothing when you see what's really going on in front of our eyes each day.

Anyway, that's why I support the Alma workers. They're defending a modern Quebec against the attempts of the big companies to impose what are called third world conditions.

Truck Driver, Food Industry

Is there anyone who knows subcontracting better than us? Not only are we subcontracted; we're sub-subcontracted and even sub-sub-subcontracted.

The transport companies have many methods to subcontract us. You can be an independent driver with a numbered company, but you don't own your truck. You can also be an independent driver with your own truck, associated or not with a transporter or manufacturer. You can be a driver employed by an agency, associated with a transport company or a manufacturer, or even employed by an agency that isn't associated with a company and which will assign you to its customers. There are also drivers who are transported from one place to another where there is equipment, especially in Europe and the United States. In short, they never stop finding new ways to subcontract us. In 22 years experience, I've done it all and I haven't gotten rich yet. In fact, subcontracting only serves to impoverish and lower our working conditions, nothing more. It's not that we're against change, we simply don't want to worsen our situation. It's the same thing that's happening at Alma.

Truck Driver, Food Industry

In my opinion, with my experience here, subcontracting serves, among other things, to break or weaken unions. It's a method they use to block us from having our say and organizing ourselves. When the union is weakened or destroyed, the company starts rehiring according to their new working conditions and salaries. They play with us like yo-yos.

I think the question is not only to be for or against subcontracting but do the workers have rights and can they affirm them without fear of being treated like dogs. They use subcontracting to keep control over us. In short, that's what I see in trucking and storage. It's also happening in the production plants and slaughterhouses. I don't believe their stories about flexibility and productivity. They use these words all the time to put us to sleep. Despite what the politicians and media try to convince us of, we see very clearly what they do in Quebec. We're not crazy.

(Translated from original French by TML Daily)

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Forestry

Uncertainty in Forestry Sector

Local 89 represents the workers at the Tembec Spruce Falls newsprint mill in Kapuskasing, Northern Ontario. There is also a sawmill attached to the paper mill, which is an advantage because we get our supply of chips from it. The total workforce, including management staff, is around 600 people. In our work to represent our members, and this is a feature of the whole sector, we are facing profound uncertainty -- uncertainty about lumber and newsprint prices, about market demand for these products, about the industry's financial situation.

We are strongly committed to protecting our contract; we are trying to protect what we have. We have been without a contract now for over a year and a half. We are operating under a good contract. There is no rush for us to be at the table. An improvement in the situation of the industry would benefit us and we do not want to be presented with a list of concessions. We want to ensure our pension plan remains the same and that our benefit package is not adjusted. Already, our retirees' benefit package has been adjusted. Upon retirement at age 65, when the Canada Pension Plan takes over, the retirees can stay with the company plan but their premiums are very high.


2009 rally in Smooth Rock Falls to protest the demolition of the shuttered Tembec mill that was to act as a site for a business co-operative. The project did not go through because of the lack of a wood allocation.

When we sit at the table we have to be constantly aware of the industry's situation, hoping it will turn the corner and lumber and paper sales are going to increase. We are aware of the circumstances in the industry, for example, Tembec's closure of its mill at Smooth Rock Falls in 2006 and its recent closure of the Tembec Pine Falls mill in Manitoba after the workers went on strike. We have to take into account how Tembec dealt with the workers there.

Another pressure on the sector is that the use of biomass for energy is directly competing with the lumber and paper industry. Companies are using biomass to produce electricity and there is no ceiling for electricity prices. Using forestry resources for lumber and paper becomes less attractive than using them to produce electricity.

Another factor at play here is the potential for growth in the region's mining sector. We used to be a single industry region but the growth in mining offers possibilities. Mining has now become quite prevalent. There are some projects out there; there is activity beyond the mill. There is a potash deposit, there is the reopening of a gold mine, plus other mineral extraction projects are being developed. There is some activity inside the mill also.

For a long time there was only downsizing, no training and numbers were shrinking. There has been some hiring recently. This is needed because the average age in the mill is about 50 and we need replacements. We are not talking about expansion of the workforce. The total numbers have fallen over the years and technological changes have played a large role in that.

