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November 7, 2012 - No. 141

Workers Fight Anti-Union Anti-Worker
Attacks of the Rich and Their Governments

Workers Fight Anti-Union Anti-Worker Attacks of the Rich and Their Governments
Legal Opinion Says Private Member's Anti-Union Bill Is Unconstitutional

Quebec
Bombardier Workers in La Pocatière on Strike to Protect Jobs and Improve Retirement
General Cable Workers in Shawinigan Face Gutting of Collective Agreement

U.S. Steel's 3rd Quarter Report and Conference Call
The Necessity for a New Direction for the Economy and Control Over the Decision-Making Process - K.C. Adams


Workers Fight Anti-Union Anti-Worker
Attacks of the Rich and Their Governments

Legal Opinion Says Private Member's
Anti-Union Bill Is Unconstitutional

On October 31, the Union of Quebec Government Professional Employees (SPGQ) received a legal opinion stating that Bill C-377, an Act to amend the Income Tax Act (requirements for labour organizations), is unconstitutional. The author is Alain Barré, a lawyer and professor of labour law in the Department of Industrial Relations at Laval University in Quebec City.

Bill C-377 singles out trade unions for an onerous system of public reporting not required of any other organization or enterprise. It was put forward as a private member's bill by Conservative MP Russ Hiebert on December 5, 2011. It passed a vote at second reading in February with all the Conservatives voting in favour. Bill C-377 is now in the House of Commons Standing Committee on Finance. Among other things, it would force trade unions to report all individual transactions above $5,000 identifying the payee, payer, the purpose and description of the transaction. Disbursements to officers, directors and trustees would have to be reported, with the added disclosure of the percentage of time dedicated to political and lobbying activities. That information would be posted on the Canada Revenue Agency website.

Barré writes: "If Bill C-377 was to be adopted and enforced, it could certainly be declared as being 'of no force or effect' by the Canadian Courts on the basis of Article 52 of the Constitutional Act of 1982: its content is inconsistent with the division of legislative powers that has been established by the Canadian Constitution."

The legal expert argues that the substance of the bill has nothing to do with the Income Tax Act but everything to do with the regulation of trade union activities, a matter which falls within provincial not federal jurisdiction.

"The bill as written is certainly not valid constitutionally because its very substance matter pertains to a field that is under the exclusive jurisdiction of the Canadian provinces," writes Mr. Barré.

The union presented a brief to the Finance Committee in which it argues that the bill, besides being incompatible with the division of powers between the federal and the provincial governments, is redundant because trade unions already disclose the information on their finances. It also points out that the bill is in contradiction with the Charter of Rights and Freedoms. Furthermore, the union states that the additional bureaucracy required to process the unions' financial reports would mean huge costs for the government and contravene its policy of "fiscal restraint." The president of the union called on the members of the Finance Committee to reject the bill.

The SPGQ represents about 23,000 government professionals, including about 16,300 in the public service, 3,800 at the Quebec Revenue Agency and 3,000 in the health and education sectors and various state agencies.

Communications, Energy and Paperworkers Union's Submission on Bill C-377 to House Committee on Finance (Excerpts)

For its part, the Communications, Energy and Paperworkers Union of Canada (CEP) also rejects the bill as legislation that would weaken unions and single them out for additional financial reporting that is not required of similar organizations or employers.

In its recent submission to the House Finance Committee, the CEP points out, "The Bill would allow employers and anti-union groups, at taxpayers' and unions' expense, to get detailed information about a union's spending. This would give them an unprecedented advantage in knowing the current position of the union they are bargaining with. It could provide them with information that would ultimately threaten collective bargaining rights and organizing drives. A similar database set up by the George Bush administration in the United States is used by anti-union businesses to weaken the position of workers.

"Developing the regulations needed to enact legislation forcing unions to publish all expenditures would create new and wasteful public expenditures. For example, many auditors and accountants would be needed to oversee the fillings. It would cost tens, if not hundreds, of millions of dollars for the CRA to compile detailed reports from the 55 national and international labour organizations, with over 25,000 local unions, plus 12 provincial and territorial federations and 130 labour councils.

