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June 5, 2012 - No. 84

Harper Government's Anti-Worker, Nation-Wrecking Social Policy

The Workers' Opposition Must Occupy
the Space for Change

Harper Government's Anti-Worker, Nation-Wrecking Social Policy
The Workers' Opposition Must Occupy the Space for Change - Jim Nugent
Fisheries Workers Denounce Changes to Employment Insurance
Courtenay Rally Against Harper Dictatorship's Omnibus Budget Bill

Argentina Restricts Monopoly Right
Canadian Mining Interests Openly Interfere in Argentina's Internal Affairs


Harper Government's Anti-Worker, Nation-Wrecking Social Policy

The Workers' Opposition Must Occupy
the Space for Change

The Harper regime's attack on social security and other social programs is opposed by workers and their organizations across the country. These changes harm workers who rely on these programs and this harms the entire working class that cherishes the principle, "An injury to one is an injury to all!"

In defending these social programs, workers also uphold the role they play in harmonizing regional differences and remediating regional disparities. Working class opposition to the smashing of social programs is nation-building. It blocks Harper's path of inflaming regional differences and nation-wrecking.

The Harper government's retrograde path is plain for all to see in the changes it is implementing in the Employment Insurance program (EI). Some of these changes are targeted very narrowly at eliminating benefit payments of 300,000 fishery and other seasonal workers in the Atlantic Provinces, many of whom rely on EI benefits for part of the year and will face punitive new rules for collecting EI. Most of these workers are employed in remote rural areas. It will be impossible for many rural unemployed workers to meet the new EI requirements and they will be cut off. Eliminating these benefits will also damage the regional economies.

A recently published report on rural workers in Nova Scotia, which is also applicable to the other Atlantic Provinces, shows how deeply the problem of seasonal employment is embedded in the rural areas of the region. Any attack on the social support system for many localities throughout the Maritimes creates a serious problem for workers, the regional economies, the continuity of their way of life and viability of their communities. Harper's attacks on social programs do not open a path forward to renew their regional economies and communities but rather may simply destroy them altogether.

In Nova Scotia, the unemployment rate varies from 9.1 per cent in the summer to 13 per cent in the winter, double the national seasonal variation. As well, the average age of workers remaining in the rural areas is very high by national standards, with 20 per cent of unemployed workers more than 55-years old, which makes finding other jobs even more difficult.

The wrecking of manufacturing that has occurred across the country also has a particular rural character in the Atlantic Provinces. Between 2005 and 2011, rural areas of the Maritimes lost 26,000 net jobs compared to a net manufacturing job loss of 1,000 in urban areas.

The nation-wrecking agenda of Harper displayed in the EI changes was also laid bare on the question of federal health and social transfers this past year. In December, federal Finance Minister Jim Flaherty unilaterally imposed a new social and health transfer arrangement on the provinces, which puts a cap on future federal transfers abandoning the concept of cost-sharing. It also included per capita funding allocations that do not acknowledge regional differences in health and social programs. Like EI changes, the new funding transfer arrangement hit the Atlantic region hard.

Per capita costs of providing health care in the Maritimes are higher because of such factors as lower economies of scale, low population density and the outmigration of younger, healthier workers. Outmigration of 5,000 mostly younger workers from the Maritimes every year has resulted in the four Atlantic Provinces having the four highest median ages in the country. None of these factors has been taken into account by the Harper government and no responsibility assumed to ensure a universal high standard in health care across all regions of the country.

Nation-Building Requires the Affirmation That People
Have Rights by Virtue of Being Human

As the Harperites aggressively push forward the interests of the monopolies they represent, they are trampling on the rights of all to a livelihood, to health care, to dignity in old age and other rights people have by virtue of being human, regardless of their region.

The Harperites arrogantly brush aside politicians who are not aligned with them, attempting to dominate and put all political and economic affairs in the country in the service of the private interests they represent. They often characterize their neoliberal measures as common sense and pragmatic. To empty rural Canada by cramming everyone into Canada's largest urban centres is considered rational in Harper's view and the natural progression of the capitalist system towards economies of scale where the largest monopolies can more easily exploit the people with the lowest costs. Their narrow considerations to serve the private monopolies deny that such irrational concentrations of populations are unsustainable and in contradiction with the necessity to humanize the social and natural environment.

To destroy existing communities is also linked to putting pressure on workers to become "boomers" and work in the current hot centres of resource development such as Plan Nord, Ontario's Ring of Fire, the oil sands and BC's northeast. Those areas are mostly not planned as permanent settlements or communities with vibrant culture, complete amenities and public services for all ages and a diverse and sustainable economy but rather organized for certain monopolies to make the highest profit in the fastest possible time with no concern for the social and natural environment and the rights and well-being of workers.

