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October 3, 2012 - No. 124

Consequences of Monopoly Right for Canadian Food Supply

Governments Must Defend Public Right,
Not Monopoly Right!


Consequences of Monopoly Right for Canadian Food Supply
Governments Must Defend Public Right, Not Monopoly Right! - Peggy Morton
Canada Needs Human-Centred Arrangements for Food Safety - Kyda Maraam
Crisis in the Beef Industry

Together, Let Us Defend the Rights of All!
Alberta Government Sacrifices Health and Safety of Farm Workers to Private Interests - Peggy Askin
Join the Campaign "Safety NOW for Alberta Agricultural Workers"
Support the Fight of Lilydale Workers for their Rights


Consequences of Monopoly Right for Canadian Food Supply

Governments Must Defend Public Right,
Not Monopoly Right!

The closure of the XL meat-packing plant in Brooks, Alberta as a result of Escherichia coli (E. coli) contamination is bringing to the fore the dangerous consequences of the stranglehold of monopolies like XL and Cargill on food safety and the health of Canadians, the meat-packing workers and the farmers who raise beef cattle.

Today, two monopolies, Cargill Foods and XL Packers (Nilsson Brothers), slaughter 90 per cent of Canada's cattle. In Alberta, more than 40 per cent of Canada's cattle is raised and more than 60 per cent of Canada's cattle is slaughtered. XL Lakeside in Brooks and Cargill Meat Solutions in High River together process more than 90 per cent of cattle in the province. Lakeside Packers, owned by the giant U.S. corporation Tyson Foods, was sold to XL Foods owned by Alberta based Nilsson Brothers in 2009. Lakeside XL Foods Inc. is the largest beef processing facility in Canada and employs more that 2,200 workers. It processes more than 4,800 head of cattle a day. The High River plant is owned by the multi-billion dollar U.S.-based Cargill Inc. The National Farmers Union points out that in 1978 there were 17 medium-sized federally inspected beef packing plants in Alberta. Now there are two: Nillson Bros. and Cargill. This concentration of their monopoly position has been encouraged by the Alberta government through handouts and grants to expand their operations.

Nillson Bros. owns an extensive vertically-integrated livestock operation. As well as the Lakeside plant, this includes cattle ranches and feedlots in Alberta, Saskatchewan and Manitoba. Nillson also operates the largest cattle auction mart in Canada, buying cattle not only from western Canada but from eastern Canada and the U.S. It engages in livestock commodity trading, and livestock financing, farm and ranch insurance.

The power of these monopolies can be seen in the fact that it took the Canadian Food Inspection Agency (CFIA) almost a month from the initial discovery of contaminated meat to close the plant. The recall is still growing, meaning product has been on sale for weeks that should have immediately been recalled. Despite the obvious failure of the government to uphold its social responsibilities which amounts to criminal negligence, the federal Agriculture Minister continues to tell Parliament and Canadians that everything is just fine and the system is operating as it should. This begs the question of what kind of interference and use of its prerogative powers the Harper dictatorship has exercised. In addition, it has slashed the CFIA's staff,  restricting the job the CFIA can do. Right before everyone's eyes Canadians can see the consequences of such power in the hands of the very monopolies like Cargill which the Harper government has served by destroying the Canadian Wheat Board.

It also raises the question of what facts XL has hidden from the CFIA. The arrogance of this monopoly lies in the fact that governments permit them to act with impunity. Like a TV show with a mafia boss who has the mayor, the chief prosecutor, the Chief of Police and the jury on his payroll, it is of no use to appeal to the mayor, the chief prosecutor, the Chief of Police or the judge for relief. It is up to Canadians to deprive the monopolies of their power to exercise control over the lives of the workers and beef producers. For her part, Alberta Premier Alison Redford meekly requested XL to cooperate with the CFIA, a request that makes it pretty clear that this is exactly what XL has not been doing.

The concentration of ownership and control of the packing plants and increasingly of the cattle as well by the packing giants is in contradiction with good environmental practices and a safe food supply. The monopolies' goal is to transfer wealth from farmers to themselves, to siphon off as much added-value as they can from farm production and to eventually take over all facets of agriculture, turning former farmers into chattel labour.

