CPC(M-L) HOME TML Daily Archive Le Marxiste-Léniniste quotidien

March 1, 2012 - No. 27

Alma Workers Versus Rio Tinto

Rio Tinto's Campaign of Lies and Disinformation

Alma Workers Versus Rio Tinto
Rio Tinto's Campaign of Lies and Disinformation - Normand Chouinard
Alma Worker Explains What's at Stake

Halifax Transit Strike
Making Claims on Society "In This Economy" - Kevin Corkill

Campaign to Destroy Universal Pension Regime
Government's Self-Serving Old Age Security Accounting
The War of the Rich on Workers, Young and Old - Jim Nugent

Opposition to the Tuition Fee Increase Gains Momentum in Quebec
Socially Responsible Students Say: No Tuition Increase! Education Is a Right! - Serge Lachapelle


Alma Workers Versus Rio Tinto

Rio Tinto's Campaign of Lies and Disinformation

Rio Tinto, in pursuit of its disinformation campaign against the workers and the United Steelworkers which represents them, published a press release on the webpage for the Alma smelter entitled, "The Conflict Benefits No One." Rio Tinto turns truth on its head by portraying itself as the victim of the workers' "intransigence." It would have us believe that the work stoppage caused by the lockout of 780 Alma workers and any resulting damage is the sole responsibility of the union and its members. The Steelworkers are to be considered troublemakers while worldwide, Rio Tinto is a caring and responsible corporate citizen.

The press release begins, "A labour dispute does not benefit anyone and Alma is no exception." That's an absurd claim since Rio Tinto is the one that locked the workers out. If Alma workers had accepted Rio Tinto's new business plan without resistance, the monopoly would have benefitted greatly while the consequences for the workers, the City of Alma and the Saguenay-Lac-St-Jean region, not to mention all of Quebec, would have been negative. On the other hand, if workers are able to block Rio Tinto's offensive, the opposite occurs and a new situation is created. Moreover, the origin of the labour dispute is Rio Tinto's offensive to seize a larger portion of the value created by workers at their expense. Accordingly, Rio Tinto may actually benefit from this conflict. Its assertion is therefore false.

Let's continue. The press release says, "The purpose of the Alma plant is to manufacture aluminum products and when two-thirds of the tanks are inactive, that's 280,000 tons of aluminum annually that will not be produced and will not generate value." Hooray for Rio Tinto's lucidity. It therefore recognizes that it is the workers who create the wealth and without their work there is no aluminum or profits. The 780 workers are therefore the most valuable asset to sustain the company. So why the lockout, Rio Tinto? It was you who closed the plant, not the workers. The workers reported for work on December 31 before you locked them out. You're the one to blame for loss of income and production, no one else.

The text continues. "That's why, for three months, Rio Tinto Alcan did everything possible to try to avoid this conflict. The offers submitted were rejected on two occasions by the union and its members, and the union then decided to break off negotiations. Since 1995, Rio Tinto Alcan has negotiated, without labour disputes and prior to deadlines, more than 70 collective agreements for its Quebec facilities [sic -- Rio Tinto only acquired Alcan in 2007]. Alma is the first labour dispute to occur in more than 15 years for the company worldwide, but the United Steelworkers has engaged in more than 70 conflicts during the same period in Quebec alone."


Workers at Rio Tinto Minerals in Los Angeles, California express support for Alma workers, February 22, 2012. (Métallos)

This is an amazing statement when one considers that the success of the international solidarity with the Alma workers is precisely because of the way Rio Tinto treats its workers around the world. (See TML Daily, February 16, 2012 - No. 19 on the recent disputes in Australia (attempts to prevent unionization), California (lockout of borax miners) and elsewhere.) And that's not counting Alcan's own criminal history worldwide before it merged with Rio Tinto. But one can assume that Rio Tinto doesn't want to take ownership of Alcan's history, just its acquisition of cheap hydro-electricity and its aluminum plants built by the Quebec workers. The press release is no doubt referring to the "conflicts" in Jonquière, Arvida and elsewhere, where the company didn't "provoke" any "conflicts," it simply wanted to throw workers out on the street, abandon the communities to their fate and seize the hydro-electric rights. The workers have always opposed these moves as they are doing once again in this case.