The population of Kapuskasing is about 5,000; when I was in high school it had 12,000 people. When I started at the mill there were 2,000 people in the bush and our local had over 1,000 members. There is still a forest group attached to the mill, working with high tech equipment. There are perhaps 100 workers in that group.

Uncertainty is all around us. A year ago, the Kidd Creek metallurgical complex near Timmins was closed by Xstrata even though it was state of the art. We had one of the most viable smelting processors there, but they closed it. The owner was allowed to transport the minerals to Quebec and process them there, saving millions of dollars due to lower electricity prices. This is wrong. The minerals extracted here should be processed in the region. The same applies to timber. If Tembec does not want to operate here they could in fact move the wood somewhere else. It is not happening here yet but it could.

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El Salvador

Pacific Rim Mining Corporation's Extortion

Since December the World Bank court through the International Centre for Settlement of Investment Disputes (ICSID), has undertaken closed-door deliberations to decide whether the Canadian Pacific Rim Mining Corporation is within its rights to sue the government of El Salvador. Pacific Rim Mining Corporation is accusing the government of El Salvador of selective discrimination against it by refusing to issue a mining license for the El Dorado mine, located some 65 kilometres from the capital San Salvador, in the rural region of Las Cabañas.

The Canadian mining company began the lawsuit against the government of El Salvador in April 2009, invoking Chapter 10 of the Dominican Republic-Central America Free Trade Agreement (DR-CAFTA).[1] More specifically, Pacific Rim maintains that by refusing the El Dorado mining license, the government of El Salvador violated Articles 10.3 (National Treatment), 10.4 (Most-Favored-Nation Treatment), 10.5 (Minimum Standard of Treatment), 10.7 (Expropriation) of the DR-CAFTA, as well as Article 23 of El Salvador's mining law. The mining company maintains that under these rules any mining company that has undertaken the exploration phase of a mining project is automatically allowed to continue with the operations phase due to the considerable sums of investments made. With this interpretation of the mining law in El Salvador, Pacific Rim is seeking $77 million and $23 million in expected profit losses and expenses.

Canada is not part of the DR-CAFTA, and, in order to bring this process to arbitration, Pacific Rim used subterfuge and opened a subsidiary in Reno, Nevada in the United Sates, as Pacific Rim Cayman. This subsidiary was opened in 2007, two years before filing the lawsuit in arbitration court. This would seem to indicate premeditation -- that Pacific Rim never intended to comply with the environmental and mining laws of El Salvador and organized to direct the dispute to the international body of the DR-CAFTA.

Pacific Rim began its exploration operations at the El Dorado site in 2002 following a six-year plan leading to a gold and silver extraction phase. Very quickly the local population and several civil rights and environmental organizations expressed their concerns and opposition to the project's continuation under the negative environmental practices used by the mining company and the health consequences for the local population. The fact is that Cabañas is located on the Lempa river, a major river for El Salvador and a primary water source. Pacific Rim wants to use large quantities of water and cyanide for its mineral extraction, which will flow into the river and contaminate the water source for hundreds of thousands of Salvadorans.

This fact is what led to the government of El Salvador's refusal to renew the company's license in 2004 and again in 2006. Finally, faced with mounting pressure from the Front Farabundo Marti National Liberation Front (FMLN), the communities in the Cabañas region, international environmental lawyers and the Catholic Church, the government of El Salvador under President Elias Antonio Saca announced in March 2008 that it wanted to see new studies on the environmental impacts of the mining project before authorizing any kind of mining license.

This decision put an end to the right-wing project to reformulate El Salvador's mining law so as to continue exploitation of the El Dorado mine, as well as 23 other similar mining projects.