"The detailed reporting required by Bill C-377 would threaten individual privacy rights. Under the proposed legislation, labour-associated pension and benefit plans (which are not funded by union dues and are not directed by unions) would be required to publicly disclose 'the name and address' and a 'description' of benefits paid to individuals greater than $5,000. This could include personal medical information. According to the CEP Pension Plan Legal Counsel Koskie Minsky LLP:

"'Although the Bill is being brought forth as an amendment to the Income Tax Act, it really has nothing to do with taxation and everything to do with making it harder for unions to operate as a progressive force in Canadian Society. It will inflict considerable collateral damage on pension and benefit funds, even those which have nothing to do with how unions spend their money.'...'This Bill will make it much harder for both unions and benefit plans to operate. The United States Office of Management and Budget estimates that in the US, completing the forms under similar legislation requires approximately 550 hours of work each year for each union. Transparency is an important goal for all unions, but only as it relates to their members. Unions and pension funds should be transparent to their members and beneficiaries, but there is no justification for requiring total public disclosure of the minutiae of how money is spent, nor is there any reason for the profound invasion of privacy that will result if Bill C-377 passes.' (Koskie Minskie LLP, Pension and Benefits Report, Fall 2012 Edition)

"The proposed Bill and the proposed amendments are inadequate to protect the privacy of individuals. Usually, the disclosure of taxation information under the Income Tax Act is treated as confidential, but Bill C-377 would make all information openly accessible. By forcing unions to detail any payments over $5,000 made to a legal firm, Bill C-377 threatens lawyer-client privilege. We believe the collection of such information is an intrusion into the private lives of Canadian citizens.

"This Bill is discriminatory. There are over 90,000 organizations categorized by the CRA as nonprofit.

"Yet, the Conservative government is not requiring other professional associations that collect fees or dues from their members, such as the Canadian Medical Association or Law Societies, to follow the terms of Bill C-377. The Canadian Labour Congress writes: 'There is not a single organization in Canada -- not a single publically traded company, not one of the 85,917 charities registered with CRA, nor one of the estimated 90,000 non-profit organizations with the exception of labour organizations, that will be required to make confidential detailed information publically available in the way this bill demands of unions.' Proponents have justified this Bill with the argument that unions are subsidized by taxpayers because union members are able to deduct their dues from their taxable income. This assertion is simply not true. The same section of the Income Tax Act that allows for the deduction of union dues also allows any taxpayer who is a member of a professional association, like those mentioned above (Medical Association or Law Societies) to also deduct their professional dues. [...]

"The bill demands that unions segregate 'the percentage of time dedicated to political activities and to lobbying activities.' This is extremely difficult to do. A union representative might help with bargaining in the morning, walk a picket line in the afternoon and speak at a forum criticizing back-to-work legislation in the evening. What proportion of this would be lobbying or political activities? This element of Bill C-377 is an attack against the 1991 Lavigne Supreme Court decision, which protects unions' right to engage in political activity without restriction."

CEP represents some 110,000 workers across the country in forestry, energy, telecommunications, media and other sectors.

(Quotations from Alain Barré translated from original French by TML.)

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Quebec

Bombardier Workers in La Pocatière on Strike to
Protect Jobs and Improve Retirement


La Pocatière, November 1, 2012

The Bombardier workers in La Pocatière went on strike November 1, after 39 sessions of bargaining in which the company refused to seriously negotiate with them and even to table a global offer. The collective agreement expired on September 30, 2011. The workers, who build subway cars, are members of the Syndicat des employés de Bombardier de La Pocatière. They are picketing 24/7 and calling on the workers of the Lower Saint-Lawrence region of Eastern Quebec to take up as their own this fight in defence of manufacturing jobs with decent working conditions.

The main issues for the workers are subcontracting and the improvement of wages and retirement conditions. The workers decided to go on strike after two days of bargaining in front of the government-appointed conciliator on October 30-31 where the Bombardier representatives tabled offers on some issues that are inferior to what is in the present collective agreement. Prior to this, on October 27, the workers voted 95 per cent of a strike to pressure the company to negotiate seriously on the basis of their demands and concerns.