According to Rio Tinto executives, the monopoly wants nothing more than to produce aluminum, while the producers of aluminum in Alma are responsible for the production stoppage. So why the conflict now? What happened? Why lock out the workers even before the end of their collective agreement?

There are things Rio Tinto does not say in its press release. Namely that its offensive against the Alma workers is only the beginning of a worldwide offensive to try to recover the purchase price of Alcan off the backs of its employees. This is part of its restructuring and its objective to lower the "costs of production," i.e., to transfer to itself a larger part of the added-value the workers produce.

Nothing is said about the conditions that exist in other plants worldwide. However, we know that on December 31, 2011, 150 company mercenaries handed the Alma workers their belongings in garbage bags and brutally expelled them from the plant. Why? Because the Alma workers refused to submit to Rio Tinto's dictate. So, what does this suggest about how Rio Tinto treats its employees around the world if they don't accept company dictate?

Rio Tinto accuses the United Steelworkers of causing over 70 labour disputes in Quebec since 1995. That's simply not true. According to Rio Tinto's self-serving definition, labour disputes occur when unions refuse to agree to extortion schemes in place of negotiations. The reality is that it is not the unions causing anarchy and disorder in the world, but interimperialist collusion and contention for sources of raw materials, cheap labour, zones for the export of capital and spheres of influence. By turning such an obvious truth upside down it directly criminalizes the entire working class and its fight to defend workers' rights.

The workers' opposition must seriously discuss this type of political position taken by Rio Tinto and other monopolies. It is far from innocuous. It represents the desire of the monopolies, in this period following the collapse of the postwar social contract, to eliminate what's left of the workers' rights, including the right to bargain collective agreements in good faith. It's the "take it or leave it" dictate that the rich and ruling circles in Quebec want to impose. According to this dictate the workers must submit or suffer the consequences. This must not pass!

Support the just struggle of the Alma workers for the recognition of the rights of the working class! Reject Rio Tinto's lies and disinformation!

(Translated from original French by TML Daily.)


Los Angeles, California, February 22, 2012 (Métallos)

Return to top


Alma Worker Explains What's at Stake

TML Daily is posting below an op-ed item by an Alma worker originally published in Le Quotidien, February 21, 2012, entitled "An Inside Look at the Conflict."

***

Do people understand what's at stake in the labour dispute with Rio Tinto Alcan in Alma? I'm not sure! I will try to explain.

As a start you should know that the fight is not for salaries, because those have already been negotiated. I already know my raise for this year. The stakes are much higher.

Personally, I will retire in six years. I only have to accept the offers and bide my time. My work is guaranteed, my pension plan is almost guaranteed as well. Why complain? What people don't seem to understand is that I'm not fighting for myself, but for future generations. People think we don't want any subcontractors. I have nothing against subcontractors -- they are family men who have the right to live like the rest of us.

On the contrary, they have no protection, no pension funds and they do the same work as me, in worse conditions. If, unfortunately, they hurt themselves, they lose their jobs not long after returning to work. We've never kicked out a subcontractor and we've never claimed their jobs. There always have been and always will be subcontractors. But neither do we want to lose quality jobs for our children and those of the subcontractors. [The question is] what should be the minimum level of employment?

It's not about being against subcontracting, but opposing this company that wants to reduce quality jobs all across Quebec. Let me explain. Currently, we are 780 workers earning an average of $75,000 per year. They want to replace each worker that retires with a subcontractor at $15, $16 or $17 per hour. In a few years many will retire and they want to reduce our numbers to about 200 or 250. (Where's the balance of power for future negotiations?) What we want is simply to preserve our gains for the region. What we are experiencing today during the lockout, the drop in consumption [in the local economy], will be our daily reality in five to ten years if the population does not wake up.

Personally I think it's better to suffer a bit today than for the rest of our lives. The quicker the population rises up, the quicker the contract will be signed. If you do the math you'll quickly see that there's about $60 million less in wages in the region, leading to the population's impoverishment. They say our jobs are guaranteed, this is true, but not the positions, the location and certainly not the next generation of workers.

Remember not long ago, when RTA bought Alcan, they demanded that their suppliers reduce costs, and it was never enough. Once they've succeeded in breaking the union, who will be able to fight them? So they'll demand that the subcontractors reduce salaries. Who will be able to eat in restaurants, buy new cars, snowmobiles, ATVs etc? So the small businesses will also pay the price. It will lead to an overall impoverishment of the region. If salaries are lowered, what will keep the youth in the region? The exodus of youth will be even greater. It's all linked. Who wins?

