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February 3, 2012 - No. 12

British Columbia

Massive Explosion at Babine Forest Products

Massive Explosion at Babine Forest Products - Charles Boylan
Concessions and Privatization Are Not Solutions! - K.C. Adams
From "Net Zero" to "Cooperative Gains" -- Increasing Exploitation of Public Sector Workers to Keep Paying the Rich - Barbara Biley
Government and Employers Set Tone for Negotiations by Attacking Hospital Pharmacists' Wages
Growing Opposition to Clark Government - Dorothy-Jean O'Donnell
Enbridge Pipeline Review -- Just Who Is Getting Hijacked? - Peter Ewart 


British Columbia

Massive Explosion at Babine Forest Products


The BC Government and Service Employees' Union (BCGEU) gives a $10,000 cheque to help workers affected by the Babine Mill disaster. Left to right: Frank Everitt, President, Local 1-424; Kris Graneau, BCGEU Forest Service Chairperson and Burns Lake Firefighter; Sam Tom, USW Chairperson; Bruce Disher; and Gerald Whitford.
(Local 1-424 USW)

A massive explosion engulfed the Babine Forest Products sawmill in Burns Lake, British Columbia January 20 at approximately 8:15 pm. The 250 workers at the mill are members of Local 1-424 USW. Twenty-five were working the night shift when the explosion occurred.

Sympathy, solidarity and practical help was immediately expressed for the Burns Lake community and the Babine Forest Sawmill workers.

TML joins workers and people across Canada in extending sympathy and solidarity with the community of Burns Lake, especially the families, coworkers and friends of the injured and deceased. Nineteen of 25 workers on shift were injured, some seriously, when the mill blew up and burned down. Two workers, Carl Charlie, a mill-worker of Carrier nationality and Robert Luggi Jr. of Wet'suwet'en nationality sadly perished in the explosion and fire.

Burns Lake is a town of 3,600 people with two Native communities, Burns Lake Reserve and Babine Lake Nation. It is located 222 km west of Prince George on Highway 16. The Babine Forest Products Sawmill (BFP), the main economic base in Burns Lake, employs 250 workers directly plus many loggers, truck drivers and contractors.

Hampton Affiliates of Portland, Oregon purchased an 89 per cent share in 2006 and jointly owns the sawmill with the Burns Lake Native Development Corporation that retains 11 per cent ownership. Hampton Affiliates owns and operates eight sawmills in Oregon, Washington and BC with a softwood manufacturing capacity of over 2 billion board feet making it one of the largest lumber manufacturers and marketers in North America.

Steve Zika, Chief Executive Officer of Hampton Affiliates, told a press conference in Burns Lake two days after the explosion, that his preference was to rebuild the mill but the company would have to assess various factors before committing to do so.

Steve Hunt, director of United Steel Workers wood sector, said he hoped the mill would be re-opened given the good supply of wood fibre in the area.

Frank Everitt, President, Local 1-424 USW, the union representing BFP workers, told TML Daily that his local is preoccupied now with helping the workers, their families and the community to cope with the tragedy. Many workers have suffered life-altering injuries and the families of the deceased are greatly suffering. He said he would comment later on the future of the mill and the union's role in investigating the cause of the tragedy.

Premier Christy Clark attended a meeting of 300 people in the community on January 22 promising to assist in the recovery but made no concrete assurances that the mill will be re-opened. Another meeting attended by 500 people was held on January 23 in Burns Lake.

Burns Lake Band Chief Albert Gerow estimates about 30 per cent of the local economy is directly linked to the mill with numerous spinoff jobs. Gerow, who is also president of the Burns Lake Native Development Corp., expressed hope the mill would soon be rebuilt given the central importance it has to the regional economy.

The mill workers and fire fighters deserve high praise for their heroic rescue efforts. The health care providers have been praised as well for their long hours of work in the emergency room. However, the provincial government has been sharply criticized because Burns Lake, like many small industrial communities in BC, has insufficient medical personnel and an inadequate hospital facility. The fire fighting infrastructure is also insufficient to cope with disasters like the mill explosion.