The workers underscore the need to limiting the use of subcontracting, which is rapidly reducing their numbers, even faster than the technological changes. In 2006 there were more than 1,000 production workers at the plant and now about 330 are left. Bombardier is subcontracting the work at La Pocatière not just to outside companies, but also within its private empire by moving work to its other facilities in Canada, the U.S. and Mexico. It does this without explanation or regard to the effects on the workers and their communities.

This wrecking of manufacturing is justified by the neo-liberal dogma that workers are a "cost," not the force which creates all the wealth, and that cutting "costs" is necessary to compete on the global markets. The workers do not accept seeing their livelihoods and that of the region disappear. The plant in La Pocatière is one of the few big manufacturing plants remaining in the region and any reduction in the activity at the plant has a big impact on the entire region.

At present, the workers' concerns about subcontracting are focused on the contract for 468 Montreal subway cars awarded to Bombardier. In 2009, just prior to receiving that contract, Bombardier had invoked the Buy America Act to transfer the part of the production at La Pocatière for the Chicago subway cars to its Plattsburgh, New York facility. The La Pocatière workers reject this self-serving rationale because for years they have been working with parts for U.S. subway cars that are mostly built in the U.S. However, the union decided to avoid costly legal proceedings to challenge Bombardier regarding the Chicago subway cars. Instead, the workers used Bombardier's contract for the Montreal subway cars to negotiate an agreement with the company according to which all the primary parts and the minor and major sub-assemblies of the Montreal cars would be built in La Pocatière. The workers report that the company is blatantly violating this agreement, sending these parts to be built where ever it wants. The union has filed a grievance which will be heard sometime before the end of the year. This makes it even more important for the workers to fight for a new collective agreement that imposes definite limitations on subcontracting so as to do everything possible to preserve the manufacturing jobs in the facility and in the region.

TML wholeheartedly supports the just struggle of the Bombardier workers against the destruction of manufacturing.

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General Cable Workers in Shawinigan Face
Gutting of Collective Agreement

The General Cable workers of the Saint-Maurice plant in Shawinigan are faced with the demands of new employer U.S. monopoly General Cable that amount to the gutting of their collective agreement. The plant was part of Cable Alcan a division of Rio Tinto Alcan until the summer of 2012 when Rio Tinto sold this division to General Cable. U.S. monopoly General Cable is a major producer of communications wire and cable products with 55 manufacturing facilities in 25 countries. The Shawinigan plant produces aluminum rods used in building wires and aluminum utility cables used by Hydro-Quebec to carry hydroelectricity from the power stations to the points of utilization. The 130 production workers at the plant are members of the Syndicat national de l'usine Saint-Maurice.

On September 17, the five-year contract signed with Rio Tinto Alcan expired. When the union presented itself at the first bargaining session, such was the company's arrogance that it blatantly said it did not even consider there was anything to negotiate and that the workers' only choice was to accept its demands for concessions.

"When we sat down at the bargaining table, the representative of General Cable tabled their offer and said that it would be dealt with not point by point but as a whole. The company, he added, needed the whole thing to be accepted by us, and the offer was not negotiable," the union president Steve Dupont told TML. "The company is doing a total restructuring of the plant, he said. 'There is no choice. You have to agree with the whole thing.'"

"They came up with wage cuts in the range of 25-30 per cent according to the jobs the workers do," Dupont told the local press. "If we include the pension funds and benefits they want to take away, I would say that the concessions amount to a monetary value of about 35 per cent [of our wages]. This is crazy."

The current wage scale of regular production workers ranges from $27.02 to $32.86. Other points of the company's demands are on the pension funds and subcontracting.

"Our pension fund was transferred to a trust following the sale of Rio Tinto's cable division to General Cable. That is a major cause of concern for our workers -- what is going to happen to the pension funds? At the moment, it is still a defined benefit pension fund with the same conditions, but at the end of the negotiations it will be registered as a new fund and it is not certain if the company will maintain it as a defined benefit fund or change it to a defined contribution fund. Also in the new offer, the company wants to introduce subcontracting starting with the work of our janitors. At the moment there is no subcontracting at the plant and we want to keep it that way. Of course when you consider the wage cuts they are asking for, we are all going to be treated as contract workers."