Only here in Quebec, does RTA have several companies. The outcome of this fight will affect Quebec as a whole for decades to come. The stakes are really high for RTA. Why would a company accept to lose a million dollars in production profits per day? Because they have more to gain in the long run. If they're ready to close their most profitable plant, what will happen to the others in the not so distant future?

The government is giving them $500 million in electricity benefits per year and a $400 million interest-free loan, which largely covers our salaries. That means it costs them nothing in salaries and they're making even more money with electricity. And its the Quebec population as a whole that is paying for this. There's not a single small or medium-sized business where the government pays 100 per cent of the employees' salaries.

RTA talks about globalization and says that if they want to remain competitive they have to fight. That's hogwash. Their objective is to make a 40 per cent net income. I don't know of many businesses in the region with that kind of margin. All the Alcan enterprises that they bought that couldn't attain that goal were sold or are for sale.

If you want to see what's coming in the next few years, you need only look at what happened in forestry, and it's exactly the same with energy. When I started working in forestry in 1978, we thought at the time that there was enough wood for the next 100 to 150 years. Thirty years later there isn't enough for the paper companies to operate unless they demand guarantees before investing. Remember, it's not us who are on strike, they're the ones who brutally locked us out. We even went to the gate at midnight on January 1 to claim our jobs and they locked us out.

It was never the employees who wanted to leave or refused to work. They hired 150 strong-arms, they went up to the employees at work, held out a garbage bag containing their clothes and told them to take them and kicked them out of the plant without even permitting them to decontaminate. They said there were pressure tactics, that bins were lit on fire. Come on. I work at the casting carousel and have to change the bin on average five times a run, and usually two of those times the bin is on fire. It's because we work with material that's between 800 to 965 degrees Celsius, not to mention the chemical reactions.

If we wanted to use pressure tactics, our attack wouldn't be on stuff like that but directly on production. You've never heard the company once complain that production was reduced. Quite the opposite, it increased in the last few days, because management chose to empty the tanks while there were a lot of workers. They've been threatening to lock us out for a year now. I have a job I like with good working conditions, why would I mess with that? It's absurd. I've worked for this company for nearly 25 years and never caused any damage, I wouldn't start just before retirement.

Currently the company owes $850 million to our pension fund and it refuses to immediately refund it or make the necessary arrangements, this at a time when metal is in very high demand. What will happen when demand falls? Not to mention that if the number of participants in the pension fund goes down, we'll lose because there will be no one left to contribute. This outlines our struggle.

The people must absolutely wake up because in ten years, we'll be poorer than ever. When Charest modified Bill 45 of the labour code, it brought us back 50 years, to the companies' benefit. Don't forget that these companies (the Quebec Employers Council) are financing Charest. Look at the last few years, how many businesses left Quebec or negotiated lower salaries and then gave their executives millions in bonuses.

The advantages granted by the government to [Alcan] allowed its shareholders to make more money by selling the company the following year. As the last straw, we learned through the denunciations of aluminum workers that, in a secret deal between Quebec City and Rio Tinto, the new acquisition could benefit from Alcan's continuity agreement, while retaining the freedom to close its plants without punitive sanctions from the government

Today people have a choice: watch the train go by and lose everything or get on and win this provincial fight.

Francis Ouellet
Saint-Bruno

(Translated from original French by TML Daily; Photos: STAA, L. Wiatrowski)

Return to top


Halifax Transit Strike

Making Claims on Society "In This Economy"


Striking Halifax Transit workers rally on February 14, 2012. (Media Coop)

No doubt every Canadian has heard the phrase "in this economy." It is used to explain why we should accept concessions, rollbacks, inflation, unemployment and job insecurity. We are even expected to accept that "in this economy" our claims on society will not be met and cannot be met. Apparently, there are more pressing needs from our economy than meeting the needs of those that produce the wealth in society or provide a valuable service!