Workers at Lakeside XL in Brooks are represented by United Food and Commercial Workers (UFCW) Local 401. They established their union in 2005 after a militant strike. One of the serious problems they face is the line speed up, especially since they often work short-handed. The fact that too many carcasses are being processed too fast was an issue in the 2011 negotiations and the situation has not improved. "It was only a matter of time," UFCW negotiator Tom Hesse told the Calgary Herald. "You can't do that much work in that short a period of time without worker and public safety being compromised."

The increasing concentration of the meat packing industry in the hands of these monopolies is threatening the very existence of the farmers and the livelihood of the workers. Both the Canadian government and provincial governments such as the Alberta government have actively contributed to this anti-Canadian sellout of the industry at the expense of the rights of beef farmers, workers in packing plants and of corporate feed lots, their communities and the Canadian people.

The sale of meat contaminated with E. coli and resulting serious illness show the need for workers to take up their own nation-building project so as to vest sovereignty in the people. Their nation-building project puts the human factor/social consciousness at the centre. Once that is in control of the decision-making in the country, food security and self-sufficiency, food safety, a thriving agricultural sector, the rights and dignity of the workers and good environmental practices can be enforced. The monopolies which have usurped the public authority block the human factor/social consciousness. Farmers and workers are fully capable of solving these problems and ensuring a safe and healthy food supply, good environmental practices, a good livelihood for farmers, and the rights and dignity of the workers. What is lacking is the political power in their hands and this is the challenge facing workers and their allies today.

Note

1. For more information on the major changes to Canada's food safety system enacted by the Harper dictatorship, see "Food Safety Compromised by Cuts and Harmonized Regulations," TML Daily, June 13, 2012 - No. 88.

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Canada Needs Human-Centred 
Arrangements for Food Safety

At this time in Alberta, nine people have been confirmed to be infected with Escherichia coli (E. coli) O157:H7 from contaminated beef products processed at the XL Foods Lakeside plant near Brooks, Alberta. Of course, this reminds one of the Listeria outbreak in 2008, when Maple Leaf Foods was formally investigated by the Canadian Food Inspection Agency (CFIA) and subsequently had its Toronto plant shut down for re-evaluation of food safety procedures. This meant that not only were those who succumbed to listeriosis affected by the outbreak, but also the workers at the plant.

Faced with intense public scrutiny and anger, the Harper government commissioned Sheila Weatherill, former CEO of Capital Health (Edmonton Region) to explore the contributing factors to the Listeria outbreak and to make recommendations on how to avoid a similar outbreak in the future. The Weatherill report made 57 recommendations, mainly regarding the CFIA. Facing widespread public outrage, the Harper government scrambled to implement parts of the Weatherill report, and to appear to be taking action in the public interest. It increased funding to the CFIA for a two-year period only. The CFIA was then hit in 2012 by the Harper dictatorship's assault on public services and the workers who provide them. The CFIA's total staff number actually decreased by 253 workers compared to 2011 numbers, and 57 of those cut are inspection staff.

In 2010, Canada ranked 4th overall out of 17 Organization of Economic Co-Operation and Development countries when compared for Food Safety Performance. However, Canada scored a poor 15th overall in the category of Traceability and Management. Many have criticized the CFIA for making a late response to the E. coli contamination, but this misses the point. It is the Harper government which must be held accountable for withdrawing funding from the department that is directly responsible for inspecting foods and managing possible food-related crises, like the one heavily impacting Albertans and Canadians right now. This indicates that it is the interests of the monopolies which are being served, not the public good. And Canadians want to know whether inspectors and scientists in the CFIA were permitted to carry out their responsibilities or, as has become the norm, they experienced interference and obstruction from the Harper government.