Harper Snubs Quebec and the Premiers

When the premiers of the provinces and Quebec held their annual first ministers meeting in Victoria, BC in January -- the Council of the Federation -- it was boycotted by Stephen Harper. Instead of meeting with the Premiers, he went on national television to push his austerity agenda and to complain that he did not want to meet with the Premiers because "they always ask for more money" for health and social programs.

Harper's attitude toward the Victoria first ministers' meeting followed a similar arrogant approach at the meeting of federal and provincial Finance Ministers a month earlier. That meeting had been called to negotiate a new federal-provincial health and social funding agreement to replace the accord that expires this year. Instead of negotiating, federal Finance Minister Jim Flaherty plunked down a new funding agreement at a breakfast meeting and told the Finance Ministers of the provinces and Quebec to take it or leave it. At both of these meetings, most of the Premiers and Ministers denounced the Harper government for its unilateralism and "violation of the principles of federalism" by refusing to negotiate federal transfers.

In recent days, most of the Premiers and Finance Ministers from the provinces and Quebec have come out against Harper's changes to EI. Premiers of the Atlantic Provinces, who view EI payments to unemployed workers as a federal transfer to the region, strongly denounced the EI changes as "an attack on the Maritimes."

Occupying the Space for Change with a Pro-Social Agenda

The denunciations of the Harperites by the provincial politicians show that the Harper government's nation-wrecking including his reckless disregard for regional differences is isolating his dictatorship in the Atlantic Provinces and other regions of the country. Space is opening up to oppose the Harper regime for its nation-wrecking. Workers have to occupy this space for change with their own pro-social agenda, which is also a nation-building agenda. The working class organizing, fighting and winning its demands for improved universal health, social security and other social programs goes a long way towards strengthening nation-building and reconciling regional disparities. Only the working class has the interest and capacity to carry these struggles to a successful conclusion and give the economy and country a new pro-social direction.

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Fisheries Workers Denounce Changes to
Employment Insurance

One of the groups of workers who have been specifically targeted by the Harper regime's changes to the Employment Insurance (EI) system are fishery and other workers whose employment is affected by the seasonal nature of their industries. The government attack on these workers has also been accompanied by a campaign in the monopoly media unjustly defaming these workers as some kind of freeloaders on the national economy and a burden on the EI system.

In these attacks, the benefits paid to workers are well-documented but their contributions ignored. Fishery workers contribute directly to the national economy through $2 billion in fish landings, $1 billion in aqua farming output and another $4.5 billion in fish processing. They also contribute indirectly in local economies from the spin off from their fisheries. Also ignored is the role of EI payments as regional transfers to meet the federal government's responsibility to even out regional disparities and ensure a standard Canadian livelihood in all regions of the country.

Universal social programs like EI can harmonize differences amongst people with different circumstances but they also have the potential to harmonize regional disparities that exist because of the vast geography of Canada and uneven development arising from the capitalist mode of production. Rather than realizing this potential of social programs for harmonizing regional differences, Harper is recklessly inflaming regional differences in his single-minded determination to serve the powerful monopolies he represents. The Harperites' anti-worker wrecking of universal social security programs should also be characterized as nation-wrecking.

Fisheries Workers Denounce Changes to EI

The changes in the EI system that the Harper government has announced have been denounced by workers and their organizations across the country. This includes fishery workers and the organizations of fishery and other seasonal workers on both coasts. These workers have taken a stand against the Harper government's EI changes because they are both an attack on fishery and other seasonal workers and an attack on the regions where they live.

Irvin Figg, president of the United Fishermen and Allied Workers Union (UFAW) has denounced the changes to EI as an attack on workers and the coastal communities of BC. UFAW is organizing a campaign to rally people in the coastal cities and communities against the federal government's EI plan. Earle McCurdy, president of the Fish, Food and Allied Workers (FFAW) denounced as "a real backwards step" the three tiers of eligibility the new EI regulations impose. "It's almost as though seasonal workers are kind of third-class citizens with respect to the EI program," McCurdy said.

Lana Payne, president of the Newfoundland and Labrador Federation of Labour (NLFL), said the proposed changes, along with other changes to social programs like Old Age Security, are attempts of the Harper government to drive down Canadian workers' standard of living. Payne said, "It'd be really nice if the Harper government actually attacked unemployment instead of unemployed workers, because that's what we got out of this. There's a blame game going on. They're blaming seasonal workers because they work in seasonal industries. They're blaming the unemployed because they've been put out of work, and they're saying, 'By the way, you need to be prepared to take a job that pays you on average 30 per cent less.' And so the end result of all of this, in my opinion, is we're going to see a downward pressure on wages."