Workers at the site reported smelling gas on the day shift but the cause of the explosion has yet to be determined. A Worksafe BC spokesperson said two sources for a gas explosion could be either propane gas used to fuel forklifts and other equipment, or natural gas used to fuel the drying kiln. The drying kiln was not damaged by the explosion and fire, but the main mill burned to the ground. The RCMP, Worksafe BC, the Coroner's Office and possibly the company and union will be involved in the investigations.

There have been three major mill fires in BC in the last three and a half years. On May 27, 2008 the Canfor North Central Plywood mill in Prince George burned down with a loss of 260 jobs. Two workers suffered smoke inhalation injuries. January 25, 2011 the Mackenzie sawmill in Surrey burned down. There were no injuries but 142 jobs were lost. Neither mill has been rebuilt. The mill fire at Burns Lake is the most disastrous with 19 injured and two fatalities.

(TML, Canadian Press)

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Concessions and Privatization Are Not Solutions!

According to the capital-centred outlook of the government and public sector employers, workers are merely a cost. With the BC government determined to satisfy the ever-increasing demands on public funds of the pharmaceutical, construction, finance, "hospitality services," contract labour suppliers and other private monopolies, workers and their wages and working conditions become the target of cuts. Public funds are shifted from workers to pay the rich in various schemes rather than have public services completely not-for-profit and public by progressively cutting out private monopoly profit altogether.

To turn health care, education and care of the most vulnerable into targets of profit for the private monopolies is perverse in our modern socialized society. Publicly funded, comprehensive free health care, education for all, care of the most vulnerable, and a myriad government services including monitoring and regulating industry standards to protect the well-being of workers and the entire population are hallmarks of a modern society. By their very nature, these are services that humans provide other human beings to maintain our humanity and the coherence of our society. They are not luxuries but necessities for the health and well-being of workers, youth and seniors and for the general interests of society. The workers who provide the services should be treated with respect and dignity and given the modern right to determine their claims and working conditions in consultation with their peers. These modern services funded from the social wealth that is produced by the working class, including many workers in public services such as mass transit and city engineering, etc., form part of the claims that people have as a right as members of society and by virtue of being human.

The fact that there is truth in the claim that governments are in difficulty providing these necessities does not justify the perverse logic that workers should both accept lower wages and more difficult working conditions so that public funds can be diverted to pay the rich. The working conditions and respect shown to public sector workers by paying them wages commensurate with the services they perform create the proper conditions in which the services are delivered to the people.

Any difficulty in funding public services arises directly from governments gearing the state to serve the private monopolies and to the loss of manufacturing. Manufacturing in large measure generates the added-value necessary to fund public services. The shutting down of almost all the sawmills and pulp and paper mills on the coast, privatization of public services and other aspects of the economic crisis demand a new direction of the economy that favours the people and the provision of public services. A human-centred alternative and new direction for the economy would begin to solve the problem of properly funding public services.

For public sector workers preparing to do battle in defence of their wages, working conditions and against the insatiable demand of the private monopolies for privatization and concessions, they must advance their own perspective for a human-centred alternative and that governments must defend public right not the claims of the monopolies. This includes the modern right that the services people require for their development and well-being must be provided within the public sector without profit sucked away by private monopolies. This includes the modern right that public sector workers receive pay, benefits and pensions commensurate with the work they perform and have working conditions that reflect the vital nature of the services they provide.

Concessions and Privatization Are Not Solutions!
Stop Paying the Rich!
Increase Funding for Social Programs!

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From "Net Zero" to "Cooperative Gains" --
Increasing Exploitation of Public Sector Workers to Keep Paying the Rich


Recent fights of BC public sector workers to defend their working conditions and public services.

Contract negotiations have begun or will begin shortly for health care workers and workers throughout the public sector including government employees. Altogether contracts for about 80 per cent of the over 370,000 public sector workers in the province have expired or expire this year, most at the end of March.

Teachers, who fall under the dictate imposed on public sector bargaining by the provincial government, have met with the employers' association, the BC Public School Employers' Association, more than 70 times since mid-2011 with the government maintaining its stand of zero increases in wages and compensation and refusal to reverse its illegal denial of teachers' right to negotiate working conditions such as class size and the necessity for special needs teachers, librarians, etc.