The CFIA is currently drafting an Improved Food Inspection Model. This addresses the reality that changes in the food supply chains have resulted in the industry using third-party verification. Provided that the third-party meets certain requirements, the CFIA may consider these verifications sufficient. All this is in the same vein as the Harper government's newest project called Beyond the Border (BtB), started in September. BtB is another chapter in the story of Canadian and American economic integration. It will operate for one year with a narrow scope. The U.S. Department of Agriculture's Food and Safety Inspection Agency and the CFIA will consider alternative document review protocols as valid at the border, meaning that American inspected fresh meat products can enter and leave both countries, provided one body has claimed to have inspected them. Glaring conflicts of interest are conceivable and have already been manifest. The current E. coli contamination was detected at the U.S. border, meaning that the reduced number of inspectors could have resulted in detection of a pathogen further down the supply chain. Canadian food security and sovereignty are further at risk.

At this time, XL is one of a handful of major meat-processing facilities, an industry worth more than $16 billion and employing more than 40,000 people, with a large number of workers in rural areas of Canada. In Brooks, Alberta, about 2,200 workers have been suffering intermittent work schedules and now no work at all because XL Foods is without a market and, hence, workers are without jobs. Obviously, a suspension of XL Foods' license at Establishment 38 (the Brooks plant) is necessary. XL is fully responsible for this situation while the Harper government has contributed through its anti-social cuts to public services. Local 401 of the United Food and Commercial Workers which represents the workers has been warning that the speed of production is unsafe, but the workers are deprived of decision-making power.

The Lakeside XL plant is the main employer in Brooks and other work will be almost impossible to find. Further, hundreds of temporary foreign workers cannot just go and find another job. Clearly in this situation, XL should be required to continue paying the workers. This could be done by fining XL and using the funds to compensate the workers. XL should also be forced to reduce the line speed to a safe level, determined through good faith negotiations with the workers.

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Crisis in the Beef Industry

Self-sufficiency in food is an important aspect of national sovereignty but this is of no interest to private agri-business. The stranglehold of these agribusiness oligopolies is threatening the entire beef industry in Canada and creating a situation where Canada may soon be a net importer of beef. The closure of the XL plant in Brooks, Alberta as a result of contamination by Escherichia coli (E. coli) is also raising deep concern that the U.S. will use this as a pretext to once again close the border, threatening the whole beef industry which has never recovered from the temporary closure of the U.S. market to Canadian beef following the discovery that one Canadian cow was found to have bovine spongiform encephalopathy (BSE). Canada's net trade balance in beef with the U.S. has declined from $1.4 billion in 2002 before the BSE crisis.

The Canadian beef industry generates more than $6 billion in farm gate sales, contributes more than $26 billion to the Canadian economy, and represents 15 per cent of the value of agricultural production.[1] Yet this important sector remains in crisis. Canada's cow herd has declined by one million head or 20 per cent since 2005. In 2005, 87 per cent of Canada's beef market was supplied domestically but by 2011 that fell to 75 per cent.

In 2010, exports accounted for about 65 per cent of slaughter volume, and 50 per cent of total production. Close to 85 per cent of Canada's beef and cattle export trade is with the U.S. In 2002, prior to the BSE crisis, Canada's beef trade balance with the U.S. was nearly $1.4 billion. In 2011, Canada had a net trade balance in beef of $42 million with the U.S. (excluding beef offal, livers and tongues). But this only reveals a part of what is taking place. Increasingly, Canada is exporting live slaughter and feeder cattle to the U.S. and then importing boxed beef back from the U.S. The U.S. also exports value-added product from Canadian cattle to other countries. This is reflected in the fact that the unit value of Canada's exports to the U.S. is only about 60 per cent of the value of U.S. imports to Canada.

The price for beef exported to the U.S. has also been falling, In 2005, the average value of beef exports to the U.S. was $4.17 per kg and in 2010 it was $3.33.

The crisis in the beef industry puts the lie to the claim that Canada's road to prosperity lies in exporting raw resources. There is an alternative -- the development of a self-reliant economy based on meeting the needs of Canadians and trade for mutual benefit.

Note

1. Canadian Agri-Food Policy Institute. Canada's Beef Food System. Available at: http://www.capi-icpa.ca/pdfs/2012/CAPI_Beef-Food-System_2012.pdf

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Together, Let Us Defend the Rights of All!