A case in point is the transit strike in Halifax, which began February 2. The Amalgamated Transit Union Local 508 and the Halifax Regional Municipality (HRM) are at loggerheads over scheduling -- with the HRM attributing the bus drivers and overtime as too much of a "cost." They are going so far as to say that "the public is being held ransom" and Amalgamated Transit Union (ATU) Local 508 is "holding [your] transit system hostage." Indeed, what the HRM is demanding is to have the ability to outsource any part of the system that is not part of the regular transit schedule -- which includes the ferries, maintenance and Access-A-Bus -- what the ATU says amounts to almost 200 jobs. In other words, the HRM is looking to auction off this public service to private interests at which time we will indeed be held ransom to the interests of some for-profit corporation.

What is happening here is part of the arrangements being brought in on a larger scale in Canada -- which is to politicize private interests, depoliticize public interests and destroy public assets. In the scenario being played out between the HRM and transit workers, the HRM is claiming that the skyrocketing costs of providing transit service, including high overtime costs, are a justification for its demand for concessions and outsourcing. It even began a campaign saying that it is the taxpayers who will have to pay and it is the taxpayers' money they are trying to save! All for our sakes! How nice. What they don't explain is that the problem of overtime is due in large part to service and management demands. Also, that any for-profit service would be a complete drain as the cost of service would be higher and those profits would be lost to wherever the for-profit service provider decides. In other words, HRM is claiming it is providing a solution but in fact is just demanding concessions from those who provide the service and not resolving any problem at all!

The fact that there is truth in HRM's claim that there is difficulty in providing mass transit in the region does not justify their perverse logic that the ATU should accept losing control over scheduling (seniority rules), more difficult working conditions and privatization. In fact, it is in the public interest to recognize the providers of transit service and their rightful first claim on the value they produce as part of providing these services to the people and improving them!

So, it is true that "in this economy" it is the workers, our public healthcare, transit, schools and all other institutions that are being held ransom to the demands of the monopolies and those who do not recognize the need for a new direction of the economy that favours the people and puts their claims on it in first place.

Any serious solutions to the problem of properly funding public services must begin with the recognition of the need for a human-centred alternative and a new direction for the economy.

Forget "in this economy." The issue is "Whose Economy? Our Economy!"

Return to top


Campaign to Destroy Universal Pension Regime

Government's Self-Serving
Old Age Security Accounting

A report tabled in the House of Commons on February 28 reveals the extent of the government's self-serving accounting of Old Age Security (OAS) payments that favours their propaganda that the regime is  not affordable. The government claims the OAS system -- which pays retired Canadians a maximum of $540 monthly -- is unsustainable because the number of seniors is expected to double over the next 20 years while the share of the population made up of working-age taxpayers will be cut in half. Propagandists have started a campaign saying that paying out OAS is a "war against the younger generation" and other such nonsense.

The report tabled in the Parliament shows that the government has overestimated the cost of the system by hundreds of millions of dollars in three of the past four years. Only in 2009-10 did the government underestimate the payments, by $192 million. This fiscal year, the government estimated OAS payments to be $29 billion, while the actual amount is $410 million less.

In 2010-11, The government overestimated by $356 million on an initial projection of $28 billion, and in 2008-09, its overestimation was $368 million.

The report says the difference is because there were fewer beneficiaries than expected and the average payout per person was lower than projected. In addition, more beneficiaries paid back their benefits than anticipated.

While the government says the differences are to be expected and remain well within normal ranges, the opposition is arguing they raise further questions about the government's long-term projections about the OAS system's unsustainability.

A spokeswoman in Human Resources Minister Diane Finley's office said the discrepancies are not unusual, particularly when dealing with a multibillion-dollar projection and that they are within normal ranges, Postmedia News writer Lee Berthiaume says.

"There are always going to be slight differences, but it continues to line up," Alyson Queen said. "There will be, with any financial forecasting, a difference between your projections and your actuals."

Postmedia reports that "[s]everal economists and spending watchdogs, including parliamentary budget officer Kevin Page, however, have argued the OAS system is fiscally sustainable over the long term and 'there's no reason to change' eligibility rules from a fiscal standpoint.

"In a separate report, the government estimated OAS payments to increase to $30.5 billion in the coming fiscal year. Depending on whether last year's projected cost is used as a base or the actual number is, that represents a 4.6 or six per cent increase."