The relief workers are also expected to take a wage cut of about 20 per cent. As their job title implies, these workers are assigned work in the plant according to what is required at any given time, for example, replacing workers who are sick. They are the most recently hired workers with the worst working conditions. Besides the demands for concessions, General Cable has also laid off more than 20 relief workers in the last two weeks.

The president of the union told TML that the workers are ready to fight if the company does not back down from its dictate and demands for concessions.

"General Cable does not want this facility to be a bench mark with good working conditions for its other plants. It wants to take us down to the level they brought down the working conditions at their plant in Saint-Jerome," said Dupont. This refers to the bitter struggle the Saint-Jerome workers waged for more than a year in 2008-2009 against General Cable's demands for concessions. The Saint-Jerome workers were able to fend off some of these concessions but overall their working conditions worsened.

"Actually the company's offer to us is even lower than the one they tabled at the beginning of bargaining in Saint-Jerome. We are not going to accept this. Since we were first bought by Rio Tinto until the present takeover by General Cable, our working conditions have continued to worsen. We are determined to put up a fight if the company does not back off. Already our workers are wearing a badge inside the plant to express their support for their bargaining committee and we are going to put more pressure if General Cable does not withdraw its unacceptable demands."

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U.S. Steel's 3rd Quarter Report and Conference Call

The Necessity for a New Direction for the Economy and Control Over the Decision-Making Process

Several features stand out in U.S. Steel's 3rd qt. Report and Conference Call: shameless self-promotion of the executive managers, utter lack of concern for the Canadian steel industry and U.S. Steel workers generally, inability and unwillingness to deal with the economic crisis in ways that overcome the basic contradictions and serve steelworkers, their communities, public interest and society, and absence of desire to investigate the root problems and contradictions of the economy to discover a new direction that opens a path forward.

CEO Surma blames general abstractions for the ongoing crisis in the steel industry and the failure of U.S. steel to reach a rate of return on investment that satisfies the financial oligarchy. In particular, he cites the Chinese steel industry as a big problem for the U.S. steel sector accusing Chinese companies of exporting steel at a loss to themselves. Why Chinese owners of steel production can or would want continually to sell steel at prices where they suffer a loss, Surma does not explain. Nor does he speak to the issue of imperialist trade relations where the private interests of monopolies dominate, which inevitably degenerate into bickering, protectionism and ultimately war for markets, raw materials and spheres of interest. Surma's constant accusations against China and other competitors are designed to line up U.S. steelworkers behind their own monopolies and swallow the line of one monopoly and one nation with workers and owners of capital united in a common cause to defend the private interests of the privileged rich. Surma's constant wailing against China also serves as a smokescreen to divert the gullible from his and other members of the ruling elite's lack of any analysis of the relations of production within the U.S. steel sector and the contradictions plaguing the economy wherein the socialized nature of modern production forms a dialectic with its private ownership and appropriation from which all basic problems emerge.

Obsolete Outlook in Control of U.S. Steel

Surma refuses to investigate and analyze the present reality of the steel industry and its particular concrete conditions and their interrelations. In their multitude, the particular features and categories and their interrelations such as workers, capital, added-value, transferred-value, prices of production, falling rate of return on invested capital, profit, loss, deficits, debts etc reveal progressively more correct abstractions of the whole and its important parts. For example, U.S. Steel steelworkers exist in themselves as a social class within a definite point in history and dialectical social relation with owners of capital. History finds them in a dialectical relationship with owners of steel capital and not just any capital but monopoly capital within the U.S. Empire. Steelworkers are the actual producers of value but within the existing historical and social relations they exercise no control over the decision-making process at U.S. Steel or the socialized economy generally. They are engaged in a constant fight to build their collectives and independent thinking and social and political movement so that they can have a decisive say on their claim on the value they produce, defend their rights within an equilibrium with the owners of steel capital and open a path forward for society. Steelworkers exist within a moment of history and have the potential to influence that history and move it forward to new social relations where they have the capacity to control the decision-making process and direction of the economy.