Alberta Government Sacrifices Health and Safety of Farm Workers to Private Interests

Opposition is growing in Alberta to the Redford government's refusal to take up its social responsibility to provide the right to safe and healthy conditions for farm workers with a guarantee. Alberta is the only province where farm workers are excluded from occupational health and safety laws. Farm workers are also exempt from legislation governing hours of work, overtime, statutory holidays, vacation pay, and the right to refuse unsafe work. Unless their employer voluntarily covers them under the Workers' Compensation Board, they receive no compensation for workplace injuries. All farm workers are exempted, including those who work on large corporate farms, greenhouse operations and large feedlots. As is the case across the country, migrant farm workers in Alberta are amongst the most vulnerable.

Unions, opposition political parties, such as the NDP and the Liberals, provincial judges, the Alberta Centre for Injury Control and Research Council, and many other social forces and farm workers themselves are demanding that the government act. The Premier herself promised to make changes to workplace legislation to include paid farm workers during the PC leadership campaign, stating, "We have to have farm workers protected." It is one year since that promise and four years since the recommendations of Justice Peter B. Barley, who conducted a Public Fatality Inquiry into the death of farm worker Kevan Chandler.[1]

Justice Barley issued his report in 2008. His main recommendations were:

1. Paid farm workers should be covered under the Alberta Occupational Health and Safety Act (AOHSA) R.S.A. 2000 Ch. 0-2, with the same exemption for family members and other non-paid workers that apply to non-farm employers.

2. Stricter safety measures be put in place to protect farm workers, e.g., the use of written hazard assessment forms when an activity known to be dangerous is undertaken.

3. The Department of Agriculture should set up training programs to address ways to minimize the risk of hazardous activities.

At that time the inquiry heard from a representative of Alberta Employment and Immigration who stated that farming operations were exempt from the Occupational Health and Safety Act (OHSA) because this was what the employers wanted. In light of this, what are farm workers and their allies to make of Alison Redford's statement that: "I've made a commitment. What we're going to do is continue to do that work to ensure that we get everyone's input, and when the time is right, we'll do it." Most likely it means she is asking corporations such as Nilsson Brothers and Cargill if they would like workers in their feedlots and other operations to have WCB coverage and to be covered under the AOHSA?

The declaration that she will act "when the time is right" underlines the contempt of a government in the service of the monopolies for the rights of farm workers, including their right to live. Sixteen people were killed working on farms in Alberta in 2011 and 22 in 2010. According to recently released figures, 355 Albertans have been killed and 678 seriously injured in farm accidents over the last thirty years. The harvest of death on farms in Alberta and Canada must be dealt with as an urgent matter, whether the loss of life and the often debilitating injuries take place on small farms or corporate farms. It is the responsibility of government to provide the right to health and safety with a guarantee for all members of the society. "When the time is right" means the same life-threatening status quo for farm workers.

In the face of this terrible harvest of death, the government is actively trying to bury the link between the lack of health and safety regulations for farm workers and the horrendous level of farm workers' deaths. Information was released via a government website this August revealing that the province had decided to stop reporting the number and nature of farm deaths. Death and injury prevention requires knowledge of the frequency and nature of the incidents, not a cover-up of Alberta's deplorable lack of workplace protection for farm workers.

The director of the Alberta Centre for Injury Control and Research has stated that his group's advice to a government-appointed committee that the province impose health and safety regulations on farms, like every other jurisdiction in the country, was ignored. "Our input was based on the science but it wasn't listened to," University of Alberta epidemiologist Don Vaklander told the Calgary Herald. "These corporate farms, large feedlots and custom haying operations are not different than businesses that are drilling for oil or fixing your car." Not only does this show that this government refuses to provide the legal protection and enforcement needed to save lives and prevent injuries, it also brings up the issue of "Who Decides?" and the need for Albertans and Canadians to exercise control over all aspects of economic and political life. It shows the necessity to build a political movement that will give the people the means to replace this arrogant, anti-worker, government and develop their own human-centred alternative.

Note

1. Kevan Chandler was working on a feedlot in High River, south of Calgary in June 2006 when he died. He was cleaning out grain encrusted on the inside of a silo at feedlot when the grain collapsed and smothered him.