Return to top


The War of the Rich on Workers, Young and Old

For the last thirty years, one of the key strategies of the rich for driving down standard Canadian wages has been to impose a system of two-tier wage, benefit and retirement schemes on Canadian workers. Threats of plant closures, bankruptcy frauds and other forms of extortion have been used by employers in contract negotiations with active workers in efforts to impose lower wages and benefit/pension plans on younger workers entering the work force and to strip pensions and benefits from retirees.

While politicians in power permitted and supported this two-tier campaign of international monopolies and other employers, workers have fought it every inch of the way. The resistance of Hamilton steelworkers of Local 1005 USW to U.S. Steel's two-tier schemes during an 11-month lockout in 2010-11 is one of hundreds of such struggles workers have waged against two-tier systems since the 1980s.

Based on this experience, Canadian workers have the utmost contempt for the current political and media campaign around the Harper government's planned cuts to Canada's public pension system, particularly Old Age Security and Guaranteed Income Supplement (OAS/GIS). To manage the widespread opposition to these cuts, this campaign is portraying opponents of Harper's public pension cuts as supporting greedy seniors in a "war on the young."

Immediately after he announced that public pension benefits would be cut, Harper and the monopoly media launched their political spin. The Globe and Mail published an hysterical column with the headline, "The War Against the Young." This column said, "The reduction in the elderly poverty rate over the past few decades has been called the major success story of Canadian social policy in the 20th century. Now, our biggest social problem is not how to redistribute more money to the needy old. It's how to protect everyone else from the tsunami of geezers that's about to crash on our shores and suck the wealth of future generations out to sea. The war against seniors' pension reforms is a war against the young."

Continuing in this vulgar tone, the Globe columnist demanded an end to universal pension and health programs for seniors, "I'm not suggesting we cast the elderly out to sea on ice floes. But we need to think about how we allocate our money. Are we really sure we want to transfer so much wealth from struggling young families to relatively well-off geezers? How smart is it to suck our grandchildren dry? How many schools won't get built because we're buying Lipitor for people who can already afford to pay for it? Not all seniors are well off, of course. But plenty of them are."

This same game of pitting younger workers against older workers was taken up again by Harper's minister responsible for social policy at a speech to the Canadian Club of Toronto on February 21. The speech by Human Resources and Skills Development Minister Diane Finley was an obvious and cynical use of the "war on the young" spin to push Harper's pension agenda by shamelessly inflaming young workers against older workers.

Finley's Canadian Club audience, besides the usual millionaire members, included students Harper's PR team had bused in from a local high school to serve as media props during the speech. Finley made a point of aiming most of her comments at them: "There are a couple of tables of students in the room. You may want to glaze over when I start talking about retirement. Instead, perk up -- because I hope that by the end of my remarks, you'll realize that Canada is changing dramatically. I also really hope that you'll realize our Government is working really hard to be sure that Canada is left stronger and better for you."

Finley then presented what she called "Retirement Income 101, the crash course from Diane Finley." This presentation repeated the Harper government's claims that "a tsunami of geezers" threatens Canada's future, assertions the opposition parties and the Parliamentary Budget Office call a demographic fraud. Directly addressing the students, Finley warned, "The total cost of OAS benefits will be increasingly unsustainable for tomorrow's workers and taxpayers. And it's the next generations of Canadians who will have to shoulder the burden. The next generations who will have their own families to raise, their own mortgages to pay, their own student and household debt to manage."

It is despicable that the political and media representatives of the rich are presenting themselves as defenders of young workers. Year after year they have supported employers in ruthlessly imposing low wages, eliminating job security and gutting pension/benefit plans for young and future workers in two-tier contracts. Now these charlatans are expressing their bogus concern about this "next generation of Canadians who will have to shoulder the burden."

Like two-tier wages and pensions, the entire "war on the young" rhetoric is a self-serving attempt by the rich to drive wedges into the inter-generational solidarity of the working class. This solidarity is based on harmonizing the different interests of old and young workers, of other individual workers and of groups of workers into a collective interest. The spin of a "war on the young" is an attack on the consciousness of the working class reflected in its banners, All for One and One for All! and An Injury to One is an Injury to All! -- banners that have been carried into hundreds of battles against the two-tier offensive of the rich over the last thirty years.