Surma abstracts steelworkers, as a generalization without their historical context, their dialectical social relation with owners of capital, their role within the U.S. Empire and without any prospect or potential to influence and exercise control over the decision-making process for production and distribution, and renewal of economic life. From his abstraction of steelworkers as a diffuse generalization without essence or context, Surma refuses to acknowledge their dialectical relation with owners of capital and the necessity for equilibrium of the social relation based on recognition of the rights of workers. Surma sees workers as just another material factor of production similar to scrap, which capital purchases from the marketplace and with this capital-centred viewpoint accuses them of being a "cost of production" and not the producers of steel value from which claims for wages, benefits, pensions, taxes and profits are made. His obsolete outlook recognizes only capital and not the rights of the working class. It leads to an abstraction of steelworkers as such, outside their dialectical relations with owners of capital, their historical context within the U.S. Empire and role within the socialized economy as the producers of steel value.

Surma pursues his obsolete outlook of steelworkers as a general abstraction without historical context, dialectical essence or interrelations with an abstraction called China and another called economic cycles. From conclusions based on those general abstractions Surma blames economic difficulties on the "cost" of workers, "unfair Chinese competition," and the unknowable and uncontrollable cyclical marketplace.

Surma creates general abstract notions based on ideas of the economy, relations of production and modern trade learned by rote, not on the world as it presents itself, which is knowable through conscious participation in acts of finding out.

The U.S. imperialist superstructure and its historical crib have taught Surma his ideas of the economy and his general abstractions. They do not arise from conscious participation in acts of finding out but from ideas spun out of ideas to fashion abstractions that serve an intent to preserve the status quo and class privilege of the ruling elite. From his historical crib of U.S. imperialism and its self-serving abstractions, Surma fashions an idealist reality that suits his subjective purpose. He is richly rewarded for his service and praised for being pragmatic. He can denounce workers as a "cost of production," the Chinese as "unfair exporters" and the marketplace as uncontrollable because those abstractions serve his intentions and capacity as a member of the ruling elite working to preserve the wealth and class privilege of the financial oligarchy.

From the imperialist superstructure and historical crib, Surma rejects economic science and the understanding that comes from conscious acts of objective investigation of the economic reality as it exists in all its bits and pieces, contradictions, relations and historical context.

Abstracting absence is the heart of science but this can only be done with conscious participation in acts of finding out without preconceived notions of what the absence may be. For all members of society this demands conscious participation in acts of finding out and opposition to the control of the imperialist superstructure and historical crib, which form a straitjacket on the mind. For a man such as Surma, this would require recognition of the rights of the working class. Instead, he starts from general abstractions that suit his narrow purposes, imposes those abstractions on the reality and has his mignons find particular facts and bits and pieces that support his abstractions. In science, the opposite is the way; abstractions arise after exhausting conscious participation in acts of finding out.

The 3rd quarter Report and Conference Call are full of notions and facts that are torn from their context. Without the context and their interrelation with other facts, their essence remains hidden and the reality of the steel industry at U.S. Steel and in general is obscured. The Report and Conference Call do not reveal any essence of the reality and problems from which abstractions can be postulated. They are devoid of conscious participation in acts of finding out. As such, the Report and Conference Call cannot and do not lead to abstracting absence, which is the heart of science and a necessity in solving economic problems and advancing the people's political, economic and social life.

The arrogance of the ruling elite is such that they declare the world unknowable yet impose their subjective abstractions and leadership on this "unknowable" world. Surma says during the Conference Call, "And like everyone else in the world, I think we're approaching big projects right now with caution and trying to make sure that we have a pretty good view of the world going forward. Quite frankly, we don't. We're not sure what the world is going to bring. The next 3 to 6 months could be important, one way or the other. I hope in a positive way, but we don't know or no one does, as we know. So I think we're -- our CapEx doesn't have -- do not have any major new projects in it. We are looking at iron ore, we're looking at DRI [direct reduced iron -- ed.], all those sorts of things and projects in Tubular, et cetera. But we're maintaining a cautious view right now. I'm not sure where the world is going to go."

Surma does not know and refuses to find out through conscious participation in acts of finding out yet has the arrogance to impose his leadership on the working class and deprive steelworkers of any control over the decision-making process and direction of the economy.