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Join the Campaign "Safety NOW for
Alberta Agricultural Workers"

The United Food and Commecial Workers' Union (UFCW) is known for defending health and safety particularly for migrant farm workers across the country. On their national website, www.ufcw.ca they feature a section called "Safety NOW for Alberta Agriculture Workers," which provides information on the lack of protection for agricultural workers in Alberta and encouraging people to send a message to Premier Alison Redford.[1]

On September 26, 2012, UFCW released a video and spoke with CBC Calgary about the conditions migrant farm workers are facing in Alberta. The video was made in 2010 but just released to prevent repercussions for the workers involved.

In the commentary accompanying the video, UFCW representative Devin Yeager reported on the situation of 17 Guatemalan migrant workers who lived in a cramped, mouldy three-bedroom home in a southern Alberta farming community. The house had multiple bunk beds, mattresses in the attic and carpets and open insulation with mould and an unventilated bathroom. Housing is arranged by the large agricultural operations that hire workers from Central and Latin America.

Yeager made the point in his commentary that, "It's not an attack on all farmers that hire farm workers. [... O]ur focus is on the large farms that are hiring massive amounts of workers and housing them in barracks-style [accommodations] or ... housing them in cramped spaces like this." Currently, the federal government requires a housing inspection before a company hires temporary foreign workers but a further point Yeager made was that there should be frequent follow-up inspections and a limit on the number of workers living in one house.

More than 2,400 migrant workers harvested crops in Alberta last year.

Note

1. To send a message to Premier Redford, click here.

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Support the Fight of Lilydale Workers for their Rights

United Food and Commercial Workers Local 1118 from the Lilydale poultry processing plant in Edmonton have been on strike since August 27. They have shut down all production at the plant and are standing strong after five weeks on the picket line defending their rights and dignity. The main demands of the workers are parity with the Calgary plant and an increase in guaranteed hours. Workers are guaranteed only 30 hours a week in slow periods and 36 hours during busy periods, and are demanding an increase to 72 hours guaranteed over a 14-day period. Workers at the Edmonton plant receive $1.28 an hour less than those at the Calgary plant. Many of the workers have been there for 20 to 30 years or more. Senior production workers are paid $17.50 an hour. As the workers pointed out, this in no way reflects the hard work and difficult conditions or what they require to take care of their families.

Lilydale is owned by Sofina Foods Inc., a private, Canadian company which operates 11 manufacturing facilities in Canada and one in the U.S., with more than 3,000 employees. This year alone it has taken over three companies: Janes Family Foods, Santa Maria Foods and Fearmans Pork. In 2010 Sofina acquired Lilydale, originally established as an Alberta farmers' cooperative. Lilydale processes fresh, frozen and fully-cooked chicken and turkey products as well as deli meats, sausages and turkey bacon.

Since Sofina took over the plant, it has cut the number of workers and increased the intensity of the work. There are now just over 200 workers at the plant, down from close to 400. The plant now only processes turkeys and large fowl, which makes the work even harder because of the greater weight. The speed of the line has increased -- for example the tray pack line now moves at a speed of 40 trays per minute, an increase from 35. If the machine breaks down or there are workers absent, the workers are expected to work even faster so that there is no slowdown in the line speed. The workers are determined not to allow the company to grab an ever-increasing share of the wealth they produce and to which the workers have a first claim by right.

Sofina refuses to even engage in good faith bargaining to address the just demands of the workers. After the workers rejected Sofina's "best and final offer," the company agreed to meet on August 21. But when the union arrived for the meeting, the company simply refused to meet with them. Since that time Sofina has refused to meet and resume negotiations, leaving the workers no choice but to withdraw their labour. The company responded to the strike notice with a notice of lockout.

One month later on September 21, Sofina informed the union that it's "best and final offer" presented on August 13 stands and that the company is willing to hear back from the union at any time. Local 1118 representative John Ventura responded that this was the first time the union had been so advised, as the "final offer" clearly stated that in the event of a strike or lockout the offer is revoked. This shows the utter refusal of the company to recognize the just demands of the workers and engage in good faith bargaining to resolve the strike.

Support the Lilydale workers by joining them on the picket line! While there is no production at the Edmonton plant, it is still shipping frozen product. The union will also be providing information on which products are on the boycott list and calling on people to boycott all products from the Edmonton plant.

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