Atlantic seasonal workers are also slandered as receiving benefits way out of proportion with other regions. In fact, the EI benefits for all workers (seasonal and non-seasonal) in the Atlantic provinces amount to $2.8 billion a year, which is less than 10 per cent of the more than $30 billion total national cost of the EI program. Besides supporting the livelihoods of an average of 300,000 workers who are unemployed through no fault of their own, this amount also represents a significant federal transfer that supports the entire Atlantic regional economy.

Maritime Politicians Speak Out Against Harper's Attack on EI

Because of the importance of this federal transfer of funds to the region, the EI changes have also been denounced by politicians of all political stripes in the Atlantic Provinces, where workers in fisheries and other seasonal sectors make up a large proportion of the work force. Provincial politicians are denouncing the Harper government for unilaterally abandoning federal support for the goods producing industries in the region.

Newfoundland and Labrador (NL) Premier Kathy Dunderdale made several national and local media appearances immediately after the announcement of the changes by federal Minister of Human Resources and Skills Development (HRSDC) Diane Finley. Dunderdale denounced new regulations on EI claims by seasonal workers as unfairly targeting the people of NL, which is the province with the highest number of workers employed in seasonal fishery work and other seasonal employment.

"There seems to be a real disconnect between what the federal government is trying to achieve and the reality of peoples' lives in rural parts of the country -- particularly here in Newfoundland and Labrador," Dunderdale said.

With a half-million people spread out over a vast, coastal area, she says it just isn't feasible for people to pick up and move to another community to chase work. When the industry closes down because the season has closed then there isn't anywhere to travel to for work.

Dunderdale also denounced the federal government for imposing changes that will have a profound effect on NL without any consultation with the NL government. She said that none of the provincial premiers had been consulted in advance of the announced changes despite the fact that fishery and seasonal workers have been on the table of federal-provincial discussions for many years. When questioned by reporters about Dunderdale's accusation, HRSDC Minister Diane Finley admitted that there had been no consultation with provincial premiers.

Nova Scotia Premier Darrell Dexter and Prince Edward Island Premier Robert Ghiz have also spoken out against the changes to EI and the negative effects they will have on the large numbers of seasonal workers in their provinces and on their overall provincial economies.

Ghiz said the federal government is not taking regional differences into account and "needs to realize that not every province and every jurisdiction is the same. I am asking that they realize that in January in Prince Edward Island we are not growing potatoes and we're not catching lobsters, which are two of our largest industries."

For his part, Dexter said, "These are significant and troubling announcements by a federal government which doesn't seem to really understand what it will mean for those rural communities." He further said that the federal government has a "misunderstanding of rural Canada, which I find astounding."

Universal social programs like EI and Old Age Security need to be enhanced to help ensure the livelihoods of all at a Canadian standard. In this way the interests of individuals and collectives in society can be better harmonized and a path opened for a more humane and democratic society. The potential of universal social programs for evening out regional disparities also needs to be developed not eliminated as the Harper government is trying to do. The money from social programs going into rural areas where a seasonal economy dominates is crucial to support those regional economies and provide opportunities for other developments. The anti-worker, nation-wrecking offensive of the Harperites is dangerous and has to be stopped.

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Courtenay Rally Against Harper Dictatorship's
Omnibus Budget Bill

More than 150 people, workers, seniors and youth, protested outside the Vancouver Island North constituency office of MP John Duncan on June 2. The Conservative MP is the Minister of Aboriginal Affairs and Northern Development. Protestors were opposed the omnibus budget bill, C-38, and demanded that Duncan do his duty to uphold the public interest, especially that of his constituents, and take a stand against the anti-democratic methods of the Harper government and the anti-social content of the bill. Similar actions took place across the country at Conservative MPs' offices.

Speakers included a Department of Fisheries and Oceans' worker (a member of the Public Service Alliance of Canada), a marine biologist and a member of Comox Valley Water Watch, who all spoke about the dangers to the land, water and fish if this bill is passed. The President of the Campbell River, Courtenay and District Labour Council condemned the Harper government's attacks on workers' rights in the public and private sectors and invited everyone to participate in the Town Hall Meetings to discuss Bill C-38 on the initiative of NDP MP Nathan Cullen -- June 12 in Campbell River and June 13 in Courtenay.

Several youth spoke to express their determination to resist the Harper government's attacks on the youth, and called for solidarity with the students, workers and everyone in Quebec who are resisting the Charest government's attacks. Still other workers and activists spoke out to oppose the Raven Coal Mine and provincial government's attempts to muzzle opposition to multinational fish farms whose operations threaten the wild salmon.

Demonstrators marched several blocks to the office of local Liberal MLA Don McRae, to also hold the provincial Liberal government to account for its anti-social activities. The enthusiasm of the protestors' music, chants and the banging of pots was warmly received by passers-by.