It is very significant that both the politicians and the media in their spin on pension reform attack the universality of programs like OAS/GIS. They say OAS/GIS should be a kind of welfare doled out to only the poorest of the poor based on whatever can be spared from the funds the rich are accumulating for their "prosperity and growth" agenda. They oppose universality because it moves society towards the recognition of the rights of all, such as the right of seniors to retire in dignity and security and because it puts on government the responsibility to ensure rights. Political representatives of the rich reject any responsibility for society and uphold their right to put the entire resources of society at the disposal of their global competition.

Universal programs like OAS/GIS arose as a political demand of the working class, a reflection of its interest in the rights of all and social progress. While the rich want to roll back any concessions they made on universal programs, a broad array of social programs based on the principle of universality favours the working class. Such programs can go a long way towards harmonizing the individual interests with those of the collective and the individual and collective interests with the general interests of society. A system of comprehensive social programs will contribute in a decisive way to creating a really democratic and humane society, in which all interests will be harmonized in favour of opening the path for progress.

Return to top


Opposition to the Tuition Fee Increase Gains Momentum in Quebec

Socially Responsible Students Say:
No Tuition Increase! Education Is a Right!


Montreal, February 23, 2012 (Mouvement étudiant)

On February 23 nearly 20,000 students and supporters once again demonstrated in the streets of Montreal to proclaim loud and clear: "No Tuition Fee Increases! Education Is a Right!" This is the students' response to the attempts by the government and monopoly media to manufacture false "support" for the anti-social measures against education. The students are taking up their social responsibility to defend their rights and society's interests and declaring that in a modern society education is not a matter of "individual choice." Jean Charest's Liberal Party and its agents trying to infiltrate the student movement appear increasingly isolated in their insistence that the government evade its social responsibility and continue to put Quebec's resources at the disposal of private monopoly interests.

Student associations report that as of March 1, 100,000 post-secondary students are on strike and more strike votes are planned for the coming weeks.

"Today hundreds of citizens are with us in the streets to make the Charest government understand that a tuition fee increase is not only an attack on students, but on the population as a whole," said Jeanne Reynolds, spokesperson for the Broad Coalition of Student Union Solidarity (CLASSE). "Access to education is a social issue that concerns everyone," she added.

Teachers were present in large numbers. Jean Trudelle, president of the National Federation of Quebec Teachers (FNEEQ) said, "The projected tuition increase raises the question of what kind of society we want. For us, higher education is a key path to self-actualization and is also a powerful lever for social emancipation and, for this reason, should be free, end of story." For the FNEEQ, "free access to all levels of education and, in this context to higher education, is neither a luxury nor a consumer product, it is a fundamental right," he added.

The Collective for a Poverty-Free Quebec, which gave its unconditional support to the students, affirmed that for a society which genuinely wants to eliminate poverty and narrow the gap between the rich and poor, education must be a top priority. It must be accessible in order to favour the development of people's full potential, it said. "On one hand the government affirms that education is its first priority and that it constitutes the best way, with employment, to combat poverty. On the other hand, it announces drastic tuition increases that will ultimately increase one year of university studies from $2,168 to $3,793 and will lead to a decline in attendance. It's totally nonsense!" said Serge Petitclerc, the collective's spokesman.

The pathetic attempts by the Charest government and the monopoly media to denigrate the student movement and gain support for the government's tuition increase have failed to break the students' determination. Recently the media has tried to promote the "Movement of Socially Responsible Quebec Students," which claims to be neutral but defends the nation-wrecking logic that education is an "individual choice."

Student associations have nipped this in the bud by revealing that this "movement" of "neutral students" is in fact led by Liberal Party members. Stéfanie Tougas, general secretary of the University of Montreal Federation of Students Associations (FAÉCUM), pointed out that the students have exposed the use of fake Twitter accounts by Liberal Party members and that the Ministry of Education has paid Google to raise the ranking of certain student associations in its search engine and sent teachers letters demanding they cross student picket lines. "Enough of these impostors!" she said.

"Quebeckers will increasingly support us, as happened in 2005," said Gabriel Nadeau-Dubois, spokesman for CLASSE. "The government can increase its fallacious arguments to try to say the tuition increase is inevitable, but no one is fooled," he added.

The Association for Student Union Solidarity has called on the students and people to join in the next demonstration March 1 in Quebec City.

(Translated from original French by TML Daily)

Return to top


Read The Marxist-Leninist Daily
Website:  www.cpcml.ca   Email:  editor@cpcml.ca