Speaking to the government's decision, the Environment Minister at the time, Carlos Guerrero said, "Neighbouring countries have serious problems managing the metal mining industry and I think that in light of these problems we should be cautious." (Guerrero was referring to the situations in Honduras and Guatemala, where mining activities have considerably affected the environment and the health of the residents living close to the mines.) Then in 2009, taking a firm position against the continuation of mining projects like the El Dorado mine, President Saca said, "If along the way we find out that something could harm the people's health, we must then go in favour of Salvadoran's health."

In March of that year, the FMLN candidate Mauricio Funes was elected president and pursued the same policies as his predecessor on mining and refused Pacific Rim's licenses, thereby blocking the company from beginning gold and silver extraction from the El Dorado mine. The following month Pacific Rim, refusing to accept the decision of the sovereign government of El Salvador over its natural resources and environment, decided to depose the lawsuit against the government before the arbitration court of the ICSID.

The problem with Pacific Rim's use of the ICSID tribunal of the World bank, under DR-CAFTA, to resolve its dispute with the Salvadoran government is the existence of this free trade agreement, which contains no clause with regard to establishing a labour standard or environmental protection, and in particular its Chapter 10. This chapter, taken directly from the North American Free Trade Agreement (NAFTA), includes provisions granting broad rights to foreign investors, including the right to sue governments. Under the pretext of facilitating foreign investment, it contains clauses that permit multinational corporations to avoid direct negotiations with governments and instead use international arbitration courts, as is the case with Pacific Rim and its case against the government of El Salvador. The fact that Pacific Rim can use the World Bank arbitration court to avoid submitting to Salvadoran laws is a violation of the fundamental democratic laws of the Salvadoran people to exercise their sovereignty over their natural resources and its environment.

Meanwhile if the court sides with Pacific Rim the consequences would be disastrous not only for the government of El Salvador that would have to pay millions of dollars to Pacific Rim, but equally for all Central-American governments as it would set a precedent for the use of Chapter 10 of the DR-CAFTA and would incite other foreign monopolies to follow Pacific Rim's example in their quest to plunder the wealth of the people.

There are currently 32 cases awaiting trial before the World Bank court concerning petroleum, gas and mineral extraction, while ten years ago there were a mere three. Sixty-six percent of these cases concern lawsuits against Latin American governments. This shows how agreements such as the DR-CAFTA are in fact tools for domination to smash the sovereignty of the people and force their governments to submit to imperialist monopoly dictate. It also shows the necessity to dismantle these agreements and prevent new ones from being created, because the sovereign rights of the people are thereby violated and humiliated. It is thanks to these free-trade agreements that Canadian and other foreign mining companies plunder the natural wealth of Latin America, destroying the environment with impunity, attacking the health of millions of people. They use violence, assassinations and other forms of intimidation against all those who oppose their plundering while governments in their home countries turn a blind eye. These attacks on the sovereign rights of the Latin American peoples must stop; all free-trade agreements must be abrogated. The Salvadoran people have the right to exercise sovereignty over their natural resources and environment.

When U.S. President Obama visited San Salvador last March, organizations opposed to the dangers of mining held demonstrations demanding the elimination of the investor protection clause in the DR-CAFTA. They also demanded that Obama deny Pacific Rim's arbitration request and follow through on his 2008 presidential campaign promise that, "With regard to the provisions of various free-trade agreements that give foreign investors the right to sue governments directly before foreign courts, I'll insure that the rights of foreign investors are strictly limited and that they'll be fully subject to any law or regulation written that serves to protect public security or promote public interest."

Clearly, what Obama understands by the concepts public security and public interest is not the same as what the people of El Salvador and their government understand those concepts to mean. Of course, the people of El Salvador should get to exercise their sovereignty because it is their land, their resources, their human rights. Might does not make right. But then the monopolies and the U.S. and American states and their armed forces and courts and corruption say it does. It must not pass!

Note

1. The Dominican Republic-Central America Free Trade Agreement (DR-CAFTA) was signed into law by then U.S. President George W. Bush August 2, 2005. Its content is largely inspired by the North American Free Trade Agreement. El Salvador, Honduras, Nicaragua, the United States, Guatemala, Costa Rica and the Dominican Republic are the member nations of the treaty.

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