The largest section of health care workers, licensed practical nurses, support, clerical and maintenance workers represented by the 10 unions that make up the Facilities Bargaining Association are currently earning wages that are 7 per cent lower than they were in 2002 because of a government imposed wage reduction in 2004. For most workers, compensation was further decreased in 2010 through benefit and vacation reductions. In 2010 bargaining, the government dictated a "net-zero" compensation increase. This resulted in many unions negotiating wage increases for some groups within the union by agreeing to concessions on vacations and benefits. This became known as "mining the collective agreement."

In the 2012 public sector negotiations the government has dictated to the public sector employers' associations something called the "Cooperative Gains Mandate" according to which the government will provide no funds for compensation increases but will permit the negotiation of "modest" (i.e., up to two per cent) wage increases if the employers and unions can negotiate the means to increase the employers' income. For example, the union representing liquor store employees has proposed that government liquor stores that currently operate from Monday to Saturday open on Sundays in order to increase gross income.

The "Cooperative Gains Mandate" also allows the parties to negotiate "savings." Hospitals and group homes, for example, do not sell products and are therefore not "revenue producers." Under this dictate, the vast majority of workers in this sector are being offered negotiations to reduce "voluntarily" their vacations or health care benefits or other "savings" for the employers to fund a wage increase.

The website of the Ministry of Public Safety and Solicitor General under which the Public Sector Employers Council falls, outlines the "Cooperative Gains Mandate" as below.

***

Cooperative Gains Mandate

The new 2012 Cooperative Gains Mandate applies to all public sector employers whose collective agreements expire on or after December 31, 2011.

The key feature of the Cooperative Gains Mandate is that it provides public sector employers with the ability to negotiate modest wage increases made possible by productivity increases within existing budgets.

Settlements under the Cooperative Gains Mandate are expected to be unique and differentiated between sectors and between employers in some sectors as each will depend on a number of factors, particularly the ability to generate savings to fund modest compensation improvements.

Principles of Cooperative Gains Mandate

The Province will not provide additional funding for increases to compensation negotiated in collective bargaining.

Employers are directed to work with responsible ministries and employer bargaining agents to develop Savings Plans to free up funding from within existing budgets to provide modest compensation increases.

Employers must not reduce service levels to the public in order to fund compensation increases.

Employers must not transfer the costs of existing services to the public to pay for compensation increases.

Savings Plans can include savings resulting from operational cost reductions, increased efficiency, service redesign, business gains, and other initiatives. Savings Plans can therefore propose savings that are much broader than under the previous 'Net Zero' Mandate.

Identified savings are to be used to fund compensation increases that will facilitate negotiated settlements with unions through collective bargaining.

Identified savings must be real, measurable, and incremental to savings identified by Employers to meet Provincial Budget and deficit reduction targets for 2012/13 and beyond.

Employers and unions may also negotiate other savings at the bargaining table to supplement Savings Plans.

Employers are not required to negotiate a target wage increase; however, increases are expected to be modest and employers must have an approved Bargaining Plan from government.

Employers must seek agreements that are at least two years in length. There is no maximum term for collective agreements under the Cooperative Gains Mandate.

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Government and Employers Set Tone for Negotiations by Attacking Hospital Pharmacists' Wages

In the first week of January, the Health Employers' Association of BC (HEABC) announced a unilateral decision to cut the wages of over 900 hospital pharmacists in the province by 9 to 14 per cent effective March 31. The union representing the pharmacists, the Health Sciences Association, has filed a grievance, arguing that the HEABC is violating the collective agreement. The "logic" of the HEABC seems to be:

1. The most recent wage increase for pharmacists was established in 2006, outside contract negotiations. It was a "market adjustment," i.e. an increase to bring their wages in line with pharmacists in the private sector and in Alberta.

2. This increase was necessary because of an acute shortage of hospital pharmacists, especially new graduates who were taking jobs in the private sector or Alberta.

3. At present, the HEABC says their is no crisis or acute shortage of hospital pharmacists therefore "permitting" a wage cut.