The absence of economic science; the absence of a will to use economic science to find out and to solve problems inevitably leads to paralysis in the face of the situation. Instead of science and a will to solve problems, Surma resorts to general abstractions that come from his historical crib and obsolete outlook and not from an investigation of the world as it presents itself. He denounces the working class and its wages, benefits and pensions as a "cost," which is a gross misrepresentation of the modern reality and insult directed at the actual producers of all value. He decries Chinese steel competition as unfair, which is in essence promotion of dangerous U.S. chauvinism and the private interests of his particular monopoly. His incessant attacks on competing steel mills from China represent a refusal to demand political changes for renewal of international relations on a new basis of equality amongst all nations big and small, respect of sovereignty, and trade based on mutual benefit and cooperation.

Importantly, he uses his subjective preconceived abstractions and legal position as CEO to deprive steelworkers and working people generally of control over the decision-making process not only for his particular monopoly but the steel industry and economy generally. Surma participates with other CEOs and the political elite to block those forces in society who are determined to use science and discover why the U.S. steel industry and economy stumble from one crisis to the next and fix it without preconceived notions, hesitation or servitude towards class privilege, holding high the notion that the actual producers should control the process for making decisions. Surma and other members of the political and economic privileged elite use their power to deprive the actual producers from controlling the decision-making process and renewing the steel industry and economy generally on a modern basis that favours the actual producers and public interest.

The 3rd qt Report and Conference Call reveal the necessity for the working class to step up its efforts to organize itself as the social force that can deprive the ruling elite of its power to deprive the working class of exercising control over the decision-making process and from discovering and implementing a new direction for the economy through conscious participation in acts of finding out.

Conference Call

In an ugly display of self-promotion, various vetted participants during the Conference Call lavished praise on U.S. Steel executive management such as the comments of Michelle Applebaum who says: "First, I want to complement you on the precision of the guidance this quarter..... It's great that you guys really stepped up in here because I think we're all -- I've never seen such a spinning wheel of pricing trends and cost trends in my career before. So speaking for all of us, it's not easy. So the most help you give us is great."

After the smarmy praise, she asks a convoluted question: "It's been 3 years of these kind of crazy 6-week, 6-month [steel price] cycles. A, what can you do -- is there anything to do to fix that...."

Surma replies, "Well, Michelle, it's very hard to do much about the market."

Rather than giving a scientific reply based on a thorough investigation of prices, value and how the problem poses itself in all its particularities, Surma falls back on abstractions learned by rote from the imperialist superstructure and historical crib. For Surma and representatives of the financial oligarchy, his abstractions let him and his executive off the hook for their refusal to solve the problem of the damaging market price fluctuations of steel and its material inputs. Rather than solving any problem, the problems themselves become a rationale for the status quo and refusal to allow others, namely the working class, to solve problems and discover and implement a new direction for the steel industry and economy.

With regards to the serious situation and problems facing the Canadian steel industry and in particular the portion U.S. Steel controls, Surma gives no indication that he even recognizes a problem. The Report and Conference Call make no mention of the fact that U.S. Steel shut down the Hamilton blast furnace in October 2010 and it remains idle.

The only mention of Canada at all is a complaint that U.S. Steel has already recorded a "full valuation allowance on deferred tax assets," which result in "a minimal tax provision or benefit in the fourth quarter, primarily due to the full valuation allowance on deferred tax assets in Canada."

This absence of any concern for the portion of the Canadian steel industry U.S. Steel controls is a sharp reminder that lack of control over the decision-making process marginalizes all those not in positions of political and economic power. In this case, Canadians generally are marginalized from a crucial sector of their economy. Without control over the decision-making process, U.S. Steel executives reduce Canadian steelworkers, Canada's steel industry and economy generally to factors that must serve the U.S. Empire. Not only steelworkers but all Canadians should be concerned with this lack of sovereign control over the economy and absence of power to renew the situation in favour of Canada's steel communities, economy and public interest. The people are duty bound to organize themselves to deprive those forces inside or outside Canada that deprive Canadians of the power to control the decision-making process, solve problems based on science and the public interest and chart a new direction for the economy.

Note: U.S. Steel 3rd Quarter Report and transcript of the Conference Call are available here.

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