At the close of the action, everyone was invited to join in actions against governments which do not serve the public interest and refuse to negotiate but only dictate, and in support of the right to organize and resist including the fight against the Special Law in Quebec. There will be a manif de casseroles Wednesday June 8 at 8:00 pm Cumberland, Courtenay, Comox and Campbell River, as well as many other smaller communities on the north of Vancouver Island.

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Argentina Restricts Monopoly Right

Canadian Mining Interests Openly Interfere in Argentina's Internal Affairs

Canadian mining companies that exploit mineral deposits in Argentina have begun a campaign to denounce the country's government. This open interference in Argentina's internal affairs in concert with the European imperialists appears to be an attempt to prepare and bring about regime change.

The government of Argentina led by President Cristina Fernandez has introduced certain restrictions on mining and other monopolies. Argentine law now stipulates that monopolies must purchase machinery, equipment and supplies from internal producers. Foreign monopolies are also restricted in their removal of profits out of the economy and country. In a broader practice, the government has placed controls over all capital movement into and out of the country. These measures came in response partly to a disruptive flight of capital from the country last year. They are also aimed at the destructive practice of many companies that buy machines, equipment and suppliers from outside Argentina from foreign sources with which they have business connections, and at their refusal to invest profits internally to reproduce their operations or to develop and sustain other sectors of the Argentine economy.


Protest by Central Americans and their allies against Goldcorp, Vancouver, May 2, 2007.

Canadian mining companies, which are broadly connected with U.S. finance capital, are exploiters of Argentina's vast mineral deposits including gold and copper. Mining monopolies admit they have been using revenue from their Argentine mines to finance global takeovers and expansion of operations in other countries. Canadian owner of capital Rob McEwen of McEwen Mining Inc., which is connected with Goldcorp of Vancouver, complained publicly that Argentine restrictions of movement of revenue out of the country "threatens its cash flow" and will delay expansion of his company's El Gallo project in Mexico. Speaking recently about Argentina's measures to restrict monopoly right, McEwen said the company's "ability to internally fund was now in question. To develop El Gallo and build the company without [taking money out of] Argentina, we would have to go back to the market and look for about $150-million."

Canadian mining monopoly Barrick Gold Corp. is also active in Argentina. It controls the Veladero gold mine in northern Argentina as well as Pascua-Lama, the neighbouring gold project that straddles the Andes Mountains with Chile. Another Canadian mining capitalist Geoff Burns of Pan American Silver, which also controls Argentine mines, threatened unspecified actions against the present regime of President Fernandez "until the investment climate clears." Hinting at sponsoring and forcing regime change, he added ominously, "I am confident the environment will improve, I don't know when, but I know it will improve."

These complaints reveal not only the intent of monopoly capital to control the politics of those countries where they invest but also its narrow private aim that does not include the well-being and equilibrium of the economy of the host country or any use of revenue to solve the broader problems facing the people and their socialized economy. The words of the mining capitalists also come in the context of President Fernandez leading the country's renationalization of its largest energy producer YPF SA, removing it from the control of Spanish monopoly Repsol. Formerly a public enterprise, YPF was privatized in 1993 and sold to Repsol in 1999 in the neoliberal frenzy that led to Argentina's economic collapse in 2001. Repsol has been accused of refusing to use its Argentine revenues to reinvest in the Argentine energy sector and of removing from the country value produced by Argentine workers transforming the nation's resources into useable products.

Aided by the monopoly-controlled media in Spain, Repsol has started a hysterical campaign in Europe to vilify the Argentine government and call for regime change. It has also resorted to economic terrorism, cancelling its contract to supply Argentina with liquefied natural gas (LNG). Even though it is blessed with significant energy resources, Argentina at this time relies on LNG imports to meet between 20 and 30 per cent of domestic natural gas consumption. Repsol's hostile moves are coupled with the continuing British imperialist military occupation of Argentina's Malvinas Islands and seizure of nearby underwater oil and gas fields.


"YPF is Argentina's"

Mining and other global monopolies oppose any government restrictions on their operations and their movement of capital and purchasing practices. They are known to use their vast wealth and their political, military and social connections to force governments to conciliate with monopoly right and to politicize their private interests in opposition to public right and public interest. Monopoly right and the politicization of private interests bring disequilibrium and insecurity to the economy.

Argentina is not without international allies in this struggle. In addition to the goodwill and solidarity of the Canadian working class and anti-imperialist activists, neighbouring countries in South America and the Caribbean have expressed support for Argentina's practical politics of restricting monopoly right. A growing movement throughout Latin America is developing momentum to defend public interest in opposition to the narrow private interests of the global monopolies and to uphold the sovereign duty of governments to exercise control over the resources and economy for the good of the people and development of a diverse self-reliant economy.

(Bloomberg, Globe and Mail)

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