4. The wages of those currently working in hospitals should be "unadjusted," even though the predictable consequence will be an exodus of hospital pharmacists to the private sector and Alberta.

Given the anti-worker stance of the Labour Relations Board this outrage may very well be declared "legal" since, unlike "market adjustment" wage increases agreed to within the last few years for registered nurses, some trades workers and licensed practical nurses as part of overall contract negotiations, the 2006 adjustment was negotiated outside regular bargaining. Or, within the anti-worker hysteria of the ruling elite, the Labour Board could set a precedent that ANY wage increase is deemed a "market adjustment" and fair game to be taken back given the fact that the government had declared a freeze on all wage increases EXCEPT "market adjustments." Either way it signals the opening attack on thousands of health care workers whose contracts expire March 31, 2012. The number includes virtually all workers in hospitals, seniors' residences and community support workers, well over 100,000 people.

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Growing Opposition to Clark Government

Opposition is growing across British Columbia to the Christy Clark Liberal government in Victoria amid demands by the people for control over their own lives, communities and future.

Recent public opinion polls have generally placed the NDP in the lead, with the Liberal Party and Conservative parties tied in the mid-20 per cent range.[1]

Two Liberal MLAs recently resigned requiring two by-elections within the next six months. One, in Port Moody-Coquitlam must be called by April 3. It would be customary for both by-elections to be called for the same date, although Clark may balk at the prospect of facing defeat twice in one day.

In Port Moody-Coquitlam, former Mayor of Port Moody Joe Trasolini is the candidate for the NDP. He managed to steal the thunder from the government announcement that construction of the Skytrain Evergreen Line has begun, as he fought for this during his term as Mayor. The Liberal MLA resigned to take a job with the Board of Trade.

In Chilliwack-Hope, the Conservative Party is running Ian Black as its candidate. He is a University of the Fraser Valley criminology professor and former Chilliwack Times columnist. Meanwhile, Laurie Throness, a long-time staff member for federal Conservative MP Chuck Strahl has announced he is seeking the nomination for the Liberal Party. The NDP nomination meeting was set for January 28 and the Liberals February 4.

The population of First Nations peoples in Chilliwack-Hope is approximately 11 per cent and could be a factor in the by-election.

The turnout in the last provincial election in Chilliwack-Hope was 51 per cent, another factor that will no doubt influence the result. Generally, by-election turnout is less than at general elections.

A steady erosion of support for the BC Liberal Party has taken place since the small bounce associated with the election of new leader Christy Clark. She won the leadership without the support of almost all sitting MLAs. Under the specific voting system used, she managed to artificially inflate her vote by winning delegates in ridings with only a small Liberal base. Those tactics mirror the micro-targeting tactics developed by the federal Conservatives, which are likely to play an increased roll in the 2013 BC elections.

Workers, First Nations, youth, students and seniors are especially frustrated with the Clark government and the confines imposed upon them by the party-dominated electoral system. This can be clearly shown by the enthusiasm with which people engaged in the politics leading up to the defeat of the HST, openly encouraging one another from different political perspectives to come together to defeat this regressive tax system pushed by the BC Liberals and Harper Conservatives.

The BC Liberals have unleashed a blitz of television ads personally attacking NDP leader Adrian Dix. Complete with a distorted photo of him and hysterical references to the 1990s as a nightmare, the ads appear completely out of context, given that Premier Christie Clark has settled the question that she is not going to call an election before the scheduled date of May 14, 2013.

People will recall the massive imbalance between the pro- and anti- HST television ads in the recent referendum. The anti-HST forces managed to get their message out through organizing, reminding people of the broken Liberal promises, and remaining focused despite the fact that their advertising campaigns were at a disadvantageous ratio of something like 15 to 1.

In the 2005 election, Liberal seats dropped from 72 to 46 and the number of NDP seats went from two to 35. In 2009, the election results were essentially a dead heat, with the combined change in votes for the Liberals and NDP being less than 1 per cent. Both the Liberals and NDP increased their seats (+3 and +2 respectively) because the size of the Legislature had grown. After the election, the two-year long campaign to challenge the decision of the Liberal government to implement the HST shook the BC Liberal party substantially, and led to resignations of Liberal MLAs, cabinet ministers and ultimately Premier Campbell himself.

The experience of the fight against the HST, the efforts at electoral reform, including the campaign to replace the first-past-the-post system with the STV (single transferable vote) that won broad public support and the resounding resident-led defeat of the Harper-instigated privatization of Abbotsford's water supply show that a broad appetite for democratic renewal and to carry it out exists amongst the people.

Let us step up the discussion of the current situation and the options facing the working class, First Nations and all others in BC.

Note

1. Recent opinion polls re: popularity of political parties:



  Liberal     NDP     Conservative     Green 
Jan 25, 2012
Forum
26
39
22
9
Jan 4, 2012
Forum
23
34
23
15
Jan 4, 2012 Oraclepoll
25
44
16
15
Nov 5, 2011 
Angus-Reid
31
40
18
8
Oct 7, 2011
Ipsos-Reid
38
45
12
6

(Source: BC2013.com)

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Enbridge Pipeline Review --
Just Who Is Getting Hijacked?


Protest in Prince Rupert against the Enbridge pipeline, May 12, 2011. (Friends of Wild Salmon)

Prime Minister Harper has recently made comments that the Enbridge pipeline review process is being "hijacked" by "outside interests." By this he means that certain environmental groups and other organizations have accepted funding from U.S. sources to oppose the pipeline.

Who Is an "Outside Interest"?

So let's first take a look at the Review panel that the Harper government has appointed to conduct hearings and make recommendations on whether the pipeline should go ahead. All three panel members just so happen to come from Alberta or Ontario. Given the risk to British Columbia because of its mountainous terrain and extensive waterways, and given the strong opposition in the province, why wasn't someone from BC put on that panel? Was there no qualified person from the four million people who live in British Columbia? One thing is for sure -- it is a telling omission on Harper's part.

What about the Enbridge Corporation itself that will be responsible for the hundreds of kilometres of pipeline across Northern BC? Six of the twelve Directors of Enbridge are based in the U.S., including David A. Artledge, who is a resident of Naples, Florida, and James J. Blanchard, who is a former governor of the U.S. state of Michigan. The other six directors live in either Alberta or Ontario. Many of these twelve directors, whether Canadian or American, are connected, in one way or another, to various foreign multinationals through former positions or current directorships.

What about major shareholders in Enbridge? According to the fund tracking site Stockzoa, the largest shareholder is "Caisse de depot et placement du Quebec." The next largest is FMR (Fidelity Investments) which is a U.S. financial services multinational. Third largest is Sumitomo Trust and Banking Company, which is tied to the giant Japanese conglomerate "Sumitomo Group." Fourth in size is Bank of America, one of the largest banks in the U.S.

According to Enbridge's own site, its publicly traded shares are 48 per cent "Canadian institutional" and 23 per cent foreign and U.S. But, 50 per cent of its directors are based in the U.S. According to Stephen Harper's own definition, doesn't that amount to "outside influence"?

Enbridge, despite the Calgary location of its head office, cannot really be classified as "Canadian" but rather "North American" or "global." It has extensive operations in various U.S. states, including Michigan where, in 2010, an Enbridge pipeline leaked 840,000 gallons of crude oil into the Kalamazoo river. Indeed, the company boasts that its vision "is to become the leading energy delivery company in North America" and "our assets connect North Americans with energy they need."

Principal Financial Backers of the Enbridge Pipeline Project

The names of five of these backers were released recently. One of them is "Total EP," which is a French-owned global energy monopoly with head offices in Paris, France. Another is Sinopec, which is a state-owned energy corporation based in China. Nexen is an energy multinational with operations in the North Sea, Gulf of Mexico and Africa. Suncor is mainly based in Canada, but has operations in the U.S. MEG Energy is 16.9 per cent owned by the giant Chinese company CNOO.

Don't at least some of these companies count as "foreign interests" in Stephen Harper's calculation? By his definition, doesn't their substantial financial backing of Enbridge amount to "outside interference" and "highjacking" of the pipeline review process?

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